ASF GROUP LIMITED — Capital/Financing Update 2014

Jan 20, 2014

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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

21 January 2014

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

Dear Madam/Sir

Third Conversion of the Convertible Facility

The Board of ASF Group Limited (“ ASF ”) is pleased to announce that Star Diamond Developments Limited (“ Star Diamond ”) has further converted a total value of $2,314,410, which represents the repayment of a principal amount of $1,000,000 together with all outstanding accrued interest of $1,314,410, into 21,040,091 fully paid ordinary shares of ASF at a price of $0.11 per share (“ Third Conversion ”).

The issue price represents a premium of approximately 15.8% above the VWAP of ASF shares in the preceding five trading days. Shares for the Third Conversion are issued under the 15% threshold stipulated under Listing Rules 7.1. Upon completion of the Third Conversion, Star Diamond is entitled to nominate a director to be appointed to the Board of ASF.

As a result of the Third Conversion, the outstanding principal amount of the Convertible Facility has been reduced to $1 million. The Parties have entered into a new Convertible Facility agreement (“ New Agreement ”) that supersedes all previous agreements for the remaining $1 million (“ $1M Facility ”). Under the terms of the New Agreement, ASF has the discretion in relation to the $1M Facility to either repay by conversion of one or a combination of shares in ASF or its subsidiaries or repay in cash, prior to the maturity date of 30 September 2014. Interest will be payable at the rate of 1% per month.

Information about ASF

ASF is unique among ASX-listed public companies in Australia as a creator and facilitator of two-way cross-border investments, trade and funds management between China and Australia. Since its transformation into a Sino-Australian investment and trading house in 2006, ASF has focused principally on the identification, incubation and realisation of opportunities across various industries including energy, resource, property, finance and tourism.

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

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