Quarterly Cashflow Report

ASX, AIM and Media Release

20 January 2015

                            BASE RESOURCES LIMITED                             
                QUARTERLY CASHFLOW REPORT FOR THE PERIOD ENDING                
                               31 DECEMBER 2014                                

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                35,887          53,560
debtors                                                                      
Payments for:                                                                
  * exploration & evaluation                                -               -
  * Kwale operations                                 (19,911)        (40,564)
  * administration and external affairs               (3,183)         (6,728)
  * community development                               (853)         (1,950)
Dividends received                                          -               -
Interest and other items of a similar nature                -               -
received                                                                     
Interest and other costs of finance paid                    -               -
Income taxes paid                                        (69)            (69)
Other (provide details if material)                         -               -
Net operating cash flows                               11,871           4,249
                                                                             
CASH FLOWS RELATING TO INVESTING ACTIVITIES                                  
Payment for purchases of:                                                    
  * prospects                                               -               -
  * equity investments                                      -               -
  * other fixed assets                                (1,306)         (4,730)
  * mine development                                        -               -
  * exploration                                          (40)            (75)
Proceeds from sale of:                                                       
  * prospects                                               -               -
  * equity investments                                      -               -
  * other fixed assets                                      2               2
Loans to other entities                                     -               -
Loans repaid by other entities                              -               -
Other (provide details if material):                                         
  * interest received                                      18              44
  * security deposits paid                               (14)              20
Net investing cashflows                               (1,340)         (4,739)
Total operating and investing cash flows               10,531           (490)
                                                                             
CASH FLOWS RELATED TO FINANCING ACTIVITIES                                   
Proceeds from issues of shares, options, etc.               -               -
Proceeds from sale of forfeited shares                      -               -
Proceeds from borrowings                                    -               -
Repayment of borrowings                                     -               -
Dividends paid                                              -               -
Other (provide details if material)                                          
  * interest on borrowings                            (7,369)         (7,369)
  * debt restructure and establishment fees           (2,674)         (2,866)
Net financing cash flows                             (10,043)        (10,235)
                                                                             
Net increase (decrease) in cash held                      488        (10,725)
                                                                             
Cash at beginning of quarter/year to date              10,913          20,945
Exchange rate adjustments                               1,314           2,495
CASH AT THE END OF THE QUARTER                         12,715          12,715

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

ENDS

For further enquiries contact:

Base Resources Limited
Tim Carstens
Managing Director
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]

Africapractice (East Africa) (Kenyan Media Relations)
David Maingi/ James Njuguna/Joan Kimani
Phone: [phone]
Email: [e-mail]

Tavistock Communications (UK Media Relations)
Jos Simson / Emily Fenton / Nuala Gallagher
Phone: [phone]

Cannings Purple (Australian Media Relations)
Michael Vaughan / 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
Mike Stirzaker     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                       Fax: [phone]
WA 6005