Correspondence with the Kwale County Government

ASX, AIM and Media Release 5 June 2014 Correspondence with Kwale County Government Base Resources Limited (ASX & AIM: BSE) ("Base") ("Base" or the "Company")advises that it has received an invoice from the Kwale County Government,purporting to apply a KES 5,000 (approximately US$57) per tonne levy on exportsof ilmenite and rutile from the Company's Kwale Mineral Sands Project. Base disputes the constitutional validity of the levy and is currently workingwith the Kwale County Government and the Kenyan National Government to rectifythis matter by having the invoice withdrawn and the levy repealed. Base has received unqualified legal advice that the Kwale County Governmentdoes not have legislative authority under the Kenyan Constitution to imposesuch a levy, with all rights to manage and administer minerals exclusivelyreserved to the Kenyan National Government. Base is confident that this matter will be resolved shortly. However, in theevent that the Kwale County Government invoice is not withdrawn or the levy isnot repealed in a timely manner, Base will assess its options further,including taking the necessary legal action to have the levy declaredunconstitutional and therefore void. ENDS For further enquiries contact: Base Resources LimitedTim CarstensManaging DirectorEmail: [email protected]: +61 (0)8 9413 7400 RFC Ambrian Limited (Nominated Adviser and Broker)As Nominated AdviserAndrew Thomson or Trinity McIntyrePhone: +61 (0)8 9480 2500 As BrokerJonathan WilliamsPhone: +44 20 3440 6800 Africapractice (East Africa) (Kenyan Media Relations)David Maingi/ James Njuguna/Joan KimaniPhone: +254 (0)20 239 6899Email: [email protected] Tavistock Communications (UK Media Relations)Jos Simson / Emily Fenton / Nuala GallagherPhone: +44 (0) 207 920 3150 Cannings Purple (Australian Media Relations)Annette Ellis / Warrick HazeldineEmail: [email protected] / [email protected]: +61 (0)8 6314 6300 Corporate Details: Board of Directors: Andrew King Non-Executive Chairman Tim Carstens Managing Director Colin Bwye Executive Director Sam Willis Non-Executive Director Michael Anderson Non-Executive Director Trevor Schultz Non-Executive Director Michael Macpherson Non-Executive Director Winton Willesee Company Secretary Principal & Registered Office: Level 1 50 Kings Park RoadWest PerthWA 6005 Contacts; Email: [email protected]: +61 (0)8 9413 7400Fax: +61 (0)8 9322 8912