TITANIUM SANDS LIMITED — Share Issue/Capital Change 2005

Nov 2, 2005

ABN 65 009 131 533

3 November 2005

Company Announcements Office Australian Stock Exchange Limited Exchange Plaza Sherwood Court PERTH WA 6000

Dear Sir/Madam

LISTED OPTIONS EXPIRING 1 DECEMBER 2005

Please find attached Notice to Option holders to be dispatched today.

Yours sincerely PRECIOUS METALS AUSTRALIA LIMITED

MIKE DREW Chief Financial Officer

Level 1, 30 Richardson Street West Perth Western Australia 6005 PO Box 620, West Perth WA Australia 6872 Telephone: +61 8 9423 1900 Fax: +61 8 9423 1999 Email: info@pmal.com.au Web: www.pmal.com.au

PRECIOUS METALS AUSTRALIA LIMITED ABN 65 009 131 533

3 November 2005

Holder ID: Number of Options Held: < UNITS>

Dear Option Holder

Precious Metals Australia Limited - Listed Options Expiring 1 December 2005

You are registered as a holder of listed options in Precious Metals Australia Limited (PMA) which are due to expire on 1 December 2005. In accordance with the Listing Rules of the Australian Stock Exchange (ASX) we provide the following information in respect to your options:

• Ĩ. The number of options you hold in PMA is shown above.
• $\overline{2}$ . Last date for exercise of options is 1 December 2005.
• $\overline{3}$ . Exercise price per option is \$2.00
• $4₁$ The options allow the holder to acquire one fully paid ordinary share in PMA for each option held at an exercise price of \$2.00 per share.
• 1. These options are listed on the ASX as (PMAOB) we advise that the last date for quotation of the options on the ASX will be 24 November 2005, which is 5 days before the final conversion date.
• 1. If you do not exercise your options before the expiry date they will lapse, and cannot be exercised after that time.
• 1. The highest and lowest prices for PMA share and PMAOB options over the last three months (2 August to 1 November 2005) are shown below:

ASX Code	Highest price	Date	Lowest price	Date
PMA	\$1.65	30/09/05	\$0.556	02/08/05
PMAOB	\$0.08	30/09/05	\$0.002	27/10/05

Level 1, 30 Richardson Street West Perth Western Australia 6005 PO Box 620, West Perth Western Australia 6872 Telephone: +61 8 9423 1900 Facsimile: +61 8 9423 1999

• 1. The closing price of PMA shares on the ASX on 1 November was \$1.29 per share, and of PMAOB options was \$0.002.
• 1. In the even that you do wish to exercise your options the payment (calculated by the options to be exercised $x$ \$2.00 each) together with the option exercise form should be received at the registered office of PMA not later than 4.00pm 1 December 2005.
• 1. There is no underwriting agreement in place with respect to the options.
• 1. The address for correspondence is the registered office Level 1, 30 Richardson Street, West Perth WA 6005.

In making a decision about wether to exercise your options Holders are advised to consider all of the information, regarding the company including, but not limited to the current price of PMA shares when compared to the exercise price of the options. If you are in doubt about what to do in respect of your options in PMA, please contact your stockbroker, accountant or financial advisor.

Current information regarding PMA can be obtained from our web site www.pmal.com.au

Yours sincerely PRECIOUS METALS AUSTRALIA LIMITED

MIKE DREW Chief Financial Officer

PRECIOUS METALS AUSTRALIA LIMITED ABN 65 009 131 533

NOTICE OF EXERCISE OF OPTIONS

The Secretary Precious Metals Australia Limited $P()$ Box 620 WEST PERTH WA 6872

I/We
Ω€

being a option holder /(s) of Precious Metals Australia Limited (Company) hereby advise that we wish to exercise options as detailed below

Number of Options	Exercise price	Amount Payable
	\$2.00

Cheque Details

Bank	Drawer	Amount
		Ψ

Signature(s)

In making a decision about wether to exercise your options Holders are advised to consider all of the information, regarding the company including, but not limited to the current price of PMA shares when compared to the exercise price of the options. If you are in doubt about what to do in respect of your options in PMA, please contact your stockbroker, accountant or financial advisor.

Current information regarding PMA can be obtained from our web site www.pmal.com.au