Quarterly Cashflow Report

ASX, AIM and Media Release31 January 2013

QUARTERLY CASHFLOW REPORT FOR THE PERIOD ENDING 31 DECEMBER 2012

Appendix 5B Summary - Consolidated Statement of Cash Flows

Current Quarter Year to Date (6 months) $A'000 $A'000 CASH FLOWS RELATED TO OPERATING ACTIVITIES Receipts from product sales and related - -debtors Payments for: * exploration & evaluation - - * development - - * production - - * administration (1,922) (3,275) Dividends received - - Interest and other items of a similar nature - -received Interest and other costs of finance paid - - Income taxes paid - - Other (provide details if material) - - Net operating cash flows (1,922) (3,275) CASH FLOWS RELATING TO INVESTING ACTIVITIES Payment for purchases of: * prospects - - * equity investments - - * other fixed assets (628) (639) * mine development (57,591) (95,192) * exploration (168) (335) Proceeds from sale of: * prospects - - * equity investments - - * other fixed assets - - Loans to other entities - - Loans repaid by other entities - - Other (provide details if material) * interest received 881 2,270 * security deposits paid (171) (563) Net investing cashflows (57,677) (94,459) CASH FLOWS RELATED TO FINANCING ACTIVITIES

Proceeds from issues of shares, options, etc. 37,726 37,726

Proceeds from sale of forfeited shares - - Proceeds from borrowings 50,138 50,138 Repayment of borrowings - - Dividends paid - - Other (provide details if material) (714) (729) Net financing cash flows 87,150 87,135 Net increase (decrease) in cash held 27,551 (10,599) Cash at beginning of quarter/year to date 66,958 105,806 Exchange rate adjustments 32 (666) CASH AT THE END OF THE QUARTER 94,541 94,541

A full PDF version of the announcement is available at the Company's website: www.baseresources.com.au.

ENDS

For further enquiries contact:

Contacts:Base Resources LimitedTim CarstensManaging DirectorEmail: [email protected]: +61 (8) 9413 7400

RFC Ambrian Limited (Nominated Adviser and Broker)As Nominated Adviser

As Broker

Andrew Thomson or Trinity McIntyre Caspar Shand-KyddPhone: +61 (8) 9480 2500

Phone: +44 20 3440 6800Tavistock Communications (UK Media Relations)Jos Simson/ Jessica Fontaine / Emily FentonPhone: +44 20 7920 3157Cannings Purple (Australian Media Relations)Annette Ellis / Warrick HazeldineEmail: [email protected]@canningspurple.com.auPhone: +61 (8) 6314 6300Corporate Details:Board of Directors:Andrew King Non-Executive ChairmanTim Carstens Managing Director Colin Bwye Executive DirectorSam Willis Non-Executive DirectorMichael Anderson Non-Executive DirectorTrevor Schultz Non-Executive DirectorWinton Willesee Non-Executive Director/ Company SecretaryPrincipal & Registered Office: Contacts:Level 1 Email: [email protected] Kings Park Road Phone: +61 (8) 9413 7400West Perth Fax: +61 (8) 9322 8912WA 6005About Base Resources

Base Resources Limited (ASX:BSE AIM:BSE) is developing the world-class KwaleMineral Sands Project in Kenya, East Africa. Kwale is an advanced and highlycompetitive project in a sector with a significant forecast supply shortfallwidely expected to emerge in the medium term.

The Kwale Project represents an advanced development opportunity with allmaterial project approvals, permits and licenses required for developmentsecured, funding in place and construction of all project elements underway.

The Project enjoys a high level of support from the Government of Kenya as wellas the local community and, located just 50km from Mombasa, Kenya's principalport facility, is well serviced by existing physical infrastructure.

Importantly, two pilot plant operations at Kwale provide confidence inprocessing behaviour and indicate a suite of readily marketable products. TheProject's high value mineral assemblage and low stripping ratio result in aprojected revenue to cash cost ratio that would place Kwale in the top quartileof world producers.

A realistic development time line should see the Kwale Project in production inthe second half of 2013.