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Titanium Resources (SRX)

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Wednesday 21 December, 2005

Titanium Resources

Acquisition

Titanium Resources Group Ltd
21 December 2005


  Titanium Resources Group ('TRG' or 'the Group') to Acquire Rotifunk Mineral
                 Sands Prospect in Sierra Leone for US$120,000

21 December, 2005: TRG announces that it has entered into an agreement with
Gondwana (Investments) S.A. ('Gondwana') to acquire the Rotifunk mineral sands
prospect located in Sierra Leone for a consideration of US$120,000 cash payable
on completion, subject to satisfactory due diligence by TRG.   Gondwana is a
private company which is wholly owned by Mr. Jean Raymond Boulle. Mr. Boulle is
a related party and holds a 43.6% interest in TRG.  The purchase price
represents Mr. Boulle's approximate expenditures on the Rotifunk mineral sands
prospect over the period 2002-2005.  Although not required by the AIM Rules
since this proposed acquisition represents less than 5% of any of the AIM class
tests, the Directors have consulted with TRG's nominated adviser and consider
the terms of the transaction to be fair and reasonable as far as TRG's
shareholders are concerned.

The Rotifunk mineral sands prospect is the second largest known mineral sands
deposit in Sierra Leone (after TRG's Sierra Rutile mine).  It is located 65 km
southeast of Freetown and lies approximately 40 km northwest of the Sierra
Rutile mine.  Records of work undertaken by both Bayer-Preussag and Hazcare have
provided inferred mineral resource estimates of 207 million tonnes at 0.49%
rutile and 163 million tonnes at 0.48% rutile, respectively.  Exploration work
undertaken in 2003-2004 by Gondwana has identified 170 million tonnes of
inferred mineral resource at 0.70% rutile, 0.84% ilmenite and 0.06% zircon.

Following acquisition of the Rotifunk prospect, TRG will evaluate its potential
to further augment Sierra Rutile's projected production levels. Selective mining
of high grade areas combined with maximum utilisation of existing process
infrastructure at Sierra Rutile will form the focus of investigations into the
most effective means of economically mining this prospect.

Walter Kansteiner, Chairman of TRG, said:

'Today's announcement underlines an element of the Group's stated strategy, set
out at the time of our IPO in August this year, to identify new resources and
evaluate potential opportunities for acquisition of further mineral properties
in Africa.  The Rotifunk prospect represents a low cost resource acquisition
opportunity for TRG and a possible supplement to the Group's main operations at
the nearby Sierra Rutile mine.  If the prospect is deemed viable following
further evaluation by TRG, it could represent a further source of production for
the Group.'

                                      Ends
For further information

TRG
Walter Kansteiner, Chairman
Tel: +44 (0) 207 321 0000

Aura Financial
Michael Oke
Andy Mills
Tel: +44 (0) 207 321 0000

This press release has been issued by TRG and is the sole responsibility of the
company. This press release does not contain or constitute an offer or
invitation to purchase or subscribe for any securities of TRG and should not be
relied on in connection with any decision to purchase or subscribe for any such
securities.

The securities referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933 and may not be offered or sold in the United
States absent registration under the Securities Act or an available exemption
from it.


Notes to Editors

Titanium Resources Group

Titanium Resources is the holding company of a group of companies that are
engaged in the mining, marketing and exploration of mineral resources. The Group
owns two mining operations in the Republic of Sierra Leone - the Sierra Rutile
Project and the SML Bauxite Project. Both mines operated for over 15 years until
operations were suspended in 1995.  The projects accounted for 75 per cent of
the exports of Sierra Leone.

The Sierra Rutile Project will employ conventional dredging and processing
methods to produce mineral sands in the southwest of Sierra Leone, where its
production previously represented approximately 30 per cent of the world's
annual supply of natural rutile. Natural rutile is a high titanium-bearing
feedstock employed in the manufacture of titanium dioxide (TiO2) pigments that
are used in paint, plastics, paper and pharmaceuticals and the production of
titanium metal and welding rods.

In close proximity to the Sierra Rutile mine is the SML Bauxite Project which
successfully mined bauxite in the Mokanji area for over 30 years prior to the
suspension of operations in 1995. Bauxite from the SML bauxite mine is premium
grade metallurgical bauxite which is the primary feedstock used in the
production of aluminium.

Both projects will employ proven mining and processing techniques and were
profitable operations in the past. Rutile and bauxite from this region are both
recognised for their high quality. The Group plans to restart operations at each
mine in the first quarter of 2006.


                      This information is provided by RNS
            The company news service from the London Stock Exchange