DAS, still around today, had many licenses at the time, including the Smurfs. The D&D licensing boom of ’82-’83 was aimed at the younger kids who didn’t really understand role-playing yet, but who knew the brand from the older kids, from placement, and, in 1983, from the cartoon and action figures.
The clay figures here were not meant as a game supplement, in other words, like the hundreds of metal miniatures found in every hobby shop. The back of the box makes it very clear: “These kits depicting Advanced Dungeons & Dragons characters are a fun, colorful way to visualize the popular role-playing games’ [sic] adventures.”
And again: “The timeless adventures of powerful wizards, firebreathing dragons and fairy princesses are recreated in these clay modelling kits…”
Not a supplement, but a replacement.
DAS put out at least one more AD&D modelling clay kit, with a pink box, featuring “Goblins and Dragons.”
(Images via Vintage Odds N Ends/eBay)
2 Warps to Neptune 
Huh, this knocked a vague memory loose (as your posts often do). I had something like this. Not D&D, I’m thinking, but I remember opening those packages of clay. They were kind of segmented, so you could tear strips off, rather than being one solid block, if I’m remembering correctly. I remember pressing down on the molds, but I can’t recall what characters I made… I might have to check with family on this one and see if they recall.
Unrelated: can I send your Atari 7800 back? It doesn’t seem like the relay is going to move forward.
Andy, yes, I’m in the same boat: I know I had some of the clay, but it might just have been blank, and we made it into stuff without the molds. I definitely didn’t have any of the licensed material.
Totally forgot about the Atari 7800. Sorry. Will email.
Never saw these things before. I wish there was a push for new Dungeons stuff today. I think kids would still like it.
I remember seeing ads for this. I never had it, but it reminds me of the heroes and monsters version of “Fashion Plates,” which I did have.
Haha…That wizard is wearing Ringlerun’s outfit.
There were 4 of the kits that I know of:
http://www.tomeoftreasures.com/forum/viewforum.php?f=2123&sid=dfb7daab6c9f035b67dfb6798d71c5d0