Investment Update

5 January 2016

Duet Real Estate Finance Limited

("DREF" or the "Company")

Investment Update

The board of the Company is pleased to announce the full repayment of all principal and accrued interest received on the Master Fund's German Hotels loan (Loan 12). The loan repaid significantly ahead of the scheduled maturity date. The early redemption, along with favourable terms specific to the underlying investment has resulted in returns in excess of the Master Fund's usual investment criteria.

The Company's share of proceeds realised by the Master Fund totals £11.0 million, equivalent to 15.29 pence per share. This represents a premium received by the Company of £2.1 million in excess of NAV as at 30 September 2015, equivalent to 2.91 pence per share, relating specifically to Loan 12. The last reported NAV as at 30 September 2015 was 27.52 pence per share; any future updated NAV of the Company will also take into account numerous other factors and updated information.

The Company intends to distribute its share of the realised proceeds pertaining to capital received from the Master Fund after the deduction of costs and expenses of this distribution along with amounts to be withheld for working capital as a return of capital via an issue of redeemable B shares to existing shareholders. Subsequent redemption of those shares will be pro rata to their holding at the time of the relevant issue. The Company will issue further details concerning the return of capital over the next few working days.

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 Europe Limited +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Tunga Chigovanyika