Duke Capital Regulatory News (DUKE)

8 May 2018

Duke Royalty Limited

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

Operational Update on Royalty Partners

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to update the market on the financial results shown by its initial two Royalty Partners. In the next three months, the adjustments in two of Duke's royalty distributions will be determined for the upcoming twelve months.

Highlights

· Temarca B.V. ("Temarca") is anticipating an 8% increase in annual revenue in FY2017, subject to completion of the audit

· Annual Adjustment Date will be 1 July, based on audited numbers from FY 31 December 2017 over FY 2016

· Temarca's three river cruise vessels have fully sold their capacity for the 2018 sailing season

· Lynx Equity (U.K.) Limited ("Lynx UK") has delivered a 7% year-over-year revenue growth for the eight- month year to date period

· Annual Adjustment Date will be 1 August, based on FY 31 July 2018 numbers over FY 2017

· Duke's royalty payments are derived from Lynx UK's three separate operating businesses in the UK andDenmark, each with a long history of profitable operations

These adjustment dates trigger an annual reset of the payment amount due to Duke, subject to a collar (a maximum adjustment up or down). The reset is calculated based on the revenue growth (or decline) of its Royalty Partners over the preceding twelve months. The adjustments are calculated once per year, each year for the life of the royalty agreement.

Neil Johnson, Chief Executive Officer, commented:

"We are encouraged to see our initial Royalty Partners are performing in line with our expectations of solid revenue growth, which would have the benefit of higher annual royalty distributions to Duke at the Adjustment Date.

"Given the significant operational leverage at Duke, both higher royalty payments and increased capital deployments are intended to produce a higher dividend pay-out to Duke's shareholders.

"In 2019, Duke will see initial adjustments from both Trimite Global Coatings and Brownhills Glass, both having an Annual Adjustment date of 1 April. Duke is confident in the outlook of the companies' short-term performance and looks forward to updating the market later in the year."

Temarca

· Performance: 8% increase in unaudited annual revenue for FY2017 compared to 2016

· Partner Since: April 2017

· Capital subject to 2018 Adjustment: €8 million

· Annual Adjustment Date: 1 July

Temarca, a family owned business established in 1997, operates multi-day riverboat cruises along the Rhine and Danube rivers.

The business sells to travel agencies in multiple countries, with the agencies committing to multi-day cruises one or two years in advance. Each of Temarca's riverboats have 60 - 75 cabins and are staffed with 30 - 35 employees.

This organic growth can be attributed to the addition of a new vessel for part of the 2017 sailing season, bringing the total number of riverboats to three. In terms of Temarca's future growth prospects, the riverboat cruise operator is poised to increase its revenues further given that it will benefit from its fully sold capacity across all three vessels for the entire 2018 sailing season.

Lynx UK

· Performance: 7% year-over-year revenue growth for the unaudited eight-month year to date period to 31 March 2018

· Partner since: October 2017

· Capital subject to 2018 Adjustment: £7 million

· Annual Adjustment date: 1 August

Lynx UK is comprised of three distinct underlying businesses: Signal Home, Label Express and Partner Service. Each has on average over 25-year histories as independent businesses. In 2017, Duke's capital was used to finance the acquisition of these businesses by Lynx UK.

Final results may vary from the year to date, but it is encouraging to note there is strong performance of the Group's largest portfolio company, PartnerService. In addition, Lynx intends to further acquire businesses in 2018, which would further diversify Duke's revenue from different sources under this one Royalty Partner.

Lynx UK is the UK subsidiary of Lynx Equity Ltd, a Toronto-based private company founded over 10 years ago with a portfolio of over 40 operating companies and over C$300 million in revenue, which seeks to acquire, own, and operate mature, old-economy businesses, with no intent of sale.

***ENDS***

For further information, please contact www.dukeroyalty.com, or contact:

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established 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 and is headquartered in Guernsey.

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.