Unsecured Convertible Notes Maturity & Appendix 3B

Australian Foundation Investment Company Limited AFIC Notes Matured 28 February 2017 Appendix 3B - Conversion of Convertible Notes The Company wishes to remind the market that the Company's Unsecured Convertible Notes (AFIC Notes) have today matured and, depending on holders' elections, have been either repaid for cash at their face value of $100 per note or converted into ordinary shares on the basis of 19.66 AFIC shares for every AFIC note. Payment details and funds are being distributed to holders today, and holding statements for shares received upon conversion will be distributed shortly. Trading of the notes on the ASX ceased at the close of business on 22 February 2017 and 1,853,436 AFIC Notes are now cancelled, quotation will also cease from 1 March 2017. Following conversion of 1,746,215 notes, the Company now has 1,176,079,463 ordinary shares on issue. Attached is an Appendix 3B in relation to the conversion of Unsecured Convertible Notes. Yours faithfully Matthew Rowe Company Secretary End CA:00297560 For:AFI Type:ALLOT Time:2017-02-28 12:42:14