Further Notice Concerning Earthquake in Japan

8 April 2011

JAPAN RESIDENTIAL INVESTMENT COMPANY LIMITED (the "Company")

Further Notice Concerning Earthquake in Japan

Japan Residential Investment Company Limited is an authorised closed-ended investment company incorporated in Guernsey and established to make and hold investments in residential property in Japan. The Company, its subsidiaries and entities in which it has a beneficial interest are referred to collectively as "the Fund".

The Company expresses its deepest sympathies to all who have suffered as a result of the earthquake that occurred in Japan's Tohoku region on 11 March 2011 (the "Earthquake").

An engineering report on Antler Tachimachi, Sendai, the Fund property closest to the Earthquake's epicentre, was commissioned by the Investment Adviser. The report confirms that Antler Tachimachi sustained no serious damage from the Earthquake.

As reported in the announcement dated 14 March 2011, all Fund properties have been inspected and it appears there has been no serious damage as a result of the Earthquake. Various Fund properties have sustained minor damage including limited damage to some of their exterior and interior finishes. The Investment Adviser has estimated the aggregate cost to repair observed damages for all the Fund properties at approximately JPY2.1 million (GBP15,000).

Following the Earthquake, the Tohoku region has experienced a series of aftershocks. The largest of these occurred on 7 April 2011, 41 miles east of Sendai, with a magnitude of 7.4 (the Earthquake last month had a magnitude of 9.0). The Fund holds a single asset in the Tohoku region, Antler Tachimachi, Sendai which was valued at JPY600 million (GBP4.3 million) as at 30 November 2010. Based on visual inspection by the property manager, there appears to be no serious damage to Antler Tachimachi following this aftershock.

Further aftershocks are anticipated, however, the frequency and magnitude is expected to dissipate over time. The Investment Adviser will continue to monitor events. An announcement will be made in the event of discovery of damages that may have a material impact on Fund operations.

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