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BASE RESOURCES ASX , AIM and Media Release 28 January 2021 Quarterly Activities Report - December 2020 Key points Kwale Operations has maintained operational consistency through the quarter with health and safety protocols in place to minimise the risk of COVID - 19 to personnel and surrounding communities . Ongoing firm demand from customers in the quarter supported further ilmenite price increases , while zircon and rutile prices have stabilised . • Kwale North Dune PFS progressed and is scheduled for release early in the June quarter . • Exploration drilling re - commenced in the North Vanga region near Kwale Operations . • Discussions with the Government of Madagascar on Toliara Project fiscal terms continue to progress . Activities to support vulnerable local communities affected by COVID - 19 in Kenya and Madagascar continued . African mineral sands producer , Base Resources Limited ( ASX & AIM : BSE ) ( Base Resources or the Company ) is pleased to provide a quarterly operational , development and corporate update . COVID - 19 UPDATE Base Resources continues to closely monitor the COVID - 19 pandemic and its impacts on the Company's business , people and wider stakeholders . The Company's Kwale Operations in Kenya continues to operate under a suite of mitigations aimed at protecting the health and safety of our employees and neighbouring communities , including modified workplace practices and a focus on hygiene and social distancing . The Company is also assisting governments and communities in both Kenya and Madagascar with several initiatives , primarily involving the construction of hygiene facilities , distribution of food and provision of medical supplies and equipment . KWALE OPERATIONS Production & Sales Dec 2019 Quarter Mar 2020 Quarter June 2020 Quarter Sept 2020 Quarter Dec 2020 Quarter Production ( tonnes ) Ilmenite 91,406 105,035 84,843 65,863 78,500 Rutile 19,812 23,683 19,035 15,513 18,171 Zircon 7,923 9,163 7,590 6,000 6,677 Zircon low grade¹ 546 780 578 426 516 Sales ( tonnes ) Ilmenite Rutile Zircon Zircon low grade¹ 106,544 87,819 102,364 75,502 53,798 13,078 25,280 27,268 11,651 12,017 7,090 7,377 9,086 7,336 6,399 616 1,516 505 Mining operations continued according to plan on the South Dune orebody with mined tonnage increasing to 4.6Mt ( last quarter : 3.9Mt ) due to higher mining faces reducing the downtime associated with relocating mining units . The heavy mineral ( HM ) grade of ore mined was also higher at 3.68 % ( last quarter : 3.16 % ) . This was driven by the mine path as well as better grade than predicted by the resource model in some areas mined . 1 Reported as tonnes of zircon concentrate , it typically realises between 30 % to 50 % of the value of the equivalent volume of standard grade zircon , due to rutile credits . Base Resources Limited ABN 88 125 546 910 +61 8 9413 7400 baseresources.com.au 50 Kings Park Rd West Perth WA 6005 Page 1 of 7