Response to ASX Price Query

ASX, AIM and Media Release 17 July 2014 BASE RESOURCES LIMITED RESPONSE TO ASX PRICE QUERY Base Resources Limited (ASX:BSE, AIM:BSE) ("Base" or the "Company") received a price query from the ASX today in regardto the price and volume of Base securities traded on the ASX over the last week. The Company responded as follows: 1. Is the Entity aware of any information concerning it that has not been announced to the market which, if known by some in the market, could be an explanation for recent trading in its securities? No. 2. If the answer to question 1 is "yes"; a. Is the Entity relying on Listing Rule 3.1A not to announce that information under Listing Rule 3.1? N/A. b. Can an announcement be made immediately? N/A. c. If an announcement cannot be made immediately, why not and when is it expected that an announcement will be made? N/A. 3. If the answer to question 1 is `no' is there any other explanation that the Entity may have for the recent trading in its securities? Whilst it is the view of the Company that none of the matters noted below are material to its share price the Company notes: a. that it is currently working with the syndicate of lenders that has provided the debt facility to the Company to realign the repayment schedule to reflect the delay in commencement of sales to February 2014 from the original expectation of October 2013, with a satisfactory outcome expected in the next couple of months; and b. Base is currently continuing to work with the Kwale County Government and the Kenyan National Government to have the export levy purported to be imposed by the Kwale County withdrawn or rescinded (see ASX Release dated 5 June 2014) on the basis that it is unconstitutional. Base is comfortable with its legal position and expects to have the matter resolved in the near future. 4. Please confirm that the Entity is in compliance with the Listing Rules and in particular, Listing Rule 3.1 The Company is aware of its obligations under Listing Rule 3.1 and believes it is in compliance with the Listing Rules of ASX including Listing Rule 3.1. A full PDF version of this announcement is available at the Company's website: www.baseresources.com.au For further enquiries contact: Winton WilleseeCompany SecretaryEmail: [email protected]: +61 (0)8 9413 7400 RFC Ambrian Limited (Nominated Adviser and Broker)As Nominated Adviser As BrokerAndrew Thomson or Trinity McIntyre Jonathan WilliamsPhone: +61 (8) 9480 2500 Phone: +44 20 3440 6800 Corporate Details: Board of Directors:Andrew King Non-Executive ChairmanTim Carstens Managing DirectorColin Bwye Executive DirectorSam Willis Non-Executive DirectorMichael Anderson Non-Executive DirectorTrevor Schultz Non-Executive DirectorMalcolm Macpherson Non-Executive DirectorWinton Willesee Company Secretary Principal & Registered Office: Contacts:Level 1 Email: [email protected] Kings Park Road Phone: (08) 9413 7400West Perth WA 6005 Fax: (08) 9322 8912