Base Resources Limited announced that the Government of Kenya and Base Titanium Limited, Base Resources' wholly owned Kenyan Subsidiary, have signed Deeds of Variation for the Kwale Special Mining Lease 23 (SML 23) that give effect to the following: An extension of the mining lease boundary of SML 23 to incorporate the Kwale South Dune Ore Reserves 1 that previously fell outside the SML 23 boundary. An increase in the rate of royalties payable to the Government of Kenya, such that: For the period from the date of first export of minerals to 30 June 2018, the royalty is increased to 3%. For the period from 1 July 2018 to the end of SML 23, the royalty is increased to 5%. Prior to being varied, the applicable royalty rate under SML 23 was 2.5% and it is on this basis that royalties have been paid. However, from first export of minerals, royalty costs have been provided for, and expensed, by the Company at an assumed royalty rate of 5%, based on an expected outcome from the long running discussions with the Government of Kenya. In consideration for entry into the Deeds of Variation, in particular agreement to a royalty for the period to 30 June 2018 at a rate lower than had been accrued, Base Titanium will withdraw its claim for refund of VAT receivables related to the construction of Kwale Operations.