ASPEN GROUP — Capital/Financing Update 2021

Jun 15, 2021

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Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 Suite 21 285A Crown Street Surry Hills NSW 2010 Telephone: 02 9151 7500 Email: homemail@aspengroup.com.au

ASX ANNOUNCEMENT 16 June 2021

Settlement of Lewis Fields Retirement Village, Strathalbyn South Australia

Aspen Group (ASX: APZ) (“ Aspen ”) is pleased to announce that it has settled the acquisition of the Lewis Fields Retirement Village (‘‘ Lewis Fields ’’) in Strathalbyn, South Australia.

Lewis Fields is the premier retirement village in Strathalbyn and the only one under development and offering new houses. The property spans 3.7 hectares and is approved for a Retirement Village with 80 houses of which 26 have been built to date, including the community building and landscaped gardens. Strathalbyn is experiencing population growth due to its attractive amenity, affordability and close proximity to Mount Barker and Adelaide.

This is Aspen’s fifth acquisition in FY21 and adds to the Group’s substantial cluster in South Australia. The acquisition increases Aspen’s total approved sites to 2,745 representing growth of more than 25% in FY21.

We propose to develop and sell the remaining 54 houses under a land lease community model subject to the relevant approvals being obtained, as we believe it is a more attractive product for our customers. We also intend to reduce exit fees for existing residents.

The property has been independently valued at $2.40 million which is slightly above the purchase price of $2.36 million. The valuer applied a 17% discount rate on the contracted deferred management fee stream and a rate of $600k per hectare on the spare land which equates to approximately $25k per approved site.

We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. We have so far settled the sale of 2 houses and entered into conditional contracts on another 3 for an average price of $418k and average profit margin per house of $94k after all costs.

We expect the acquisition to be accretive to both NAV and EPS over the medium term.

Lewis Fields Retirement Village

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----- Start of picture text ----- Community BuildingSpare development landapproved for 54 houses----- End of picture text -----

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Further information regarding the acquisition was released to the ASX on 10 May 2021.

Announcement authorised by the Board of Aspen Group Limited.

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

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Disclaimer

This announcement has been prepared by Aspen Group Limited on behalf of Aspen Group Limited and Aspen Property Trust (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Prospective investors should make their own independent evaluation of an investment in Aspen. Nothing in this announcement constitutes investment, legal, tax or other advice. The information in this announcement does not take into account your investment objectives, financial situation or particular needs. The information does not purport to constitute all of the information that a potential investor may require in making an investment decision.

Aspen has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Aspen, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it.

This announcement contains forward looking information. Indications of, and guidance on, future earnings, distributions and financial position and performance are forward looking statements. Forward looking statements are based on Aspen’s current intentions, plans, expectations, assumptions, and beliefs about future events and are subject to risks, uncertainties and other factors which could cause actual results to differ materially. Aspen and its related bodies corporate and their respective directors, officers, employees, agents, and advisers do not give any assurance or guarantee that the occurrence of any forward-looking information, view or intention referred to in this announcement will actually occur as contemplated. All references to dollar amounts are in Australian currency.

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