Duke Capital Regulatory News (DUKE)

6 April 2017

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

Duke Royalty enters into inaugural royalty financing agreement with Temarca B.V.

Duke Royalty Limited (AIM:DUKE) ("Duke" or the "Company") is pleased to announce that it has entered into its inaugural royalty financing agreement for €8.0 million (the "Financing") with Temarca B.V. ("Temarca"), an established European river cruise provider. The Financing will allow Temarca to purchase two boats that are currently being leased, refurbish a portion of their fleet and repay existing creditors. With a cash-on-cash yield of approximately 13 per cent., this inaugural royalty financing agreement results in Duke operating at a cashflow positive run rate.

New Royalty Partner - Temarca B.V.

Temarca is a Netherlands based river cruise provider that offers luxury four-star multiday riverboat cruises on Europe's main rivers, the Rhine and Danube, covering an area stretching from the North Sea to the Black Sea. Founded in 1997 and family owned, Temarca has grown to become an established European river cruise provider with more than 100 employees and a fleet of three vessels. Temarca works with 28 different travel agencies across Europe, North America, and South Africa to design unique trips for its customers. Such travel agencies buy boat capacity approximately one year in advance of sailing. In order to accommodate strong and growing demand for river boat cruises, this Financing allows Temarca to expand and update their fleet.

Under the terms of the Financing, Duke will provide €8.0 million (approximately £6.9 million) to Temarca with an option at Duke's sole discretion to provide an additional €2.0 million (approximately £1.7 million) for a period of 12 months. The first tranche of the Financing will entitle Duke to monthly distributions (the "Distribution") beginning in May 2017 which totals over €1.0 million (approximately £0.9 million) on an annual basis, equating to a cash-on-cash yield of approximately 13 per cent. The Distribution will be adjusted annually with the first adjustment occurring on 1 July 2018 based on the percentage change in Temarca's gross revenues for the year to 31 December 2017 compared to the prior year. The annual adjustment in the Distribution will be subject to a collar. The term of the Financing is for a period of 25 years, will be senior secured and Duke has provided Temarca with a buyback option.

"The partnership nature of Duke's capital allows us to continue focussing on delivering excellent service while enabling our company to capitalize on the growth opportunities within the river cruise market," said Teun Sijbrands, Co-founder and Owner of Temarca.

"We are delighted to have Temarca as Duke's first royalty partner. Through Teun and Marijke Sijbrands-Faassen's leadership since co-founding Temarca in 1997, and their 25 years of experience in the river cruise industry, Temarca has a long track record of successful operations," said Neil Johnson, CEO of Duke. "The investment into Temarca is exemplary of the suitability of royalty financing to stable, cash flowing businesses, where owners want to receive capital but retain control." Mr. Johnson continued, "and we continue to evaluate a number of interesting royalty opportunities."

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.

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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.