Duke Capital Regulatory News (DUKE)

13 November 2017

Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

Duke Royalty provides follow-on contribution to Royalty Partner

Duke Royalty Limited (AIM: DUKE) is pleased to announce a further contribution into its royalty partner Lynx Equity (U.K.) Limited ("Lynx UK") of GBP2.5 million. Based on the increased aggregate investment of GBP 7.0 million, Duke will be entitled to higher monthly distributions ("Distributions") from Lynx UK beginning in December 2017 which will total GBP 840,000 per annum. Lynx UK has recently closed the acquisition of their third European company, PartnerService, a Danish commercial cleaning business started in 2003 by two brothers. The royalty coverage ratio in Lynx UK has been increased above 2.0x target EBITDA due to this transaction.

The Lynx UK Distributions will be paid monthly and adjusted annually with the first adjustment occurring in August 2018, based on the percentage change in Lynx UK's gross revenues for the fiscal year to July 2018 compared to the prior year. The annual adjustment in the Distributions will be subject to a collar and the term of the investment is perpetual. Duke also has a senior secured position over all present and future property and assets of Lynx UK and shares of the subsidiaries of Lynx UK and has also been granted a guarantee by Lynx UK's parent company, Lynx Equity.

With the addition of Lynx UK's third portfolio company, which like the other two has no debt, Duke now has a portfolio of four different companies contributing to its Distributions. Duke's Distributions are also diversified over four distinct industries in three countries. The aggregate capital deployed by Duke in 2017 is over GBP 14 million and from December 2017 the total monthly Distributions are over GBP 145,000.

The Company continues to make good progress on its pipeline of a number of other potential royalty partners and looks forward to updating shareholders in due course.

Neil Johnson commented: "We are delighted to make this additional investment into Lynx UK. PartnerService is a well-managed, profitable company that meets all of Duke's investment criteria. Furthermore, Lynx UK has more diversified revenue, a larger asset base and provides Duke with a larger royalty coverage ratio than before the acquisition of PartnerService. Therefore, we believe as Lynx UK grows, Duke and its shareholders benefit."

About Duke Royalty

Headquartered in Guernsey, Duke Royalty Limited provides alternative financing solutions to a diversified range of businesses in Europe and abroad. Duke Royalty's experienced team and exclusive partnership provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders.

Duke Royalty is listed on the AIM market under the ticker DUKE. For more information, visit dukeroyalty.com.

About Lynx UK

Lynx UK is a subsidiary of Lynx Equity which is a Toronto-based private firm that seeks to acquire, own and operate mature, old-economy businesses in a diverse range of industries. Over its 10-year history, Lynx has made over 40 acquisitions and grown revenue to over C$300 million per annum for its financial year ended 31 July 2017. Lynx has been recognized as one of Canada's Fastest-Growing Companies three years in a row in the PROFIT 500, the definitive ranking published by Canadian Business magazine based on five-year revenue growth. PartnerService offers commercial cleaning services to offices, schools, retail shops and other commercial institutions and has been operating profitably for over a decade and has many years of continued revenue growth.

For further information on Lynx Equity, please visit www.lynxequity.com

For further information:

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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