ASPEN GROUP — Capital/Financing Update 2020

Jan 29, 2020

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Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 21 Oxford Street Bondi Junction NSW 2022 Telephone: 02 9151 7500 Facsimile: 02 9151 7599

ASX ANNOUNCEMENT 30 January 2020

SECURITYHOLDER COMMUNICATIONS

Aspen Group (“Aspen”) [ASX: APZ] advises that correspondence in relation to the implementation of the Capital Reallocation Proposal as announced on 18 December 2019 will be dispatched to Securityholders today.

The correspondence letter sent to securityholders is attached to this announcement.

Announcement authorised by the Board.

END

For further information, please contact: David Dixon John Carter Joint Chief Executive Officer Phone: Joint Chief Executive Officer Phone: (+61) 2 9151 7584 (+61) 2 9151 7586 Email: davidd@aspengroup.com.au Email: johnc@aspengroup.com.au

Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767

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21 Oxford Street Bondi Junction NSW 2022

Telephone: 02 9151 7500 Facsimile: 02 9151 7599

30 January 2020

Dear Securityholder

CAPITAL REALLOCATION IMPLEMENTATION

We refer to the capital reallocation proposal approved by Aspen Group’s (“Aspen”) securityholders at the Annual General Meeting held on 29 November 2019 (“Capital Reallocation Proposal”).

The implementation of a reallocation of capital from Aspen Property Trust (“APT”) to Aspen Group Limited (“AGL”) of up to 31.000 cents per APT unit which equates to approximately A$30 million (“Capital Reallocation”) was announced to the Australian Securities Exchange (“ASX”) on 18 December 2019 and as per the timetable implemented on 31 December 2019.

The Capital Reallocation Proposal is described in more detail in Aspen’s 2019 Notice of Meetings which was announced to the ASX on 28 October 2019.

Aspen implemented the Capital Reallocation on 31 December 2019, with APT making a capital distribution of approximately A$30 million (equivalent to 31.000 cents per APT unit). The capital distribution was compulsorily applied to existing shares in AGL.

It is important to note that:

• ­ You did not receive any cash as part of the Capital Reallocation;

• ­ You will continue to hold the same number of Aspen securities; and

• ­ The implementation of the Capital Reallocation did not result in a change in the Net Tangible Asset (“NTA”)

• per Aspen’s security.

The taxation impact of the Capital Reallocation Proposal was set out in the 2019 Notice of Meetings. Further information regarding the taxation impact will also be included in the 2020 Annual Taxation Statement which is expected to be distributed to Aspen securityholders in late August 2020.

Please note that Aspen cannot offer taxation advice. Should you have any further questions about how the implementation of the Capital Reallocation will affect your tax position, we recommend you seek financial and/or taxation advice.

If you have any questions on the matters discussed in this letter, please do not hesitate to contact us. Contact details are noted below.

Yours sincerely ,

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John Carter Joint Chief Executive Officer Phone: (+61) 2 9151 7586 Email: johnc@aspengroup.com.au

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David Dixon Joint Chief Executive Officer Phone: (+61) 2 9151 7584 Email: davidd@aspengroup.com.au