ASF Resources

The ASF Resources is a small exploration company which holds 8 exploration licences in the Canning Basin in the Kimberley region of Western Australia. ASF, which holds 48% of the company, states that ASFR's "drilling program will initially focus on its tenements that adjoin Rey Resources Limited’s JORC-compliant Duchess Paradise coal tenements."

Shareholders
Other shareholders in the company are Beijing Guoli, which holds a 45% shareholding, and Yongbin, which holds 6.05%. On its website the ASF Group states that "subject to shareholder approval, ASF plans to demerge its equity interest in ASFR in 2012 by distributing 80% of its shareholding in ASFR to the shareholders of ASF. Thereafter, subject to prevailing market conditions, ASFR will make an initial public offering to list its shares on the Australian Stock Exchange." While Beijing Guoli had invested $16 million in the company in late 2011, it was on condition that ASF "is to proceed (subject to shareholders approval) to demerge its interest in ASFR by distributing 80% of its shareholding in ASFR to the Company’s shareholders after which the parties agree to take all reasonable steps to seek the listing of ASFR on the ASX."

In late October 2012 ASF announced that the deadline of proceeding to a float within 12 months of finalising its investment had been delayed. "However due to the uncertain economic circumstances and the current weakness in the capital markets the Company is in discussion with Guoli to consider that the time period for the Demerger be extended by six months," the company stated.

Canning Coal project
In its September 2012 quarterly report, ASF state that during the quarter 38 holes were drilled across four exploration licences: 1670, 1774, 1886 and 1887. However, the company provided limited details of the results of the drilling only that what drilling was completed "showed signs of intersecting coal both at P1 and P2 seams at depths between 190m and 250m. Based on the initial work, further drilling will need to be completed in order to determine the seam thickness. No core drilling was able to be started."

The company stated that "further assessment of the drilling results and historical results will take place during the next Quarter. Work Programs for 2013 have been lodged with the Kimberley Land Council for approval and the provisioning of clearance teams. The majority of drilling will be over Exploration Licenses: 1774 and 1886 and will commence in May 2013 (subject to the clearance being granted). Funding for this work was from internal cash resources of ASF Resources Limited."

Contact details
Sydney Head Office Suite 2, 3b Macquarie St Sydney NSW 2000 Telephone: (61) 2 9251 9088 Facsimile: (61) 2 9251 9066 Email: info AT asfgroupltd.com

Hong Kong Suite 1705, 17F Central Plaza 18 Habour Rd Wan Chai, Hong Kong Telephone: (852) 2151 1206 Facsimile: (852) 2151 1207 Website: http://www.asfgroupltd.com/

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