TORONTO: Titanium Corporation Inc. (TSX-V:TIC) is pleased to announce its 2006 program with a focus on the production of zircon in the first phase of commercial development. In light of the strength of zircon markets and the opportunity this represents, the Company is evaluating entering the zircon markets sooner, thereby reducing development costs and providing earlier cash flow. In this regard, Titanium Corporation plans to initially conduct an on-site 2006 pilot program involving a mineral concentrator facility designed to assess the recovery of heavy minerals from the oil sands tailings pipeline along with the recovery of hydrocarbons associated with the minerals recovery process. The mineral concentrator facility will be constructed in Australia and shipped to Fort McMurray, Alberta, for commissioning during the Summer of 2006. In addition, the Company's existing Bulk Sampling facility, which operated on-site in 2005, will be an integral part of this program. Inclusive of operating costs, the pilot program is expected to cost approximately CAD $3 million.
Subsequently, Titanium Corporation intends to commence the first phase of commercial development, focusing on the production of zircon. This decision was made after continual evaluation of heavy minerals markets and development options. The commercial zircon facility would be constructed in place of the previously planned Phase 1 demonstration plant.
Global demand for zircon continues to outpace supply, driven by new demand from China and other Asian countries, particularly in the ceramics industry. In contrast, the market for titanium chloride feedstock (the raw material to produce titanium dioxide "TiO2" pigment) is currently in balance. Pricing for chloride feedstock remains static and this market is likely to become increasingly competitive in the near term due to recently announced new projects. Therefore, Titanium Corporation is examining other uses for its titanium-bearing minerals and the appropriate timing of market entry. This removes the need to generate large industrial-sized titanium mineral samples - the primary reason for the demonstration plant.
Titanium Corporation Inc. will host a conference call about these announcements at 9 am Toronto/New York time (EDT) on Thursday April 27, 2006. The toll-free conference call dial-in number to participate is 1-888-603-6873 and the toll/international dial-in number is 1-973-582-2706. A replay of the conference call will be available from 6:15pm EDT on April 27, 2006 until midnight EDT on May 4, 2006; toll-free at 1-877-519-4471 and toll/international at 1-973-341-3080, replay Pin Number 7332881.
About Titanium Corporation
Titanium Corporation Inc. is a Toronto-based mineral development company whose shares are listed on the TSX Venture Exchange under the symbol "TIC", U.S. clearing symbol "TITUF", CUSIP Number: 88833T104. The Company's mission is to become the first titanium and zircon sand producer from Canada's oil sands. Through extensive research, including the construction and successful operation of a pilot facility, the Company has developed proprietary technology to recover valuable titanium-bearing minerals and zircon from oil sands tailings. For more information, please visit www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations which are based on assumptions and are subject to a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These risks and uncertainties are more particularly described on page 24 in the Risk Factors section of Titanium Corporation's Annual Information Form which was filed on SEDAR (www.sedar.com) January 18, 2005, as updated by the Corporation's Annual and Quarterly Management's Discussion and Analysis. Most notably these risks and assumptions include risks associated with the market price of zircon and titanium products, costs of construction and operation of facilities, and assumptions about construction, timing and delivery. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
For further information:
Carolyn Muir, Investor Relations
(416) 955-0715 X 224
Scott Nelson, President & CEO
George Elliott, Chairman
(416) 955-0715 X 222
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