Use Of Proceeds From Placement Of 10,700,000 New Ordinary Shares

The Board of ASA Group Holdings Ltd (the "Company") wishes to announce that the Company has extended an interest-free loan of approximately RMB 4 million (equivalent to S$800,000) to its wholly-owned subsidiary, Shanghai Fortune Ceramic Co., Ltd. to be used as working capital.

The extension of loan is funded by the share subscription proceeds from the placement of 10,700,000 new ordinary shares in the Company, which was completed on 25 January 2008.

The Company will continue to make periodic announcements on the utilisation of the balance share subscription proceeds as and when the balance share subscription proceeds are materially deployed.


By Order of the Board

Tan Cher Liang
Company Secretary
30 April 2008