Aspen : 29 Mar 2023 – Update on Aspen’s Stake in Eureka

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: [phone]

Email:[e-mail]

PRESS RELEASE 29 March 2023

Aspen Group

Update on Aspen's Stake in Eureka Group Holdings Limited

In mid-December 2022 Aspen Group (Aspen) (ASX: APZ) acquired a 13.7% stake in Eureka Group Holdings Limited (Eureka) (ASX: EGH) for $16.1 million (39cps). Shortly after the release of both groups' audited 1HFY23 financial results in late February 2023, Aspen put forward an indicative, conditional, non-binding proposal (Proposal) to the Board of Eureka for its consideration.

The Proposal was for Aspen to acquire Eureka in an all-scrip transaction with a merger ratio of 0.225 APZ security per EGH share. Aspen subsequently withdrew the Proposal because the Eureka Board had not engaged in any meaningful discussions. The proposed merger ratio was based around relative FY23 Operating Earnings per Security1 (EPS) of the groups. We expected pro-forma increases in FY23 EPS of about 7% per Aspen security and about 9% per Eureka share. This was based on Aspen's current mid-range EPS guidance of 11.75 cents and Eureka's current EPS guidance of 2.6 cents and assumed head office cost synergies of about $1.5 million per annum through combining the groups.

Aspen will continue to pursue other opportunities to grow its portfolio of affordable accommodation on a profitable basis for securityholders. We are seeing more interesting opportunities in the higher interest rate, lower economic growth environment. Aspen will consider all options to realise value for its stake in Eureka.

Aspen continues to perform well across all aspects of its business. Over the three years to 30 June 2022, Aspen delivered EPS growth of 19% per annum and Net Asset Value per security growth of 17% per annum. Aspen's EPS guidance for FY23 is 11.50-12.00 cents, an increase of 33-39% on FY22. Please refer to Aspen's announcements on ASX for further information.

Announcement authorised by the Board of Aspen Group Limited.

For further information, please contact: David Dixon Joint Chief Executive Officer Phone: [phone] Email:[e-mail]

John Carter Joint Chief Executive Officer Phone: [phone] Email:[e-mail]

1. Operating Earnings is a non-IFRS measure that is determined to present, in the opinion of the directors, the operating activities of Aspen in a way that appropriately reflects Aspen's operating performance - refer to financial reports for full definition

Disclaimer

This address 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 address constitutes investment, legal, tax or other advice. The information in this address 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 address 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 address. 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 address or its contents or otherwise arising in connection with it.

This address 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 address will actually occur as contemplated. All references to dollar amounts are in Australian currency.

This address has been prepared for publication in Australia and may not be released to the US wire services or distributed in the United States. This address does not constitute an offer of securities for sale in the United States or any other jurisdiction. Any securities described in this address may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.

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