ASF GROUP LIMITED — AGM Information 2015

Oct 26, 2015

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ASF Group Limited ACN 008 924 570

Notice of 2015 Annual General Meeting and Explanatory Memorandum

Date of meeting: 27 November 2015

Time of meeting: 10:30 am

Place of meeting: Suite 18B, Opera Quays, 7 Macquarie Street, Sydney NSW 2000

This is an important document. If you are in any doubt as to how to act, you should consult your financial, legal or other professional adviser.

ASF GROUP LIMITED ACN 008 924 570

Important Notices

General

This Notice of Meeting is dated 26 October 2015.

This document is important. The Explanatory Memorandum to this Notice of Meeting provides additional information on matters to be considered at the Meeting. You should read it in its entirety before making a decision on how to vote on the Resolutions to be considered at the Meeting. The Explanatory Memorandum and the Proxy Form are part of this Notice of Meeting.

If you are in doubt as to what you should do, you should consult your legal, investment or other professional adviser.

Defined terms

Capitalised terms in the Notice of Meeting are defined either in the Glossary section or where the relevant term is first used.

ASX

A final copy of this Notice of Meeting has been lodged the ASX. Neither the ASX nor any of their respective officers takes any responsibility for the contents of this document.

Forward looking statements

Some of the statements appearing in this document may be in the nature of forward looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', likely', 'intend', 'should', 'could', 'may', 'target', 'plan', 'consider', 'foresee', 'aim', 'will' and similar expressions are intended to identify forward-looking statements. Indications of and guidance on, future production, resources, reserves, sales, capital expenditure, earnings and financial position and performance are also forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties many of which are outside the Company's control. Those risks and uncertainties include factors and risks specific to the Company such as (without limitation) the impact of inflation on operating, exploration and development costs, fluctuations in exchange rates, operational risks, risks associated with the exploration or developmental stage of projects, risks associated with the exploitation stage of projects, the imprecise nature of resource and reserve statements, access to and costs of infrastructure and transport, taxation and regulatory issues, changes in law and accounting policies, the fluctuating industry and commodity cycles, any reliance on third parties, any imposition of significant obligations under environmental regulations, the impact on competitiveness of the business resulting from carbon trading and carbon tax imposed by governments, any climate change impact (including regarding water allocation), any increased competition, any loss of key long term contracts, the adverse impact of wars, terrorism, political, economic or natural disasters, any inability to enforce legal rights, any native title claims, the ability to service or obtain funding, further exploration or new projects, loss of key personnel and delays in obtaining or inability to obtain any necessary government approvals, third party consents or exploration licences, impact of changes to interest rates, effect of new technologies, changes to government fiscal, monetary and regulatory policies.

Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement and such deviations are both normal and to be expected.

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None of the Company nor any of their respective officers or any person named in this document or involved in the preparation of this document make any representation or warranty (either express or implied) as to the accuracy or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, and you are cautioned not to place undue reliance on those statements.

The forward looking statements in this document reflect views held only as at the date of this document.

No financial product advice

This document does not constitute financial product or investment advice nor a recommendation in respect of the Shares. It has been prepared without taking into account the objectives, financial situation or needs of Shareholders or other persons. The Company is not licensed to provide financial product advice.

Before deciding how to vote or act, Shareholders and others should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances.

No internet site is part of this document

No internet site is part of this Notice of Meeting. The Company maintains an internet site (http://www.asfgroupltd.com). Any references in this document to this internet site is a textual reference only and does not form part of this document.

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Notice of Annual General Meetin g

Notice is given that the annual general meeting of the shareholders of the Company will be held at Suite 18B, Opera Quays, 7 Macquarie Street, Sydney NSW 2000 on 27 November 2015 commencing at 10:30 am.

Capitalised terms in the Notice of Meeting are defined either in the Glossary section or where the relevant term is first used.

A enda g

Financial statements and reports

To table the following statements and reports and provide Shareholders with the opportunity to raise any issues or ask questions generally of the Directors concerning those financial statements or the business operations of the Company:

• (a) the financial report of the Company and of the consolidated entities for the year ended 30 June 2015;

• (b) the Directors' Report for the year ended 30 June 2015; and

• (c) the independent auditor's report thereon.

Note : There is no requirement for Shareholders to approve these reports.

Resolution 1: Adoption of the Remuneration Report

To consider the Remuneration Report as it appears in the Directors’ Report which is contained in the Annual Report of the Company for the financial year ended 30 June 2015 and, if thought fit, pass the following Resolution as an ordinary resolution in accordance with section 250R(2) of the Corporations Act:

‘That the Remuneration Report for the year ended 30 June 2015, submitted as part of the Directors’ Report for the year ended 30 June 2015, be adopted pursuant to sections 250R(2) and 250R(3) of the Corporations Act 2001 (Cth).’

Note : The vote on this Resolution 1 is advisory only and does not bind the Directors or the Company.

Voting Exclusion Statement

According to s 250R(4) of the Corporations Act, a vote on this Resolution 1 must not be cast (in any capacity) by or on behalf of either a member of the key management personnel ( KMP ) details of whose remuneration are included in the remuneration report or a closely related party of such KMP.

However, pursuant to s 250R(5) of the Corporations Act, a KMP or its closely related party may cast a vote on this Resolution if:

• the person does so as a proxy appointed by writing that specifies how the proxy is to vote on the proposed resolution; and

• the vote is not cast on behalf of a KMP or its closely related party.

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Resolution 2: Re-election of a Director, Mr Quan (David) Fang

To consider and, if thought fit, pass the following resolution as an ordinary resolution :

'That Mr Quan (David) Fang, a Director retiring by rotation in accordance with article 79.2 of the Constitution, being eligible for re-election and having signified his candidature for the office, be re-elected as a Director.'

Resolution 3: Re-election of a Director, Mr Nga Fong Lao

To consider and, if thought fit, pass the following resolution as an ordinary resolution :

'That Mr Nga Fong Lao o, a Director retiring by rotation in accordance with article 79.2 of the Constitution, being eligible for re-election and having signified his candidature for the office, be re-elected as a Director.'

Resolution 4: Re-election of a Director, Mr Louis Li Chien

To consider and, if thought fit, pass the following resolution as an ordinary resolution :

'That Mr Louis Li Chien, a Director retiring in accordance with article 82.2 of the Constitution, being eligible for re-election and having signified his candidature for the office, be re-elected as a Director.'

Resolution 5: Approval of Shares previously issued to Zhen LI

To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution:

"That for the purposes of ASX Listing Rule 7.4 and all other purposes, approval is given for ratification of the issue of 2,424,243 ordinary fully paid shares to Zhen LI as described in the Explanatory Memorandum accompanying, and forming part of, this Notice of Meeting."

Voting Exclusion Statement

The Company will disregard any votes cast on this resolution by Zhen LI and his associates.

However, the Company need not disregard a vote if it is cast by a

• (i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or

• (ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

Resolution 6 – Approval of Shares previously issued to Ai Min TIAN

To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution:

"That for the purposes of ASX Listing Rule 7.4 and all other purposes, approval is given for ratification of the issue of 1,939,394 ordinary fully paid shares to Ai Min TIAN as described in the Explanatory Memorandum accompanying, and forming part of, this Notice of Meeting."

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Voting Exclusion Statement

The Company will disregard any votes cast on this resolution by Ai Min TIAN and her associates.

However, the Company need not disregard a vote if it is cast by a

(i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or (ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

Resolution 7 – Approval of Shares previously issued to Wiseplan Holdings Ltd

To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution:

"That for the purposes of ASX Listing Rule 7.4 and all other purposes, approval is given for ratification of the issue of 17,297,777 ordinary fully paid shares to Wiseplan Holdings Ltd as described in the Explanatory Memorandum accompanying, and forming part of, this Notice of Meeting."

Voting Exclusion Statement

The Company will disregard any votes cast on this resolution by Wiseplan Holdings Ltd and their associates.

However, the Company need not disregard a vote if it is cast by a

(i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or (ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

Resolution 8: Ratification of the issue of Oceanic Convertible Notes

To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution:

"That for the purposes of ASX Listing Rule 7.4 and all other purposes, Shareholders approve and ratify the issue of 6,000,000 convertible notes issued to Oceanic Alliance Investments Limited on 2 April 2015, on the terms and conditions set out in the Explanatory Memorandum accompanying, and forming part of, this Notice of Meeting."

Voting Exclusion Statement

The Company will disregard any votes cast on this resolution by Oceanic Alliance Investments Limited and their associates.

However, the Company need not disregard a vote if it is cast by a:

(i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or (ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

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Resolution 9: Approval of conversion right of 2,250,000 convertible notes

To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution:

"That for the purposes of ASX Listing Rule 7.1 and all other purposes, Shareholders approve the conversion right of 2,250,000 convertible notes issued to various sophisticated investors, on the terms and conditions set out in the Explanatory Memorandum accompanying, and forming part of, this Notice of Meeting."

Voting Exclusion Statement

The Company will disregard any votes cast on this resolution by Better Future Capital Investment Limited, Well Smart Capital Holdings Ltd, Rising Gain Holdings Ltd, Forever Grand Group Limited, Mars International Pty Ltd and any associates of the aforementioned persons.

However, the Company need not disregard a vote if it is cast by a

(i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or (ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

Resolution 10: Approval of issue of 5,250,000 convertible notes

To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution:

"That for the purposes of ASX Listing Rule 7.1 and all other purposes, Shareholders approve the issue of up to 5,250,000 convertible notes to various sophisticated investors, on the terms and conditions set out in the Explanatory Memorandum accompanying, and forming part of, this Notice of Meeting."

Voting Exclusion Statement

The Company will disregard any votes cast on this resolution by Better Future Capital Investment Limited, Well Smart Capital Holdings Ltd, Rising Gain Holdings Ltd, Forever Grand Group Limited, Mars International Pty Ltd and any associates of the aforementioned persons.

However, the Company need not disregard a vote if it is cast by a

(i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or

(ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

Resolution 11: Approval of additional capacity to issue Shares under ASX Listing Rule 7.1A

To consider and, if thought fit, to pass, with or without amendment, the following resolution as a special resolution:

“That, for the purpose of ASX Listing Rule 7.1A and for all other purposes, Shareholders approve the Company having the additional capacity to issue securities under Listing Rule 7.1A on the terms and conditions set out in the Explanatory Memorandum."

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Voting Exclusion Statement

The Company will disregard any votes cast on this Resolution by any person who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if this Resolution is passed, and any associates of those persons.

However, the Company need not disregard a vote:

(i) person as proxy for a person who is entitled to vote in accordance with the directions on the voting form; or (ii) it is cast by the person chairing the meeting as proxy for a person who is entitled to vote in accordance with a direction on the voting form to vote as the proxy decides.

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PROXY AND VOTING INSTRUCTIONS

1.1 Voting in person

• (1) A Shareholder that is an individual may attend and vote in person at the meeting. If you wish to attend the meeting, please bring the enclosed Proxy Form to the meeting to assist in registering your attendance and number of votes. Please arrive 15 minutes prior to the start of the meeting to facilitate this registration process.

• (2) A Shareholder that is a corporation may appoint an individual to act as its representative to vote at the meeting in accordance with the requirements of section 250D of the Corporations Act. The appropriate “Certificate of Appointment of Corporate Representative” should be produced prior to admission, together with any authority under which it is signed. A form of the certificate may be obtained from the Company’s Share Registry or at www.boardroomlimited.com.au .

1.2

Voting by proxy

• (1) A Shareholder who is entitled to vote at the Meeting may appoint one proxy if the Shareholder is only entitled to one vote and one or two proxies if the Shareholder is entitled to more than one vote. Where more than one proxy is appointed each proxy may be appointed to represent a specific proportion of the Shareholder’s voting rights. If the appointment does not specify the proportion or number of votes each proxy may exercise half of the votes, in which case any fraction of votes will be disregarded. A proxy need not be a Shareholder of the Company and a Shareholder may appoint an individual or a body corporate to act as its proxy.

• (2) In order for an appointment of proxy to be effective, the Proxy Form (and the power of attorney or other authority, if any, under which the Proxy Form is signed or a certified copy the power of attorney or other authority) must be lodged at the Company’s Share Registry: Boardroom Pty Limited, GPO Box 3993, Sydney NSW 2001 Australia or by facsimile +612 9290 9655 no later than 48 hours before the time for holding the meeting.

• (3) The Proxy Form must be signed by the Shareholder or his/her attorney duly authorised in writing or, if the Shareholder is a corporation, in a manner permitted by the Corporations Act. A proxy given by a foreign corporation must be executed in accordance with the laws of that corporation’s place of incorporation.

• (4) A Proxy Form accompanies this Notice of Meeting.

1.3 Voting Intentions

• (1) If you wish to direct your proxy how to vote on any or all of the Resolutions, place a mark “X” in the “For”, “Against” or “Abstain” box. If you do not direct your proxy how to vote, your proxy may vote as he, she or it sees fit. If you mark the abstain box, you are directing your proxy not to vote on your behalf in respect of that Resolution and your votes will not be included on a show of hands or on a poll.

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• (2) Please refer to the Proxy Form that accompanies this Notice of Meeting for instructions on its completion and lodgement.

• (3) The Chairperson of the Company intends to vote proxies in favour of all the Resolutions contained in the Notice of Annual General Meeting unless directed otherwise (subject to any relevant voting exclusions and the Chairperson’s directions below).

1.4

Directions to Chairperson of Meeting

• (1) If the Chairperson of the Meeting is appointed, or is taken to be appointed, as a proxy, the shareholder can direct the Chairperson to vote “For”, “Against” or “Abstain” from voting on the Resolutions by marking the appropriate box on the Proxy Form.

• (2) However, if the Chairperson of the meeting is a proxy and the relevant Shareholder does not provide a voting direction in respect of the Resolutions on the Proxy Form, the relevant Shareholder’s proxy will be taken as a direction to the Chairperson of the meeting to vote in accordance with the Chairperson’s stated voting intentions, which is to vote in favour of the Resolutions. Please note that you will be taken to authorise the Chairperson to exercise the proxy even if the relevant resolution is connected directly or indirectly with the remuneration of a member of the KMP or the Chairperson has an interest in the outcome of the Resolution.

• (3) If you appoint the Chairperson of the meeting as your proxy and you want to direct the votes in respect of your Shares on the Resolutions, you should direct the Chairperson how to vote by marking the relevant box (“For”, “Against” or “Abstain”) in the Proxy Form.

1.5 Resolution 1 – Remuneration Report Undirected Proxies

• If:

• (1) you appoint a director of the Company (other than the Chairperson) or other KMP or any of their closely related parties as your proxy; and

• (2) you do not direct the proxy how to vote on Resolution 1: Adoption of Remuneration Report,

your proxy will not be able to exercise your vote on your behalf on that Resolution.

1.6 Voting Entitlement

For the purposes of determining voting entitlements at the General Meeting, Shares will be taken to be held by the persons who are registered as holding the Shares at 7:00 pm (Sydney time) on 25 November 2015 on the Company’s register of members. Transactions registered after that time will, therefore, be disregarded in determining entitlements to attend and vote at the Meeting.

Dated: 26 October 2015

By order of the Board

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William Kuan Company secretary

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Ex lanator Memorandum p y

This Explanatory Memorandum has been prepared for the information of the Shareholders in connection with the business to be conducted at the Annual General Meeting and should be read in conjunction with, and forms part of, the Notice of Meeting to which it accompanies.

1. Introduction

• 1.1 This Explanatory Memorandum accompanies and forms part of the Notice of Meeting of ASF Group Limited and it is intended to provide Shareholders with information to assist them in assessing the merits of the Resolutions contained in the business to be conducted at the Meeting to be held on 27 November 2015.

• 1.2 A glossary of defined terms used in the Notice of Meeting and this Explanatory Memorandum is set out at in the Glossary which appears the end of this Explanatory Memorandum.

• 1.3 The Directors recommend that Shareholders read the Explanatory Memorandum before making any decisions in relation to the Resolutions set out in the Notice of Meeting.

• 1.4 If any Shareholder is in doubt as to how they should vote, they should seek advice from their legal, financial or other professional adviser prior to voting.

2. Business of the Meeting – summary

• 2.1 The business of the Annual General Meeting is to:

• table the financial statements and reports;

• consider and, if thought fit, to pass the following Resolutions (Note: except for Resolution 11 which is a special resolution, all other Resolutions are ordinary resolutions):

  • Resolution 1 – to adopt the Remuneration Report for the year ended 30 June 2015;

  • Resolution 2 – to re-elect Mr Quan (David) Fang as a Director;

  • Resolution 3 – to re-elect Mr Nga Fong Lao as a Director;

  • Resolution 4 – to re-elect Mr Louis Li Chien as a Director;

  • Resolution 5 – to approve the Shares previously issued to Zhen LI;

  • Resolution 6 – to approve the Shares previously issued to Ai Min TIAN;

  • Resolution 7 – to approve the Shares previously issued to Wiseplan Holdings Ltd;

  • Resolution 8 – to ratify the issue of Oceanic Convertible Notes;

  • Resolution 9 – to approve the conversion right of 2,250,000 convertible notes;

  • Resolution 10 – to approve the issue of 5,250,000 convertible notes; and

  • Resolution 11 – to approve the additional capacity to issue Shares under ASX Listing Rule 7.1A.

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3. Business: Tabling of the financial statements and reports

• 3.1 Section 317 of the Corporations Act requires the Directors to lay before the Meeting the Company’s Financial Statements, Directors’ Report and Auditor’s Report for the year ended 30 June 2015.

• 3.2 There is no requirement that Shareholders approve the Financial Statements and associated Reports and no Resolution in relation to this matter will be put to the Meeting.

• 3.3 The Company’s 2015 Annual Report contains the Financial Statements and the Directors’ and Auditor’s Reports and has been sent to Shareholders who elected to receive a printed copy. Shareholders can access the 2015 Annual Report on the Company’s website at www.asfgroupltd.com.

• 3.4 Shareholders will be provided with a reasonable opportunity at the Meeting to ask questions or make comments on the Financial Statements and the Reports and on the Company’s management and business generally. Representatives of the Company’s Auditor, Grant Thornton, will be attending the Meeting. Shareholders will be given a reasonable opportunity to ask the Auditor relevant questions including those relating to the conduct of the audit, the preparation and content of the Auditor’s report, the accounting standards adopted by the Company and the independence of the Auditor.

• 3.5 If Shareholders would like to submit a written question to the Auditor, please send your question to the registered office of the Company or fax it to (612) 9251 9066 for the attention of the Company Secretary. Written questions must relate to the content of the Auditor’s Report to be considered at the Meeting or the conduct of the audit. All questions must be received by the Company no later than five Business Days before the day on which the Meeting is held.

4. Resolution 1: Adoption of the Remuneration Report

• 4.1 The Remuneration Report is included in the Directors’ Report and set out in the Company’s 2015 Annual Report. Pursuant to section 250R(2) of the Corporations Act, the Company is required to put a Resolution that the Remuneration Report be adopted to a vote of Shareholders at the Meeting. However, Shareholders should note that, pursuant to section 250R(3) of the Corporations Act, the vote on the Remuneration Report is advisory only and the outcome of the vote does not bind the Directors or the Company. The Remuneration Report sets out the Company’s remuneration policy and reports on the remuneration arrangements in place for Directors and key executives of the Company. The Directors make no recommendation on this Resolution.

• 4.2 Shareholders will be provided with a reasonable opportunity at the Meeting to ask questions or make comments on the Remuneration Report.

• 4.3 As a result of the amendment to the Corporations Act which came into effect on 1 July 2011, a ‘two-strikes and re-election’ process has been introduced as follow:

• (1) where the Company’s Remuneration Report receives a ‘no’ vote of 25% or more, the Company’s subsequent Remuneration Report must explain the Board’s proposed action in response or, if the Board does not propose any action, the Board’s reasons for inaction; and

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• (2) where the Company’s subsequent Remuneration Report receives a ‘no’ vote of 25% or more, a Resolution must be put (“spill Resolution”) to Shareholders at the same Meeting.

• (3) If the spill Resolution passes with 50% or more of the eligible votes cast, another meeting of the Company’s Shareholders (“spill meeting”) must be held within 90 days. At the spill meeting, all Directors (other than the Managing Director) who were in office when the Directors’ Report was considered at the most recent Meeting will be required to stand for reelection.

• 4.4 At the Company's annual general meeting held on 28 November 2014, the Company received more than 90% of ‘for’ votes on the adoption of its remuneration report set out in the 2014 annual report.

5. Resolutions 2, 3 and 4: Re-election of Directors

• 5.1 Rule 79.2 of the Constitution provides that, at each annual general meeting, one-third of the Directors for the time being (or, if their number is not a multiple of 3, then the number nearest to but not more than one-third of the Directors) must retire from office.

• 5.2 The Directors retiring by rotation are those who have been longest in office since their election. If 2 or more Directors were elected or appointed on the same day, they are required to agree among themselves or determine by lot which of them must retire. The Constitution ensures that no Director is able to remain in office for longer than 3 years without facing re-election. A Managing Director appointed under rule 97 is not subject to retirement by rotation and is not taken into account in determining the number of Directors who must retire by rotation under rule 79.2. Under rule 79.5, a retiring Director is entitled to offer himself for re-election.

• 5.3 In accordance with the above, the two Directors that must retire by rotation at this Meeting are Mr Quan (David) Fang and Mr Nga Fong Lao, who were both last re-elected to the Board at the 2012 annual general meeting of the Company. Mr Quan (David) Fang and Mr Nga Fong Lao have indicated that they will offer themselves for re-election at the Meeting.

• 5.4 Rule 82.2 of the Constitution provides that any director appointed under rule 82.1 either to fill a casual vacancy or as an addition to the existing directors shall hold office only until the termination of the next annual general meeting of the Company and is eligible for re-election at that annual general meeting but is not taken into account in determining the number of directors who must retire by rotation at that meeting.

• 5.5 Mr Louis Li Chien was appointed as Director of the Company on 1 May 2015. In accordance with rule 82.2 of the Constitution, he shall hold office only until the termination of the Meeting. Mr Louis Li Chien has indicated that he will offer himself for re-election at the Meeting.

• 5.6 Mr Quan (David) Fang was born in Shanghai. He is multilingual, speaking Mandarin, Shanghai dialect, Cantonese and English. Mr Fang has extensive experience in the property sector covering property sales/marketing, development, acquisition, and syndication.

• 5.7 The Directors (other than Mr Quan (David) Fang) recommend that you vote in favour of Resolution 2. Mr Quan (David) Fang makes no recommendation to Shareholders. All of the Directors entitled to vote on Resolution 2 intend to vote in favour of Resolution 2.

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• 5.8 Mr Nga Fong Lao is Managing Director of ASF Macau Multinational Holdings Limited in charge of the operations in Multinational Youth Travel Agency Limited. Mr Lao resides in Macau where he has business interests in the property, travel and retail industries and is Chairman of the Macau Travel Agency Association.

• 5.9 The Directors (other than Mr Nga Fong Lao) recommend that you vote in favour of Resolution 3. Mr Nga Fong Lao makes no recommendation to Shareholders. All of the Directors entitled to vote on Resolution 3 intend to vote in favour of Resolution 3.

• 5.10 Mr Louis Li Chien was born in Shanghai, China, grew up, educated and worked in the United States, and now based in Sydney, Australia. With 20+ years of Fortune 100 experience mostly based in the United States and recently Singapore, Mr. Chien has managed across the Americas, Europe and Asia-Pacific. He is principally responsible for the management of investment development, financial, and operational activities. Prior to joining ASF Group, Mr. Chien held various leadership positions within Procter & Gamble Company (P&G). He started his career as an architect in the United States.

• 5.11 The Directors (other than Mr Louis Li Chien) recommend that you vote in favour of Resolution 4. Mr Louis Li Chien makes no recommendation to Shareholders. All of the Directors entitled to vote on Resolution 4 intend to vote in favour of Resolution 4.

6. Resolutions 5, 6 and 7: Approval of Shares previously issued

• 6.1 ASX Listing Rule 7.1 imposes a limit on the number of equity securities (including ordinary shares) that a company can issue or agree to issue without shareholder approval. Generally, a company may not, without shareholder approval, issue in any 12 month period, a number of equity securities which is more than 15% of the number of fully paid ordinary shares on issue 12 months before the issue.

• 6.2 The number of equity securities that may be issued by a company under ASX Listing Rule 7.1 without shareholder approval is not impacted by equity securities which are issued under an exception contained in ASX Listing Rule 7.2 or which have received shareholder approval. ASX Listing Rule 7.4 provides that an issue by a company of equity securities made without shareholder approval under ASX Listing Rule 7.1 is treated as having been made with approval, if the issue did not breach ASX Listing Rule 7.1 when made and the company’s shareholders subsequently approve it.

• 6.3 The Board has decided to seek shareholder approval under ASX Listing Rule 7.4 in respect of the Company’s prior issue and allotment of an aggregate of 21,661,414 Shares.

• 6.4 The 21,616,414 Shares represent approximately 3.6% of the Company’s fully paid ordinary shares on issue as at the date of this Notice of Meeting.

Why are we seeking Shareholder approval?

• 6.5 The Company funds itself from various sources, including equity capital. The approval of Shareholder is being sought to provide the Company with the maximum flexibility to undertake equity raisings without the need for further Shareholder approval. The requirement to obtain Shareholder approval for an issue, at the time of issue, could limit the Company’s ability to take advantage of opportunities that may arise to raise equity capital. It should be noted that, notwithstanding an approval by Shareholder of the proposed Resolutions 5, 6 and 7, any future equity raisings will remain subject to the 15% limit set out in ASX Listing Rule 7.1.

• 6.6 Other than the Shares that may be issued pursuant to Resolutions 8 and 9 set out in this Notice, no decision has been made by the Board to undertake any further issue of equity

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securities in the event that approval is received from Shareholder in respect of the Resolutions 5, 6 and 7. The Board will only decide to issue further equity securities if it considers it is in the best interests of the Company to do so. This may depend, among other things, on market conditions and the Company's working capital requirements, from time to time.

Details of the securities issued for which approval is being sought under Resolutions 5, 6 and 7

• 6.7 The following information is provided in connection with the approval sought from Shareholders, under Resolutions 5, 6 and 7, for the previous issue of an aggregate of 21,661,414 Shares. The Company confirms that the issue of these Shares, at the time of issue, did not breach ASX Listing Rule 7.1.

• 6.8 Information about the 21,661,414 Shares is set out below with further details included in the announcement lodged with ASX on 2 February 2015 and available at www.asx.com.au.

• 6.9 In accordance with ASX Listing Rule 7.5, the details of the equity securities issued for which approval is sought from Shareholder, under Resolutions 5, 6 and 7, including the issue price and the allottees are set out below:

The names of the allottees or the basis on which the allottees were determined	Issue price	Terms of the equity securities issued	Number of securities allotted
Zhen LI	$0.22	Fully paid ordinary shares ranking pari passu with existing Shares on issue but subject to 12 month voluntary escrow period from the date of issue	2,424,243
Ai Min TIAN	$0.22	Fully paid ordinary shares ranking pari passu with existing Shares on issue but subject to 12 month voluntary escrow period from the date of issue	1,939,394
Wiseplan Holdings Ltd	$0.22	Fully paid ordinary shares ranking pari passu with existing Shares on issue but subject to 12 month voluntary escrow period from the date of issue	17,297,777

Voting exclusion

• 6.10 Shareholders should refer to the voting exclusion statement provided with Resolutions 5, 6 and 7 in the Notice of Meeting.

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Board recommendation

• 6.11 The Board considers that the approval of the issue of an aggregate of 21,661,414 Shares for which Shareholder approval is sought, under Resolutions 5, 6 and 7 and described above is beneficial for the Company as it provides the Company with the flexibility to issue up to the maximum number of equity securities permitted under ASX Listing Rule 7.1 in the next 12 months (without further Shareholder approval), should it be required. Accordingly, the Board recommends that Shareholder eligible to do so vote in favour of the ordinary resolutions in Resolutions 5, 6 and 7.

7. Resolution 8: Ratification of issue of Oceanic Convertible Notes

General

• 7.1 On 2 April 2015 ( Issue Date ), the Company issued 6,000,000 convertible notes with each note having a face value of $1.00 ( Face Value ), to Oceanic Alliance Investments Limited ( Oceanic ) to raise $6,000,000. The Oceanic Convertible Notes were issued pursuant to a Convertible Note Agreement entered into on the Issue Date.

• 7.2 The material terms of the Oceanic Convertible Notes are as follows:

Security	The Oceanic Convertible Notes are unsecured.
Interest	The Oceanic Convertible Notes will accrue interest on its face value daily at an interestrate of5% perannum.
Maturity Date	2 April 2017.
Conversion price	The face value of, and interest accrued on, each Oceanic Convertible Note is convertible into Shares at a conversion price of $0.28.
Conversion by Oceanic	Oceanic may elect to convert all the Oceanic Convertible Notes into Shares (Conversion Shares) at any time during the period commencing on the date after the Issue Date and ending 30 days immediately prior to theMaturityDate.
Conversion Shares restriction	If Oceanic elects to convert the Oceanic Convertible Notes in the period prior to the first anniversary of the Issue Date, it must not dispose of, or agree to dispose of, any Conversion Shares until the day after the first anniversary oftheIssueDate,without the priorconsent ofthe Company.
Redemption	If the Oceanic Convertible Notes have not yet been converted in accordance with the Convertible Note Agreement, on the Maturity Date, the Company must redeem the Oceanic Convertible Notes, by paying to Oceanic, the Face Value of each Oceanic Convertible Note plus accrued interest.
Conversion Shares	The ConversionShareswill rankequallyinall respectswithallShares.

• 7.3 Resolution 8 seeks Shareholder ratification pursuant to ASX Listing Rule 7.4 for the issue of the Oceanic Convertible Notes to Oceanic.

• 7.4 A summary of ASX Listing Rule 7.1 is set out above in relation to Resolutions 5, 6 and 7. By approving Resolution 8, the Company will retain the flexibility to issue equity securities in the future up to the 15% annual placement capacity set out in ASX Listing Rule 7.1 without the requirement to obtain prior Shareholder approval.

• 7.5 The maximum number of Conversion Shares that may be issued by the Company pursuant to Oceanic's election to convert the Oceanic Convertible Notes is 23,485,714 Conversion Shares based on the total face value of the Oceanic Convertible Notes, being $6,000,000, and the maximum interest accruable in the period from the Issue Date until the expiry of the right to convert, being $576,000.

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Technical information required by ASX Listing Rule 7.5

• 7.6 In accordance with ASX Listing Rule 7.5, the following information is provided in relation to Resolution 8:

• (1) 6,000,000 convertible notes were issued to Oceanic on 2 April 2015. The maximum number of Conversion Shares that may be issued on conversion of the Oceanic Convertible Notes is 23,485,714 Conversion Shares;

• (2) each Oceanic Convertible Note was issued at $1.00, being its face value;

• (3) the terms of the Oceanic Convertible Notes are set out above in section 7.2;

• (4) the Oceanic Convertible Notes were issued to Oceanic Alliance Investments Limited;

• (5) Funds raised from the Oceanic Convertible Notes will be used as working capital for the Group; and

• (6) a voting exclusion statement is included in this Notice of Meeting.

8. Resolutions 9 and 10

• 8.1 As announced on 28 August 2015, the Company has secured $7,500,000 worth of commitments under a convertible note facility ( Facility ) and has entered into Convertible Note Deeds ( CN Deeds ) with the sophisticated investors set out in the table below (each a Facility Noteholder ).

Under the terms of the CN Deeds, each investor agrees to subscribe for convertible notes ( Facility Notes ) up to an agreed limit. In respect of those Facility Noteholders who have entered into CN Deeds, the agreed limits are set out alongside each of their names in the table below ( Agreed Limit ).

The table also sets out, as at the date of this Notice, the amounts drawndown on the Facility in respect of each Facility Noteholder, and the number of convertible notes that have been issued to those investors, each with a face value of $1.00, as consideration for those amounts drawndown (see below in paragraph 8.2, the material terms of the CN Deed):

Facility Noteholder	Agreed Limit	Amount drawndown	Convertible notes issued
Better Future Capital Investment Limited	$1,750,000	$525,000	525,000
Well Smart Capital HoldingsLtd	$1,250,000	$375,000	375,000
Rising Gain HoldingsLtd	$1,000,000	$300,000	300,000
Forever Grand GroupLimited	$1,500,000	$450,000	450,000
Mars International Pty Ltd	$2,000,000	$600,000	600,000
Total	7,500,000	$2,250,000	2,250,000

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In respect of the 2,250,000 Facility Notes already issued by the Company, the Company relied on ASX Listing Rule 7.1B.1 to issue those Facility Notes without prior Shareholder approval and without using its placement capacity, on the basis that the conversion right will be approved by Shareholders subsequent to the issue and prior to the conversion of those Facility Notes (the subject of Resolution 9).

In respect of the remaining 5,250,000 Facility Notes that are intended to be issued under the Facility, the Company intends on obtaining Shareholder approval for the issue of those Facility Notes (the subject of Resolution 10).

In the case of all Facility Notes issued and to be issued under the Facility, no approval is required for the conversion of those Facility Notes into shares by virtue of ASX Listing Rule 7.2 (exception 4).

• 8.2 The material terms of the Facility Notes are as follows:

Subscription for Facility Notes	The Company may deliver a drawdown notice to the Facility Noteholder requesting it to subscribe for such number of Facility Notes up to the Facility Noteholder's respective agreed limit, and the Facility Noteholder must subscribe for such number of Facility Notes within 5 business days of receiving the drawdown notice.
Security	TheFacilityNotes are unsecured.
Interest	The Facility Notes will accrue interest on its face value daily at an interestrate of5% perannum.
Maturity Date	31 December 2016.
Conversion by the Company	The Company may, at any time prior to the Maturity Date, by issuing a conversion notice to the Facility Noteholder, elect to convert all of the Facility Notes held by the Facility Noteholders into ordinary shares in any of: • the Company; or • specified wholly owned subsidiaries of the Company (eachanEligible Issuer).
Conversion by Noteholder	Facility Noteholders may elect, by issuing a conversion notice to the Company, to convert the Facility Notes during the period commencing on 30 March 2016 and ending on the Maturity Date. The Facility Notes will be convertible into ordinary shares in any of the Eligible Issuers that the Company determines in its absolute discretion. The Company must consult in good faith with the Facility Noteholder prior to making such determination.
Conversion price	The face value of, and interest accrued on, each Facility Note is convertible into: • (if the Eligible Issuer is the Company) Shares, at a conversion price equal to 80% of the VWAP of the Shares in the Company for the 30 days immediately prior to the date of the relevant conversion notice; or • (if the Eligible Issuer is a specified wholly owned subsidiary of the Company) ordinary shares in that wholly owned subsidiary at a conversion price agreed between the Company and the Noteholders.
Redemption	The Company may, at any time, make an election to redeem some or all of the Facility Notes by providing the Facility Noteholder with notice in writing.
Conversion after Maturity Date	If the Facility Notes have not been redeemed or converted by the Maturity Date, the Company must within 10 business days after the Maturity Date, convert all of the Notes of the Facility Noteholder into Shares.

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Facility Conversion The shares issued on conversion of the Facility Notes will rank equally in shares all respects with all ordinary shares in the issued capital of the Eligible Issuer.

• 8.3 The number of Shares that may be issued upon conversion of the Facility Notes (if the Company or the Facility Noteholders elect to convert the Facility Notes into Shares) is unknown at present because the conversion price of the Facility Notes to determine the number of Shares to be issued is to be calculated based on the 30 day VWAP prior to the date of a conversion notice. Set out below are examples of different scenarios, assuming that the face value of all Facility Notes, being $7,500,000 (excluding amount of any interest accrued on the Facility Notes) are converted on the Maturity Date. The VWAPs below are based on the Company's 12 month trading history (the lowest 30 day VWAP price during this period, being $0.1807 – and the highest 30 day VWAP price during this period, being $0.3337) as at 9 October 2015:

Assumed 30 day VWAP prior to Maturity Date	Conversion Price (80% of the 30 day VWAP prior to Maturity Date)	Number of Facility Conversion Shares
$0.1807	$0.1446	51,867,219
$0.2572	$0.2058	36,443,148
$0.3337	$0.2670	28,089,887

8.4 Resolution 9: Approval of the conversion right

A summary of ASX Listing Rule 7.1 is set out above in relation to Resolutions 5, 6 and 7. Resolution 9 seeks Shareholder approval to the conversion right of 2,250,000 Facility Notes on the terms outlined above.

Technical information required by ASX Listing Rule 7.3

• (1) the number of Facility Notes issued for which approval of its conversion right is sought is 2,250,000. The maximum number of Shares to be issued upon conversions of the Facility Notes, will be determined by dividing the face value of, plus interest accrued on the Facility Notes, by 80% of the 30 day VWAP prior to the date of a conversion notice. See section 8.3 above for the number of Shares that could be issued on conversion;

• (2) Shares will be issued as and when a conversion notice is served by either the Company or the Facility Noteholder (see above section 8.2);

• (3) the issue price for each Facility Note is equal to its face value, being $1.00. Shares will be issued at a price being equal to 80% of the 30 day VWAP prior to the date of a conversion notice;

• (4) the terms of the Facility Notes are set out above in section 8.2;

• (5) the Facility Notes were be issued to the following parties set out below:

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Allottee	Number of Facility Notes
Better Future Capital Investment Limited	525,000
WellSmart Capital HoldingsLtd	375,000
Rising Gain Holdings Ltd	300,000
Forever Grand Group Limited	450,000
MarsInternational PtyLtd	600,000
Total	2,250,000

• (6) Funds raised from the Facility Notes will be used as working capital for the Group; and

• (7) a voting exclusion statement is included in this Notice of Meeting.

8.5 Resolution 10: Approval of the issue of convertible notes

A summary of ASX Listing Rule 7.1 is set out above in relation to Resolutions 5, 6 and 7. Resolution 10 seeks Shareholder approval under ASX Listing Rule 7.1 for the issue of up to 5,250,000 Facility Notes on the terms outlined above. The effect of such approval is that any Shares to be issued upon conversion of the Facility Notes will not be counted as reducing the number of equity securities which the Company can issue without Shareholder approval under the limit imposed by ASX Listing Rule 7.1.

Technical information required by ASX Listing Rule 7.3

In accordance with ASX Listing Rule 7.3, the following information is provided in relation to Resolution 10:

• (1) the maximum number of Facility Notes to be issued will be 5,250,000. The maximum number of Shares to be issued upon conversions of the Facility Notes, will be determined by dividing the face value of, plus interest accrued on the Facility Notes, by 80% of the 30 day VWAP prior to the date of a conversion notice. See section 8.3 above for the number of Shares that could be issued on conversion;

• (2) subject to Shareholder approval, the Facility Notes will be issued within 3 months of the Meeting (or such other date as the ASX may permit). Shares will be issued as and when a conversion notice is served by either the Company or the Facility Noteholder (see above section 8.2);

• (3) the issue price for each Facility Note is equal to its face value, being $1.00. Shares will be issued at a price being equal to 80% of the 30 day VWAP prior to the date of a conversion notice;

• (4) the terms of the Facility Notes are set out above in section 8.2;

• (5) the Facility Notes will be issued to the following parties:

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Allottee	Number of Facility Notes
Better Future Capital Investment Limited	1,225,000
WellSmart Capital HoldingsLtd	875,000
Rising Gain Holdings Ltd	700,000
Forever Grand Group Limited	1,050,000
MarsInternational PtyLtd	1,400,000
**Total **	5,250,000

• (6) Funds raised from the Facility Notes will be used as working capital for the Group; and

• (7) a voting exclusion statement is included in this Notice of Meeting.

9. Resolution 11: Approval of additional capacity to issue Shares under ASX Listing Rule 7.1A

General

• 9.1 ASX Listing Rule 7.1A permits eligible entities to seek shareholder approval by special resolution at an Annual General Meeting to issue an additional 10% of issued capital by way of placements over a 12 month period ( 10% Placement Capacity ). The additional 10% placement capacity is in addition to the Company's 15% placement capacity under ASX Listing Rule 7.1.

• 9.2 The effect of Resolution 11 will be to allow the Directors to issue equity securities under ASX Listing Rule 7.1A during the period of 12 months following the Annual General Meeting without using the Company's 15% placement capacity under ASX Listing Rule 7.1.

Eligibility

• 9.3 An eligible entity under ASX Listing Rule 7.1A is one which has a market capitalisation of $300 million or less and is not included in the S&P / ASX 300 Index. The Company is an eligible entity for the purposes of ASX Listing Rule 7.1A.

• 9.4 The Company hereby seeks shareholder approval by way of a special resolution to have the ability to issue equity securities under the 10% Placement Capacity.

• 9.5 The exact number of equity securities that may be issued pursuant to the 10% Placement Capacity will be determined in accordance with the formula prescribed in ASX Listing Rule 7.1A.2 which provides that eligible entities which have obtained shareholder approval at an annual general meeting may issue or agree to issue, during the 12 month period after the date of the annual general meeting, a number of equity securities calculated as follows:

(A x D) = E

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where:

A is the number of fully paid ordinary securities on issue 12 months before the date of issue or agreement:

• (1) plus the number of fully paid shares issued in the 12 months under an exception in ASX Listing Rule 7.2;

• (2) plus the number of partly paid shares that became fully paid in the 12 months; (3) plus the number of fully paid shares issued in the 12 months with approval of holders of shares under ASX Listing Rule 7.1 or 7.4. This does not include an issue of fully paid shares under the Company's 15% placement capacity without shareholder approval;

• (4) less the number of fully paid shares cancelled in the 12 months;

Note that A has the same meaning in the ASX Listing Rule 7.1 when calculating an entity's 15% placement capacity.

D is 10%

E is the number of equity securities issued or agreed to be issued under rule 7.1A.2 in the 12 months before the date of issue or agreement to issue that are not issued with the approval of holders of ordinary securities under Rule 7.1 or 7.4.

• 9.6 Any equity securities issued under the 10% Placement Capacity must be in an existing quoted class of the Company's equity securities. The Company presently has only one class of quoted securities being fully paid ordinary shares.

• 9.7 If the Company issues any equity securities under the 10% Placement Capacity, the entity must, pursuant to ASX Listing Rules 7.1A.4 and 3.10.5A:

• (1) give to the ASX a list of the allottees of the equity securities and the number of equity securities caused to be allottees to each (but this list is not required to be released to the market); and

• (2) disclose to the market the details of the dilution to the existing holders of ordinary securities caused by the issue; where the equity securities are issued for cash consideration, a statement of the reasons why the eligible entity issued the equity securities as a placement rather than as a pro rata issue; the details of any underwriting arrangements and fees payable to the underwriter; and any other fees or costs incurred in connection with the issue.

Technical information required by ASX Listing Rule 7.3A

9.8 Minimum price

• Any equity securities issued by the Company under ASX Listing Rule 7.1A can only be issued at a price that is no less than 75% of the VWAP for securities in that class calculated over the 15 trading days on which trades in that class were recorded immediately before:

• (1) the date on which the price at which the securities are to be issued is agreed; or

• (2) the date on which the securities are issued if the securities are not issued within five trading days of the date on which the issue price is agreed.

9.9 Dilution to existing security holders

If Resolution 11 is approved by shareholders and the Company issues securities under the 10% Placement Capacity, the additional economic and voting interests in the

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Company will be diluted. There is a risk that the market price of the Company's securities may be significantly lower on the issue date than on the date of the Annual General Meeting and the securities may be issued at a price that is at a discount to the market price on the issue date.

The table below shows a number of hypothetical scenarios for a 10% placement as required by ASX Listing Rule 7.3A.2 where the number of the Company's shares on issue (variable "A" in the formula in ASX Listing Rule 7.1A.2) has remained current or increased by either 50% or 100% and the share price has decreased by 50%, remained current or increased by 100% based on the closing share price on ASX at 9 October 2015.

Number of shares on issue Variable “A”	Additional 10% placement Shares issued & funds raised		Dilution
		$0.17 Issue price at half current market price	$0.34 Issue price at current market price	$0.68 Issue price at double current market price
Current 604,041,843	Shares issued	60,404,184	60,404,184	60,404,184
	Funds raised	$10,268,711	$20,537,423	$41,074,845
50% increase 906,062,765	Shares issued	90,606,276	90,606,276	90,606,276
	Funds raised	$15,403,067	$30,806,134	$61,612,268
100% increase 1,208,083,686	Shares issued	120,808,369	120,808,369	120,808,369
	Funds raised	$20,537,423	$41,074,845	$82,149,691

The dilution table uses the following assumptions which the Company does not represent will necessarily occur:

• (1) the Company issues the maximum number of securities available under the additional 10% placement;

• (2) the table shows only the effect of issues of securities under ASX Listing Rule 7.1A, not under the 15% placement capacity under ASX Listing Rule 7.1;

• (3) the 10% voting dilution reflects the aggregate percentage dilution against the issued share capital at the time of issue. This is why the voting dilution is shown in each example as 10%;

• (4) the table does not show an example of dilution that may be caused to a particular shareholder by reason of the placements under ASX Listing Rule 7.1A, based on that shareholder's holding at the date of the Annual General Meeting; and

• (5) the issue price at current market price is the closing price of the shares on the ASX on 9 October 2015.

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9.10 10% placement period

Shareholder approval under ASX Listing Rule 7.1A is valid from the date of the Annual General Meeting until the earlier of:

• (1) 12 months after the Annual General Meeting; or

• (2) the date of approval by shareholders of a transaction under ASX Listing Rule 11.1.2 (a significant change to the nature or scale of activities) or ASX Listing Rule 11.2 (disposal of main undertaking).

9.11 Purpose of 10% additional placement

The Company may seek to issue securities under the 10% placement for either:

• (1) Cash consideration . The Company may use the funds for working capital, towards potential transactions or for other corporate purposes deemed by the Board to be in the best interests of the Company; or

• (2) Non-cash consideration for transactions deemed by the Board to be in the best interests of the Company. In such circumstances the Company will release to the market a valuation of the non-cash consideration that demonstrates that the issue price of the securities complies with ASX Listing Rule 7.1A.3.

The Company will comply with any disclosure obligations under ASX Listing Rules 7.1A.4 and 3.10.5A upon the issue of any securities under ASX Listing Rule 7.1A.

9.12 Allocation policy

The Company's allocation policy is dependent upon the prevailing market conditions at the time of any proposed issue pursuant to the 10% placement. The identity of allottees of equity securities will be determined on a case by case basis having regard to factors including but not limited to the following:

• (1) the methods of raising funds that are then available to the Company;

• (2) the effect of the issue of the equity securities on the control of the Company;

• (3) the financial situation and solvency of the Company; and

• (4) advice from professional and corporate advisers (if applicable).

Allottees under the 10% placement have not been determined as at the date of this Notice of Meeting and may include existing and/or new security holders but cannot include any related parties or associates of a related party of the Company.

9.13 Previous Issues of Securities

The Company has not previously obtained shareholder approval to have the additional capacity to issue equity securities under ASX Listing Rule 7.1A.

9.14 Voting exclusion

A voting exclusion statement is included in the Notice of Meeting. At the date of the Notice of Meeting the Company has not invited and has not determined to invite any particular existing security holder or an identifiable class of existing security holders to participate in an offer under ASX Listing Rule 7.1 A. Therefore no existing security holder will be excluded from voting on this Resolution.

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Glossary

In the Notice of Meeting, unless the contrary intention appears or the context requires otherwise:

Annual General Meeting, General Meeting and Meeting means the Company’s 2015 annual general meeting.

ASX means ASX Limited.

ASX Listing Rules means the official listing rules of the ASX.

Board means the board of Directors of the Company.

Business Day has the same meaning as that given in ASX Listing Rules.

Chairperson means the person appointed as the chairperson of the Company for the purposes of the Meeting.

Company means ASF Group Limited ACN 008 924 570.

Constitution means the current constitution of the Company.

Corporations Act means the Corporations Act 2001 (Cth) and associated regulations.

Director means a director of the Company and Directors has a corresponding meaning.

Explanatory Memorandum means this explanatory memorandum that forms part of this Notice of Meeting.

Notice or Notice of Meeting means this notice of meeting and explanatory memorandum for the Meeting.

Oceanic Convertible Notes means the 6,000,000 convertible notes issued to Oceanic Alliance Investments Limited, the subject of the ratification under Resolution 8.

Proxy Form means the proxy form attached to and forming part of this Notice of Meeting.

Remuneration Report means the Company's remuneration report for the financial year ended 30 June 2015.

Resolution means a resolution referred to in the Notice of Meeting.

Share means an ordinary share in the capital of the Company and Shares has a corresponding meaning.

Shareholder means a person who is registered in the Company’s register of members as a holder of Shares and Shareholders has a corresponding meaning.

Share Registry means Boardroom Pty Limited.

VWAP means volume weighted average price.

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==> picture [91 x 25] intentionally omitted <==

ASF Group Limited

All Correspondence to:

 By Mail Boardroom Pty Limited GPO Box 3993 Sydney NSW 2001 Australia

Level 12, 225 George Street, Sydney NSW 2000 Australia  By Fax: +61 2 9290 9655

 Online: www.boardroomlimited.com.au  By Phone: (within Australia) 1300 737 760 (outside Australia) +61 2 9290 9600

YOUR VOTE IS IMPORTANT

For your vote to be effective it must be recorded before 10:30AM (AEDT) WEDNESDAY 25 NOVEMBER 2015

TO VOTE BY COMPLETING THE PROXY FORM

STEP 1 APPOINTMENT OF PROXY

Indicate who you want to appoint as your Proxy.

If you wish to appoint the Chairman of the Meeting as your proxy, mark the box. If you wish to appoint someone other than the Chairman of the Meeting as your proxy please write the full name of that individual or body corporate. If you leave this section blank, or your named proxy does not attend the meeting, the Chairman of the Meeting will be your proxy. A proxy need not be a security holder of the company. Do not write the name of the issuer company or the registered securityholder in the space.

Appointment of a Second Proxy

You are entitled to appoint up to two proxies to attend the meeting and vote. If you wish to appoint a second proxy, an additional Proxy Form may be obtained by contacting the company’s securities registry or you may copy this form.

To appoint a second proxy you must: (a) complete two Proxy Forms. On each Proxy Form state the percentage of your voting rights or the number of securities applicable to that form. If the appointments do not specify the percentage or number of votes that each proxy may exercise, each proxy may exercise half your votes. Fractions of votes will be disregarded. (b) return both forms together in the same envelope.

STEP 3 SIGN THE FORM

The form must be signed as follows: Individual: This form is to be signed by the securityholder.

Joint Holding : where the holding is in more than one name, all the securityholders should sign.

Power of Attorney: to sign under a Power of Attorney, you must have already lodged it with the registry. Alternatively, attach a certified photocopy of the Power of Attorney to this form when you return it.

Companies: this form must be signed by a Director jointly with either another Director or a Company Secretary. Where the company has a Sole Director who is also the Sole Company Secretary, this form should be signed by that person. Please indicate the office held by signing in the appropriate place.

STEP 4 LODGEMENT

Proxy forms (and any Power of Attorney under which it is signed) must be received no later than 48 hours before the commencement of the meeting, therefore by 10:30am (AEDT) on Wednesday, 25 November 2015. Any Proxy Form received after that time will not be valid for the scheduled meeting.

Proxy forms may be lodged using the enclosed Reply Paid Envelope or:

STEP 2 VOTING DIRECTIONS TO YOUR PROXY

To direct your proxy how to vote, mark one of the boxes opposite each item of business. All your securities will be voted in accordance with such a direction unless you indicate only a portion of securities are to be voted on any item by inserting the percentage or number that you wish to vote in the appropriate box or boxes. If you do not mark any of the boxes on a given item, your proxy may vote as he or she chooses. If you mark more than one box on an item for all your securities your vote on that item will be invalid.

Proxy which is a Body Corporate

Where a body corporate is appointed as your proxy, the representative of that body corporate attending the meeting must have provided an “Appointment of Corporate Representative” prior to admission. An Appointment of Corporate Representative form can be obtained from the company’s securities registry.

• By Fax + 61 2 9290 9655

 By Mail Boardroom Pty Limited GPO Box 3993, Sydney NSW 2001 Australia

 In Person Level 12, 225 George Street Sydney NSW 2000 Australia

Attending the Meeting

If you wish to attend the meeting please bring this form with you to assist registration .

ASF Group Limited ABN 50 008 924 570

Your Address

This is your address as it appears on the company’s share register. If this is incorrect, please mark the box with an “X” and make the correction in the space to the left. Securityholders sponsored by a broker should advise their broker of any changes. Please note, you cannot change ownership of your securities using this form.

PROXY FORM

STEP 1

APPOINT A PROXY

I/We being a member/s of ASF Group Limited and entitled to attend and vote hereby appoint

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Appoint the Chairman of the Meeting (mark box)

OR if you are NOT appointing the Chairman of the Meeting as your proxy, please write the name of the person or body corporate (excluding the registered shareholder) you are appointing as your proxy below

==> picture [350 x 20] intentionally omitted <==

or failing the individual or body corporate named, or if no individual or body corporate is named, the Chairman of the Meeting as my/our proxy at the Annual General Meeting of ASF Group Limited to be held at Suite 18B, Opera Quays, 7 Macquarie Street, Sydney NSW 2000 on Friday, 27 November 2015 at 10:30am (AEDT) and at any adjournment of that meeting, to act on my/our behalf and to vote in accordance with the following directions or if no directions have been given, as the proxy sees fit.

Important for Resolution 1

If the Chairman of the Meeting is appointed as your proxy or may be appointed by default, by not marking any of the below “For”, “Against” or “Abstain” boxes you will have directed the Chairman of the Meeting to vote in favour of Resolution 1 even though this Resolution is connected directly or indirectly with the remuneration of a member of the key management personnel.

Note: If you do not wish to give the Chairman of the Meeting such a directed proxy, you should ensure that a box other than the “For” box is clearly marked for Resolution 1 and in Step 2 below.

The Chairman of the Meeting will vote all undirected proxies in favour of all Resolutions.

	STEP 2		VOTING DIRECTIONS * If you mark the Abstain box for a particular item, you are directing your proxy not to vote on your behalf on a show of hands or on a poll and your vote will not be counted in calculatingthe required majorityif apoll is called.
	Resolution 1 Resolution 2 Resolution 3 Resolution 4 Resolution 5 Resolution 6 Resolution 7 Resolution 8 Resolution 9 Resolution 10 Resolution 11		Adoption of the Remuneration Report For Against Abstain* Re-election of a Director, Mr Quan (David) Fang Re-election of a Director, Mr Nga Fong Lao Re-election of a Director, Mr Louis Li Chien Approval of Shares previously issued to Zhen Li Approval of Shares previously issued to Ai Min TIAN Approval of Shares previously issued to Wiseplan Holdings Ltd Ratification of the issue of Oceanic Convertible Notes Approval of conversion right of 2,250,000 convertible notes Approval of issue of 5,250,000 convertible notes Approval of additional capacity to issue Shares under ASX Listing Rule 7.1A
	STEP 3		SIGNATURE OF SHAREHOLDERS This form must be signed to enableyour directions to be implemented.

Individual or Securityholder 1 Securityholder 2 Securityholder 3 Sole Director and Sole Company Secretary Director Director / Company Secretary Contact Name…………………………………………….... Contact Daytime Telephone………………………................................ Date / / 2015