Sales Agreement - Force Majeure Notice Received

AIM and Media Release 

13 January 2016

BASE RESOURCES LIMITED
Sales Agreement - Force Majeure Notice Received

Base Resources Limited (ASX & AIM: BSE) (“Base” or the “Company”) advises that it has received a force majeure notice from a counterparty to an ilmenite sales agreement (“Agreement”) seeking to suspend the counterparty’s obligations under the Agreement (“Notice”).  The Notice is stated to be in response to incidents that have occurred causing significant delays in commissioning the counterparty’s slag furnace.  The Notice, while providing a preliminary assessment of the extent of the damage caused by the incidents, advises that repairs, further damage assessment and rectification works will be required and that therefore the potential delay is not yet known.

Base is continuing to assess the potential impacts of the Notice, including the Company’s rights.  Pursuant to the terms of the Agreement, absent the Notice, the counterparty was due to purchase approximately 100,000 tonnes of ilmenite by 30 June 2016 at an average price of approximately US$116 per tonne FOB, which represented a significant premium to current market prices.  The 100,000 tonne per annum Agreement applies for a further three years from 1 February 2016.

While Base reserves its rights in respect of the Notice, the counterparty has committed to working with the Company to seek to mitigate the potential impact of the Notice.  In the meantime, the Company will also explore all available options for selling the ilmenite concerned to other customers.

A PDF version of this release is available from http://www.asx.com.au/ and on the Company’s website:  http://www.baseresources.com.au/.

ENDS

CORPORATE PROFILE

Directors
Keith Spence (Non-Executive Chairman)
Tim Carstens (Managing Director)
Colin Bwye (Executive Director)
Sam Willis (Non-Executive Director)
Michael Anderson (Non-Executive Director)
Michael Stirzaker (Non-Executive Director)
Malcolm Macpherson (Non-Executive Director)

Company Secretary
Chadwick Poletti

NOMINATED ADVISOR & BROKER
RFC Ambrian Limited
As Nominated Adviser:
Andrew Thomson / Stephen Allen
Phone: [phone]
As Broker:
Jonathan Williams
Phone: [phone]

SHARE REGISTRY:  ASX
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
PERTH WA 6000
Enquiries: 1300 850 505 / [phone]
http://www.computershare.com.au/

SHARE REGISTRY:  AIM
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
BRISTOL BS99 6ZZ
Enquiries: [phone]
http://www.computershare.co.uk/

AUSTRALIAN MEDIA RELATIONS
Cannings Purple
Warrick Hazeldine / Annette Ellis
Email:[e-mail] /
[e-mail]
Phone: [phone]

UK MEDIA RELATIONS
Tavistock Communications
Jos Simson / Emily Fenton
Phone: [phone]

KENYA MEDIA RELATIONS
Africapractice (East Africa)
Evelyn Njoroge / James Njuguna/Joan Kimani
Phone: [phone]
Email:[e-mail]

PRINCIPAL & REGISTERED OFFICE
Level 1, 50 Kings Park Road
West Perth, Western Australia, 6005
Email:  [e-mail]
Phone: [phone]
Fax: [phone]