ASF GROUP LIMITED — Capital/Financing Update 2012

Jan 4, 2012

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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

5 January 2012

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

Dear Madam/Sir

ASFR completes $16M capital injection by GUOLI

We refer to our announcement dated 9 September 2011 concerning the Investment Agreement (the “Agreement”) with Beijing Guoli Energy Investment Co., Ltd. (“Guoli”) pursuant to which Guoli or its nominee would subscribe for 81,818,182 new shares representing 45% of the enlarged issued capital of ASF Resources Limited (“ASFR”) with the investment of A$16 million (the “Subscription Amount”).

The Directors of ASF Group Limited (“ASF”) are pleased to announce that all the conditions set forth in the Agreement had been satisfied and ASFR has received from Guoli the balance of the Subscription Amount on 29 December 2011.

Accordingly, 81,818,182 new shares in ASFR were issued to Longluck Investment (Australia) Pty Ltd, a nominee group company of Guoli, and the current shareholding structure of ASFR is set out below:

Shareholder	Number of Shares Held	Shareholding Percentage
ASF	89,000,000	48.95%
Longluck Investment (Australia) Pty Ltd	81,818,182	45.00%
Yongbin International Holdings Ltd	11,000,000	6.05%

ASFR currently holds eight tenements in the Canning Basin in Western Australia which are under exploration for thermal coal resources. The injection of new capital from Guoli, will facilitate a proposed expansion of ASFR’s exploration and related activities.

Guoli is a limited liability company incorporated in the People’s Republic of China in 1993 with registered capital of RMB300 million. It is engaged in a variety of businesses including energy and resources, property development, investment and finance. In particular, Guoli holds 25% equity interest in Beijing Sanjili Energy Co Ltd which currently owns 5 power plants in China with total capacity of 5.5 million kilowatts.

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The Chairman of ASF Group Limited, Ms Min Yang said: “We are very pleased to be partnering with Beijing Guoli Energy Investment Co Ltd. It represents another important step in the development of ASF Resources Limited to enable it to grow and expand its operations.”

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

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

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