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 regard
to 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       the export levy purported to be imposed by the Kwale County withdrawn or rescinded (see ASX Release dated 5 June 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 Willesee
Company Secretary
Email: [e-mail]
Phone: [phone]

RFC Ambrian Limited (Nominated Adviser and Broker)
As Nominated Adviser                  As Broker
Andrew Thomson or Trinity McIntyre    Jonathan Williams
Phone: [phone]              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
Malcolm Macpherson    Non-Executive Director
Winton Willesee       Company Secretary

Principal & Registered Office:       Contacts:
Level 1                              Email: [e-mail]
50 Kings Park Road                   Phone: [phone]
West Perth WA 6005                   Fax: [phone]