Interim Management Statement

17 May 2013

Duet Real Estate Finance Limited

("DREF" or the "Company")

Interim Management Statement

for the period from 1 January 2013 to 17 May 2013

Material Events and Transactions

The board of the Company is delighted to announce that the Master Fund has funded its final transaction, successfully completing its investment programme in accordance with its investment strategy. The final transaction is a £39.5million mezzanine loan backed by an office located in the City of London.

The fully invested portfolio of the Master Fund consists of 15 investments totalling £264.7 million invested, with a current blended loan-to-value ratio of 70.1%, along with a blended cash pay coupon and payment-in-kind coupon of 9.8% and 2.1% 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:

In January, the Master Fund received a partial repayment of £5.9 million on its CMBS 2 investment, representing 60.8% of the acquisition cost of the bonds following the sale of assets by the borrower.

The Master Fund is in 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.

Financial Position

The Company had invested £71.45 million of capital into the Master Fund as at 31 March 2013, and had £3.0 million available for investment into the Master Fund.

Dividend

The board of the Company is pleased to announce a dividend of 2 pence per Ordinary Share in respect of the quarter to 31 March 2013, payable on 21 June 2013 to those Shareholders on the register as at 31 May 2013.

The board anticipates that the Company is on track to provide Shareholders with dividends which, taken over the course of any twelve month period, will be in excess of 7 per cent per annum based on the issue price.

NAV

The Company will release an unaudited net asset value, as at 31 March 2013, to the market next week.

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