Right sector. Right project. Right time.

August 2010

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The Kwale Opportunity

• Mineral sands market fundamentals present an opportunity for new supply to enter an environment of escalating prices and supply shortfall.

• Kwale is a robust project with a timeline and scale to take advantage of the opportunity, forecast to generate net cash of US$400 million over an 11 year mine life from 2013.

• Well advanced with US$40 million+ spent to date - DFS completed in 2006 and all leases, licences and permits currently in place. Previous impediments to development now cleared.

A “World Class” advanced project well positioned to capitalise on a forecast sustained opportunity in the mineral sands market.

As a Project

permits currently in place. Previous impediments to development now cleared.

• Supported by well developed physical and social infrastructure.

• Supported by Kenyan government (GoK) as a project of national significance.

• Cheap entry with manageable implementation and risk profile.

As a launch pad

• Significant additional production potential from 1.5 billion tonne resources.

• Establishes capital base and cash flow for expansion.

• Model for operation in East Africa.

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Mineral Sands

Ilmenite, rutile and zircon are essentially “lifestyle products” by virtue of their dominant end-uses.

TiO2 pigment Consumption (2008)

Paint & Plastics23%

Paper9%

Specialties3% Ink

3%

Fibre2% Rubber

2% Food & Pharmaceutical

s1%

Food & Pharmaceuticals

1%

Ceramics

54%

Foundry

13%

TV Glass

3%

Zirconia & Zr

Chemicals

16%

Other

1%

Zircon Consumption (2008)

ME&A aveAP ave

China

Japan

India

LA ave Brazil

WE ave

USCanada

C&E Eur ave TurkeyRussia

1

5

25

125

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Kg per capita

GDP US$'000 per capita

Paint & coatings57%

23%54%

Refractory

13%

13%

• Kwale ilmenite and rutile are feed stocks for production of TiO2

pigments used in the production of high quality finishes.

• Zircon is premium quality and suitable for ceramic applications.

• Consumption correlates strongly with economic development, being driven by urbanisation and increasing demand for basic consumer products.

• In the most developed economies, demand has stabilised.

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Kwale Product Positioning

Products are of a quality that means they are readily saleable into a market facing significant supply deficits.

Ilmenite

• suitable for sulphate route TiO2 pigment manufacture as well as both chloride and sulphate titanium slag production. Sulphate ilmenite demand in China is a particular growth segment.

• Impurity profile is generally favourable (particularly radionuclide), with no fatal flaws. Low TiO2 content may incur a pricing penalty of up to $10/t (8% on long term forecast of $125/t).$125/t).

• No perceived impediment to sale of full production volumes.

Rutile

• meets the specification for “premium” grade, with exception of slightly higher Fe2O3..

• Impurity profile is generally favourable (particularly radionuclide), with no fatal flaws.

• No perceived impediment to sale of full production volumes.

Zircon

• premium quality and should be suitable for ceramic applications.

• The radionuclide (uranium and thorium) levels are amongst the lowest in the industry, making the product desirable as a blend feed which could attract a premium of up to $50/tonne.

• Geographic proximity to Europe and Indian ceramics industries.

• No perceived impediment to sale of full production volumes.

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Project Progression

Previous impediments to development have now been cleared.

1995–7 Initial exploration, project areas identified and exploration licenses secured

2000 First feasibility study completed

2001 Court injunction granted to landowners halted all activities - lifted in 2002

2002–5 EIA approved and environmental license issued

Environmental management plan approved

Pilot plant constructed and design criteria confirmed for DFS

Special Mining Lease issuedSpecial Mining Lease issued

Fiscal Investment Agreement with Government of Kenya signed

2006 C$60m in equity raised and US$150m project debt facility established (Standard

Chartered, WestLB and African Development Bank), contractors appointed,

construction commenced.

2007 Project halted pending resolution of resettlement and compensation disputes -

all land compensation matters settled and relocation completed.

2008-9 Jinchuan provisionally agreed to provide US$200m for a 70% project interest

Terminated by Jinchuan in October - reasons considered unrelated to the project

2010 In January Tiomin announced a merger with diamond company Vaaldiam.

Concurrently announced the sale of all non diamond assets.

Sought to sell the mineral sands interests in a “fire sale” process.

In February Base announced the conditional acquisition of the project interests.

By May the Government of Kenya had approved the project transfer to Base.

By 30 June all remaining conditions of the acquisition were satisfied.

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Mineral Resources

The Kwale Project is focused on the Central and South dunes only. Vast additional resources provide a range expansion options.

Dune Classification

tonnes

x 106

THM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

tonnes

HMC

x 106

Central Measured 38.51 6.79 3.95 0.90 0.50 2.61

Central Indicated 30.24 4.54 2.47 0.63 0.32 1.37

South Indicated 70.1 3.5 1.4 0.4 0.2 2.45

North** Indicated 116.0 2.1 1.0 0.2 0.1 2.44

All Total 255.0 3.48 1.73 0.41 0.21 8.87

• JORC compliant resource, audited by SRK.

• Deposits occur as unconsolidated dunes with negligible waste stripping and very simple low cost mining.

Dune Classification

tonnes

x 106

THM

(%)

tonnes

HMC

x 106

Kilifi Indicated 809.7 3.20 25.9

Kilifi Inferred 148.4 3.40 5.0

Mambrui Indicated 301.4 5.10 15.4

Mambrui Inferred 129.3 4.80 6.2

All Total 1,338.8 3.80 52.5

• Located along the coast, to the north of Mombasa.

• Potential for 30+ year mine life.

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Production

Relatively simple operation in close proximity to port and well supported by existing infrastructure.

• Dunes are amenable to a low-cost continuous mining technique.

• Bucket wheel excavator contemplated in DFS.

• Processing via conventional mineral sands separation techniques.

• 2 separate pilot plant operations give confidence in • 2 separate pilot plant operations give confidence in processing behaviour, recoveries, slimes handling and product quality.

• Key infrastructure secured.• Power production permit issued and 132kv substation 18km from

mine site.

• Mukurumudzi river dam authorised. Bore field in process.

• 10km from main coastal highway.

• 50 kilometre haul distance to Likoni port at Mombasa.

• Dedicated port site for construction of loading facility adjacent to existing Likoni terminal.F

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Project Dimensions

The Kwale project is of market-significant scale, albeit with a relatively short mine life based on Central and South dunes.

200

250

300

350

400

50

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80

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100

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Annual Production Volumes

Rutile

Zircon

Ilmenite (RHS)

• Estimated capital development cost – US$180 million.

• Total funding required – approximately US$200 million.

• Development - 18 months.

Base Case (DFS as reviewed)Base Case (DFS as reviewed) Production ProfileProduction Profile

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30

40

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023'0

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• Target first production in 2013.

• Mine Life – 11 years.

• Is a project of 2 halves with significantly higher production in the 1st 6 years from Central Dune before move to lower grade South Dune.

• Balanced mineral assemblage by expected revenue contribution:

• Ilmentite 27%

• Rutile 40%

• Zircon 33%

• Total Revenue – US$1.3 billion.

• Net after-tax cash operating surplus – US$577 million.

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Competitive Positioning

“World class” project in top quartile of producers on Revenue : Cash Cost and mid-point of cost curves.

Revenue : cash costsRevenue : cash costs Cash cost of HMC productionCash cost of HMC production

• Keys drivers are:

• relatively strong grade.

• mineral assemblage with 27% high value rutile and zircon.

• very low stripping ratio.

• Is a project of 2 halves:

• Particularly strong in first 6 years of operations at the higher grade Central Dune.

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120

Individual Operations

US$/ tonne of product

Industry Weighted Average 2008

Kwale

Cash cost of mineral separationCash cost of mineral separation

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“Base Case” Project Economics

Projected US$230 million net cash surplus generated in first 6 years.

• Base Case IRR (post tax real) - 28%.

• “Downside” Case IRR (post tax real) –18%.

• NPV10 of US$136 million.

• Net after tax cash flow of US$400 million 50

60

70

80

90US$ 'millions

Life of Mine Operating CashflowLife of Mine Operating Cashflow

• Net after tax cash flow of US$400 million (after repayment of investment).

• Base Case does not reflect identified project enhancement opportunities (except some obvious capital improvements) and includes conservative cost estimates.

• Only reflects “Kwale Project (Central and South Dunes)” with no contribution from North Dune or Kilifi, Mambrui and Vipingo.

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The Base Team

RFC CORPORATE FINANCETIM CARSTENS COLIN BWYE

Managing Director. Corporate advisors and

development capital arranger.

Strong team in place with the right mix of skills to successfully develop the Kwale Project and capitalise on the wider opportunity.

Executive Director – Operations

& Development.

• 15 years in the resources industry

• North Limited

• Iron Ore Company of Canada

• Robe River Iron

• St Barbara Mines Limited

• Perilya Limited

• Held diverse senior executive roles

spanning strategy, corporate

development, finance and operations.

• International experience.

• 20+ years experience in mineral

sands sector.

• Previously managing director of Doral

Mineral Industries with mineral

sands, fused materials and specialty

chemical operations in WA.

• Experienced in bringing mineral

sands projects into production.

• Kenyan national.

• Specialist investment and advisory

firm, focussed on the resources sector

with one of the largest resource sector

corporate finance teams in the world.

• Significant mineral sands advisory

experience.

• Only non-UK authorised nominated

adviser for LSE’s AIM market.

• Significant portfolio of successfully

executed debt and equity raising

mandates.

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Proposed Workplan to FID

Aug

1

2

“Base Case” DFS

Develop “Enhanced DFS”

• Ausenco update of 2006 BFS

• Process design review

Sep Oct Nov Dec Feb Mar Apr May JunJan

Base is working towards the rapid development of the Kwale Project with a plan for first production in early 2013.

2010 2011

3 Development funding

• Process design review

• Confirmatory drilling

• Value engineering

• Enhanced DFS

• Initial socialisation on Base Case DFS

• Secure off-take agreements

• Finalise funding

• Final Investment Decision

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Capital Structure

Following the recent $8 million capital raising, Base is well funded to progress to FID, has significant institutional shareholders and a tight register.

Shares Options Option TermsExisting 38,000,001 29% 8,730,000 Expire July 2011, exercisable at 25c

Non-renounceable rights issue 38,000,001 29%

Placement 51,111,111 40%

Transaction advisory fee 2,500,000 2% 1,000,000 Expire July 2105, exercisable at 25c

Directors 17,000,000Vest on project milestones, 5 year term, 50%

exercisable at 9c and 50% at 25c

129,611,111 26,730,000

Substantial Shareholders InterestAsian Investment Management Services Ltd (AIMS) 19.97%

RMB Resources Ltd (RMB) 17.15%

Seaspin Pty Ltd 8.57%

Polaris Capital Ltd 5.02%

Alwaha Fund Ltd 5.02%

Total interest of Substantial Shareholders 55.72%

Total interest of top 10 shareholders 73.78%

• AIMS is a private investment vehicle of David Crichton-Watt. Mr Crichton-Watt is the managing director of Malaysian based funds management group AIM Asset Management Sdn Bhd which currently has around US$250m under management.

• RMB is the global resources focused merchant banking business of the FirstRand Group. Listed on the Johannesburg Stock Exchange, FirstRand Group is one of South Africa’s largest financial institutions. F

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Project Development Financing

EQUITYDEBT INDUSTRY

US$150 million debt financing

secured by Tiomin in 2006.

Increasing equity market

interest in the sector with

mineral sands producers

experiencing positive re-ratings.

Three finance streams are under review – prospects are encouraging. Final funding expected to comprise a blend to optimise equity value.

Mineral sands market

fundamentals driving strategic

imperative for consumers to

secure supply.

• Syndicate comprised of Standard

Chartered, WestLB and African

Development Bank.

• EFIC provided political risk

insurance.

• Outlook for mineral sands has

improved dramatically since 2006 but

credit markets have tightened.

• Base Case repayment of capital

in 2.5 years.

• Kwale significance to Kenyan mining

industry places within the mandate of

development banks and govt agencies.

• Preliminary discussions commenced.

• Previous Jinchuan agreement at

US$200m for 70%:

• implies US$85 million for carried

interest.

• equates to A$0.58 per Base

share (fully diluted).

• terminated in Oct 2009.

• Near term Kwale production required to

mitigate the projected industry supply

shortfall on all products.

• The March 2010 US$270m raising by

Kenmare Resources plc for the

Moma project indicates international

appetite.

• RFC engaged as lead adviser.

• A number of funds have expressed

interest in participating in the

development equity raising.

• Looking to identify supporting broker.For

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Substantial Share Price Upside

Base has secured Kwale at a “fire sale” price that has yet to be reflected in the market.

• Road shows and presentations to raise market awareness and understanding of the opportunity over the short term.

• Industry developments – prices, demand, M&A activity.

A number of Likely Catalysts:

• Comparative transactions – M&A, spin-outs.

• Completion of the Enhanced DFS.

• Development of financing strategy.

$0.09

$0.29

$0.58

$1.16

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

Base @ issue price Base @ 25% of

NPV

Base @ 50% of

NPV

Kwale NPV (un-

geared)

Value (LHS)

Value per share (RHS)

* Projected Base Case after-tax cashflow at 10% discount rate*

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Statements

Forward Looking Statements

Certain statements made during or in connection with this presentation contain or comprise forward looking statements regarding

the capital cost, production and financial performance of the Kwale Project. Although Base believes the expectations reflected in

such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct.

Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors,

changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment

and other government actions, fluctuations in product prices and exchange rates and business and operational risk management.

Base undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or

circumstances after today's date or to reflect the occurrence of unanticipated events.

Attribution Statement

Information in this presentation that relates to a JORC compliant mineral resource carried out in 2001 at the Kwale Project is based

on information and opinion compiled by Dr Alwyn Annels. Dr Annels is a Fellow of the UK Institute of Materials, Minerals and Mining

and is a Competent Person for the purposes of the JORC Code. Dr Annels was at that time, an employee of SRK (UK) Limited and

consents to the inclusion in the announcement of the information based on his work in the form and context in which it appears on

the basis that the resources have not changed since his 2001 information.

SRK has also consented to the publication of this attribution statement on the basis that the resources and modifying factors have

not changed since its last review for Lenders in 2006/2007 which used essentially the same resources as were reviewed in 2001.

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Base Resources Ltd

CONTACTS

Tim Carstens Stephen Allen

Managing Director Executive Director

Base Resources Ltd RFC Corporate Finance LtdBase Resources Ltd RFC Corporate Finance Ltd

Email: tcarstens@baseresources.com.au Email: stevea@rfc.com.au

Phone: 08 9322 8910 Phone: 08 9480 2500

Fax: 08 9322 8912 Fax: 08 9480 2511

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