ASF GROUP LIMITED — Capital/Financing Update 2011

Jul 3, 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

4 July 2011

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

Dear Madam/Sir

ASF sells majority interest in two WA tenements for A$6M

ASF Group Limited (“ASF”) is pleased to announce that it has entered into an Investment and Cooperation Agreement (the “Agreement”) with Kaili Holdings Limited (“Kaili”) for the sale of 80% interest in two Exploration Licenses (E04/1433 and E04/1436) in Ellendale, Western Australia for A$6 million.

ASF, through its subsidiary ASF Resources Limited (“ASFR”), currently holds 10 tenement licenses in Western Australia, including the two subject tenements (E04/1433 and E04/1436) which together cover an area of 111 km[2] , representing approximately 7% of the total tenement areas held by ASFR.

Pursuant to the Agreement, ASF has received a deposit of A$1 million and the balance of A$5 million is payable within 45 days. In the event that Kaili fails to pay the balance by the designated date, the Agreement provides for ASF to terminate the Agreement and retain the deposit, by applying it to the acquisition of a 2% interest in the shares of ASF Resources Limited.

ASF is also in active negotiation with some other potential investors for possible investment in its resource assets or partnering to further explore its WA tenements. Further announcement will be made as and when any agreement has been reached with these investors.

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