MANAGEMENT OF ASA LIMITED AND ASA (BERMUDA) LIMITED
                 ANNOUNCES COMMITMENT TO CONTINUED AND ENHANCED
                         CORPORATE GOVERNANCE PRACTICES

October 29, 2004

Contact:  Robert J. A. Irwin
ASA Limited
ASA (Bermuda) Limited

(716) 883-2428

FOR IMMEDIATE RELEASE

New York, October 29, 2004 The Board of Directors of ASA Limited (NYSE: ASA), a
closed-end investment company, is soliciting ASA's shareholders to vote on a
reorganization to permit ASA to relocate from the Republic of South Africa to
the Commonwealth of Bermuda by reorganizing itself into a newly formed company
incorporated in Bermuda, ASA (Bermuda) Limited ("ASAB"). ASA seeks this change
primarily because of certain taxes ASA currently is subject to, or will become
subject to in South Africa following the repeal of its tax exemption as of
December 1, 2004.

The Board of Directors of ASAB is committed to good corporate governance
practices. As an investment company registered with the Securities and Exchange
Commission pursuant to the Investment Company Act of 1940, ASAB is subject to
the corporate governance requirements thereunder; and, upon the listing of its
shares on the New York Stock Exchange, ASAB will be subject to the corporate
governance requirements for New York Stock Exchange listed companies, so long as
ASAB is so registered with the SEC and listed on the NYSE. To further enhance
corporate governance, the management of ASAB intends to seek approval by the
Board of Directors and the shareholders of ASAB of changes to ASAB's Bye-laws
such that:

          .    a minimum of thirty (30) days' advance notice will be provided to
               ASAB's shareholders of any meeting of shareholders;
          .    one-third (1/3) of the outstanding voting securities of ASAB will
               constitute a quorum for purposes of conducting a shareholder
               meeting;
          .    at least a majority of the Board of Directors of ASAB will be
               independent directors of ASAB, as defined under the Investment
               Company Act of 1940 and the rules of the New York Stock Exchange
               ("Independent Director"); and
          .    the Chair of the Board of Directors of ASAB will be an
               Independent Director.

It is important to note that these practices will continue or enhance the
corporate governance practices that ASA has historically followed.

ASA's relocation to Bermuda is subject to a number of conditions, including (1)
receiving approval to list the shares of ASAB on the New York Stock Exchange and
(2) satisfying



shareholder approval requirements. No assurance can be given that these
conditions will be satisfied.

The Board of Directors of ASA believes that the reincorporation proposal is in
the best interests of ASA and its shareholders. Accordingly, the Board
recommends that shareholders vote for the proposal promptly.

FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934. By their
nature, all forward-looking statements involve risks and uncertainties, and
actual results could differ from those contemplated by the forward-looking
statements.

                                        2