Issue of Equity

29 March 2011

CATCO REINSURANCE OPPORTUNITIES FUND LTD.

ISSUE OF EQUITY

29 March 2011

CATCo Reinsurance Opportunities Fund Ltd. ("CATCo" or "the Company") announces that 7,250,000 New Ordinary Shares of US$ 0.0001 each have been issued for cash at 101.5 cents per share in order to satisfy demand that cannot be met through the secondary market.

Application has been made for these shares to be admitted to trading on the London Stock Exchange's Specialist Fund Market. Trading is expected to commence on 31 March 2011. Upon Admission, the shares will rank pari passu in all respects with the existing Ordinary Shares of the Company. As a result of this share issue, the Company has in issue 87,642,000 Ordinary Shares.

For further information, please contact:

Jason Bibb

CATCo Investment Management Ltd

Telephone: +1 441 531 2227

Email: jason.bibb@catcoim.com