ASPEN GROUP — Capital/Financing Update 2018

Sep 25, 2018

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Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 Level 3, 37 Pitt Street Sydney NSW 2000 Telephone: 02 9151 7500 Facsimile: 02 9151 7599 Email: homemail@aspengroup.com.au

ASX ANNOUNCEMENT 26 September 2018

Aspen Group acquires Highway 1 Caravan & Tourist Park, Adelaide

Aspen Group Limited (ASX: APZ) is pleased to announce that it has exchanged contracts to acquire the freehold mixed-use affordable accommodation asset, Highway 1 Caravan & Tourist Park (Highway 1). The purchase price of $23 million reflects a stabilised yield of approximately 9%, excluding acquisition costs. The contract also includes a call option to purchase adjacent expansion land of 4.64 hectares providing the ability to facilitate further expansion of the business.

Highway 1 fronts Port Wakefield Road, a main thoroughfare in the northern suburbs of Adelaide, South Australia. The park offers affordable accommodation in short, extended and long-stay guests on a site of 9.86 hectares. Total inventory of 320 sites comprises a blend of permanent and extended resident accommodation, high-quality tourist cabins, studio-style motel units and traditional campsites. Park features include recently refurbished facilities, 2 outdoor pools, a pool-side camp kitchen and recreational area. Highway 1 is located approximately 30 minutes north of Aspen’s Adelaide Caravan Park which together with Highway 1 will form a cluster that is expected to provide operational and distribution synergies.

The acquisition will be debt funded utilising an existing bank facility with a settlement date scheduled for mid-October 2018.

Commenting on the acquisition, Aspen Group Chief Executive Officer Joel Cann said:

“We are pleased to add another high-quality asset to our group portfolio. This acquisition sees the deployment of a significant portion of Aspen’s current debt facility into a single asset that delivers sustainable cash flows with limited seasonality.

The acquisition is in-line with Aspen’s strategy to purchase growth businesses within the affordable accommodation sector that can enhance earnings of the group.”

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For further information, please contact: Joel Cann Emmanuel Zammit Chief Executive Officer Chief Financial Officer Phone: (+61) 2 9151 7500 Phone: (+61) 2 9151 7500 Email: joelc@aspengroup.com.au Email: emmanuelz@aspengroup.com.au

Highway 1 Caravan & Tourist Park

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----- Start of picture text ----- LOCATION INVENTORY LOCATION IMAGES❑ Port Wakefield Rd, Bolivar SA 5110 COMPOSITION13213210979 109 79Privately Aspen -Totalowned ownedSites - 132 132Cabins - 109 109Residences 79 - 79Total 79 241 320USAGE MIX13224 108 1092779 82 79-Permanent- Short-Totalstay staySites 24 108 132Cabins 27 82 109Residences 79 - 79Total 130 190 320Purchase Approx. Value per unit ofState Inventory Area (ha) Value per ha ($m)price ($m) Yield inventory ($k)SA 23 9.0% 320 72 9.86 2.3----- End of picture text -----