TITANIUM SANDS LIMITED — Interim / Quarterly Report 2007

Jan 29, 2007

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 Limited

ABN

65 009 131 533

Quarter ended ("current quarter")

December 2006

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities			(3 months)
		A\$000's	A\$000's
1.1	Receipts from product sales and related debtors
1.2	Payments for
	(a) exploration and evaluation	(15)	(26)
	(b) development	(2,557)	(4,656)
	(c) care & maintenance costs	(120)	(256)
	(d) administration	(689)	(1,285)
1.3	Dividends received
1,4	Interest and other items of a similar nature		1,467
	received	736
1.5	Interest and other costs of finance paid		(1)
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(2,645)	(4, 757)
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a)prospects	(19)	(41)
	(b) equity investments
	(c) other fixed assets	(1,088)	(2,966)
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	(1,107)	(3,007)
1.13	operating and investing cash flows Total (carried forward)	(3.752)	(7.764)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(3,752)	(7,764)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	36,110	36,110
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)	(5)	(5)
	Net financing cash flows	36,105	36,105
	Net increase (decrease) in cash held	32,353	28,341
1.20	Cash at beginning of quarter/year to date	36,408	40,420
1.21	Exchange rate adjustments to item $1.20$
1.22	Cash at end of quarter	68,761	68,761

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 quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	189
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions Directors fees and salaries $$173,750$ Directors superannuation contributions $$15,638$

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.

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	$\sim$
3.2	Credit standby arrangements	8.202

Estimated cash outflows for next quarter

	Total	21,000
4.2	Purchases of property plant and equipment	4,000
4.1	Exploration and evaluation & development	SA'000 17,000

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter SA'000	Previous quarter SA'000
Cash on hand and at bank 5.1		15,901	8,608
5.2	Deposits at call	49,003	24,003
5.3	Bank overdraft	$\blacksquare$
5.4 Other (Deposit for Bond Facility)		3,8,57	3.797
	Total: cash at end of quarter (item 1.22)	68,761	36,408

Changes in interests in mining tenements

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

⁺ See chapter 19 for defined terms.

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	price per Issue security (see note	Amount paid up per security (see note 3)
7.1	Preference + securities (description)	None	None	$3)$ (cents) $\rm N/A$	(cents) N/A
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	+Ordinary securities	86,848,493	86,848,493	Fully Paid	Fully Paid
7.4	Changes during quarter (a) Increases through issues	11,328,064 500,000 100,000 100,000 100,000	11,328,064 500,000 100,000 100,000 100,000	195 15 130 140 175	195 15 130 140 175
	(b) Decreases through returns of capital, buy- backs
7.5	+Convertible debt securities (description)	None	None	N/A	N/A
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

⁺ See chapter 19 for defined terms.

7.7	Options	Total number	Number quoted	Exercise price	Expiry date
				(cents)
	Employee	100,000	0	130	28 August 2010
	Options
	(PMAAK)
	Employee	100,000	$\boldsymbol{0}$	140	28 February 2011
	Options
	(PMAAO)
	Employee	100,000	$\mathbb O$	175	28 May 2011
	Options
	(PMAAS)
	Employee	100,000	0	200	28 August 2011
	Options
	(PMAAU)
	Employee Options	100,000	0	260	13 September 2009
	(PMAAW)
	Employee	125,000	$\pmb 0$	260	3 September 2009
	Options
	(PMAAY)
	Employee
	Options
	(PMAAZ)	125,000	0	150	26 September 2009
	(PMAAZ)	125,000	0	170	26 September 2009
	(PMAAZ)	325,000	0	150	26 September 2011
	(PMAAZ)	250,000	0	220	26 September 2011 30 November 2009
	(PMAAZ) (PMAAZ)	125,000 162,500	0 0	195 150	30 November 2011
	(PMAAZ)	125,000	0	280	3 December 2009
7.8	Issued during	412,500	$\overline{0}$	Various	Various
	quarter			150 to 280	30 Nov 2009 to
7.9	Exercised during	500,000	500,000	15	30 Nov 2011 29 Nov 2007
	quarter	100,000	100,000	130	30 Nov 2006
		100,000	100,000	140	30 Nov 2006
		100,000	100,000	175	30 Nov 2006
7.10	Expired during	None	None	N/A	N/A
7.11	quarter Debentures
	(totals only)	None	None	$\mathrm{N/A}$	N/A
7.12	Unsecured	None	None	${\rm N/A}$	$\rm N/A$
	notes (totals
	only)

$\ddot{\phantom{a}}$

⁺ See chapter 19 for defined terms.

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).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

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

Print name: . . . . . . . . . . . . . . . . . . .

Notes

• $\mathbf{1}$ 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.
• $\overline{2}$ 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.