Dividend, NAV, Return of Capital,Investment Update

13 February 2014

Duet Real Estate Finance Limited

("DREF" or the "Company")

Dividend, NAV, Return of Capital, Investment Update and Compliance with Model Code

Dividend

The board of the Company is pleased to announce a dividend of 2.25 pence per Ordinary Share in respect of the quarter to 31 December 2013, payable on 14 March 2014 to those Shareholders on the register as at 21 February 2014 with an ex-date of 19 February. Dividends to date (including this distribution) on shares issued at the time of the Company's Initial Public Offering total 19.25 pence per share.

NAV

The unaudited net asset value of the Company as at 31 December 2013 is 93.5 pence per Ordinary Share.

Return of Capital

Following completion of the Master Fund Investment Programme, and in light of expected future returns of capital in due course from the Master Fund, the Company has announced that such returns will be passed on to shareholders.

As previously announced on 27 January 2014, the Master Fund has fully realised three of its mezzanine loan investments, earning returns in line with its investment criteria. Total proceeds realised by the Master Fund include all amounts outstanding under these loan agreements, of which the Company's share totals £10.0 million.

As such, the board has resolved to return an amount of £10.0 million, equivalent to 13.35 pence per share, via an issue of redeemable B shares to existing shareholders and immediate subsequent redemption of those shares pro rata to their holding at the time of the relevant issue. This distribution will be made alongside the quarterly dividend announced above.

The return of capital will be paid to shareholders on the register at the close of business on 21 February 2014 (the "Record Date"). The ex-date will be 19 February 2014. The B shares will be issued on 25 February 2014 (the "Issue Date"), redeemed on 26 February 2014 (the "Redemption Date") and settlement is intended to be effected on 27 February 2014. Payments of redemption monies are expected to be effected either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form).

Following the return of capital, the NAV per share will be reduced by the amount of the return of capital and the costs of the redemption. Costs of the redemption are not expected to exceed £15,000.

Furthermore, the Company may also continue to carry out purchases of its own shares from time to time, subject to regulatory restrictions and in accordance with the Company's general authority to repurchase shares granted by its shareholders at the Company's 2013 Annual General Meeting.

Announcements will be made in due course in connection with further returns of capital from the Master Fund.

Investment Update

The Master Fund continues the process of enforcing its rights under the loan security package to recover outstanding amounts owed under Loan 4, and the Investment Adviser expects that these actions will result in full recovery of principal, accrued interest and expenses.

The Company's unaudited NAV includes an impairment of the Quarter 3 2013 carrying value of the Master Fund's investment in Loan 5 equal to 4.4 pence per Ordinary Share. This is broadly in-line with the provision envisaged by the Company's Interim Management Statement of 19 November 2013.

Compliance with Model Code

In accordance with Listing Rule 15.5.1(4), the Company announces it is satisfied that all inside information which the Directors and the Company may have in the period leading up to the announcement of its annual results has been and will continue to be notified via a regulatory information service and, therefore, the dealings referred to in Listing Rule 15.5.1(3) are permitted.

For further information, please contact:

DRC Capital LLP +44 (0)20 7042 0600

Dale Lattanzio

Cyrus Korat

Oriel Securities Limited +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Tunga Chigovanyika