AFI – NTA and Top 25 Investments as at 31 January 2017

6 February 2017 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Monthly Net Tangible Asset Backing Per Share and Top 25 Investments Dear Sir / Madam Before Tax * After Tax * 31 January 2017 Cum Div $5.78 $4.98 31 December 2016 Cum Div $5.83 $5.01 *The before and after tax numbers relate to the provision for deferred tax on the unrealised gains in the Company's investment portfolio. The Company is a long term investor and does not intend disposing of its total long term investment portfolio. Under current Accounting Standards, the Company is required to provide for tax on any gains that may arise on such a theoretical disposal, after the utilisation of brought forward losses. Both the January 2017 and December 2016 figures are before the provision for the interim dividend of 10 cents per share. These figures do not include the effects of any dilution that would arise from the conversion of the outstanding Convertible Notes. Attached is a list of the Company's Top 25 Investments as at 31 January 2017. Yours faithfully Matthew Rowe Company Secretary End CA:00296388 For:AFI Type:NTA Time:2017-02-07 08:30:43