TITANIUM SANDS LIMITED — Interim / Quarterly Report 2003

Dec 10, 2003

PRECIOUS METALS AUSTRALIA LIMITED $(PMA)$

AUSTRALIAN STOCK EXCHANGE LIMITED ANNOUNCEMENT

11 December 2003

Company Announcement Office Australian Stock Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6005

Dear Sir

MONTHLY REPORTING REQUIREMENTS - NOVEMBER 2003

Please find enclosed Appendix 5B monthly report for November 2003 and we also report the Working Capital Position as at 30 November 2003

Current Assets
Cash at Bank Receivables Investments	129,257 425,292 106,000
Total Current Assets	660,549
Current Liabilities
Payables Provisions	1,456,460 63,554
Total Current Liabilities	1,520,014
	\$ (859, 465)
Add back
Deferred Settlement (Note 1) Loans payable (Note 2)	92,715 850,000
Total Adjustments	942,715
Working Capital	\$ 83,250

The attached Notes 1-3 form part of this Report

PRECIOUS METALS AUSTRALIA LIMITED (PMA)

AUSTRALIAN STOCK EXCHANGE LIMITED ANNOUNCEMENT

NOTES

• 1) The Company is in receipt of a minimum annual royalty of \$500,000 per annum payable quarterly. An instalment of \$125,000 was received on 30 September 2003 and the next instalment of \$125,000 is due on 1 January 2004. The next instalment is not included in 'Receivables' above. However, included in 'Payables' is an amount of \$92.715 for deferred settlement terms in relation to Fluor Daniel, which by agreement is to be netted off against the next royalty receivable.
• 2) Loans The Company has agreements in place to defer the settlement of these loan accounts until its next general meeting of shareholders on 15 December 2003, whereby the Company will seek approval from shareholders to make certain placements of shares in order to settle the outstanding loan accounts associated with the former directors Mr R J H Smith and Mr A K McKee, and to provide working capital for the Company.
• 3) The current normal overhead expenses of the Company continue at the rate of approximately \$10,000 per month.

Yours faithfully

A C Pilmer Company Secretary Precious Metals Australia Limited Level 2 44 Ord Street WEST PERTH WA 6005

Telephone: 08-9322 1788 Facsimile: 08-9322 1744

Rule 5.3

Appendix 5B

Mining exploration entity monthly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

PRECIOUS METALS AUSTRALIA LIMITED

ABN

65 009 131 533

Month ended ("current month")

Year to date

$(5$ months)

NOVEMBER 2003

Current month

\$A'000

Consolidated statement of cash flows

Cash flows related to operating activities

			\$A'000
1.1	Receipts from product sales and related debtors	-	250
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(1)	(2)
	(d) administration	(12)	(267)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	1	47
1.5	Interest and other costs of finance paid		(22)
1.6	Income taxes paid
1.7	Other
	Net Operating Cash Flows	(12)	6
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a)prospects
	(b)equity investments
	(c) other fixed assets
1.9	Proceeds from sale of: (a)prospects
	(b) equity investments (c) other fixed assets	44	44 5
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	44	49
1.13	Total operating and investing cash flows (carried forward)	32	55

$\div$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	32	55
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other
	Net financing cash flows
	Net increase (decrease) in cash held	32	55
1.20 1.21	Cash at beginning of month/year to date Exchange rate adjustments to item 1.20	97	74
1.22	Cash at end of month	129.	129

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current month \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	NIL
1.24	Aggregate amount of loans to the parties included in item 1.10	NIL

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$N/A$

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

⁺ See chapter 19 for defined terms.

Financing facilities available
Add notes as necessary for an understanding of the position.

		1 Amount available SA'000	Amount used \$A'000
-3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next month

	Total	NIL
4.2	Development
4.1	Exploration and evaluation	\$A'000

Reconciliation of cash

	Reconciliation of cash at the end of the month (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current month \$A'000	Previous month \$A'000
5.1	Cash on hand and at bank	129	81
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of month (item 1.22)	129	8.

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of month	Interest at end of month
6.1	Interests in mining tenements relinquished, reduced or lapsed	N/A
6.2	Interests in mining tenements acquired or increased	N/A

$\overline{\text{+ See chapter 19}}$ for defined terms.

Issued and quoted securities at end of current month
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference securities (description)
$7.2\,$	Changes during month (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	+ Ordinary securities	15,854,855	15,854,855
7.4	Changes during month (a) Increases through issues (b) Decreases through returns of capital, buy- backs
7.5	+ Convertible debt securities (description)	NIL
7.6	Changes during month (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	12,896,334	12,896,334	Exercise price \$2.00	Expiry date 1 December 2005
7.8	Issued during month
7.9	Exercised during month
7.10	Expired during month
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

$\div$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to $\overline{ASX}$ (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

...................................... Sign here: (Director/Company secretary)

Print name: A C PILMER

$\overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}}$

$\div$ See chapter 19 for defined terms.