Investment Update

31 December 2012

Duet Real Estate Finance Limited (the "Company")

Investment Update

On 16 November 2012, the Company announced that the Investment Adviser was in the execution phase of the final four deals of the Master Fund's investment programme. The Master Fund has now funded one of these deals with the remaining three due to complete early in 2013, all of which have target returns in line with the existing portfolio.

As a result, the Company is now 95% drawn against its commitment to the Master Fund whose investment period expired on 22 December 2012. The Company's 5% undrawn commitment, which is retained in cash, is to allow for any follow-on investments the Master Fund may make with regards to its existing loans, as permitted by the limited partnership agreement.

Dale Lattanzio, Chief Investment Officer of the Investment Adviser, said:

"We are pleased to have reached the stage where the Master Fund has drawn capital for the completion of the investment programme. On funding the loans the Master Fund will be approximately 95% invested and we expect to see an increase in dividend in line with the target set out at the time of the Company's initial public offering. We look forward to updating investors on the further progress in relation to these investments in the new year."

For further information, please contact:

DRC Capital LLP

Dale Lattanzio +44 (0)20 7042 0600

Cyrus Korat