ASF GROUP LIMITED — Capital/Financing Update 2011

Aug 16, 2011

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ASF GROUP LIMITED

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

17 August 2011

The Manager Company Announcements Australian Stock Exchange Ltd 20 Bridge Street Sydney 2000 via: www.asxonline.com

Dear Madam/Sir

SALE OF TENEMENTS COMPLETES ON PAYMENT OF $5M

Further to the announcement of ASF Group Limited (“ASF”) dated 4 July 2011, we are pleased to announce that Kaili Holidngs Limited (“Kaili”) has completed the purchase of 80% interest in two of the ASF’s Exploration Licenses in Ellendale, Western Australia for $6 million.

ASF received $1 million deposit on signing the Agreement and the balance of $5m has now been received.

ASF is now proceeding with the completion procedures to transfer ownership in accordance with the Agreement and is looking forward to investigating potential coal deposits on the subject tenements together with Kaili.

For further information contact Justin Clarke, Development and Operations Director, ASF Corporate (Ph: 612 9251 9088).

William Kuan Company Secretary Ph: +612 9251 9088 Fax: +612 9251 9066