Dividend, NAV, Portfolio Update, Return of Capital

28 May 2015

Duet Real Estate Finance Limited

(the "Company")

Dividend, NAV, Portfolio Update, Return of Capital, Investment Performance, Outlook and Buyback Programme

Dividend and NAV

The board of the Company is pleased to announce a dividend of 1.00 pence per Ordinary Share in respect of the quarter to 31 March 2015, payable on 26 June 2015 to those Shareholders on the register as at 5 June 2015. Dividends to date, including this distribution, paid on shares issued at the time of the Company's Initial Public Offering, total 25.45 pence per share.

As at 31 December 2014, the audited net asset value ('NAV') of the Company was 51.29 pence per share. During the quarter to 31 March 2015, the Company returned an equivalent of 14.15 pence in the form of an issue and redemption of B shares, in addition to paying a dividend of 1.25 pence. At 31 March 2015, the unaudited NAV was 36.92 pence per Ordinary Share.

Portfolio Update

The portfolio of the Master Fund as at 31 March 2015 consisted of 8 assets totalling £99.0m of principal and accrued interest, after impairments, together with the value of foreign exchange hedging derivatives. The portfolio had a blended loan to value ratio of 65.9% (including payment-in-kind interest accrued where applicable), along with blended cash pay and payment-in-kind coupons of 7.93% and 3.54% respectively. The portfolio provides the income and total return as targeted in the Company's prospectus, whilst maintaining a resilient risk profile, and is detailed in the tables below.

(1) after impairment.

Return of Capital

As previously announced on 24 April 2015, full repayment of all principal and accrued interest has been received on the Master Fund's German Retail loan (Loan 7), earning returns in-line with its investment criteria. The Company's share of proceeds from Loan 7 realised by the Master Fund totals £4.4 million, equivalent to 5.98 pence per share. Furthermore, the Company has received notice from the General Partner of the Master Fund that it has cancelled £0.7 million of uncalled commitment reflecting the reduced residual value of the investment portfolio as a consequence of recent realisations and distributions.

The Company intends to distribute its share of the realised proceeds pertaining to capital received from the Master Fund, including the cash held by the Company no longer required to fund the uncalled commitment referred to above, after the deduction of costs and expenses of this distribution along with amounts to be withheld for working capital and for any continuing purchases of the Company's own shares under the Buyback Programme, as a return of capital via an issue of redeemable B shares to existing shareholders and subsequent redemption of those shares pro rata to their holding at the time of the relevant issue.

Investment Performance and Outlook

Whilst no longer required to release Interim Management Statements, the board intends to continue to update Shareholders on the Company's investment performance and outlook alongside each NAV update.

The Company raised £76.0m and has, including the dividend payable on 26 June 2015, paid dividends totalling £18.8m and returned capital totalling approximately £42.9m. The total value to paid-in ratio (based on capital raised) of the Company at 31 March 2015 was 1.160.

The Investment Adviser anticipates the current trend of earlier repayments to continue as increased liquidity in the financing markets, the ongoing deleveraging through amortisation of most transactions and the generally rising trend in asset values encourage borrowers to refinance or sell the assets that back the remaining loans in the Master Fund.

Having returned 56.4% of the original capital raised, the board anticipates that the forward-looking income distribution profile of the Company may be subject to some irregularity driven by the timing of the realisations of the remaining loans in the Master Fund. Buyback Programme

The Company renewed on 18 May 2015 the authority given to Stifel Nicolaus Europe Securities Limited irrevocably to continue to buy-back shares in the Company on its behalf but independently of, and uninfluenced by, the Company. This enables the Buyback Programme to continue during the Company's close period leading up to the announcement of its results for the interim period ending 30 June 2015 as permitted by UKLA Listing Rule 12.2.1(2). The maximum price for a buyback is set at no more than the higher of: (i) 105 per cent. of the average of the middle market quotations, taken from the London Stock Exchange Daily Official List, until the Company's Annual General Meeting to be held on 10 June 2015 and subsequently from an appropriate market-recognised source, for the five business days immediately preceding the day on which the shares are purchased and (ii) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003. No shares will be bought back unless they are at a discount to the assumed NAV per share at the relevant time.

Any shares acquired pursuant to the Buyback Programme will be cancelled or held in treasury and the acquisition will be notified to a Regulatory Information Service in accordance with LR 12.4.6.

For further information, please contact:

DRC Capital LLP +44 (0)20 7042 0600

Dale Lattanzio

Cyrus Korat

Stifel Nicolaus EuropeLimited +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Tunga Chigovanyika