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 exports
of ilmenite and rutile from the Company's Kwale Mineral Sands Project.

Base disputes the constitutional validity of the levy and is currently working
with the Kwale County Government and the Kenyan National Government to rectify
this matter by having the invoice withdrawn and the levy repealed.

Base has received unqualified legal advice that the Kwale County Government
does not have legislative authority under the Kenyan Constitution to impose
such a levy, with all rights to manage and administer minerals exclusively
reserved to the Kenyan National Government.

Base is confident that this matter will be resolved shortly. However, in the
event that the Kwale County Government invoice is not withdrawn or the levy is
not repealed in a timely manner, Base will assess its options further,
including taking the necessary legal action to have the levy declared
unconstitutional and therefore void.

ENDS

For further enquiries contact:

Base Resources Limited
Tim Carstens
Managing Director
Email: [e-mail]
Phone: [phone]

RFC Ambrian Limited (Nominated Adviser and Broker)
As Nominated Adviser
Andrew Thomson or Trinity McIntyre
Phone: [phone]

As Broker
Jonathan Williams
Phone: [phone]

Africapractice (East Africa) (Kenyan Media Relations)
David Maingi/ James Njuguna/Joan Kimani
Phone: [phone]
Email: [e-mail]

Tavistock Communications (UK Media Relations)
Jos Simson / Emily Fenton / Nuala Gallagher
Phone: [phone]

Cannings Purple (Australian Media Relations)
Annette Ellis / Warrick Hazeldine
Email: [e-mail] / [e-mail]
Phone: [phone]

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 Road
West Perth
WA 6005

Contacts;

Email: [e-mail]
Phone: [phone]
Fax: [phone]