ASF GROUP LIMITED — Capital/Financing Update 2007

Oct 9, 2007

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ASF GROUP LIMITED

ABN 50 008 924 570 Bennelong Suite 2, 3B Macquarie Street Sydney, NSW 2000, Australia Telephone: (61 2) 9251 9088 Facsimile: (61 2) 9251 9066 www.asfgroupltd.com

10 October 2007

The Manager Company Announcements Australian Stock Exchange 20 Bridge Street Sydney 2000 Via: www.asx.online.com

ASF GROUP LOAN CONVERSION

ASF Group Limited (ASX: AFA) is pleased to announce that the $1m Facility in favour of one of our substantial shareholders, Goldchoice Investment Limited is to be converted to shares pursuant to the terms of its Facility with the Company dated 1 July 2006.

Goldchoice has given notice that it intends to convert the entire outstanding loan to equity in the Company in accordance with the Facility. This demonstrates confidence in the future development and strategy of the Company.

The Company welcomes the continued support of Goldchoice as a substantial shareholder.

More about ASF:

ASF Group is a co-investor and facilitator of business and investment between Australia and China. Its activities and investments are in the following sectors:

• Mineral resources & energy

• Property marketing & services;

• Travel services; and

• China Ventures.

For further information contact:

Geoff Baker Executive Director Ph: +612 92519088 Fax: +612 92519066 www.asfgroupltd.com