ABZ AsiaBaseMetals Inc

AsiaBaseMetals Inc. ("AsiaBaseMetals" or the "Company") (TSX VENTURE:ABZ) is
pleased to announce that, pursuant to an executed letter of intent, the Company
has agreed to terms for the acquisition by the Company of a 90% interest in a
16.5 square kilometer (km2) (currently in the process of being expanded to 55
square km2) potash exploration property (the "Vientiane Potash Project") located
in the Huaxieng - Xaithany area of Vientiane province, Laos.  


The consideration payable by the Company to acquire the 90% interest in the
Vientiane Potash Project will be up to an aggregate of C$4,000,000 in cash
payments and the issuance of up to an aggregate of 22,000,000 common shares,
payable in stages on completion of specific financing, resource and engineering
studies, mine development and construction milestones. 


In November 2006, The World Bank 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 70-85m at drill holes (DGM-INTERGEO, 2005). The
resource of potash salt may be as high as 50 billion t." (Reference: The World
Bank Trust Fund: #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 CEO of AsiaBaseMetals stated "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 for AsiaBaseMetals." 


The transaction is subject, among other things, to the parties entering into a
definitive agreement on or before October 30, 2011 and standard conditions in
favor of the Company including the vendor obtaining required consents, the
Company being satisfied with the results of its due diligence and approval of
the TSX Venture Exchange. There can be no assurance that the transaction will be
completed as proposed or at all. 


A finder's fee will be payable by the Company if the transaction is completed,
subject to TSX Venture Exchange approval.


ON BEHALF OF THE BOARD OF DIRECTORS

Raj Chowdhry, C.A., President & CEO

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this
release, including statements regarding the acquisition by the Company of an
interest in the Vientiane Potash Project constitute "forward-looking statements"
within the meaning of Canadian securities legislation. In making the
forward-looking statements in this release, the Company has applied certain
factors and assumptions that the Company believes are reasonable, including that
the Company is able to obtain regulatory approval of the proposed acquisition
and is otherwise able to complete the proposed acquisition. However, the
forward-looking statements in this release are subject to numerous risks,
uncertainties and other factors that may cause future results to differ
materially from those expressed or implied in such forward-looking statements.
Such uncertainties and risks include, among others, financing risks, delays in
obtaining or inability to obtain required regulatory approvals and inability to
complete the proposed acquisition. There can be no assurance that such
statements will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. Readers are
cautioned not to place undue reliance on forward-looking statements. The Company
does not intend, and expressly disclaims any intention or obligation to, update
or revise any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.

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