Result of Open Offer

15 June 2010

JAPAN RESIDENTIAL INVESTMENT COMPANY LIMITED

(the "Company")

RESULT OF OPEN OFFER

Japan Residential Investment Company Limited (AIM: JRIC), an authorised closed-ended investment company incorporated in Guernsey and established to make and hold investments in residential property in Japan, announced on 28 May 2010 that it was proposing to raise £35.0 million by the issue of 87,500,000 New Ordinary Shares through the Placing and Open Offer and Firm Placing at a price of 40p per New Ordinary Share.

The Open Offer closed at 11.00 a.m. on 15 June 2010. Valid applications were received from Shareholders in respect of 2,645,173 New Ordinary Shares pursuant to the Open Offer. The Open Offer Shares had been placed with placees subject to clawback to satisfy applications under the Open Offer; accordingly, any Open Offer Shares not applied for under the Open Offer have been allocated to Conditional Placees.

The Placing and Open Offer and Firm Placing remain conditional, inter alia, upon shareholder approval which will be sought at the Extraordinary General Meeting of the Company to be held at Sarnia House, Le Truchot, St Peter Port, Guernsey GY1 4NA at 11.00 a.m. on 18 June 2010.

It is expected that Admission will become effective, and dealings in the 87,500,000 New Ordinary Shares will commence, at 8.00 a.m. on 22 June 2010. New Ordinary Shares in uncertificated form are expected to be credited to CREST accounts by 8.00 a.m. on 22 June 2010, and definitive share certificates for the New Ordinary Shares in certificated form are expected to be despatched by post by 29 June 2010.

Enquiries:

Other than as expressly set out in this announcement, capitalised terms used in this announcement shall have the meanings given to them in the shareholder circular dated 28 May 2010 which is available on the Company's website: www.jricl.com.

This announcement does not constitute an offer to buy or to subscribe for, or the solicitation of an offer to buy or subscribe for, shares in any jurisdiction in which such offer or solicitation is unlawful. In particular the New Ordinary Shares have not been, and will not be, registered under the United States Securities Act of 1933 as amended (the "Securities Act'') or qualified for sale under the laws of any state of the United States or under the applicable laws of any of Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan and, subject to certain exceptions, may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) or to any national, resident or citizen of Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan. Neither this announcement nor any copy of it may be distributed directly or indirectly to any persons with addresses in the United States of America (or any of its territories or possessions), Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement.

Smith & Williamson, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as nominated adviser and joint financial adviser to the Company in connection with the Placing and Open Offer and Firm Placing and will not be responsible to any person other than the Company for providing the protections afforded to clients of Smith & Williamson or for providing advice to any other person in connection with the Placing and Open Offer and Firm Placing. Its responsibilities as the Company's nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or to any Director or to any other person. Smith & Williamson is not making any representation or warranty, express or implied, as to the contents of this announcement.

Fairfax is authorised and regulated in the United Kingdom by the Financial Services Authority, is a member of the London Stock Exchange and is acting as placing agent, broker and joint financial adviser to the Company and no one else in connection with the Placing and Open Offer and Firm Placing. Fairfax will not be responsible to anyone other than the Company for providing the protections afforded to clients of Fairfax or for providing advice to any other person in connection with the Placing and Open Offer and Firm Placing. Fairfax is not making any representation or warranty, express or implied, as to the contents of this announcement.

Neither the Guernsey Financial Services Commission nor the States of Guernsey Policy Council takes any responsibility for the financial soundness of the Company or for the correctness of any of the statements made or opinions expressed with regard to it. Notification of the proposed placing and open offer and firm placing of the New Ordinary Shares has been made to the Guernsey Financial Services Commission.