SOURCE: Titan Resources International Inc.

November 07, 2007 08:58 ET

Titan Resources International Inc.: The Silver Lining

TORONTO--(Marketwire - November 7, 2007) - Titan Resources International Inc. (PINKSHEETS: TNRI) (FRANKFURT: 36T1)

To understand what we are attempting to do with the Silver Centre Property, you have to try to understand some of the fundamentals that drive the demand and supply relationships within the silver markets.

While we cannot address all of the mitigating circumstances and influences that affect the silver market, we can attempt to better educate and inform our existing shareholders, possibly attracting new ones. We have put together a brief overview of some of the main factors to consider when looking at the possibility of investing in silver, and the silver mining industry.

Take into account that overall global demand for silver continues to outpace supply.

The top uses for silver worldwide continue to be Industrial applications and fabrications, jewelry and photography, respectively.

Most of the world's silver production comes as the result of secondary recovery (silver is recovered secondarily, as the result of mining for other primary minerals, usually gold).

Peru is the largest producer of silver in the world, followed closely by Mexico and China. Canada ranks in the top 10 for global silver production.

Most of the world's silver is found in low grade, easily accessible ore. There are relatively few "High Grade" silver deposits, and even fewer silver mines that mine for silver as their primary metal.

And then there is the relationship that exists between silver and gold, and currency fluctuations.

"The question is simple yet potentially vexing to silver investors. Gold has now closed above $800 for the first time since January 17th, 1980. One may naturally ask what the price of silver was at that time and the answer would be $40. When investors demand silver as a dollar hedge, you can't just press a key on your computer and a 1000 oz bar of silver appears out of the ether. No it first has to be discovered, dug out deep from the ground, refined to 99.9% purity and then poured into investment grade bars which are shipped to warehouses. This is obviously not a trivial matter and hence firmly puts a supply bottleneck on silver availability. The result is a faster rising price of silver."

Some recent developments in the world of silver:

-- Oct 1st: Polymetal, the world's fifth-biggest silver miner, saw
   its silver production in the first half of 2007 slip to 7.9 million
   ounces from 8.5 million ounces in the same period last year.

-- Sept 28th: Mexican silver output for July dropped 10.6% against June, to
   231,314 kg.

-- Sept 26th: Grupo Mexico, suffering from strikes at some of its Mexican
   mines, said it would close its Taxco silver and lead operation because
   of labour problems and dwindling reserves.

-- Sept 25th: China's imports of silver in the eight months to end-August
   rose 63% compared with the same period last year, reaching 3.53m kg,
   official customs figures showed.

-- Sept 3rd: New reports put the Indian silver jewelry market at a value of
   $3bn-$4bn annually, with expectations of annual growth of up to 15% this

Despite a recent increase in exploration spending, the industry has failed to find enough major silver discoveries to replace mine production.

Dennis Wheeler, chief executive of Coeur d'Alene Mines, picked up on an expression much-used in the month and averred that silver and gold prices were heading into a perfect storm, by which he meant something good for silver. "Growing demand is running headlong into dwindling supply, at a time when the dollar is weakening and inflationary worries persist. Some production is coming off line, and the move by Grupo Mexico to close its Taxco silver and lead operation, after failure to resolve a lengthy industrial dispute, will see almost 1 million ounces annually removed from the market."

Jeff Hunter, Titan CEO, said, "We don't sell MP3 players, with a great marketing campaign every year. We're going to build mines; I think that is one of the things investors are starting to appreciate. Based on the historic prolific past production of the SCR property (more than 19 million ounces of silver, over 3 million pounds of cobalt), and the current plan being implemented on the property, we continue to be very optimistic about the possibility of discovering, and ultimately proving up, a significant new ore body. The recent appreciation in the price of silver only serves to cement our resolve in what we are doing."

This news release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.

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