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CQS Rig Finance Fund Ltd (RIG)

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Monday 12 April, 2010

CQS Rig Finance Fund Ltd

Formal Notice








                           CQS RIG FINANCE FUND LTD:

                     Amendments to Financing Arrangements

                                                                   12 April 2010

For immediate release on 12th April 2010

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


                         CQS Rig Finance Fund Limited
                                (the "Company")

                      Amendments to Financing Arrangements


The  Company is pleased to announce that  in light of recent improvements in the
collateral  liquidity  of  the  Company's  portfolio  it  has on 9th April 2010
negotiated  improvements to the terms of both its secured financing arrangements
("Secured  Facility") with Credit Suisse  Securities (Europe) Limited ("CS") and
its unsecured facility agreement("Subordinated Facility") with RBC Cees Trustees
Limited ("RBC") as described below.

The  Company has agreed  with CS that  advances made under  the Secured Facility
entered  into on 22(nd) April 2009 and that matures on 21(st) October 2010, will
attract  interest at a rate of the  relevant LIBOR rate for each Currency Amount
(except  for NOK which has a NIBOR rate) plus 2 per cent, reduced from the 4 per
cent  spread previously applicable.  All other terms remain the same including a
fee of US$2,800,000 payable by the Company at the end of the term of the Secured
Facility  (including  on  early  repayment  of  the  Secured Facility) or on its
earlier  termination. CS  have agreed  to apply  the reduced financing rate from
1(st) April 2010.

The  Company  has  agreed  with  RBC  that  advances made under the Subordinated
Facility  entered  into  on  24(th) October  2008 and  subsequently  extended on
23(rd) October  2009 and  that  matures  on  21(st) October  2010, will  attract
interest  at the  USD LIBOR  rate plus  3 per cent,  reduced from the 5 per cent
spread  previously applicable. All other terms remain the same.  RBC have agreed
to apply the reduced financing rate from 1(st) April 2010.

The Subordinated 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.

Unaudited Cash Balances as at 31(st) March 2010

Secured Facility

Currency                                 Local Balance GBP equivalent Balance

NOK                                        (59,801,731)    (  6,631,692)
USD                                        (39,231,961)    (25,855,237)
GBP (Credit Balance) 10,128,603                   10,128,603

Net total cash outstanding                              (22,358,326)

Subordinated Facility

Currency                                 Local Balance GBP equivalent Balance

USD                                        (6,605,902)*    (4,353,521)*

Total unaudited net cash outstanding at 31(st) March 20210 across both senior
and subordinated facilities was GBP (26,711,847).

* Including Capitalised Interest


Enquiries:

Alastair Moreton
Arbuthnot Securities Limited
Telephone 020 7012 2000

Secretary
Kleinwort Benson (Channel Islands) Fund Services Limited
Telephone 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.


[HUG#1401957]