ASX Announcement

IOT signs an exclusive distribution agreement with AEE, one of the World's largest Drone manufacturers

• IOT Group Limited (IOT Group) has signed an exclusive Distribution Agreement with Shenzhen AEE Aviation Technology Co., Ltd (AEE) one of the World's largest Drone manufacturers, based in China to distribute AEE's range of drones in Australia and Japan.

• The commercial Drones market is expected to be worth $4+ Billion by 2021 and Growing at 109% CAGR between 2014 and 20201.

• IOT expects to present the Roam-e - the flying selfie camera to key worldwide retailers this month. This will open up significant global distribution channels allowing it to follow through with a wider range of consumer based Drones and at affordable price point.

• IOT Group will co-brand with AEE to strengthen the IOT Brand portfolio to become a recognised leader in the global Drone category.

• This Distribution agreement shows a further strengthening of IOT's relationship with AEE first announced on 15 April 2016 to ASX when IOT confirmed that AEE would exclusively manufacture the ROAM-e Flying Selfie Product and accessories.

Sydney, 6 June 2016: IOT Group Limited (ASX:IOT) is pleased to announce an Exclusive Distribution Agreement with one of the World's largest Drone Manufacturers "Shenzhen AEE Aviation Technology Co., Ltd" of AEE Hi-Tech Park, Songbai Road, Tangtou Crossing, Shiyan Town, Bao'an Districts Shenzhen, Peoples Republic of China (AEE).

IOT will distribute AEE's range of drones exclusively in Australia and Japan with extensions to other countries as the deal progresses.

AEE is a leading global provider of video recording camera equipment, multi-rotor UAV systems and unmanned aircrafts. AEE was founded in 1999 by Mr. Xianzhi Zhang and is an electronic technology enterprise composed of R&D and manufacturing.

AEE is focused on UAV's, police and military drones, and other precision based technologies.

AEE's headquarters is located in the city of Shenzhen in the Bao'an District which includes an R&D Centre, a Manufacturing Plant spanning 100,000 sqm with over 1,500 employees. AEE was the first Chinese company to pass ISO9001, ISO14001, and QC080000 testing. Further certifications include the military standard management system, FCC certification by the U.S. Federal Communications Office, the CE certification of the EU member states and China's 3C certification.

AEE 2D and 3D action camera products are widely used globally and their high-definition video content can be seen on numerous overseas television sports programs and documentaries. Many media and sports industries have long-term strategic arrangements with AEE; their recording equipment has become an essential tool in professional sports videos, travel videos and television documentaries. AEE is involved in various domestic and international sports activities.

AEE's independent research and development has helped it produce an integrated multi-rotor UAV system that can be widely used for military and police reconnaissance, disaster relief, search

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and rescue, and professional videography and photography. Their products have been well received by the military, police and firefighters as well as commercial and industrial businesses.

Ian Duffell, IOT's Executive Director Business Strategy comments: "It is the perfect next step for IOT to distribute AEE's great range of Drones. AEE is our production partner in ROAM-e and this will extend our strong business relationship even further. -ENDS-

For further information, contact Ian Duffell - Executive Director of IOT Group Ltd. on 0488 024 000

The Condor Elite Drone comes with Follow Me function and Vision Positioning, boasts a flight time of 20 minutes and a maximum flight speed of 15m/s, and is capable of 16 MP photo resolution and 4K video recording.

The Condor Standard Drone comes equipped with GPS and a custom cam, and boasts a flight time of 20 minutes and a maximum flight speed of 15m/s.

The AEE Lyfe Silver Camera comes with built-in Bluetooth and WiFi, is capable of 16 MP photo resolution and 4K video recording, and supports up to 64GB SD card.

The AEE Lyfe Onyx Camera is equipped with built-in Bluetooth and WiFi, and capable of 16 MP photo resolution and 4K video recording. It has a remote control range of 80m, and supports up to 64GB micro SD card.

About AEE

Shenzhen AEE Technology Co. Ltd. is a leading global provider of recording equipment, multi-rotor UAV systems and unmanned aircrafts. The company was founded in 1999 by Mr. Xianzhi Zhang through an investment of 200 million Yuan. The company aims to become a first-class electronic technology enterprise, a world renowned brand and views garnering national glory as a responsibility. AEE is an electronic technology enterprise composed of R&D, manufacturing and sales focuses. It is the parent company of subsidiaries focused on UAV's and their corresponding aircrafts, police equipment, and other precision technology.

About IOT Group Limited

www.theiotgroup.com

(Internet of Things)

IOT Group has tapped into global niche markets by adapting and enhancing existing trend products and making them more affordable and useful to consumers. IOT Group is designing and developing a range of smart wearables, a range of flying selfie drones, augmented reality, virtual reality, home automation products and a universal computing device as we look to create a complete IoT ecosystem over the next 24 months.

Utilising industry specific innovation and our own technology, we've created the first facial recognition flying selfie device operated through smartphones and vision control systems, called ROAM-e. With unique follow me truly functionality, a flight time of up to 20 minutes and the capacity to charge in just two hours! You will always capture perfectly uninterrupted panoramic shots with ROAM-e's 360 degree 1080p HD camera. And you will never miss a moment with ROAM-e's live streaming capabilities, so the action is always in real time whenever, where ever. ROAM-e is your personal companion who will always be within 5m of you, so you never have to worry about invading anyone's personal space. Built with the world's first dual-axis collapsible

blades means that ROAM-e's light, compact and easy to carry and ready for any occasion but most importantly not weigh you down. Selfies have reached new heights!