TITANIUM SANDS LIMITED — Interim / Quarterly Report 2007

Jul 26, 2007

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

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

Name of entity

	Precious Metals Australia	Precious Metals Australia	Limited	Limited
	ABN 65 009 131 533 Consolidated statement of cash flows
			June 2007
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) care & maintenance costs (b) head office administration & overheads (c) site administration costs (d) marketing activities 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter A$000’s		Year to date (12 months) A$000’s
		- (33) (417) (1,548) (261) - 1,449 (53) - -		- (383) (2,730) (2,981) (885) - 3,755 (60) - -
		(863)		(3,284)
Cash flows related to investing activities 1.8 Payment for: (a) prospects (b) development & construction of Windimurra Vanadium project (c) other fixed assets (head office) 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- (16,472) (19) - - - - -		(204) (36,822) (178) - - - - -
		(16,491)		(37,204)
		(17,354)		(40,488)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(17,354)	(40,488)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	975 - 2,285 - - -	64,361 - 2,971 - - -
	3,260	67,332
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(14,093) 81,357 -	26,844 40,419 -
	67,263	67,263

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		1,425
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Directors fees and salaries and termination payment $1,414,000 Directors superannuation contributions$11,000

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 None.

• 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 None.

• See chapter 19 for defined terms.

Appendix 5B Page 2

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	8,202	-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development & construction of Windimurra Vanadium Project	$A’000
	150
	40,000
Total	40,150

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	13,187	7,949
5.2 Deposits at call	50,219	69,551
5.3 Bank overdraft	-	-
5.4 Other (Deposit for Bond Facility)	3,857	3,857
Total: cash at end of quarter(item 1.22)	67,263	81,357

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
		None
		None

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

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 7.2	Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	None	None	N/A	N/A
7.3 7.4	+Ordinary securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs & adjustments	102,625,094	102,625,094	Fully Paid	Fully Paid
		650,000	650,000	150	150
7.5 7.6	+Convertible debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	None	None	N/A	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

7.7 Options Employee Options (PMAAS) Employee Options (PMAAU) Employee Options (PMAAW) Employee Options (PMAAY) Employee Options (PMAAZ) (PMAAZ) (PMAAZ) (PMAAZ) (PMAAZ) Employee Options (PMA21) (PMA21) (PMA21) (PMA21) (PMA21) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	Total number 100,000 100,000 100,000 125,000 125,000 125,000 250,000 125,000 125,000 125,000 100,000 125,000 250,000 100,000	Number quoted 0 0 0 0 0 0 0 0 0 0 0 0 0 0	Exercise price (cents) 175 200 260 260 150 170 220 195 280 300 280 220 220 300	Expiry date 28 May 2011 28 August 2011 3 September 2009 3 September 2009 26 September 2009 26 September 2009 26 September 2011 30 November 2009 3 December 2009 3 March 2010 13 January 2010 28 February 2010 26 March 2012 13 May 2010
	862,500	862,500	various	various
	650,000	650,000	150	17 June 2007
	200,000	200,000	175 200	17 May 2007
7.11 Debentures (totals only)	None	None	N/A N/A
7.12 Unsecured notes(totals only)	None	None	N/A N/A

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 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 ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: ....27 July 2007. (Company secretary)

Print name: Matthew Lilly

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• See chapter 19 for defined terms.

Appendix 5B Page 6

30/9/2001