35% Local Equity Regulation Not Applicable to K...

ASX, AIM and Media Release
11 January 2013

35% LOCAL EQUITY REGULATION NOT APPLICABLE TO KWALE

Base Resources Limited (ASX:BSE AIM:BSE) ("Base" or "the Company") is pleased
to advise that it has received formal notification that the Attorney General of
Kenya has determined that the recently introduced 35% Local Equity
Participation Regulation ("the Regulations") cannot be applied to the Special
Mining Lease No. 23 covering the Company's 100% owned Kwale Mineral Sands
Project.

The Attorney General's advice that the Regulations can only be applied to
mining licenses issued after the Regulations came into force, being 12 October
2012, corroborates the legal advice previously received by Base in this
respect.

Notwithstanding this determination, Base will continue to work constructively
with the Government of Kenya to facilitate greater Kenyan equity participation
over time in both Base and the mining industry in general.

A full PDF version of this announcement is available at the Company's website: 
www.baseresources.com.au.

ENDS

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:                       Principal & Registered Contacts:
                                          Office:
Andrew King      Non-Executive Chairman   Level 1                Email:
Tim Carstens     Managing Director        50 Kings Park Road     [e-mail]
Colin Bwye       Executive Director       West Perth             Phone: [phone]
Sam Willis       Non-Executive Director   WA 6005                Fax: [phone]
Michael Anderson Non-Executive Director
Trevor Schultz   Non-Executive Director
Winton Willesee  Non-Executive Director/ Company Secretary

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.