TELSTRA GROUP LIMITED — Capital/Financing Update 2017

Apr 5, 2017

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6 April 2017

The Manager

Market 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 announces AUD 1.0 billion bond issue

Telstra Corporation Limited (Telstra) has priced an Australian Dollar $1.0 billion bond issue (the Notes) under its Debt Issuance Program Offering Circular dated 31 March 2017 with the following tranches:

• $300 million 4 Year Fixed Rate Notes with a coupon of 2.90% maturing on 19 April 2021;

• $150 million 4 Year Floating Rate Notes with a coupon of 3 month BBSW + 0.82% maturing on 19 April 2021; and

• $550 million 10 Year Fixed Rate Notes with a coupon of 4.00% maturing on 19 April 2027.

Telstra will use the proceeds from the Notes for general corporate purposes.

Yours faithfully

Damien Coleman Company Secretary

This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, securities in the United States or in any other jurisdiction, or to any person to whom, it would not be lawful to make such an offer. In particular, the securities described in the Debt Issuance Program Offering Circular have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold or resold in the United States or to, or for the account or benefit of, any "U.S. Person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from the registration requirements under the Securities Act.

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