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CQS RIG Finance Fund LTD (RIG)

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Friday 24 October, 2008

CQS RIG Finance Fund LTD

Proposed Share Placing & Unsecured Facility...


For immediate release on 24 October 2008

 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO  
THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND, THE REPUBLIC OF 
                             SOUTH AFRICA OR JAPAN                             

            Proposed Share Placing and Unsecured Facility Agreement            

Following the recent exceptional turmoil in financial markets which has
resulted in significant falls in the Company's net asset value, the Company
announces a proposed share placing to provide stability and a more appropriate
capital structure.

The Company is currently seeking to strengthen its balance sheet equity through
a placing of new ordinary shares in order to reduce materially the level of the
Company's gearing. To this end, the Company is in discussions with certain of
its shareholders and potential investors and a further announcement will be
made in due course.

In light of current market conditions, the Company has been managing a
reduction in its borrowings. While the Company continues to focus on actively
managing its borrowing position in response to continued markdowns across its
portfolio, the Company also announces that on 23 October 2008 it entered into
an unsecured facility agreement (the "Facility") with RBC Cees Trustee Limited
("RBC") under which US$6 million is being made available to the Company for
short term working capital.

The Facility carries an interest rate of LIBOR plus 5 per cent. per annum and
is repayable at the earliest of the date falling 90 days after the receipt by
the Company of a written request by RBC or 23 October 2009, or alternatively by
the Company at any time. The Facility has been provided by RBC in its capacity
as trustee of certain assets for the benefit of Michael Hintze, Chief Executive
of CQS, who holds a majority interest in CQS Cayman LP, the Company's
investment manager. The Directors consider, having consulted with the Company's
Nominated Adviser, that the terms of the loan are fair and reasonable insofar
as the Company's shareholders are concerned.

Enquiries:

Alastair Moreton
Arbuthnot Securities Limited
Telephone 020 7012 2000

Secretary
Kleinwort Benson (Channel Islands) Fund Services LimitedTelephone 01481 727111

This announcement is not an offer to sell or a solicitation of any offer to buy
any securities in the United States or in any other jurisdiction. Neither this
announcement nor any copy of it may be taken, transmitted or distributed,
directly or indirectly, into the United States, Canada, Australia, the Republic
of Ireland, the Republic of South Africa or Japan or to any national of such
jurisdictions. Neither this announcement nor any copy hereof may be distributed
in any other jurisdictions where its distribution may be restricted by law and
persons into whose possession this document comes should inform themselves
about, and observe, any such restrictions. Distribution of this announcement in
the United States, Canada, Australia, the Republic of Ireland, the Republic of
South Africa, Japan or any such other jurisdictions may constitute a violation
of the law of such jurisdictions.