Base Resources Limited - 2024 Mineral Resources and Ore Reserves Statement

Deposit(s)

Announcement Title

Estimate Date

Release Date

Kwale North Dune and Bumamani

Ore Reserves

Maiden Kwale North Dune and Bumamani Ore Reserves estimates

20 June 2022

20 June 2022

Ranobe

(Toliara Project)

Mineral Resources & Ore Reserves

Updated Ranobe Mineral Resources and Ore Reserves estimates

27 September 2021

27 September 2021

2023 Comparatives

Mineral Resources & Ore Reserves

2023 Mineral Resources and Ore Reserves Statement

30 June 2023

12 August 2022

Name

Estimate(s)

Employer

Ian Reudavey

Kwale Mineral Resources and Ore Reserves (overall), Kwale North Dune Mineral Resources, Ranobe Mineral Resources, Kwale North Dune Ore Reserves and Bumamani Ore Reserves

Base Resources, full-time employee

Scott Carruthers

Ranobe Ore Reserves

Base Titanium, full-time employee

Edwin Owino

Bumamani Mineral Resources

Base Titanium, full-time employee

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

RCAC drilling was used to collect downhole samples for the project.

For pre-2023 drilling a rig mounted rotary splitter was used to collect 25% of the downhole sample interval, equating to ~6kg for a 3m interval and 3kg for a 1.5m interval.

For 2023 drilling the entire 1.5m downhole sample interval (averaging ~10kg) was collected from which approximately 4kg was obtained via two-stage riffle splitting.

Of the 590 drill holes used, 73 of them (drilled between 2010 – mid 2012) utilised 3m sample intervals. The remaining 517 drill holes used 1.5m sample intervals from mid-2012 to 2023.

Duplicate samples were collected at the splitter for every 20th sample simultaneously with the original sample.

A representative grab sample from the sample bags was routinely washed and panned for lithological logging as well as a visual HM content estimate.

Samples were analysed by mineral sands industry standard techniques of screening, desliming and heavy liquid separation using LST (lithium heteropolytungstate) or SPT (sodium polytungstate) at SG of 2.85g/cm3.  XRF analysis of HM magnetic fractions was used to define the mineral assemblage.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

73 holes in the 2010 and 2012/2013 campaigns were drilled with a RCAC Wallis Mantis 75 drill rig using NQ drill tooling of about 76mm in diameter and a 3-blade aircore vacuum face sampling bit.

480 holes in the 2018/19 campaign were drilled with a RCAC Wallis Mantis 80 drill rig, also using NQ drill tooling.

37 holes in the 2023 campaign were drilled with a RCAC EVH2100 drill rig, also using NQ drill tooling and a 3-blade aircore vacuum face sampling bit.

For the 2010 and 2012/13 campaigns, the mast was oriented vertically (90°) by sight. For the 2018/19 and 2023 drilling campaign, the rig mast was orientated vertically by spirit level prior to drilling to adhere to best practice for geological boundary delineation.

Drilling was recorded in geological logs as either dry or water injected, depending on ground conditions. Water injection was typically employed to assist with penetration through clays/rock and maintain sample quality and delivery.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Sample condition was logged at the rig as either good, moderate or poor, with good meaning not contaminated and appropriate sample size (recovery), moderate meaning not contaminated, but sample over or under sized, and poor meaning contaminated or grossly over/undersized.

Moist ground conditions with approximately 35% silt/clay meant that best sample quality was achieved via slow penetration with water injection to aid in the sample recovery.

No relationship is believed to exist between grade and sample recovery. No bias is also believed to occur due to loss of fine material.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Field logging was recorded for all down-hole intervals and was conducted by the site Geologist as drilling and sampling proceeded. Logging was based on a representative grab sample that was panned for heavy mineral estimation and host material observations.

Standardised logging codes are developed in the logging software (LogChief) to capture observations on lithology, colour, grainsize, induration and estimated mineralisation. Any relevant comments e.g., water table, gangue HM components and stratigraphic markers were included to aid in the subsequent geological modelling.

A qualitative estimate of how representative a sample was of the drilled interval was recorded by Base Titanium field geologists whilst logging.

Heavy mineral sinks from assayed samples were logged routinely under a reflected-light, stereoscopic microscope. This work was carried out to capture information relating to VHM content, mineralogy, HM grainsize and quality.

The logging is of sufficient detail to support Mineral Resource estimation, mining studies and metallurgical studies.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

For pre-2023 drilling, approximately 25% of the sample interval was rotary split at the sampling cyclone on the rig.

For 2023 drilling the entire sample interval was collected mostly wet and bagged on site in polyweave bags with internal plastic lining to avoid loss of slimes. Following air drying of excess moisture an approximate 25% split of the drilled sample interval was collected via riffle splitting. 

The split sample was processed in a dedicated sample preparation facility that follows conventional mineral sands processes. Samples were air-dried when weather permitted, otherwise oven dried during wet weather.  After drying, the sample was rotary split to produce a ~200-400g sample for analytical work.  The remaining drill sample material was combined and split down to ~2-3kgs for storage as a reference sample. 

The analytical split sample was wet screened using 45 µm and 1 mm sieves, to generate oversize and sand fractions, with slimes lost during screening and calculated by difference.

Improvements to the sample preparation stage were made in 2017 to ensure industry best practice and to deliver a high degree of confidence in the results. These included the following:

• A formalised process flow was generated, posted in all sample preparation areas and used to train and monitor sample preparation staff.
• Regular monitoring was completed by Base Titanium senior staff.
• Field samples were left in their bags for initial air-drying to avoid sample loss.
• Tetrasodium pyrophosphate (TSPP) was introduced to decrease attrition time and improve slimes recovery. A range of attrition times (with 5% TSPP) were trialled and plotted against slimes recovery figures to determine optimum attrition time (15 minutes).
• Staff were trained to use paint brushes and water spray rather than manipulate sample through slimes screen by hand to remove the potential for screen damage.
• A calibration schedule was introduced for scales used in the sample preparation stage.
• The introduction of LIMS software allowed the capture of sample preparation data digitally at inception and synchronisation in real-time to the master Kwale Operations Laboratory SQL database. 
• Slimes screen numbers are recorded to isolate batches should re-assay be required due to poor adherence to procedure or to identify screen damage.
• Duplicate samples were collected at every 20th sample and assessed regularly to ensure representivity was achieved.
• The drill rods and cyclone were routinely cleaned between holes using pressurised water to avoid inter-hole contamination.

The sample preparation flow sheet follows conventional mineral sands processes but departed from standard mineral sand practices in one respect; the samples were generally not oven-dried before de-sliming to prevent clay minerals baking onto the HM grains (because the HM fractions were to be used in further analysis).  Instead, a separate sample was split and dried to determine moisture content, which was accounted for mathematically.

QA/QC procedures involved the following:

•         Prepared duplicate split samples were processed at every 20th sample.

•         Prepared repeat samples were processed at every 7th sample.

•         The manual hard-copy sample preparation records were maintained in files in the event of cross-references due to identified scribing errors in LIMS software.

The sample size is considered appropriate for the grain size of the material because the grade of HM is measured in per cent.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The assay process employed included a Sample Preparation stage, completed by Base Titanium staff, followed by a heavy liquid separation (using lithium polytungstate or sodium polytungstate) at SG = 2.85g/cm3), completed at Kwale Operations’ site laboratory.

The assaying and laboratory procedures used are considered to follow industry best practice and the technique is considered as a total analysis.

The dried, deslimed processed samples were submitted to the Kwale Operations laboratory with the following approach adopted.

All samples were dried and weighed.

Sand fraction was processed by heavy liquid separation to generate a HM fraction.

HM fraction subject to magnetic separation on a roll magnet to generate a magnetic (Mag) fraction, mids (Mid) and non-magnetic (NonMag) fraction.

For 2023 drilling the HM fraction from individual samples was submitted for magnetic separation, whereas for pre-2023 drilling composite samples of HM from geological domains were submitted for magnetic separation.

XRF analysis of magnetic fractions was completed with the data used to model the mineralogy using the Company’s internally developed algorithms (MinModel).

The proprietary MinModel mineralogy technique, developed and employed by Base Resources, comprises an XRF analysis of the magnetic and non-magnetic fractions of each composite or sample, the results from which are then back-calculated to determine in-ground mineralogy. MinModel has been validated by external quantitative analysis (QEMSCAN and EDX) and is considered sufficiently certified to support quoted resource confidence in this report.

Various quality control samples were submitted routinely to assure assay quality. A total of 835 duplicate field samples, 835 lab duplicate sample preparation samples, 294 field certified standard samples, and an unspecified number of internal laboratory standards, repeats and blanks have been assayed at Kwale Operations’ site laboratory.

Acceptable levels of accuracy and precision have been established.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

The Kwale North Dune deposit is a moderate to low HM grade, dunal-style accumulation that does not carry excessive mineralisation or suffer from ‘nugget’ effects, typical of other commodities.

No external audit validation was completed for the HM analyses included in the Kwale North Dune Mineral Resources estimate. This is not considered material given the adequate performance of results from extensive QA/QC verification and on account of low HM grade variance and deposit homogeneity.

A twin drill hole procedure was introduced for the 2018/19 program at a recommended rate of 5% of the total number of holes. These twins were used to quantify short-range variability in geological character and grade intersections, and were completed at appropriate spacing across the deposit. A total of 41 twin drill holes were completed during the 2018/19 Kwale North Dune drilling program, which represents about 5.7% of the total program. The twin hole paired data showed very good correlation, providing support to the integrity/quality of the resource data.

Drill hole logging and site sample data were collected electronically in Maxwell LogChief software, installed on field Panasonic Tough pads that synchronise directly to the Datashed database. Assay data is captured electronically via LIMS software and merged with logging and sample data in the Datashed database.

No adjustment to assay data was made.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Proposed drill holes were sited on the ground using hand-held Garmin GPS units with an accuracy of ~ 3m.  After drilling, the mine surveyors picked collar positions via a differential global positioning system DGPS RTK unit registered to local base stations.  The accuracy of the RTK unit is stated at 0.02m in the X, Y and Z axes.

The survey Geodetic datum utilised was UTM Arc 1960, used in East Africa. Arc 1960 references the Clark 1880 (RGS) ellipsoid and the Greenwich prime meridian. All survey data used in the Kwale North Dune Mineral Resources estimate dataset has undergone a transformation to the local mine grid from the standard UTM Zone 37S (Arc 1960). The local Grid was rotated 42.5°, which aligns the average strike of the deposit with local North and is useful for both grade interpolation and mining reference during production.

All drill collars were projected to the local LIDAR survey, DTM, captured over the resource area in 2018/19 at a 2x2m grid spacing. This was performed prior to interpretation and model construction to eliminate any elevation disparities for the block model construction.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

The drill data spacing for the 2018/19 Kwale North Dune drilling established a nominal 100m X, 100m Y and 1.5m Z over the broader deposit. Variations from this spacing resulted from terrain/traverse difficulties and ground access.

The 2023 Kwale North Dune drilling targeted 50m X, 100m Y and 1.5m Z drill data spacing over areas identified for potential mining and is considered as grade control drilling.

A downhole sample interval of 3m, with occasional 1.5m intervals at geological contacts, was employed in the 2012/2013 drilling campaign by Base Titanium.

A 1.5m, down-hole block size was applied to model construction and for consistency in the interpolation processes.

This spacing and distribution is considered sufficient to establish the degree of geological and mineralisation continuity appropriate for the resource estimation procedures and classifications applied.

No sample compositing has been applied for HM, slimes and oversize in the interpolation processes. Pre-2023 drilling used compositing for mineralogical samples, with composites constrained to geological domains and typically limited to 6m downhole.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

With the geological setting being a layered dunal/fluviatile sequence, the orientation of the deposit mineralisation in general is sub-horizontal. All drill holes were orientated vertically to penetrate the sub-horizontal mineralisation orthogonally.

Hole centres were spaced nominally at 100m. This cross-profiles the dune so that variation can be determined. Down hole intervals were nominated as 1.5m. This provides adequate sampling resolution to capture the distribution and variability of geology units and mineralisation encountered vertically down hole.

The orientation of the drilling is considered appropriate for testing the horizontal and vertical extent of mineralisation without bias.

Sample security

The measures taken to ensure sample security.

Drill samples were transported daily from site to the secure sample preparation facility by company personnel.

Sample residues from the preparation stage were transferred to pallets and stored in a locked shed beside the warehouse at Kwale Operations.

Residues from the Kwale Operations site laboratory were placed in labelled bags and stored in numbered boxes. Boxes were placed into a locked container beside the laboratory.

Sample tables are housed on a secure, network-hosted SQL database. Administration privileges are limited to two Base Titanium staff: Exploration Superintendent and the Business Applications Administrator.

Data is backed up every 12 hours and stored in perpetuity on a secure, site backup server.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

Historical audits and reviews of sampling techniques have been completed at Kwale Operations by industry consultants, and internal reviews by Base Resources’ Exploration and Resource Manager were completed during the drilling campaigns.

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Kwale North Dune deposit extends across SML 23 and prospecting licence PL 2018/0119 which are both 100% held by Base Titanium, a wholly owned subsidiary of Base Resources. The resource being reported lies wholly within SML 23.

SML 23 was extended in June 2022 to cover the Kwale North Dune and Bumamani Ore Reserves and expires in June 2025. SML 23 is in good standing with the State Department for Mining and expires on 30 June 2025.

Local landowners are generally supportive of exploration and mining activities with established community relations and development programs in place.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

In 1996, Tiomin carried out reconnaissance surface and hand-auger sampling. Following the encouraging results obtained, mud-rotary drilling was undertaken in 1997 and 37 holes for a total of 1,824m was achieved for the Kwale North Dune, at 3m sampling intervals.

Prior to the acquisition of the Kwale Project by Base Resources, Tiomin prepared and published a North Dune Mineral Resources estimate of 116 Mt @ 2.1% HM using a 0.5% HM cut-off grade.

The current resource model omits the Tiomin data. This followed a twin drilling analysis of the Tiomin Mud Rotary holes with Base Titanium RCAC to determine relevance of historical data to the Kwale South Dune Mineral Resources estimate in 2016. A total of 18 twin-hole pairs from a geographically dispersed area within the Kwale South Dune were included for analysis. A very poor correlation in HM values between the two methods (R2 = 0.1522) resulted from the study, and it is assumed that the poor correlation would also extend to the Kwale North Dune.

Geology

Deposit type, geological setting, and style of mineralisation.

The Kwale North Dune is part of the extensive Kwale Dune systems comprising of reddish, windblown Margarini sand formations that overlie a sequence of variably mineralised clay-rich fluviatile units, which in turn overlie a Mesozoic sandstone base, known as the Mazeras formation. All formations are locally enriched in HM, with the VHM suite dominated by ilmenite with lesser rutile and zircon.

These three units are separated by lateritic paleo-surfaces which signify a time-gap between the geological formations.

The Mazeras Sandstone, derived from the disintegration of the Mozambique Belt metamorphic rocks, has likely provided the supply of heavy minerals to the Margarini sand dunes and the fluviatile formations.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Drilling by year used for the resource model build was as follows:

2010

• 11 drill holes (depth: max 72m, min 24m, average 53m).
• Total 582m drilled.

2012

• 24 drill holes (depth: max 75m, min 27m, average 60m).
• Total 1,449m drilled.

2013

• 38 drill holes (depth: max 75m, min 27m, average 50m).
• Total 1,911m drilled.

2018

• 473 drill holes (depth: max 117m, min 9m, average 38 m).
• Total 18,045m drilled.

2019

• 7 drill holes (depth: max 21m, min 9m, average 16m).
• Total 114m drilled.

2023

• 37 drill holes (depth: max 30m, min 9m, average 21m).
• Total 759m drilled.

See drill hole location plan in Figure 3 attached.

All drill holes were drilled vertically.

All collars were projected to the LIDAR topographical surface.

A tabulation of material drill holes is not included as exploration results are not being reported.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Exploration results are not being reported.

No metal equivalent values were used.

No aggregation of short length samples used as samples were consistently 3m and 1.5m intervals.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

The deposit sequences are sub-horizontal, and the vertically inclined holes are a fair representation of true thickness.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

See attached Figures 2 and 3.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Exploration results are not being reported.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

The Kwale North Dune deposit contains higher levels of slimes than the deposits previously mined at Kwale Operations, and also a thicker sequence of Ore Zone 4. These characteristics can be mitigated by mining North Dune concurrently with other deposits to provide a blended feed to the processing plants.

Further work

The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

No further work is recommended or planned as the deposit is currently being mined and, with the planned cessation of mining activities at Kwale Operations in December 2024 following the depletion of existing Ore Reserves, there are no potential mine extensions that have not already been identified and assessed.

Database integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

Data validation procedures used.

Field data was captured in LogChief logging application and automatically validated through reference to pre-set library table configurations. Typing or logging code errors, duplication of key identifiers (e.g., HOLE_ID, SAMP_ID) and conflicts in related tables (e.g., down-hole depth) are quarantined by the software and require resolution immediately before logging can proceed.

The SQL Database also has identical automated validation features. Data import is unsuccessful until these data issues are resolved.

Field logging and survey data from the SQL database were imported into Datamine Studio RM for sectional interpretation.

Validation steps included a visual interrogation of collar versus geology depths, a review of hole locations against the drilling plan and a check for missing or duplicated logged fields and outliers. Any spurious or questionable entries were resolved by the supervising Geologist.

A field diary was utilised by the site Geologist to record the hole name, date, depth, number of samples, time of start and finish, a description of the location of the hole in relation to the previous hole and other relative observations. Such a diary provides valuable evidence if there is an error in hole naming or surveying.

A geologist was employed to manage digital data capture at the sample preparation laboratory to reduce the potential for data entry error by unskilled labourers. A number of validation checks were made of sample preparation data to ensure accurate data entry and application of correct procedure by Base Titanium staff. This included:

• comparison of pre-versus post-oven weights;
• comparison of split weight versus de-slimed weight;
• comparison of split weight versus field sample weight; and
• all sample preparation data were sorted by each individual field and outliers investigated

Assay results were delivered via email in 45 sample batches from Kwale Operations’ site laboratory. These were in the form of CSV text files and imported by batch number directly into the SQL database tables where pre-set algorithms converted weights to percentages and removed the moisture content. The calculated assay results were then checked manually for missing records and out of range or unrealistic values.

Site visits

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

If no site visits have been undertaken indicate why this is the case.

The Competent Person, Base Resources’ Exploration and Resources Manager, Mr. Ian Reudavey, was based at Kwale Operations during 2023 and 2024. The Competent Person is satisfied with the integrity of the database as well as the delineation of the geological boundaries having observed mining at Kwale North Dune.

Geological interpretation

Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

Nature of the data used and of any assumptions made.

The effect, if any, of alternative interpretations on Mineral Resource estimation.

The use of geology in guiding and controlling Mineral Resource estimation.

The factors affecting continuity both of grade and geology.

The original geological interpretation was undertaken by the Base Titanium Exploration Superintendent using field logs and observations, assays, HM sink logs, XRF oxide chemistry and mineralogy data. The oversize grades were particularly useful in determining the lateritic paleo-surfaces between the geological zones. Interpretations were revised and updated by the Competent Person.

The data spacing for the project is considered sufficient for grade and mineralogical continuity.

Three mineralised geological zones and a basement zone were identified and are used as constraints in the Mineral Resources estimation.

The uppermost zone at the Kwale North Dune deposit, referred to as Ore Zone 1, is a dark brown, predominantly fine grained, well sorted silty sand with very little induration. It is also characterised by a clean, high value heavy mineral assemblage.

Ore Zone 4 lies below Ore Zone 1 with a clear lateritic boundary observed in the field with slightly difficult bit penetration, and in HM sink logs, exhibiting elevated iron oxides. Ore Zone 4 is lower in valuable heavy mineral content, often dominated by iron oxides and Al2SiO5 polymorphs (kyanite, andalusite and sillimanite). It is considered a fluvial deposit based on the difficulty of wash and the poor grain sorting.

Ore Zone 5 lies below Ore Zone 4 and is separated from that zone by a lateritic paleo-surface. It is unique mineralogically due to an increased amount of almandine garnet that reports to the mag fraction, significantly increasing the magnesium, manganese, aluminium and silicon in the oxide chemistry, and this is also reflected in QEMSCAN mineralogy.

For Ore Zones 1, 4 and 5, a strong correlation between the field logs, HM sink logs and XRF oxide chemistry and QEMSCAN mineralogy gives confidence to these interpretations.

The grade and mineralogy continuity is abruptly truncated at the western edge by an interpreted normal fault that pushed basement material to the surface. Grade and geological continuity for Ore Zone 1 and 4 can be impacted by erosion and the formation of a dendritic drainage pattern shedding to the east.

Dimensions

The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

The Kwale North Dune Mineral Resources estimate is approximately 1,800m along strike and about 700m across strike on average.

The typical thickness of Ore Zone 1, Ore Zone 4 and Ore Zone 5 is approximately 8m, 10m and 8m, respectively.

Estimation and modelling techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

The assumptions made regarding recovery of by-products.

Estimation of deleterious elements or other non-grade variables of economic significance (e.g., sulphur for acid mine drainage characterisation).

In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

Any assumptions behind modelling of selective mining units.

Any assumptions about correlation between variables.

Description of how the geological interpretation was used to control the resource estimates.

Discussion of basis for using or not using grade cutting or capping.

The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

The Kwale North Dune Mineral Resources estimation was undertaken using Datamine Studio RM software. The estimation techniques used were based upon revision and modification (as required) of parameters developed during previous modelling of the Kwale North Dune deposit.

Interpolation was constrained within the geological domains and utilised search ellipse dimensions developed from variography, with a dynamic ellipse orientation controlled by strike and dip trend points of the geological domain.

Inverse Distance Weighting to the power of three was used to interpolate assay grades (HM, Slimes, Oversize, Ilmenite, Rutile and Zircon) from the drill hole file. Nearest Neighbour was used to interpolate the logged hardness, mineralogy composite ID and mineralogy chemistry data.

This resource estimate has been constrained to a designated mining area within SML 23, as the area outside of the current operational envelope is no longer considered to have prospects for eventual economic extraction, given the absence of mining tenure, the planned closure of Kwale Operations, the low HM grade, high slimes content, lack of capacity for slimes tailings storage and high cost and timeframes of land acquisition.

Mining commenced at Kwale North Dune in February 2023, and while successfully producing HM, there have been challenges with hydraulic mining of high clay material in Ore Zone 4 and Ore Zone 5. Given that Ore Zone 5 also has a low VHM content and poor HM quality, it has now been excluded from the mineral resource as it has proven uneconomical to extract.

No assumptions have been made as to the recovery of by-products.

The parent cell size used in the grade interpolation (50m x 50m) was half the average drill hole spacing on the X and Y axes, which was 100m x 100m. The vertical thickness of the cell was the nominal average drill sample interval i.e., 1.5m.

No assumptions were made behind modelling of selected mining units.

No assumptions were made about correlation between variables.

No grade cutting or capping has been applied as the HM grade is typically quite low at Kwale North Dune and the higher-grade assays present have been shown to have continuity along a geological feature from infill drilling data.

Validation was undertaken by swathe plots, population distribution analysis and visual inspection.

Moisture

Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content

The Mineral Resources estimate is on a dry tonnes basis.

Cut-off parameters

The basis of the adopted cut-off grade(s) or quality parameters applied.

The economic cut-off of Kwale Operations is between 1% and 1.5% HM dependent upon mineral assemblage and product prices, and historically Kwale Operations Mineral Resources estimate reporting has used a 1% HM cut-off grade.

Mining factors or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

The hydraulic mining method currently used at Kwale Operations is also being used at Kwale North Dune. The high slime content and generally low levels of induration in the Kwale North Dune deposit provide support for this mining method, but the presence of compacted clay has necessitated the use of higher-pressure water guns and some mechanical mining assistance.

Based on the operational experience to date the Competent Person considers there are no mining factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.

Metallurgical factors or assumptions

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

The existing concentrator, modified to accommodate the increased slimes, and mineral separation plant at Kwale Operations have proven capable of processing the Kwale North Dune material with recoveries achieving ranges aligned with historical production.

Based on the operational experience to date the Competent Person considers there are no metallurgical factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.

Environmental factors or assumptions

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

Environmental factors for Kwale North Dune are well established and managed as they form a continuation of the current operational plan. The Competent Person considers there are no environmental factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.

Course tailings are deposited in the mined out pit voids of both the Kwale Central Dune and Kwale North Dune before being capped with a layer of co-disposed of fine and coarse tails as the first step in rehabilitation of these areas. The excess fine tails not used for co-disposal are deposited in the site tailings storage facility.

Bulk density

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

A fixed dry bulk density of 1.7 (t/m3) was assumed for the Kwale North Dune Mineral Resources estimate, based on operational experience of mining the Kwale Central Dune, Kwale South Dune and Kwale North Dune deposits and the difficulty in developing a bulk density formula to account for all material types.

Ongoing production reconciliation has shown this to be a reasonable assumption and more reliable than bulk density algorithms.

Classification

The basis for the classification of the Mineral Resources into varying confidence categories.

Whether appropriate account has been taken of all relevant factors (i.e., relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

Whether the result appropriately reflects the Competent Person’s view of the deposit.

The Mineral Resources classification for the Kwale North Dune deposit was based on drill hole spacing, sample interval and the distribution and influence of composite mineralogical samples.

The classification of the Measured, Indicated, and Inferred Mineral Resources was supported by the uniform grid spacing of drilling, uncomplicated and consistent geology, relatively good continuity of mineralisation particularly along strike (and supported by the domain controlled variography), confidence in the down hole drilling data and supporting criteria as noted above.

As Competent Person, Base Resources Exploration and Resources Manager, Mr. Ian Reudavey, considers that the result appropriately reflects a reasonable view of the deposit categorisation.

Audits or reviews.

The results of any audits or reviews of Mineral Resource estimates.

No audits or reviews of this Mineral Resource estimate have been undertaken. However, it represents an update of an existing Mineral Resource that was initially completed by independent consultants and was subject to internal review, and implements recommendations from that review. Kwale North Dune is also currently being mined which represents the ultimate test of a Mineral Resource estimate.

Discussion of relative accuracy/ confidence

Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

Variography was undertaken to determine the drill hole support of the selected JORC Code classification.

Validation of the model vs drill hole grades by direct observation and comparison of the results on screen.

The resource statement is a global estimate for the entire known extent of the Kwale North Dune deposit within the designated mining area of SML 23.

Production data shows reasonable correlation with the resource estimate.

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

RCAC drilling was used to collect downhole samples for the project.

For 2017 and 2018 drilling a rig mounted rotary splitter was used to collect 25% of the 1.5m downhole sample interval, equating to ~2.5kg.

For 2023 drilling the entire 1.5m downhole sample interval (averaging ~10kg) was collected from which approximately 4kg was obtained via two-stage riffle splitting.

Duplicate samples were collected at the splitter for every 20th sample simultaneously with the original sample.

A representative grab sample from the sample bags was routinely washed and panned for lithological logging as well as visual HM content estimate.

Samples were analysed by mineral sands industry-standard techniques of screening, de-sliming and heavy liquid separation using SPT (sodium polytungstate) at SG of 2.85g/cm3.  XRF analysis of HM magnetic fractions was used to define the mineral assemblage.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

173 holes in the 2017 and 2018 campaigns were drilled with a Wallis Mantis 80 RCAC drill rig using NQ drill tooling of about 76mm diameter and a 3-blade aircore vacuum face sampling bit.

58 holes in the 2023 campaign were drilled with an EVH2100 RCAC rig using Remet rods with an outside diameter of about 75mm and a 3-blade aircore vacuum face sampling bit.

12 mechanised auger holes in the 2024 campaign were completed immediately west of the Bumamani deposit with a GY-150 engineering rig using 152mm auger bits. Although drilled for reconnaissance purposes, these holes were incorporated into the estimation database where significant gaps in aircore drilling occurred.

For all drilling campaigns, the rig mast was orientated vertically by spirit level before drilling, to adhere to best practices for geological boundary delineation.  

Drilling was recorded in geological logs as either dry or water-injected depending on ground conditions.  Water injection was employed to assist with penetration through silty/clayey formations to maintain sample quality and delivery.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Sample condition was logged at the rig as either good, moderate or poor, with good meaning not contaminated and appropriate sample size (recovery), moderate meaning not contaminated, but sample over or undersized and poor meaning contaminated or grossly over/undersized.

Ground conditions of slightly damp silty sands meant the best sample quality was achieved through slow penetration with water injection to aid in the sample recovery.

No relationship is believed to exist between grade and sample recovery. No bias is also believed to occur due to the loss of fine material.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Field logging was recorded for all 3,987 fixed, down-hole intervals and was conducted by the site Geologist as drilling and sampling proceeded. Logging was based on a representative grab sample that was panned for host material observations and heavy mineral estimation.

Standardised logging codes were developed in the logging software (LogChief) to capture observations on lithology, colour, grain size, induration, and estimated HM. Any relevant comments e.g., water table, gangue HM components and stratigraphic markers were included to aid in the subsequent geological modelling.

A qualitative estimate of how representative a sample was of the drilled interval was recorded by Base Titanium field geologists whilst logging.

Heavy mineral sinks from assayed samples were logged routinely under a reflected-light, stereoscopic microscope. This work was carried out to capture information relating to VHM content, mineralogy, HM grainsize and quality.

The logging is of sufficient detail to support Mineral Resource estimation, mining studies and metallurgical studies.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

For the 2017/2018 drilling, approximately 25% of the sample interval was rotary split at the sampling cyclone on the rig.

For the 2023 aircore and 2024 auger drilling, the entire sample interval was collected mostly wet and bagged on-site in polyweave bags with internal plastic lining to avoid loss of slimes. Following air drying of excess moisture, an approximate 25% split (~5kg) of the drilled material was collected via riffle splitting.

The split sample was processed in a dedicated sample preparation facility that follows conventional mineral sands processes. Samples were air-dried when weather permitted, otherwise they were oven-dried during wet weather. After drying, the sample was rotary split to produce a ~200-400g sample for analytical work. The remaining drill sample material was combined and split down to ~2-3kgs for storage as a reference sample.

The analytical split sample was wet screened using 45 µm and 1 mm sieves, to generate oversize and sand fractions, with slimes lost during screening and calculated by difference.

The sample preparation stage aligns with industry best practice to deliver a high degree of confidence in the results.  Steps include the following:

• A formalised process flow is posted in all sample preparation areas and used to train and monitor sample preparation staff.
• Regular monitoring is completed by Base Titanium senior staff. 
• Field samples are left in their bags for initial air-drying to avoid sample loss.
• TSPP dispersant is utilised to decrease attrition time (to 15 minutes) and improve slimes recovery. 
• Staff are trained to use paint brushes and water spray rather than manipulate samples through the screen by hand to remove the potential for screen damage.
• A calibration schedule is utilised for scales used in the sample preparation stage.
• The introduction of LIMS software allows the capture of sample preparation data digitally at inception and synchronisation in real-time to the master Kwale Laboratory SQL database.
• Slimes screen numbers are recorded to isolate batches should re-assay be required due to poor adherence to procedure or to identify screen damage.
• Duplicate samples were collected at every 20th sample and assessed regularly to ensure representivity was achieved.

The drill rods and cyclone were routinely cleaned between holes using pressurised water to avoid inter-hole contamination. The sample preparation flow sheet follows conventional mineral sands processes but departed from standard mineral sand practices in one respect; the samples were generally not oven-dried before de-sliming to prevent clay minerals baking onto the HM grains (because the HM fractions were to be used in further analysis).  Instead, a separate sample was split and dried to determine moisture content, which was accounted for mathematically.

QA/QC procedures involved the following:

• Prepared duplicate split samples were processed at every 20th sample.
• Prepared repeat samples were processed at every 7th sample.
• The manual hard-copy sample preparation records were maintained in files in the event of cross-references due to identified scribing errors in LIMS software.

The sample size is considered appropriate for the grain size of the material because the grade of HM is measured in per cent.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The assay process employed included a Sample Preparation stage, completed by Base Titanium staff, followed by a heavy liquid separation (using sodium polytungstate) at SG = 2.85g/cm3), completed at Kwale Operations’ site laboratory.

The assaying and laboratory procedures used are considered to follow industry best practice and the technique is considered as a total analysis.

The dried, deslimed processed samples were submitted to the Kwale Operations laboratory with the following approach adopted.

All samples were dried and weighed.

Sand fraction was processed by SPT heavy liquid separation to generate a HM fraction.

The HM fraction was subject to magnetic separation on a roll magnet to generate a magnetic (Mag) fraction and a non-magnetic (non-Mag) fraction.

XRF analysis of magnetic fractions was completed with the data used to model the mineralogy using the Company’s internally developed algorithms (MinModel).

The proprietary MinMod mineralogy technique, developed and employed by Base Resources, comprises an XRF analysis of the magnetic and non-magnetic fractions of each composite or sample, the results from which are then back-calculated to determine in-ground mineralogy. MinMod has been validated by external quantitative analysis (QEMSCAN and EDX) and is considered sufficiently certified to support quoted resource confidence in this report.

Various quality control samples were submitted routinely to assure assay quality. A total of 112 duplicate field samples, 108 lab duplicate sample preparation samples, 68 field standard samples, 84 lab standard samples and 71 instrument stability standards have been assayed at Kwale Operations’ site laboratory.

Acceptable levels of accuracy and precision have been established.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

The Bumamani Deposit is a moderate to low HM grade, dunal and paleo-beach style accumulation that does not carry excessive mineralisation or suffer from ‘nugget’ effects, typical of other commodities.

An external audit validation was completed for the HM analyses included in the Bumamani Mineral Resources estimate by IHC Robbins in 2020.

An internal audit validation was completed by the Base Resources Exploration & Resources Manager who is a Competent Person.

A total of 12 twin drill holes were completed between the two drilling programmes, representing about 5.2% of the total programme. These twin holes are used to quantify short-range variability in geological character and grade intersections and were drilled throughout the deposit.

The spatially well-represented twin-hole paired data shows a good correlation, considered material to the integrity/quality of the resource data.

Drill hole logging and site sample data were collected electronically in Maxwell LogChief software, installed on field Panasonic Tough pads that synchronise directly to the Datashed database. Assay data is captured electronically via LIMS software and merged with logging and sample data in the Datashed database.

No adjustment to assay data was made.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Proposed drill holes were sited on the ground using hand-held Garmin GPS units with an accuracy of ~ 3m.  After drilling, the mine surveyors picked collar positions via a DGPS RTK unit registered to local base stations.  The accuracy of the RTK unit is stated at 0.02m in the X, Y and Z axes.

The survey geodetic datum utilised is UTM Arc 1960, used in east Africa. Arc 1960 references the Clark 1880 (RGS) ellipsoid and the Greenwich prime meridian.   All survey data used in the Bumamani Mineral Resource dataset has undergone a transformation to the local mine grid from the standard UTM Zone 37S (Arc 1960). The local grid was rotated at (-42.5°) which aligned the average regional strike with the local North and was useful for both grade interpolation and mining reference during production.

All drill collars are projected to the local LIDAR DTM captured over the resource area in 2018 at a 2x2m grid spacing.  This was performed before interpretation and model construction, to eliminate any elevation disparities for the block model construction.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

The drill data spacing from the 2017/2018 and 2023 Bumamani Mineral Resource drilling programmes was on average 50m East, 100m North and 1.5m downhole.  Variations from this spacing resulted from terrain challenges or low grades.

This spacing and distribution was considered sufficient to establish the degree of geological and mineralisation continuity appropriate for the resource estimation procedures and classifications applied.

No sample compositing has been applied for HM, slimes, oversize and XRF assays.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

With the geological setting being a layered dunal/marine/fluviatile sequence, the orientation of the deposit mineralisation in general is sub-horizontal. All drill holes were orientated vertically (-90°) to penetrate the sub-horizontal mineralisation orthogonally.

Hole centres were spaced at 50m. This cross-profiled the ore zones so that variation could be determined. Downhole intervals at 1.5 metres provided adequate sampling resolution to capture the distribution and variability of geology units and mineralisation encountered vertically.

The orientation of the drilling was considered appropriate for testing the horizontal and vertical extent of mineralisation without bias.

Sample security

The measures taken to ensure sample security.

Drill samples were transported daily from site to the secure sample preparation facility by company personnel.

Sample residues from the preparation stage were transferred to pallets and stored in a locked sample storage shed beside the warehouse at the Kwale Operations.

Residues from the Kwale Operations Laboratory were placed in labelled jars and stored in numbered boxes inside a container near the prepatory lab facility.

Remnant drill samples were packed in labelled wood pallets and stored in a dedicated storage shed facility.

Sample tables are housed on a secure, network-hosted SQL database. Administration privileges are limited to two Base Titanium staff: Exploration Superintendent and the Business Applications Administrator.

Data is backed up every 12 hours and stored in perpetuity on a secure, site backup server.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

IHC Robbins Geological Services validated the resource data and reviewed the completed block model in 2020, and considered the model fit for purpose.

Base Resources Exploration and Resources Manager, Mr. Ian Reudavey reviewed the Bumamani geological interpretations, wireframes and assay and mineralogy data interpolations and following minor revisions considered the data fit for purpose.

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Bumamani project is located within SML 23, which is 100% held by Base Titanium, a wholly owned subsidiary of Base Resources.

SML 23 was initially granted in 2004 and extended in June 2022 to cover the Kwale North Dune and Bumamani Ore Reserves.

SML 23 is in good standing with the State Department for Mining and expires on 30 June 2025.

Local landowners are generally supportive of exploration and mining activities with established community relations and development programs in place.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

No known historical exploration by third parties was undertaken in the Bumamani area.

Geology

Deposit type, geological setting and style of mineralisation.

The Bumamani deposits are primarily hosted in the ‘Margarini Formation’ comprising reddish-brown, well-sorted, fine-grained dune sands overlying clay fluviatile units, which in turn overlie a Mesozoic sandstone base, known as the Mazeras formation. All formations are locally enriched in HM, with the VHM suite dominated by ilmenite, with lesser rutile and zircon.

These three units are separated by lateritic paleo-surfaces which signify a time-gap between the geological formations.

The Mazeras Sandstone, derived from the disintegration of the Mozambique Belt metamorphic rocks, has likely provided the supply of heavy minerals to the Margarini sand dunes and the fluviatile formations.

The eastern part of the Bumamani deposit, occurring at around 50-60m above sea level, is hosted in well drained, yellow to white, loose, marine sands occurring along an subtle arcuate topographic ridge. These sands are a result of marine transgression events before the mid-Pleistocene that resulted in raised beaches, reworking existing Margarini deposits and locally concentrating them into small high-grade deposits.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Drilling by year used for the resource model build was as follows:

2017 stratigraphic drilling

• 39 RCAC drill holes (depth: max 75m, min 12m, average 25.8m)
• Total 1,005m drilled.

2018 exploration drilling

• 134 RCAC drill holes (depth: max 27m, min 6m, average 13.0m).
• Total 1,743m drilled.

2023 exploration drilling

• 58 RCAC drill holes (depth: max 22.5m, min 13.5m, average 17.1m).
• Total 990m drilled.

2024 exploration drilling

• 12 auger drill holes (depth: max 15m, min 12m, average 14.5m).
• Total 174m drilled.

See the drill hole location plan in the attached Figure 5.

All drill holes were drilled vertically.

All collars were projected to the LIDAR topographical surface.

A tabulation of material drill holes is not included as exploration results are not being reported.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Exploration results are not being reported.

No metal equivalent values were used.

No aggregation of short length samples used as samples were consistently 1.5m intervals.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

The deposit sequences are sub-horizontal, and the vertically inclined holes are a fair representation of true thickness.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

See attached Figures 4 and 5.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Exploration results are not being reported.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

The Bumamani dunal and fossil beach material contains significantly lower slimes than the Kwale North Dune deposit.  This characteristic is beneficial when mining the deposit concurrently with the Kwale North Dune to provide a blended feed to the processing plants.

Further work

The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

No further work is recommended or planned as the deposit is currently being mined and, with the planned cessation of mining activities at Kwale Operations in December 2024 following the depletion of existing Ore Reserves, there are no potential mine extensions that have not already been identified and assessed.

Database integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

Data validation procedures used.

Field data was captured in LogChief logging application and automatically validated through reference to pre-set library table configurations. Typing or logging code errors, duplication of key identifiers (e.g., HOLE_ID, SAMPLEID) and conflicts in related tables (e.g. downhole depth) are quarantined by the software and require resolving immediately before logging can proceed.

The SQL database also has identical automated validation features. Data import is unsuccessful until these data issues are resolved.

Field logging and assay data from the SQL database were imported into Micromine software for sectional interpretation.

Validation steps included a visual interrogation of collar versus geology depths, a review of hole locations against the drilling plan and a check for missing or duplicated logged fields and outliers.  Any spurious or questionable entries were resolved by the supervising Geologist.

A field diary was utilised by the site Geologist to record the hole name, date, depth, number of samples, time of start and finish, a description of the hole location relative to the previous hole and other relative observations. Such a diary provides valuable evidence if there is an error in hole naming or surveying.

A geologist was employed to manage digital data capture at the sample preparation laboratory to reduce the potential for data entry error by unskilled labourers. Several validation checks were made of sample preparation data to ensure accurate data entry and application of correct procedure by Base Titanium staff.  This included:

• Comparison of pre-versus post-oven weights.
• Comparison of split weight versus de-slimed weight.
• Comparison of split weight versus field sample weight.
• All sample preparation data was sorted by each field and outliers were investigated.

Assay results were delivered via email in 45 sample batches from Kwale Operations’ site laboratory. These were in the form of CSV text files and imported by batch number directly into the SQL database tables where pre-set algorithms converted weights to percentages and removed the moisture content. The calculated assay results are then checked manually for missing records and out-of-range or unrealistic values.

Site visits

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

If no site visits have been undertaken indicate why this is the case.

The Competent Person is Base Titanium Exploration Manager, Mr Edwin Owino, and he is based at Kwale Operations and oversaw the drilling program and sample collection. The Competent Person is satisfied with the integrity of the database as well as the delineation of the geological boundaries having many years of experience at Kwale Operations.

Geological interpretation

Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

Nature of the data used and of any assumptions made.

The effect, if any, of alternative interpretations on Mineral Resource estimation.

The use of geology in guiding and controlling Mineral Resource estimation.

The factors affecting continuity both of grade and geology.

The geological interpretation was undertaken by the Base Titanium Exploration Manager by using field logs and observations, assays, HM sink logs, XRF oxide chemistry and mineralogy data.

The data spacing for the project is considered sufficient for grade and mineralogical continuity.

Three mineralised geological zones and a basement zone were identified and are used as constraints in the Mineral Resources estimation.

The uppermost zone at Bumamani, referred to as Ore Zone 1, is a dark red brown, predominantly fine, well-sorted silty sand with very little induration.  It is also characterised by clean, well-sorted and polished HM with a high value mineral assemblage.

Ore Zone 20 flanks Ore Zone 1 to the east and is hosted in well-sorted medium to coarse fossil beach sands characterised by low slimes and induration. The HM is well-sorted and polished, containing elevated rutile and zircon as well as a higher-titanium ilmenite than typical for the Kwale deposits.

Ore Zone 4 underlying both Ore Zone 1 and Ore Zone 20 is a sandy-clay fluviatile unit with low-level sorting and common lateritic fragments.  The HM from this zone contains both gangue silicates and lateritic aggregates.

All three formations have a regional strike direction of about 40 degrees East of North and range in age from mid-Pliocene to Pleistocene.

The Basement Zone is mostly a clay-rich, fluviatile unit with a difficult-to-impossible washability. The HM from this zone is typically dominated by trash minerals.

All interpreted geology zones show a strong correlation between the field logs, HM sink logs and XRF oxide chemistry and mineralogy, giving confidence to these interpretations.

Dimensions

The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

The Bumamani Mineral Resources estimate is approximately 1,100m along strike and 150-300m across strike on average. The deposit thickness averages 11m.

The typical thickness of Ore Zone 1, Ore Zone 20 and Ore Zone 4 is approximately 8.5m, 7m and 2.5m, respectively.

Estimation and modelling techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

The assumptions made regarding recovery of by-products.

Estimation of deleterious elements or other non-grade variables of economic significance (e.g., sulphur for acid mine drainage characterisation).

In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

Any assumptions behind modelling of selective mining units.

Any assumptions about correlation between variables.

Description of how the geological interpretation was used to control the resource estimates.

Discussion of basis for using or not using grade cutting or capping.

The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

The Bumamani Mineral Resource estimation was undertaken using Micromine Origin 2023 software. The estimation techniques used are based upon revision and modification (as required) of parameters developed during previous modelling of the Bumamani deposit.

Interpolation was constrained within the geological domains and utilised search ellipse dimensions developed from variography, with a dynamic ellipse orientation controlled by strike and dip trend points of the geological domain.

Inverse Distance Weighting to the power of three was used to interpolate assay grades (HM, Slimes, Oversize) and mineralogy (Ilmenite, Rutile and Zircon).

This resource estimate has been constrained to a designated mining area within SML 23, as the area outside of the current operational envelope is not considered to have prospects for eventual economic extraction, given the absence of mining tenure, the planned close of Kwale Operations, the low HM grade, small volumes of mineralisation identified, and high cost and timeframes of land acquisition.

No assumptions have been made as to the recovery of by-products.

The parent cell size used in the grade interpolation was half the average drill hole spacing on the Y and X axes, which was 100m x 50m. The vertical thickness of the cell was the average drill sample interval i.e., 1.5m.

No assumptions were made behind the modelling of selected mining units.

No assumptions were made about the correlation behind variables.

Validation was undertaken by swath plots, population distribution analysis and visual inspection.

Moisture

Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content

The Mineral Resources estimate is on a dry tonnes basis.

Cut-off parameters

The basis of the adopted cut-off grade(s) or quality parameters applied.

The economic cut-off of Kwale Operations is between 1% and 1.5% HM dependent upon mineral assemblage and product prices, and historically Kwale Operations Mineral Resources estimate reporting has used a 1% HM cut-off grade.

Mining factors or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

The hydraulic mining method currently used at the Kwale Operations is also used at Bumamani. The slime content and generally low levels of induration in the Bumamani deposit provide support for this mining method.

Based on the operational experience to date the Competent Person considers there are no mining factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.

Metallurgical factors or assumptions

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

The existing concentrator and mineral separation plant at Kwale Operations have proven capable of processing the Bumamani material with recoveries achieving ranges aligned with historical production.

Based on the operational experience to date the Competent Person considers there are no metallurgical factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.

Environmental factors or assumptions

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

Environmental factors for Bumamani are well established and managed as they form a continuation of the current operational plan. The Competent Person considers there are no environmental factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.

Course tailings are deposited in the mined out pit voids of both the Kwale Central Dune and Kwale North Dune before being capped with a layer of co-disposed of fine and coarse tails as the first step in rehabilitation of those areas. The excess fine tails not used for co-disposal are deposited in the site tailings storage facility.  There is no plan to return tailings to the Bumamani pit void, and it will be re-shaped to a stable landform upon the cessation of mining as the first step in rehabilitation.

Bulk density

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

A fixed dry bulk density of 1.7 (t/m3) was assumed for the Bumamani Mineral Resources estimate, based on operational experience of mining the Kwale Central Dune and Kwale South Dune deposits.

Ongoing production reconciliation has shown this to be a reasonable assumption and more reliable than bulk density algorithms.

Classification

The basis for the classification of the Mineral Resources into varying confidence categories.

Whether appropriate account has been taken of all relevant factors (i.e., relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

Whether the result appropriately reflects the Competent Person’s view of the deposit.

The Mineral Resources classification for the Bumamani deposit was based on drill hole spacing, sample interval and the distribution and influence of composite mineralogical samples.

The classification of the Measured, Indicated, and Inferred Mineral Resources was supported by the uniform grid spacing of drilling, uncomplicated and consistent geology, relatively good continuity of mineralisation particularly along strike (and supported by the domain-controlled variography), confidence in the downhole drilling data and supporting criteria as noted above.

As Competent Person, Base Titanium Exploration Manager, Mr. Edwin Owino, considers that the result appropriately reflects a reasonable view of the deposit categorisation.

Audits or reviews.

The results of any audits or reviews of Mineral Resource estimates.

Internal peer review was undertaken by Ian Reudavey, Base Resources Exploration and Resource Manager, with a focus on the process and output of the geology interpretation, database integrity and consideration of whether wireframes reflect the geological interpretation and grade interpolations.  Mr. Reudavey was satisfied with these facets.

Discussion of relative accuracy/ confidence

Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

Variography was undertaken to determine the drill hole support of the selected JORC Code classification.

Validation of the model vs drill hole grades was undertaken by direct observation and comparison of the results on screen.

The resource statement is a global estimate for the entire known extent of the Bumamani deposit within SML 23.

Production data shows reasonable correlation with the resource estimate.

Assemblage

The relative proportion of heavy mineral components, principally ilmenite, rutile, zircon and, where applicable, leucoxene, monazite and garnet.

Base Titanium

Base Titanium Limited.

Competent Person

The JORC Code requires that a Competent Person be a Member or Fellow of The Australasian Institute of Mining and Metallurgy, of the Australian Institute of Geoscientists, or of a ‘Recognised Professional Organisation’.  A Competent Person must have a minimum of five years’ experience working with the style of mineralisation or type of deposit under consideration and relevant to the activity which that person is undertaking.

Cut-off grade

The lowest grade of mineralised material that is thought to be economically mineable and available.  Typically used by Base Resources to define which material is reported in a Mineral Resources estimate.

DTM

Digital Terrain Model.

GARN

Garnet, a valuable heavy mineral.

Grade

A physical or chemical measurement of the characteristics of the material of interest.  In this context, the grade is always a percentage and the characteristics are heavy mineral, oversize, slime and the various product minerals (ilmenite, rutile etc).

Heavy mineral or HM

In mineral sands, minerals with a specific gravity greater than 2.85 t/m3.

ILM

Ilmenite, a valuable heavy mineral.

Indicated

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

Inferred

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling.  Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity.  It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

Inverse distance weighting

A statistical interpolation method whereby the influence of data points within a defined neighbourhood around an interpolated point decreases as a function of distance.

JORC Code

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

Kwale Operations or Kwale Project

The Company’s 100% owned Kwale Mineral Sands Operations in Kenya.

LEUC

Leucoxene, a valuable heavy mineral.

LIDAR survey

LIDAR is a remote sensing technology that measures distance by illuminating a target with a laser and analysing the reflected light to produce a DTM.

Measured

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.

Mineral Resources

Mineral Resources are a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction.  The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.  Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

MinMod

A company developed mineralogy modelling technique, it comprises an XRF analysis of the magnetic and non-magnetic fractions of each composite or sample, the results from which are then back-calculated to determine in-ground mineralogy.

Modifying Factors

Modifying Factors are considerations used to convert Mineral Resources to Ore Reserves.  These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

MON

Monazite, a valuable heavy mineral that contains rare earth elements.

NQ

Specification of drilling rods (and bits) with an outer diameter of 76mm.

Ore Reserves

Ore Reserves are the economically mineable part of a Measured and/or Indicated Mineral Resource.  It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.

OS

Oversize material, for Kwale and Ranobe it is defined as material >1mm in size

Probable

A Probable Ore Reserve is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource.  The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve.

Proved

A Proved Ore Reserve is the economically mineable part of a Measured Mineral Resource.  A Proved Ore Reserve implies a high degree of confidence in the Modifying Factors.

QEMSCAN

An acronym for Quantitative Evaluation of Materials by Scanning Electron Microscopy, an integrated automated mineralogy and petrography solution providing quantitative analysis of minerals and rocks.

QQ plot

Quantile plot. Used to graphically compare data distributions.

RCAC

Reverse circulation air core.

RTK

Real time kinematic DGPS uses a base station GPS at a known point that communicates via radio with a roving unit so that the random position error introduced by the satellite owners may be corrected in real time.

RUT

Rutile, a valuable heavy mineral.

SL

Slimes, fine material (defined as <45µm at Kwale and <63µm at Ranobe) that is a waste product from the processing of mineral sands.

SML 23

Kwale Special Mining Lease No. 23

Sterilisation

Material that is depleted from Mineral Resources or Ore Reserves, but which was not mined.  This material still remains in ground following mining activity and, in the Competent Person’s opinion, it has no reasonable prospects for eventual economic extraction.

Variography

A geostatistical method that investigates the spatial variability and dependence of grade within a deposit. This may also include a directional analysis.

XRF analysis or XRF

A spectroscopic method used to determine the chemical composition of a material through analysis of secondary X-ray emissions, generated by excitation of a sample with primary X-rays that are characteristic of a particular element.

ZIR

Zircon, a valuable heavy mineral.

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