Proactiveinvestors Australia

Base Resources has a diverse portfolio of assets in both Africa and Australia. In Kenya, East Africa, Base Resources is focused on developing the world-class Kwale Mineral Sands Project in Kenya. Base Resources also has a portfolio early stage exploration projects in Western Australia’s Mid West region, with established targets for iron ore, gold, base metals and uranium. The Company continues to progress the granting of the Mid West tenements, the evaluation of their potential and the consideration of the various development alternatives to maximise realised value.

Kwale Mineral Sands Project

Right sector. Right project. Right time.

Base Resources’ flagship project is the 100% owned Kwale Mineral Sands Project in Kenya. The Kwale Project is located 10 kilometres inland from the Kenyan coast and 50 kilometres south of Mombasa, Kenya’s principal port facility. The project is well supported by existing physical infrastructure and enjoys a high level of support from the Government of Kenya as well as the local community.

Base acquired Kwale in July 2010 from Vaaldiam Mining Inc, which had spent more than $US60 million to progress the project through resource definition, government approvals and Definitive Feasibility Studies (DFS). This meant the project was well advanced and has allowed Base to fast-track the project’s financing and development.

During the past financial year, Base completed a capital cost update on the original DFS as well as a Process Design Review study. This study identified and evaluated a range of design and concept changes that provided the basis and scope of the Enhanced Definitive Feasibility Study (EDFS) completed during the year.

The EDFS, which built on the work completed by Vaaldiam and incorporated a suite of improvements identified through the Process Design review, was completed in May 2011. The outcome of the EDFS was a significantly improved project, both in terms of returns and risk profile, and a sound basis on which to proceed with the project development.

The foundation of the EDFS was an updated JORC-compliant resource estimate released in February, following the completion of an extensive drilling program. The updated estimate included an increase in resource tonnes, contained mineral and value of the mineral assemblage. This Resource has resulted in an Ore Reserve estimate of 140.6 million tonnes at 4.9% THM and, on the basis of this Reserve, the Kwale mine life was increased from 11 to 13 years.

The major features of the EDFS were:

capital cost estimate of US$256 million (including a US$20 million project contingency).

project payback period of 23 months.

post-tax project NPV10 (real) of US$395 million and an IRR of 42%.

life of mine free cash flow (post tax real) of US$930 million.

With development financing secured, Base has now commenced project implementation activities and is targeting first production and shipment in the second half of 2012. Indicative key milestones in the implementation schedule include:

Commence EPCM detailed design: Oct 2011

Site earthworks commence: April 2012

Wet Concentrator Plant (WCP) at practical completion: Q2 2013

Mineral Separation Plant (MSP) at practical completion: Q3 2013

Commissioning: Q3 2013

Port ready to receive concentrate: Q3 2013

First shipment: Q4 2013

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Andrew King

AssDip Min Eng, Grad Acct & Fin Mgt, MAusImm, MAICD

Non-Executive Chairman

A mining engineer with over 35 years experience in the mineral resources industry, Mr King brings to Base Resources Limited a considerable depth of knowledge and expertise in technical disciplines as well as in the successful establishment of new companies including Goldstar Resources NL and Alcyone Resources Ltd. In addition to experience covering corporate, strategic and operational roles in gold, iron ore, coal and base metals, he holds qualifications in accounting and financial management.

Mr King is also the Managing Director of Alcyone Resources Limited (appointed 21 August 2009).

Tim Carstens

Bcom, ACA

Managing Director

Mr Carstens brings a diverse and substantial skill set to the development of Base Resources Limited, having previously held senior executive roles with Perilya Limited, North Limited, Robe River Iron Associates, Iron Ore Company of Canada and St Barbara Mines Limited in operations, strategy, corporate development and finance, both in Australia and overseas. A chartered accountant by profession, he has successfully managed all aspects of business strategy development and implementation, acquisitions and divestments, debt and equity financing, organisational development and operational performance.

Most recently he was Executive General Manager – Operations and Development with Perilya Limited with responsibility for all operational and project development activities in the Broken Hill field, comprising two operating mines and three advanced development projects.

Colin Bwye

Degree of Bachelor of Engineering with Honours in Metallurgy and Minerals Science (Class 2 Division 1) 1986

Executive Director (Operations & Development)

Mr Bwye has over 20 years experience in the mineral sands sector, having commenced his professional career with RGC Mineral Sands (since consolidated into Iluka Resources) as a plant metallurgist in 1988. Most recently he was Managing Director of Western Australian mineral sands producer, Doral Mineral Industries Ltd, a subsidiary of Iwatani Corporation of Japan. Mr Bwye has an extensive knowledge of all aspects of the mineral sands industry, including downstream processing and marketing of mineral sands products and he has also been integral in bringing a number of development projects into production. He was born in Kenya and lived there prior to migrating to Australia in 1987 and so brings a deep understanding of the country and its culture.

Sam Willis

BCom

Non-Executive Director

Mr Willis is an experienced Company Director in the resources and energy sectors. He is currently Managing Director of oil and gas explorer New Standard Energy Limited (appointed 28 July 2008).

With a background in the capital and corporate advisory fields with Hartleys, Red Dingo, Deutsche Bank and Schroders Investment Management, Sam also provides Base with expertise in small company management, specifically in relation to ASX listing, M&A assessment, deal co-ordination and capital raisings.

Winton Willesee

BBus, DipEd, PGDipBus, MCom, FFin, CPA, MAICD

Non-Executive Director and Company Secretary 

Mr Willesee is an experienced Director and Company Secretary in the small capitalisation sector of the ASX. He brings a broad range of experience in company administration, corporate governance, merger and acquisition transactions and corporate finance from his background with listed and unlisted public and other companies.

As well as his position with Base Resources Mr Willesee is currently the Chairman of Cove Resources Limited (appointed 4 June 2008), Mining Group Limited (appointed 14 March 2011) and Bioprospect Limited (appointed 16 September 2011), and a Director of Coretrack Limited (appointed 4 October 2010), Newera Resources Limited (appointed 31 March 2007) and Otis Energy Limited (appointed 18 January 2008).

Trevor Schultz

MSc Mining Engineering, MA Economics

Non-Executive Director

Mr Schultz has more than 40 years experience at the executive management and board level with leading international mining companies, including BHP, RTZ/CRA, Pegasus Gold and Ashanti Goldfields. His roles have included development of several new mining operations in Africa, South America and the USA, negotiations with various governments and their agencies as well as project financing and capital raisings. Mr Schultz has extensive experience operating in Africa and is currently Executive Director of Operations for Centamin Egypt Limited, where he has responsibility for the development and expansion of the Sukari Gold Mine in the eastern desert of Egypt.

Michael Anderson

BSc (Hons), PhD

Non-Executive Director

Dr Anderson has 20 years industry experience, largely in southern Africa and Australia. His career commenced as a geologist with Anglo American, followed by roles in the metallurgical and engineering industries with Mintek, Bateman and Kellogg Brown & Root. He subsequently held senior management positions including Corporate Development Manager at Gallery Gold Limited, and most recently as Managing Director at Exco Resources Limited, where he oversaw the successful development of the White Dam Gold Project, and the sale of the Company’s Cloncurry Copper Project to Xstrata. He joined Taurus Funds Management as a Director in August 2011.