ITEM 1.02 Termination of a Material Definitive Agreement.

Pursuant to the terms of a Cancellation Agreement dated August 19, 2008, Xi'an Hanxin Science & Technology Co., Ltd. (the "Company"), an indirect wholly owned subsidiary of Asia Cork Inc. (the "Registrant") and Shaanxi Shuta Wood Products Co., Ltd. ("Shaanxi Shuta") terminated that certain Land Transfer Agreement (the "Transfer Agreement") executed in November 2007. Pursuant to the Transfer Agreement, the Company had intended to purchase the right to use a parcel of land from Shaanxi Shuta in the ShaanXi Baoji district of The People's Republic of China. The entire $1,457,747 (equivalent to RMB 10,000,000) deposit that had been previously paid to Shaanxi Shuta pursuant to the Transfer Agreement has been refunded to the Company.

As reported in its report on form 10-Q for the period ended June 30, 2008, the Registrant has had increased revenues over the last year and positive cash flow from operations. However, it has determined that the Transfer Agreement should be terminated because the funds that were to be used under the Transfer Agreement will be better utilized for use in expanding current operations, including purchasing additional raw materials, as opposed to purchasing land for the growth of additional cork trees.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(4) Exhibits:

1.1 Cancellation Agreement dated August 19, 2008 between Shaanxi Shuta Wood Products Co., Ltd. and Xi'an Hanxin Science & Technology Co., Ltd.