Titanium Corporation Reports Fourth Quarter and Fiscal Year End August 31, 2012 Results

Titanium Corporation Inc. (the "Company") (TSX VENTURE:TIC) today released
financial results for the fourth quarter and fiscal year ended August 31, 2012. 


The Company continues to make progress with all stakeholders despite challenging
conditions in the oil sands industry. Government and industry reviews aimed at
implementation of the Company's technology and associated fiscal programs are
progressing well but the pace has been influenced by energy market conditions
resulting in the industry reevaluating expansion plans and budgets. 


The fourth quarter marked a number of significant milestones including the award
of a key patent which protects the Company's intellectual property, inclusion of
the Company's technology in the oil sands industry's technology roadmap and more
recently, the award of additional Grant funding by the Canadian Government. The
Company believes that an environment of increased cost sensitivity supports the
adoption of its technology because of its efficiency and economic benefits. The
Company also believes that in a period of heightened focus on the social license
to operate, the substantial environmental benefits that its technology offers
will be attractive to both the industry and Government. 


HIGHLIGHTS:



--  In November, 2012 the Canadian Government awarded a further $1.4 million
    Sustainable Development Technology Canada ("SDTC") Grant to support the
    Company's programs. This brings to $6.3 million the level of Grant
    funding from SDTC in addition to $3.5 million of Grant funding from the
    Government of Alberta. The Alberta and Canadian Governments are
    providing valuable support, funding and advice to the Company's
    commercialization program. 
    
--  In August, 2012 the Canadian Oil Sands Innovation Alliance ("COSIA")
    announced its Technology Roadmap and Action Plan. The Company's
    technologies have been included in this comprehensive review and have
    been ranked in the top 20 technologies identified by COSIA. 
    
--  The Company announced that a key patent has been issued and other
    patents are at advanced stages of issuance. A patent for the removal of
    bitumen from heavy mineral concentrates, Canadian Patent No. 2,693.879
    (Moran et al) has been issued by the Canadian Patent Office. 
    
--  Following successful testing programs during the year, a minerals
    program is underway to produce larger samples for customer testing. A
    larger volume paraffinic tailings program will commence in November.
    These programs will be conducted in Australia and at CanmetENERGY in
    Alberta respectively, with Government funding and industry support. 
    
--  The Company is encouraged by stakeholder progress on steps necessary to
    move forward with technology implementation. The Alberta Government is
    developing fiscal programs for the recovery of resources from oil sands
    waste streams and an oil sands operator is finalizing an engineering
    review.  
    
--  The size, complexity and risks associated with large projects warrants
    the Company aligning with strategic partners. Over the past year, the
    Company has developed relationships with strategic partners who bring
    operational, marketing and financing resources. 



Scott Nelson, the Company's President and Chief Executive Officer said, "This
quarter saw tangible progress in meeting our goals. Gaining broad industry COSIA
endorsement, additional Government funding and achieving patent awards are key
steps on the path to commercializing our technology. While disappointed with
delays, we are confident the significant economic and environmental benefits our
technology offers will compel industry and Government to move forward." 


FINANCIAL OVERVIEW 

Net loss for the fiscal year ended August 31, 2012 was $2.9 million compared to
$10.5 million for the same period in fiscal 2011. The decrease in the loss
relates primarily to the reduction in R&D spending to $0.9 million for the year
ended August 31, 2012 from $6.6 million for the year ended August 31, 2011 which
included operation of the demonstration pilot. Lower stock based compensation
expense in the current year, a recovery of $0.1 million as compared to an
expense of $2.7 million in the prior fiscal year, also contributed to the
decreased loss. In the fourth quarter, net loss decreased to $0.5 million for
the three month period ended August 31, 2012 compared to a loss of $1.7 million
for the three month period ended August 31, 2011. The decrease in net loss
relates primarily to the reduction in research and development costs in the
current quarter as compared with the prior year's quarter. 


Research & Development - R&D expenditures for the quarter and year ended August
31, 2012 were $0.1 million and $0.9 million respectively compared to $0.9
million and $6.5 million in the same periods for fiscal 2011. R&D expenditures
decreased by $5.7 million over the comparable fiscal period as the pilot was
decommissioned in May of 2011 and other projects were substantially completed.


General & Administrative - G&A expenses for the quarter and year ended August
31, 2012 were $0.4 million and $2.2 million respectively compared with $0.9
million and $4.1 million in the same periods for fiscal 2011. The reduction in
G&A expenditures for the quarter and the year ended August 31, 2012 is related
to the reduction in stock based compensation expense associated with the
granting of 75,000 options in fiscal 2012 compared to 3,150,000 options in
fiscal 2011.


Cash & Interest income - The Company's cash position at August 31, 2012 was $8.4
million compared to $12.0 million at August 31, 2011, the difference being used
to fund the Company's general and administrative expenses and R&D activities.
Interest income decreased during the quarter and the fiscal year due to lower
cash balances through the fiscal year. 


To view the Company's Management Discussion and Analysis and Financial
Statements for the quarter ended August 31, 2012, please visit our website at
www.titaniumcorporation.com or SEDAR at www.sedar.com. 


About Titanium Corporation Inc.

Titanium Corporation Inc. is developing technology to recover heavy minerals and
bitumen contained in the waste tailings streams from oil sands mining operations
near Fort McMurray, Alberta. The potential benefits from this "Creating Value
from Waste (TM)" proposition are twofold. First, the recovered bitumen and
minerals will have intrinsic value and will provide shareholders with a source
of revenue. Second, by using an integrated approach to recovering minerals and
bitumen, there is potential for industry-wide environmental benefit. The
Company's shares trade on the TSX-V under the symbol "TIC". For more information
visit the Company's website at www.titaniumcorporation.com.


Disclosure regarding forward-looking statements

Certain statements contained herein regarding the Company and its plans
constitute "forward-looking statements" within the meaning of Canadian
securities laws. By their nature, forward-looking statements require the Company
to make assumptions and are subject to inherent risks and uncertainties. There
is a significant risk that predictions, forecasts, conclusions, projections, and
other forward-looking statements will not prove to be accurate. We direct you to
our statement of risks and uncertainties more particularly described and updated
in the Company's Management Discussion and Analysis filed for the period ended
August 31, 2012 on SEDAR (www.sedar.com). Most notably these risks include, but
are not limited to risks associated with the advancement of research programs
including operational or technical difficulties in connection with research
activities; development timeline delays and problems, including unforeseen
development costs; reliance on a small number of people, access to and cost of
tailings, competition and intellectual property protection and changes to
environmental laws and regulations, access to capital on acceptable terms or at
all. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Titanium Corporation Inc.
Scott Nelson
President & CEO
(403) 561-0439
snelson@titaniumcorporation.com


Titanium Corporation Inc.
Andreas Curkovic
Investor Relations
(416) 577-9927
acurkovic@titaniumcorporation.com
www.titaniumcorporation.com
Titanium (TSXV:TIC)
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