Quarterly Cashflow Report

ASX, AIM and Media Release
31 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 Limited
Tim Carstens
Managing Director
Email: [e-mail]
Phone: [phone]

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

Tavistock Communications (UK Media Relations)
Jos Simson/ Jessica Fontaine / Emily Fenton
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
Winton Willesee                           Non-Executive Director/ Company Secretary

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

About Base Resources

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

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

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

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

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