TITANIUM SANDS LIMITED — Interim / Quarterly Report 2004

Feb 25, 2004

المساحة $\sim 1$

PRECIOUS METALS AUSTRALIA LIMITED & SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION As at 31 January 2004

	Note	Amended Pro forma January 2004 S	As lodged Unaudited January 2004 5
Current Assets		747,675	747,675
Cash	4	250,411	50,411
Receivables Investments		95,000	95,000
Total Current Assets		1,093,086	893,086
Non-Current Assets		3,318	3,318
Property, plant and equipment		2,000,000	2,000,000
Windimurra royalty
Total Non-Current Assets		2,003,318	2,003,318
Total Assets		3,096,404	2,896,404
Current Liabilities		480,564	480,564
Payables	5	5,000	65,000
Provisions
Total Current Liabilities		485,564	545,564
Non-Current Liabilities
Payables
Total Liabilities		485,564	545,564
Net Assets		2,610,840	2,350,840
Shareholders' Equity
Contributed Equity		49,561,192	49,561,192
Option premium reserve		3,965,772	3,965.772
Accumulated losses at 30 June 2003		(51, 414, 322)	(51, 414, 322)
Profit for 7 months to 31 January 2004	4,5	498,198	238,198
Total Shareholders' Equity		2,610,840	2,350,840

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PRECIOUS METALS AUSTRALIA LIMITED & SUBSIDIARIES WORKING CAPITAL POSITION As at 31 January 2004

	Note	Current 31 January 2004 s	As lodged 31 January 2004 S
Current Assets Cul.		747,675	747,675
Reccivables	4	250,411	50,411
Investments		95,000	95,000
Total Current Assets		1,093,086	893,086
Current Liabilities
Payables		480,564	480,564
Provisions	5	5,000	65,000
Total Current Liabilities		485,564	545,564
		607,522	347,522
Add back:
Deferred Settlement	2		92.715
Available Working Capital		607,522	440,237

NOTES TO THE PRO FORMA STATEMENT OF FINANCIAL POSITION As at 31 January 2004

Actual and proposed transactions adjusting the 31 January 2004 unaudited lodged consolidated statement of financial position to the amended pro-forma consolidated statement of financial position are as follows:

• 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 8 January 2004 and the next instalment of \$125,000 is due on 1 April 2004.
• 2) Included in payables is an amount of \$92,715 for deferred settlement due on I January 2005. This has been included in the current working capital statement as is considered to be a current liability.
• 3) Also included in "payables" is an amount of \$370,098 accrued for stamp duty assessment received in December 2002 which is subject to an objection lodged in February 2003. The ultimate amount due could be considerably less than this accrual if the objection is successful in whole or in part.
• 4) The Company announced on 7 January 2004 that it had reached an agreement with Chameleon Mining NL to sell its retained interest in Palm Springs Gold Mine for a total consideration of \$220,000. A deposit of \$20,000 has been received and the remaining consideration of \$200,000 has been recorded as a receivable in the proforma statement of financial performance.
• 5) The provision for rehabilitation of Palm Springs of S60,000 has been written back, as this responsibility has been taken over by Chameleon Resources NL.

$1\degree$ 26, FEB 2004 $\degree$ 8:43 $\mathbf{r}$

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UPERA

Yours faithfully

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Earl of Wariwck Chairman of Directors Precious Metals Australia Limited

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