TITANIUM SANDS LIMITED — Interim / Quarterly Report 2003

Oct 30, 2003

PRECIOUS METALS AUSTRALIA LIMITED WORKING CAPITAL REPORT 30 SEPTEMBER 2003

31 October 2003

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

Dear Sir

REPORTING REQUIREMENTS

We enclose the Quarterly Report for the period ended 30 September 2003 and the 5B Report for the same period. The Working Capital Report as at 30 September 2003 is as follows:

Working Capital Position Report as at 30 September 2003

Current Assets
Cash at Bank	81,062
Receivables	59,687
Investments	150,000
Total Current Assets	290,749
Current Liabilities
Payables	72,309
Provisions	63,950
Total Current Liabilities	136,259
Working Capital	154,490 S
Loans payable (Note 3)	850,000 \$

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. These amounts are not included in 'Receivables' above.
• 2) The current overhead expenses of the Company continue at the rate of approximately \$10,000 per month.
• 3) Loans The Company has agreements in place to defer the settlement of these loan accounts until its next general meeting of shareholders, 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.

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