ASF GROUP LIMITED — Interim / Quarterly Report 2009

Apr 28, 2009

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ASF GROUP LIMITED

ACN 008 924 570

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

27 April 2009

The Manager Company Announcements Australian Stock Exchange 20 Bridge Street SYDNEY NSW 2000

Via: www.asx.online.com

APPENDIX 4C AND QUARTERLY ACTIVITIES REPORT

ASF Group Limited ( ASX Code AFA ) is pleased to release its Appendix 4C for the quarter ended 31 March 2009.

The Company also reports on the exploration activities of its wholly owned subsidiary, ASF Resources Pty Limited (ASFR).

Canning Basin, Western Australia (E04/1428, 1433‐1436, 1512 and Applications E04/1670, 1774, 1886, 1887)

A work program for 12,000m of mud rotary and diamond drilling has been lodged for approval with the W.A Department of Mines and Petroleum. The drilling program is scheduled to commence in the June quarter 2009. Approval has also been sought for the drilling of water bores from the WA Department of Water, as part of this program.

The initial drilling program is designed to assess the coal potential of the granted tenements and will be undertaken over a 2‐3 month period. The drilling contract was tendered during the quarter and discussions were held with geophysical contractors who will survey all holes during the program for coal related geophysical parameters to assist in definition of the coal seams.

MBA Petroleum Consultants (MBA) were contracted to collate and interpret all available seismic and petroleum well information with a view to delineating the depth and thickness of coal seams within the Company’s tenements. Results from this study are expected to be available in the June quarter, 2009.

Tasmania (EL14 & 15/2007 and EL55/2007)

During the quarter ASFR conducted a field visit to the three Tasmanian tenements to assist with developing an exploration strategy. Exploration is likely to include a combination of geological mapping and geochemical sampling along with targeted small geophysical surveys likely to commence in the September quarter, 2009.

Direct exploration expenditure during the quarter was $75,396.00.

The Company is currently in discussions with investors to provide additional working capital which would be used in part to fund the Canning Basin exploration program. The Company also has access

to funds from the previously reported funding arrangement entered into with Goldchoice Investments Ltd in February 2009.

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Min Yang Chairman

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

	Name of entity		Quarter ended (“current quarter”) 31 March 2009	Quarter ended (“current quarter”) 31 March 2009
	ASF Group Limited
	ABN 50 008 924 570 Consolidated statement of cash flows
			31 March 2009
Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (GST refund) Net operating cash flows			Current quarter $	Year to date (9 months) $
			50,100 (258,321) (23,824) - - (259,912) - 5,830 (20,361) 17,934	157,414 (564,510) (339,532) - - (1,550,228) - 24,667 (120,558) 61,212
			(488,554)	(2,331,535)

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 1

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $	Year to date (9 months) $
1.8 Net operating cash flows (carried forward)	(488,554)	(2,331,535)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (Bank guarantee refund) Net investing cash flows 1.14 Total operating and investing cash flows	- - - - (71,302) - - - - - (20,000) 6,262 13,605	- - - (5,973) (184,917) - - - - - (20,000) 6,262 13,605
	(71,435)	(191,023)
	(559,989)	(2,522,558)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other (Aus-Sino Investment Association Incorporated) Net financing cash flows	- - - - - -	2,214,898 - - - - (65,000)
	-	2,149,898
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	(559,989) 1,009,940 151	(372,660) 822,611 151
	450,102	450,102

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $
	(87,522)
	-

• 1.26 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

n/a

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

n/a

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1	Loan facilities
3.2	Credit standby arrangements

Amount available	Amount used
$	$
-	-
-	-

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 3

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $	Previous quarter $
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	450,102	1,009,940
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	450,102	1,009,940

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	n/a	n/a
	n/a	n/a
	n/a	n/a
	n/a	n/a
	n/a	n/a

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: . Date: 28/04/2009 (Chairman) Print name: Min Yang

• See chapter 19 for defined terms.

24/10/2005

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. • 9.2 - itemised disclosure relating to acquisitions • 9.4 - itemised disclosure relating to disposals • 12.1(a) - policy for classification of cash items • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information

5. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

6. See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 5