Inv Update, Return of Capital, Buyback Progamme

2 July 2014

Duet Real Estate Finance Limited

("DREF" or the "Company")

Investment Update, Return of Capital and Buyback Programme

Investment Update and Return of Capital

The board of the Company is pleased to announce that the Master Fund has now fully realised Loan 13, following a sale of the underlying asset, a London office, earning returns in-line with its investment criteria.

Total proceeds realised by the Master Fund include all amounts outstanding under the loan agreement, of which the Company's share totals £10.2 million, equivalent to 13.63 pence per share.

The Company intends to distribute its share of the realised proceeds received from the Master Fund after the deduction of costs and expenses of this distribution along with any amounts to be withheld for working capital, and subject to the requirements of Guernsey law, 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. The Company intends to announce details of the return of capital in due course.

Further details of the capital return mechanism are summarised in the Company's Prospectus, which may be accessed via the Company's website (www.dreflimited.com).

Buyback Programme

The Company renewed on 30 June 2014 the authority given to Oriel 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 to continue during the Company's close period commencing 1 July 2014 as permitted by UKLA Listing Rule 12.2.1(2). The maximum price for the 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, 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.

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

Oriel Securities Limited +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Tunga Chigovanyika