TITANIUM SANDS LIMITED — Interim / Quarterly Report 2004

Feb 11, 2004

PRECIOUS METALS AUSTRALIA LIMITED $(PMA)$

AUSTRALIAN STOCK EXCHANGE LIMITED ANNOUNCEMENT

12 February 2004

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

Dear Sir

MONTHLY REPORTING REQUIREMENTS - JANUARY 2004

Please find enclosed Appendix 5B monthly report for January 2004 and we also report the Working Capital Position as at 31 January 2004.

Current Assets
Cash at Bank	747,675
Receivables	50,411
Investments	95,000
Total Current Assets	893,086
Current Liabilities
Payables (Notes 2 & 3)	480,564
Provisions	65,000
Total Current Liabilities	545,564
	347,522 S.
Add back
Deferred Settlement (Note 1)	92,715
Available Working Capital (Note 4)	\$ 440,237

The attached Notes 1-4 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 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 1 January 2005.
• 3) Also included in 'Payables' is an amount of \$370,098 accrued for a stamp duty assessment received in December 2002 which is subject to an objection lodged in February 2003. The ultimate amount due could be materially 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 in principle, with Chameleon Mining NL, to sell its retained interest in the Palm Springs Gold Mine for a total consideration of \$220,000. A \$20,000 deposit has been received and is non-refundable. However, the Company has not, at this stage, included in 'Receivables' the \$200,000 balance of consideration until such time as a formal contract has been completed.

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

${\bf A}{\bf B}{\bf N}$

$\frac{1}{1}$

65 009 131 533

Month ended ("current month")
JANUARY 2004

Year to date

(7 months)

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	125	375
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(14)	(42)
	(d) administration	(66)	(189)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	3	51
1.5	Interest and other costs of finance paid		(24)
1.6	Taxes paid		(10)
1.7	Legal settlements and costs	(93)	(287)
	Net Operating Cash Flows	(45)	(126)
	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		5
	(b) equity investments (c) other fixed assets	16	78 5
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Proceeds account transferred to cash at bank		370
	Net investing cash flows	16	458
1.13	Total operating and investing cash flows (carried forward)	(29)	332.

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(29)	332
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	300	1,200
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings		(850)
1.18	Dividends paid
1.19	New shares listing fees	(8)	(8)
	Net financing cash flows	292	342
	Net increase (decrease) in cash held	263	674
1,20 1.21	Cash at beginning of month/year to date Exchange rate adjustments to item 1.20	485	74
1.22	Cash at end of month	748	748

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 SA'000
1.23	Aggregate amount of payments to the parties included in item 1.2	67
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

Administration and secretarial services (6 months)	ħ١
Directors' Fees

Non-cash financing and investing activities

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

$N/A$

$\frac{1}{1}$

Details of outlays made by other entities to establish or increase their share in projects in which the $2.2$ 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.

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

Estimated cash outflows for next month

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

Reconciliation of cash

$\frac{1}{1}$

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	748	485
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of month (item 1.22)	748	485

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

⁺ 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
7.2	(description) Changes during month
	(a) Increases through issues (b) Decreases
	through returns of capital, buy- backs,
7.3	redemptions *Ordinary
	securities	32,997,712	32,997,712*
7.4	Changes during month
	(a) Increases through issues (b) Decreases	4,285,714	4,285,714 *	$7.0$ cents	$7.0$ cents
	through returns of capital, buy-
	backs
7.5	*Convertible
	debt securities (description)
7.6	Changes during
	month (a) Increases
	through issues
	(b) Decreases through
	securities
	matured,
7.7	converted Options			Exercise price	Expiry date
	(description and conversion	12,896,334	12,896,334 *	\$2.00	1 December 2005
7.8	factor) Issued during
	month
7.9	Exercised during month
7.10	Expired during month
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

* Listed Securities are currently suspended from quotation

⁺ See chapter 19 for defined terms.

Compliance statement

• This statement has been prepared under accounting policies which comply with $\mathbf{I}$ accounting standards as defined in the Corporations Act or other standards acceptable to 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

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$\div$ See chapter 19 for defined terms.