Titanium Corporation Inc. quarterly update

    Conference call scheduled for 10:00am EST on Tuesday, December 11, 2007

    TORONTO, Dec. 10 /CNW/ - Titanium Corporation Inc. (TSX.V:TIC) (the
"Company") is pleased to provide an update on the progress of its oil sands
tailings project following the filing of its quarterly and annual financial
statements for the year ended August 31, 2007.
    The past year culminated more than two years of process design, testing
and on-site piloting. The results include a new expanded opportunity to
integrate bitumen and heavy mineral recovery from mined oil sands tailings as
well as some new challenges. Processing fresh tailings has proven complex and
is taking more time than originally anticipated. After an extensive review of
these results, the Company reports as follows:

    -  Recovery of minerals and bitumen from tailings goes hand-in-hand due
       to technical and economic factors
    -  Our concentrator technology achieved high levels of mineral recovery
       during the on-site pilot
    -  Zircon and high grade leucoxene are the primary valuable minerals in
       the concentrate
    -  Further removal of bitumen from minerals is required for effective
       mineral separation processing
    -  The base technology needs to be enhanced and new technology developed
       to recover more bitumen from the tailings stream

    The Company's operations during fiscal 2007 focused on mineral
concentration, bitumen removal and recovery and mineral separation as
discussed below.
    Mineral Concentration: Utilizing bulk sample material from the prior
year's on-site program, the Company designed a pilot mineral concentrator
which was deployed at the oil sands site in the first quarter of fiscal 2007. 
The pilot concentrator achieved heavy mineral recoveries, as a concentrate, of
between 98 and 99 per cent from the tailings stream. The $3 million program
was completed on time and within budget.

    Bitumen Removal and Recovery: Froth treatment tailings from mined oil
sands extraction processes generally contain bitumen losses in the range of
3 % of the total bitumen mined. Bitumen adheres to the mineral sands and is
also present in the finer sand fraction throughout the tailings stream. The
pilot concentrator was designed to remove bitumen from the heavy minerals and
a separation vessel was utilized to collect the bitumen and solvent mixture.
It has been determined that the removal of a fine coating of bitumen is
necessary for effective minerals processing. Work is underway aimed at
improving the removal of bitumen during the concentration stage, reducing
solvent usage, recovering solvent, and separating and recovering bitumen from
the tailings stream. The Company has engaged industry experts including the
Alberta based research unit of CANMET Energy Technology Centre "CANMET" to
assist with the necessary research and development work.

    Mineral Separation: Heavy mineral concentrates from the on-site program
were transported to the Company's Regina facilities for analysis and zircon
separation testing during fiscal 2007. Technical analysis and market testing
during 2007 indicate that the oil sands mineral suite is comprised of two
grades of zircon: standard grade zircon which is typically supplied to the
ceramics industry; and a lower grade of zircon utilized by the zircon
chemicals industry. Zircon testing to-date indicates a potential for
recoveries of approximately 55,000 tonnes per year of the two grades of zircon
at current oil sands production levels at the test site. Work is ongoing to
increase recovery levels and grades. Potential markets for high grade
leucoxene is also being investigated. This high grade product represents a
potential of approximately 20,000 tonnes per year at current oil sands
production levels at the test site.

    Markets: In the prior year, the Company had announced a strategy to focus
on zircon recovery due to strong worldwide demand and pricing. The zircon
market remains strong, growing and has attractive pricing. Zircon sand prices
doubled in value over 2 to 3 years reaching approximately US$800 per tonne
where they remained stable during 2007. We expect that worldwide demand will
continue to be robust, particularly in China, and that the supply situation
will continue to be tight. In contrast, markets for titanium minerals are not
prospective. Prices for varying grades of titanium minerals are well below
US$100 per tonne. The significant decline in value of the US dollar in local
currencies has also negatively impacted the minerals industry. Titanium
mineral markets have been oversupplied. As well, a number of expansions and
new projects are coming on stream and are under development. Accordingly, we
continue to focus on zircon and high grade leucoxene. The Company has been
active in Asia working with relationship partners and potential industrial
consumers, market testing zircon and leucoxene product samples.

    Outlook for Fiscal 2008: The Company's oil sands tailings project has
progressed to an integrated project to develop technology to recover both
bitumen and minerals directly from fresh oil sands tailings. The recovery of a
portion of the bitumen currently lost in these tailings streams represents an
expanded opportunity with the potential for environmental and economic
benefits. In management's view, the potential market for tailings processing
is significant with three major oil sands mining sites currently in operation,
one to be commissioned in 2008, and several others planned for the ensuing
    Over the next 18 to 24 months, the Company plans to execute programs
directed at developing integrated processes for bitumen and mineral recovery.
These programs will be conducted in stages and it is anticipated that the work
will initially focus on laboratory and bench scale activity, later advancing
to pilot operations. Additional work on minerals will also occur, with a view
to improving the quality of lower grade zircon and evaluating upgrading
processes and potential for downstream value added processing.
    The Company plans to assess and pursue all available options to resolve
the technical areas outlined above. The Company is in the process of:
partnering with expert research organizations; adding oil specialists to the
organization; working with Government to gain support in areas of research and
potential funding; and executing a staged research program with milestones.
The Company is also investigating new business opportunities that would
leverage its expertise and assets, expand activities and diversify risk.
    Titanium Corporation continues to maintain a strong balance sheet with a
cash position of $20 million at the end of the quarter, no debt and expenses
controlled to budget.
    Titanium Corporation's financial statements and MD& A for the fourth
fiscal quarter of 2007 are available on SEDAR at www.sedar.com and on Titanium
Corporation's website at www.titaniumcorporation.com.

    Titanium Corporation Inc. will host an update conference call at 10:00 am
Toronto/NewYork time (EST) on December 11, 2007. The North American toll-free
conference call dial-in number is 1-866-585-6398 and the international dial-in
is 416-849-9626. A live audio webcast of the conference call will be available
to all interested parties through Titanium Corporation's website
www.titaniumcorporation.com or through investorcalendar.com. A replay of the
conference call will be available until December 25, 2007; toll free dial-in
at 1-866-245-6755 and local/international dial-in at 416-915-1035, passcode
number 251915.

    About Titanium Corporation
    Titanium Corporation Inc. is a Canadian company developing a commercial
process to maximize the inherent value existing in the waste material
currently being deposited in oil sands tailings in the Fort McMurray,
Athabasca oil sands region. Through extensive research, including the
construction and operation of pilot processing facilities, the Company is
developing technology to integrate the recovery of heavy minerals and bitumen
from mined oil sands tailings. Titanium Corporation's technology could be
applied to existing and planned mined oil sands projects with the objective of
creating a new sustainable industry for Canada. Titanium Corporation Inc.
shares trade on the Toronto Venture Exchange (TSX.V) under the symbol TIC. For
more information, please visit our website www.titaniumcorporation.com.

    Disclosure regarding forward-looking information

    This press release contains forward-looking statements that are based on
the company's current expectations and estimates. Forward-looking statements
are frequently characterized by words such as "plan", "predict", "expect",
"project", "intend", "believe", "anticipate", "estimate", and other similar
words or statements that certain events or conditions "may" or "will" occur,
and include, without limitation, statements regarding the recovery of heavy
minerals and the Company's ability to extract heavy minerals from tailings in
the future. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements. Any forward-looking statement
speaks only as of the date on which it is made and, except as may be required
by applicable securities laws, the company disclaims any intent or obligation
to update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Forward-looking statements
are not guarantees of future performance and accordingly undue reliance should
not be put on such statements due to the inherent uncertainty therein.
    We also direct you to our risks and uncertainties statements more
particularly described and updated in Titanium Corporation's Quarterly
Management's Discussion and Analysis filed for the year ended August 31, 2007,
on SEDAR (www.sedar.com). Most notably these risks and assumptions include,
but are not limited to: changes in the markets and the worldwide price of
zircon and titanium; risks associated with future plans and objectives;
operating or technical difficulties in connection with development activities;
and development time lines and priorities. 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:

For further information: Scott Nelson, President & CEO, Titanium
Corporation Inc., (403) 561-0439, E-mail: snelson@titaniumcorporation.com;
Carolyn Muir, Investor Relations, Titanium Corporation Inc., (416) 955-0715 X
224, cmuir@titaniumcorporation.com

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