TELSTRA GROUP LIMITED — Capital/Financing Update 2011

Apr 7, 2011

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8 April 2011

The Manager

Company Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street SYDNEY NSW 2000

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

General Enquiries 08 8308 1721 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra prices US$ 1.0 billion of senior notes

Telstra Corporation Limited (Telstra) has today priced a US$1.0 billion bond issue (the Notes) in the United States Rule 144A / Regulation S bond market. The Notes were priced with a coupon of 4.80% and mature on 12 October 2021. The Notes are unsecured obligations of Telstra and rank equally with all its other unsecured senior indebtedness. Interest accrues from 12 April 2011 and is payable on 12 April and 12 October of each year, beginning 12 October 2011.

Telstra will use the net proceeds from the Notes for general corporate purposes and to refinance existing debt.

The securities referenced above have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Regards

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Carmel Mulhern

Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556