ASF GROUP LIMITED — Interim / Quarterly Report 2013

Jan 30, 2013

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 December 2012	Quarter ended (“current quarter”) 31 December 2012
	ASF Group Limited
	ABN 50 008 924 570 Consolidated statement of cash flows
			31 December 2012
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 refunded/(paid) Net operating cash flows		Current quarter $		Year to date (6 months) $
		98,451 (278,941) (12,802) - - (851,912) - 6,422 - - 37,787		629,334 (575,428) (13,252) - - (1,361,770) - 53,551 - - 64,663
		(1,000,995)		(1,202,902)

• See chapter 19 for defined terms.

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	Current quarter $	Year to date (6 months) $
1.8 Net operating cash flows (carried forward)	(1,000,995)	(1,202,902)
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 Net investing cash flows 1.14 Total operating and investing cash flows	- (478,539) - (330) (76,740) 600,000 - - - - (5,929) 2,919 -	- (11,278,539) - (13,899) (86,320) 600,000 - - - - (34,046) 32,322 (1,469)
	41,381	(10,781,951)
	(959,614)	(11,984,853)
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 - security term deposit - shares buy-back Net financing cash flows	- - - - - - (61,254)	- - 7,000,000 - - - (223,064)
	(61,254)	6,776,936
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Adjustments - Exchange rate adjustments 1.23 Cash at end ofquarter	(1,020,868) 2,115,509 (17,546)	(5,207,917) 6,302,558 (17,546)
	1,077,095	1,077,095

• See chapter 19 for defined terms.

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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 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11	Current quarter $
		(157,599)
		-
1.26	Explanation necessaryfor an understandingof the transactions
	Consulting and directors fees ($121,975), Office lease ($35,624)

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.

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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)	1,077,095	2,115,509
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	1,077,095	2,115,509

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	Austin Resources Pty Ltd, APEC Coal Pty Ltd, ASF Copper Pty Ltd
	n/a	Australia
	n/a	$600,000
	n/a	$298,313
	n/a	Holders of tenements

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: 31 January 2013 Company Secretary

Print name: William Kuan

• See chapter 19 for defined terms.

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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

5. 9.4 - itemised disclosure relating to disposals

6. • 12.1(a) - policy for classification of cash items

7. • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information

8. 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.

• See chapter 19 for defined terms.

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

Exploration Activities: Quarter ended 31 December 2012

China Coal Resources Pty Ltd

In Tasmania, an exploration program involving sampling and trenching was conducted by China Coal Resources (CCR) on prospective areas with results warranting further analysis. Work was completed ahead of schedule and geological experts are currently planning exploration and drilling work for 2013. Work programs for both EL 55/2007 and EL 15/2007 are now being formalised for lodgement to the MRT in February 2013. In addition, both these tenements have been given extensions to proceed with further exploration.

China Coal Resources was also successfully granted a new tenement in Western Australia, EL 70/4403 Dongara, and exploration work is currently being planned for 2013 with the assistance of GEOS Mining. This is in line with CCR’s strategy of expanding its number of tenements to explore for coal and other resources.

ASF Resources Ltd

A strategic plan for this year’s drilling is currently being discussed by the joint venture partnership. GEOS Mining continues to assist ASFR by conducting detailed desktop studies and advising on drill targets for the 2013 drilling program on ASFR’s Canning Basin tenements.

ASF Resources (WA) Pty Ltd

ASF Resources (WA) has been successfully granted two tenements (EL 04/2146 MEDA 1, EL 04/2147 MEDA 2) and we are currently working on an exploration program for 2013.

Sale of mineral tenements in Queensland and Tasmania

As previously announced on 2 January 2013, ASF Group sold two tenements in Queensland and another two in Tasmania to Profit Achieve Holdings Ltd. This move was consistent with ASF’s business model, which is to expand its asset base through acquisition or other ventures and to transform them into deliverable projects for further development through joint venturing with its strategic partners or by resale.

• See chapter 19 for defined terms.

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