NAV, Portfolio Update and Buyback Programme

Duet Real Estate Finance Limited (the "Company")

NAV, Portfolio Update and Buyback Programme

NAV and Dividend

The board of the Company is pleased to announce a dividend of 2 pence per Ordinary Share in respect of the quarter to 30 September 2012, payable on 21 December 2012 to those Shareholders on the register as at 30 November 2012. The dividend per Ordinary Share consists of 1 pence relating to income received in connection with the ordinary course of business of the Master Fund, together with a further 1 pence relating to additional income received by the Master Fund from its Danish Retail investment.

In addition, the Company is able to report an unaudited net asset value as at 30 September 2012 of 98.9 pence per Ordinary Share.

Material Events and Transactions

As at 30 September 2012, the Master Fund was 60% deployed with 11 investments totalling £180.4 million, with an expected average IRR of 14.6% and an average LTV of 65.0%. The Investment Adviser is in advanced discussions on a pipeline of 9 opportunities totalling £226m, with four deals in execution phase.

The Company received distributions from the Master Fund of £1.799 million during the period and paid a dividend of 1.0 pence per share on 28 September 2012 resulting in a cash dividend of £0.757 million.

The Master Fund has recently exercised its rights under its security package to commence proceedings to accelerate its French Office loan (Loan 2 below) following a breach of the loan terms by the borrower. The Investment Adviser expects that these actions will result in full recovery of principal and accrued interest.

The Master Fund's Investment Period ends on 22 December 2012. There are no proposals to extend this date. The Investment Adviser is confident that the funds will be fully invested or committed by this date.

Financial Position

The Company had invested £49.450 million of capital into the Master Fund as at 30 September 2012 and had £26.2 million available for investment into the Master Fund.

General Financial Information

Investments held by Master Fund

Buyback programme

The Company has been buying back shares over the last six months. In order to efficiently continue buying back shares the Company intends to engage Oriel Securities to execute a buy-back programme on its behalf. This will enable the buyback to continue during the Company's close period as permitted by LR 12.2.1(2). The maximum price for the buyback is set at no more than 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. In addition, given the level of liquidity in the Company's shares, the Company may buy back in any one day more than 25 per cent of the average daily volume over the preceding 20 business days.

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.

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