Mr. Raj Chowdhry reports

ASIABASEMETALS AMENDS LETTER OF INTENT TO ACQUIRE CONTROL OF MAJORITY INTEREST IN POTASH PROJECT IN LAOS

AsiaBaseMetals Inc. has amended the letter of intent announced on Sept. 1, 2011, pursuant to which the company agreed to terms for the acquisition of an indirect 90-per-cent interest in the Vientiane potash project.

The Vientiane potash project currently consists of a 16.5-square-kilometre potash exploration property located in the Huaxieng-Xaithany area of Vientiane province, Laos.

The amendments to the letter of intent provide for an alternative, deferred payment structure if the vendor has expanded the property with an additional 39 square km of contiguous mineral rights for a total of 55 square km, within one year of the closing of the transaction and at no additional cost to the company.

Under either payment structure, the maximum total consideration payable by the company to acquire the 90-per-cent interest in the Vientiane potash project, if all milestones are achieved, will be $4-million in cash payments and the issuance of 22 million common shares. If the property is expanded by the vendor on the terms set out above, the consideration will be payable in stages on completion of specific financings, resource reports and feasibility studies, and mine construction milestones. If the property is not expanded by the vendor, the consideration will be payable only if later-stage milestones related to the preparation of a feasibility study and mine construction are achieved. The maximum total consideration has not been changed.

The transaction remains subject to, among other things, approval of the TSX Venture Exchange, required consents being obtained, the company being satisfied with the results of its due diligence and the parties entering into a definitive agreement. The date by which the definitive agreement must be entered into has been extended by the amendments to the letter of intent.

A World Bank report, dated November, 2006, stated the following with respect to Laos: "Potash rock salt -- As with gypsum, potash rock salt occurs in the evaporite of the Upper Cretaceous, and its distribution is confirmed to be large in Vientiane and Savannakhet provinces. Potash salt deposits in Vientiane and Savannakhet sedimentary basins are large in Laos. Thickness of the deposit in Savannakhet province was confirmed to be 70 metres to 85 m at drill holes (DGM-INTERGEO, 2005). The resource of potash salt may be as high as 50 billion tonnes." (Reference: the World Bank Trust Fund: No. 030670, "Final Report for Economic Geology FR-2, Sector Plan for Sustainable Development of the Mining Sector in the Lao PDR," Section 4.5.3, dated November, 2006.)

Raj Chowdhry, president and chief executive officer of AsiaBaseMetals, stated: "Having recently visited the Vientiane potash project in Laos earlier this year, I am pleased to state that this potash project is a great opportunity for AsiaBaseMetals. Since potash is one of the key components of fertilizer, and with China, India and Indonesia representing three of the largest markets for agricultural products in the world, and located on the doorstep of Laos, management believes that the Vientiane potash project represents a world-class opportunity."

We seek Safe Harbor.