+ data and comments +, page-3

re: + annual report-extract + 1. Prospective Mining and Exploration.

Page 4:
"The past year has seen Titan Resources make excellent
progress in the Widgiemooltha area and we believe our
studies will show that we can be in production in the
coming year with conventional underground mining of
high grade nickel ore from Armstrong for delivery to the
Kambalda mill".

Page 6:
"Targets.
The result of this data review was a thirty per cent increase in the Inferred and Indicated Resources, with the aggregate tonnage of contained nickel increasing to 106,185 tonnes within 10.2 million tonnes of mineralisation at an average grade of 1.04 per cent nickel in three separate deposits:

These were Armstrong (formerly Moore) with 16,960 tonnes of nickel in sulphide form (plus 8,000 tonnes as oxide);
Zabel (formerly 384N) with 19,000 tonnes as sulphide and
McEwen (formerly 360N) with 62,170 tonnes.

Details are shown in Table 1. The modelling of the deposits clearly indicated the presence of high-grade, massive sulphide cores in both the Armstrong and Zabel deposits, while the large-tonnage McEwen body appeared to consist primarily of more disseminated mineralisation".

Referring to the recent acquisition of prime prospective nickel properties:

"The areas acquired represent some of the prime nickel
exploration ground in the world, with the targets being
relatively small, high-grade ore deposits, with an
‘in-built’ custom ore-milling facility and an immediate
market nearby.

This unique situation facilitates relatively simple, minimal-cost mine development, ideally suited for small and mid-sized companies".
_________________________________________
2. BIOHEAP TM Process Development.
TIR has discovered a method which in pilot trials was far more economic to use than the present one: the introduction of bacteria to do the job.

It is meant to be aplied to heaps of ore with low nickel values, ie <1%.

If this system works on a large scale then there are unlimited quantities of nickel ore to be trated. All producing countries have large quantities of this low grade quality.

Page 14:
"Pilot field trials at the Radio Hill mine site on the
Mt Sholl nickel/copper/cobalt ore were successfully
completed during the year, after which a detailed
examination of the results was undertaken to produce
comprehensive assessment on the performance of
the trials.
The major conclusions were:
• The practical application of Titan’s proprietary bacterial strain to the oxidation and dissolution (leaching) of base metal sulphide (nickel/copper/cobalt) ores is easily achieved.
• Operational process parameters have been identified
and their use in a commercial operation defined for
monitoring and control.
• Leaching recoveries from the two trial heaps ranged
between 86 - 91% nickel, 88 - 89% cobalt and
52 - 65% copper".

Page 15:
Salt Tolerant Bacteria.
Titan Resources NL has developed saline tolerant bacterial strains to be used with high chloride water. So far the bacterial strains have been successfully trialed on watersources with a chloride content of 90 g/l and total dissolved solids content of 189 g/l; approximately six times the salinity of seawater. High salt tolerant bacterial strains have been developed for the leaching of all base metals (nickel, copper, cobalt, zinc) and gold sulphide ores)".

Page 16:
"Should the mining and BioHeapTM studies prove favourable, it is the company’s intention to carry out pilot-scale field tests in 2004, in preparation for a full feasibility study, in preparation for a commercial BioHeapTM nickel production venture at that location.

The study will include mining, metallurgical and marketing investigation and is intended to be a template for future operations".

During March, the Jinchuan Nickel Group hosted a four-man delegation from Titan Resources NL. Jinchuan confirmed its support and commitment to the BioHeapTM process and a Memorandum of Understanding was signed to jointly promote the process to other nickel and base metal deposits within China.

Following the agreement, Jinchuan have introduced Titan to a group of large nickel sulphide deposits near the city of Hami, in a remote area, 1850 km west-north-west of Beijing and 850 km north-west of Jinchuan.

A Titan metallurgist visited the area in March this year, in company with Jinchuan personnel, to assess the suitability of these deposits to the BioHeapTM treatment route. Samples were selected and have subsequently been received in Perth for
preliminary testing".

Page 17:
Zinc.

"Column testing of a sample of primary sulphide zinc ore
from a long-established zinc mine in Australia has been in progress for several months and is showing very good
results. This test will continue throughout the rest of the year in order to confirm the adaptability of the BioHeapTM process for zinc recovery".

Copper:
"One of the column leaches of a sample received from South America has been completed and gave excellent results. The leach gave a total of 87 per cent copper recovery in 275 days, with a total acid consumption of 24 kg per tonne.

Testing of other samples from the Americas and Mongolia are progressing well with very good recoveries in quite a short time-frame. The full results from these tests are expected later this year".

Chalcopyrite:
"The testing of chalcopyrite ores from different regions
throughout the world started during the year in review. The testing so far has given very encouraging results and plans are in place to ensure that the process can be brought into commercial production in the shortest time frame possible".
_____________

Comment.
This leaching process using bacteria is more environment friendly and its implication if it works, is huge: TIR will have managed to extend the world's inventories of nickel, copper and zinc.

No effort is being spared in bringing this testing of various types of ore containing the same metal to a success.

Gerry