ASF GROUP LIMITED — Capital/Financing Update 2010

Feb 7, 2010

ASF GROUP LIMITED

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

8 February 2010

The Manager Company Announcements Australian Stock Exchange Ltd 20 Bridge Street Sydney 2000

Dear Sir/Madam

ASF RAISES $5M IN SHARE PLACEMENT

ASF Group Limited is pleased to announce that on February 5, 2010 pursuant to its recent resolution at its 2009 AGM, the Company issued 40 million fully paid ordinary shares in the Company to Suntimes International Limited raising $5,088,000.00 at $0.1272 per share, representing approximately 81% of VWAP of the preceding five trading days.

The Company will use the funds for working capital to enhance its existing businesses; underpin its development of ASF Energy in trading coal and for general investment purposes in its businesses.

As a result of its investment Suntimes has become a major shareholder in ASF and holds a 12.97% interest in the issued share capital of the Company. The Company has also appointed Mr Xin Zhang as an additional director.

Mr Xin Zhang is sole shareholder and director of Suntimes. Mr. Zhang also is founder and controlling shareholder of China Glory International Investment Group ( CGIG ) which he established in Beijing 15 years ago. CGIG's investments are primarily in real estate development where it has developed many billions of dollars of properties in China; it has also invested in resources and trading.

Mr.Zhang has extensive business and government networks in China and with his successful China experience the Company believes he will be able to greatly support ASF’s projects and new initiatives in China.

The Company further gives notice under section 708A (5)(e) of the Corporations Act 2001 that:

• (a) the placement shares are being issued without disclosure under Part 6D.2 of the Corporations Act 2001 (‘the Act’);

• (b) as at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and with section 674 of the Act; and

• (c) as at the date of this notice there is no information that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules that would be

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reasonable for investors and their professional advisors to find in a disclosure document.

The Appendix 3B for this issue is attached.

For further information contact:

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

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