Investment Update and Return of Capital

4 June 2015

Duet Real Estate Finance Limited

("DREF" or the "Company")

Investment Update and Return of Capital

Investment Update

The board of the Company is pleased to announce that the full repayment of all principal and accrued interest has been received on the Master Fund's UK Business Park loan (Loan 9), earning returns in-line with its investment criteria. The Company's share of proceeds realised by the Master Fund totals £2.0 million, equivalent to 2.79 pence per share.

In addition to the aforementioned investment realisation and 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.

Return of Capital

The board has resolved to return an amount of 9.36 pence per share, equivalent to £6,869,183 based on the current number of shares in issue, 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 amount to be returned covers the above realisations, net of costs, in addition to cash released following a cancellation of part of the Company's undrawn commitment to the Master Fund.

The return of capital will be paid to shareholders on the register at the close of business on 12 June 2015 (the "Record Date"). The ex-date will be 11 June 2015. The B shares will be issued on 16 June 2015 (the "Issue Date"), redeemed on 17 June 2015 (the "Redemption Date") and settlement is intended to be effected on 18 June 2015. Payments of redemption monies are expected to be made 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 returned and the costs of the redemption, which are not expected to exceed £8,000. 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 2014 Annual General Meeting. Announcements will be made in due course in connection with further returns of capital from the Master Fund.

Adjusting the NAV per share as at 31 March 2015 of 36.92 pence for the quarterly dividend of 1.00 pence as announced on 28 May 2015 and the return of capital of 9.36 pence on a pro forma basis, but not adjusting for any other movements in the period from 31 March 2015, NAV per share would be 26.56 pence.

The Company raised £76.0m and has, including the dividend payable on 26 June 2015, paid dividends totalling £18.8m and returned capital, including via the B share issue above, totalling approximately £49.8m.

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).

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