Building for the Next Phase ….Building for the Next Phase ….

AJM Mineral Sands Conference,MelbourneMarch 2016

Disclaimer and important notices

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This document has been prepared by Base Resources Limited (“Base”). Information in this document should be read in conjunction with other announcements made by Base toASX.No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information contained in this document (or any associatedpresentation, information or matters). To the maximum extent permitted by law, Base and its related bodies corporate and affiliates, and their respective directors, officers,employees, agents and advisers, disclaim any liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any direct or indirectloss or damage arising from any use or reliance on this document or its contents, including any error or omission from, or otherwise in connection with, it.Certain statements in or in connection with this document contain or comprise forward looking statements. Such statements may include, but are not limited to, statements withregard to capital cost, capacity, future production and grades, sales projections and financial performance and may be (but are not necessarily) identified by the use of phrasessuch as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward looking statements involve risk and uncertainty because they relate to events and dependon circumstances that will occur in the future and may be outside Base’s control. Accordingly, results could differ materially from those set out in the forward‐looking statementsas a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and othergovernment actions, fluctuations in product prices and exchange rates and business and operational risk management. Subject to any continuing obligations under applicable lawor relevant stock exchange listing rules, Base undertakes no obligation to update publicly or release any revisions to these forward‐looking statements to reflect events orcircumstances after today's date or to reflect the occurrence of unanticipated events.Nothing in this document constitutes investment, legal or other advice. You must not act on the basis of any matter contained in this document, but must make your ownindependent investigation and assessment of Base and obtain any professional advice you require before making any investment decision based on your investment objectivesand financial circumstances.This document does not constitute an offer, invitation, solicitation, advice or recommendation with respect to the issue, purchase or sale of any security in any jurisdiction. Inparticular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any ”US Person” (as defined in the USSecurities Act of 1933). This document may not be distributed or released in the United States or to, or for the account of, any US Person.

Capital structure► ASX & AIM: BSE 

► A$44 million market capitalisation at $0.063

► US$210 million in drawn debt facilities

► US$25 million paid down since June 2015

► US$18 million in Debt Service Reserve

► US$9.1 million in unrestricted cash (at 31 Dec 2015)

Substantial Shareholders Interest

Pacific Road Capital 21.2%

Hunter Hall 18.8%

Sustainable Capital 16.0%

Taurus Funds Management 14.9%

Aterra Investments 8.0%

► Based in Perth, Australia

► 100% of the Kwale Mineral Sands Mine in Kenya

► Kenya’s first large‐scale mining project

Our journey so far ……

Production commencesDecember 

2013

First shipmentFebruary 2014

Operationally cashflowpositiveJune 2014

Debt reschedule implementedDecember 2015

First debt repayment 

madeJune 2015

“Completiontests” satisfiedJune 2015

WTR bid launchedDecember 

2014

Corporately cashflowpositiveDecember 

2014

20162010 2011 2012 2013 2014 2015

Base acquires KwaleJuly 2010

Completion of EDFS

March 2011

Funding in place

September 2011

Construction phase startsOctober 2011

Mining startsOctober 2013

Commissioning starts

June 2013

1 yr – EDFS and funding2 yrs – design and construction2 yrs – in production

Capital raiseMarch 2016

We have come a long way in five years but it hasn’t been all plain sailing

Our business model…..

Safety

Operations

Our People

Community Government

Culture

Customers

ROI

Shareholders Environment

Project Dev

Funding

We have sought to develop the Kwale project as a recognised model for truly successful resource development and a template for our future growth

Strategy

► A well defined and clear project development       system is essential

► Create value early. Deliver it through disciplined execution including change management

► Absolute clarity in scope definition prior to                each phase

► Solid core of capability to ensure continuity          through all phases

► 5 project phases with well defined decision gates

We started mining within 6 weeks of when we said we would, but we learnt a few things along the way …….

ExecutionPhase

IdentificationPhase

SelectionPhase

DefinitionPhase

Close‐outPhase

Concept Study(CS)

Pre‐feasibility Study(PFS)

Definitive Feasibility Study (DFS) Close‐outEngineering & Procurement Construction Commissioning

Creating Value  Delivering Value

Stage gates (approval to proceed) FID

The project development story …..

PROJECT DEVELOPMENT CYCLE

Identify  Options

Select Option Define Execute Ramp up

TIME

Opp

ortunityDecreasing

Cost Increasing

Safety ‐ the behaviour we walk past is the behaviour we accept

The transition to operating ….. 14.0 MILLIONHours worked

4,000Safety inspections

► Establishing our required safety culture has been one of the key challenges 

► While our early success has been pleasing, the challenge continues and evolves as the workforce matures

10,000Hazard reports

All products at or above design output rates,  focus now on optimising the operation

Achieving design output rates quickly can only happen by first ensuring the plants are running stably and then focusing on efficiencies

The transition to operating …..

Being “cost and return” conscious

ILMENITE PRODUCTION (kt)

ZIRCON PRODUCTION (kt)

RUTILE PRODUCTION (kt)

CASH PRODUCTION COSTS + ROYALTIES (US$/t)

The transition to operating …..

Recruiting the right people, training them, engaging them and building our systems to support this is central to successful delivery …….

Our people …..

Recruitment / Influx management

Maximising the Kenyan and local workforce

Managing community expectations

Ensuring depth of capability in the workforce

Increasing both quantity & quality of Kenyan jobs

Assembling an expat team with a training orientation 

Ensuring early implementation of training systems

Video ……

Our people …..

Our People…..

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NUMBER  OF  EXPATRIATES

The transition to a local workforce is essential to sustain performance as well as to improve bench strength for strategic growth

Our People…..

Training on a wide variety of skills and at all levels in the organization is essential for safe delivery and employee 

engagement

PLANT DESIGN AND PROCESS FLOWSPLANT WALKDOWN  AND  PROCESS OVERVIEWPOULTRY TRAININGPOWER TOOLPRE‐LOADING BEARINGPROCEDURES OF MAINT HEAVY MOBILE EQUIPSPROCESS INDUCTION AND VISITPROCESS REVISON PROJECT MANAGEMENTPRONTO ENTERING REQUISITIONPRONTO OVERVIEWPRONTO PICKING SLIPPRONTO PURCHASE REQUISITION PROCESSPRONTO RECEIVING GOODSPRONTO STOCK TAKINGPROVIDE EMERGENCY CAREPUMP TROUBLE SHOOTINGRADIATION AWARENESSREMOVAL AND PLACEMENT OF PENSTOCK RINGSRESCUE/EXPOSUR/CONFINEMENT/EXTINGUISHMNTROAD ACCIDENT RESCUEROPE RESCUE TECHNIQUESSAFETY COMMITTEE TRAINING SCHEDULED OIL SAMPLINGSECURITY INDUCTIONSELECTION AND USE OF A FIRE EXTINGUISHERSELF‐CONTAINED AIR BREATHING APPARATUSSERVICE INFORMATION SYSTEM(SISSETTLEMENT PONDS MANAGEMENTSHARE POINT ADMINISTRATOR TRAININGSHAREPOINT DOC APPROVER & OWNER TRAININGSHIP LOADER OPERATOR  TRAININGSHUTDOWN OPERATIONSSKID STEER LOADER OPERATOR TRAININGSLIMES DEPOSITIONSLINGING AND MOVEMENT OF LOADSSMART LOG IMPLEMENTATION SNAKE BITE TRAININGSOLDERINGSPIDER ARRANGEMENT TRAININGSPOTTING PROCEDURESTANDARD HANDLING OF LIFTING EQUIPMENTSUPERINTENDENTS SUPERVISORS INDUCTIONSURPAC TRAININGSURPAC TRAINING SWAHILISWAHILI TRAININGTEAM LEADER TEAM MEMBER TRAININGTELE HANDLERTHREAT AWARENESSTIME MANAGEMENTTRAIN THE TRAINERTSF OPERATIONSTSF SAFETY INDUCTION

► 96 courses delivered before start up

► 250 further courses delivered since operations started

► 30,000 operational readiness training hours

► 95,000 training hours since start up

Graduates – 19 have participated in an 18 mth programApprenticeships – 30 participating in a 2‐3 yr programs87 three month internshipsHigh school student orientation visits

High Potentials identified through a selection process – 12 month tailored programDemonstrated potential in acquiring tech skills, leadership, emotional intelligence and cognitive abilityStrong performers and “potentials” also identifiedPersonal development plan created and monitored for each member

All superintendents and aboveRoles required for strategic growth and expatriate replacementCritical roles with unique specific skills55 roles targeted

Develop an external pipeline

Develop an internal talent pool

Specific roles targeted for succession 

Our People…..

The transition to a local workforce can only happen through the early implementation of training and a robust system of succession planning

Our Communities…..

Base understands that achieving its long‐term goals is predicated on building beneficial relationships with the communities in which it operates and establishing a balanced flow of mutual benefit. 

Enhancement of household livelihoods is the most direct way to improved socio –economic status

Access to education is often restricted by lack of financial resources

Improvement in educational standards has a direct relationship with  increased incomes

School attendance and performance is often associated with good health

Community infrastructure plays an important, but supporting, role in all of the above

Environmental management is crucial to outcomes and perceptions

► Locally focussed employment and procurement.

► Commercial agricultural projects in potatoes, cotton and poultry.

► Involving NGO’s, lenders and co‐sponsors.

► Rehabilitation of construction areas completed.

► Establishing a biodiversity corridor linking remnant forest

► Largest indigenous nursery of its kind in East Africa .

► Scholarship programs are supporting over 200 high potential students.

► Direct participation in company training programmes.

► Agricultural training.

► Economic empowerment training to assist in business start‐ups.

► Water quality and access improvement.

► Specific health programmes ‐ jigger eradication.

► Little Sports program – 15,000 kids in weekly sport.

► 20 projects in medical facilities, schools and transport.

Positioning in the market…..

Establishing our market share in a short period of time has been challenging, particularly in this environment

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2012 2013 2014 2015*

Chinese ilmenite imports

India Tonnes (kt) Australia Tonnes (kt) Mozambique Tonnes (kt) Russia Tonnes (kt) Base  Tonnes (kt)

* Up to Nov

Strong operating margins(Dec 2015 half year)

Financial…..

Financial…..Strong operating margins enables a robust debt reduction profile 

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$20m

$40m

$60m

$80m

$100m

$120m

$140m

$160m

$180m

$200m

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$20m

$40m

$60m

$80m

$100m

$120m

$140m

$160m

$180m

$200m

Jan‐16 Jun‐16 Dec‐16 Jun‐17 Dec‐17 Jun‐18 Dec‐18 Jun‐19 Dec‐19 Jun‐20

Project Debt ‐ Repayment Profile

Oustanding Loan BalanceScheduled Loan Repayment

Operational performance at or exceeding designFurther optimisation to increase production

Strong operating margins of US$110/t over past two quarters (to Dec 15)

Debt profile restructured complete and now better suited to current market conditionsRecent successful capital raising

Good balance of products and highly competitive into China for ilmenite

Experienced Board and Management team and strong business processes in place

Acquisition and exploration opportunities to utilise capabilities

Generating positive cashflow

Ability to fund

Established market share for production

Successful business model

Pursuing growth options

Positioning for growthThe next phase…..

The next phase…..Base is actively pursuing both medium and long term growth options to capitalise on our capabilities, market position and the mineral sands outlook to create shareholder value.

1. Enhance the value of the Kwale operations► “Kwale Phase 2” Project

► Deliver an optimised combination of Central and South dune mining sequence.► Accelerated production giving significant cost efficiency through shorter LOM.► Currently progressing through PFS study phase with encouraging indications.► Targeting full implementation in early 2018.

► Near‐mine exploration for extended operational life► Airborne geophysics program completed. Areas of interest identified.

2. Secure the “right” mineral sands development asset► Screening process completed for global undeveloped mineral sands projects

► Database system and project ranking methodology developed.► Critical success factors and economic triggers for new project development 

established.► Projects of interest identified and transaction relative value envelopes modelled.

► Progression in 2016.

3. Consider value creating consolidation opportunities in the sector► A cost curve under pressure from current product prices creates opportunities.