NEXTED GROUP LIMITED — Capital/Financing Update 2018

May 14, 2018

15 May 2018

Australian Securities Exchange Limited Via e-lodgement ASX Code ICT

Birla Edutech MOU progresses to HOA

Key points:

• Birla Edutech and iCollege have signed a non-binding Heads of Agreement ( HOA );

• The HOA builds upon and formalises the arrangements made in the Memorandum of Understanding ( MOU ) announced to the market on 26 April 2018 and contemplates the entry into a formal binding joint venture on or before 30 June 2018;

• The Heads of Agreement sets a framework to give effect to the parties shared intention to develop a cooperative and collaborative approach towards the establishment of a Vocational Training Institute in India;

• iStudy (refer ASX announcement dated 18 April 2018) will facilitate recruitment of students for the established joint venture;

• The joint venture will provide iCollege with access to Birla Edutech's current and future student network. Birla Edutech's current network includes over 60 educational institutions extending across India with a combined student cohort exceeding 6,000 students and with the capacity to hold up to 50,000 students; *

• The Education Industry in India is expected to exceed USD$144 Billion by 2020; USD$97.8 Billion in 2016. **

• This HOA aligns with iCollege's strategic plan to increase onshore demand through international delivery and builds upon the previous announcement regarding iStudy (ASX 18 April 2018).

Alignment with strategic priorities

In February 2018, the Board of iCollege set out the clear strategic direction for iCollege following the merger with Manthano Ltd. The key strategic priorities relevant to this announcement are to:

• Increase on-shore demand through international delivery;

• Pursue vertical integration; and

• Ensure current course delivery remains up to date and relevant with appropriate use of technology.

iCollege Ltd (“ICT” or “the Company”) (ASX: ICT) is delighted to announce the execution of a Heads of Agreement ( HOA ) with Birla Edutech.

Birla Edutech operates in excess of 60 educational institutions across India with a combined student cohort of over 6,000 with the capacity to hold up to 50,000 students. This agreement is a great step towards addressing a significant gap in the Indian market for vocational studies.

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While the HOA is non-binding, it builds upon and formalises the arrangements made in the Memorandum of Understanding ( MOU ) announced to the market on 26 April 2018 and contemplates the entry into a formal binding joint venture on or before 30 June 2018.

The HOA sets a framework to give effect to the parties shared intention to develop a cooperative and collaborative approach towards the establishment of a Vocational Training Institute in India.

The key components of the HOA are as follows:

• the development of a Hospitality Centre of Excellence;

• Birla Edutech to provide, amongst other things:

  • ➢ infrastructure, including classrooms and a commercial kitchen facility for the training of iCollege courses in hospitality, hotel management, tourism management and commercial cookery; and

  • ➢ additional facilities for conducting a wider scope of iCollege courses including bar facilities, front desk simulation and hotel room simulation.

• iCollege to provide, amongst other things:

  • ➢ suitable course material accredited under Australian Skills Quality Authority ( ASQA );

  • ➢ Australian lead instructors for the purposes of training local personnel (train the trainer);

  • ➢ maintain a presence at the facilities and apply its expertise in the operation of vocational training campuses.

  • ➢ provide the services of iStudy Australia (India) to assist with student recruitment for the JV Campuses.

Birla Edutech will work with iCollege to offer its existing institutions’ the opportunity to participate in study tours, graduate programs and the ability to offer placement at the iCollege Campuses in Australia.

Initial course offerings will include courses in Hospitality and Business including practical placements. The exceptional reputation and size of Birla Edutech opens significant expansion opportunities for the joint venture across many industry sectors, both in India and internationally.

• birlaedutech.com

• ** ibef.org/industry/education-sector-india.aspx

Ends –

For further Information:

Mr. Ashish Katta –

Managing Director iCollege Limited +61 8 9466 9008 ash.katta@icollege.edu.au

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