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CQS Rig Finance Fund Ltd (RIG)

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Wednesday 17 February, 2010

CQS Rig Finance Fund Ltd

Monthly Shareholder Fact Sheet

          CQS Rig Finance Fund Limited: Monthly Shareholder Fact Sheet

                          CQS RIG FINANCE FUND LIMITED
                         Monthly Shareholder Fact Sheet

CQS  Rig  Finance  Fund   Limited  (the  "Company")  a   closed-ended investment
company  incorporated in   Guernsey, is  pleased to   announce that  its Monthly
 Fact  Sheet for  January  2010 is  now available  on  the Company's website and
includes information on the top ten investments and outstanding borrowings: <>

Having  started the  year above  the USD80  mark, WTI  crude oil weakened during
January,  ending the month around USD73  per Barrel. Generally, major equity and
credit  markets began  the year  with a  firm tone,  however ended  weaker after
measures  to curb bank lending  were announced in China  and over concerns about
some European countries' fiscal positions.

In the drilling sector, the midwater segment has been the winner so far in 2010
with  nine fixtures announced. Although many of  these have been of a short term
nature  and  at  modest  rates,  the  activity  bodes generally well for greater
utilisation.  With increased utilisation, day-rate  increases should follow and,
with  no new-build  rigs on  the way,  the midwater  outlook is considered to be
improving.   This may not impact any of  the Company's positions directly but is
positive for the sector as a whole.

The  Company's NAV during  the month also  benefited from rising  bond prices in
response to positive news flow and increased market demand for bonds.

Following  the completion of the refinancing of Marine Subsea AS, the bonds were
marked  up significantly during January, albeit on limited trading volume. Gains
were also made on the holding in Sevan Drilling as the bonds traded up following
the  successful completion  of construction  of the  6th generation UDW drilling
rig.  The unit  is currently  in transit  from Singapore  to Brazil  where it is
shortly  due to commence a six years plus charter with Petrobras in the pre-salt
area  of the Campos basin.   The positions in Skeie  Drilling, Production AS and
Rubicon  Offshore were also marked up, although there was no significant news on
these names.

As  indicated in last month's commentary, the  FRN notes issued by Petroprod Ltd
were  partially redeemed  during January  and cash  was received by the Company.
 The  distribution by the Bondholders' Trustee equated to a c. 21.5% recovery on
this  position  which  was  slightly  higher  than expected. No further material
recovery is expected on this bond.

All market data is sourced from Bloomberg.

For further information, please contact:
Lynette LeProvost
Kleinwort Benson (Channel Islands) Fund Services Limited
01481 727111

Alastair Moreton
Director, Corporate Finance
Arbuthnot Securities
020 7012 2000