Investor Update Q4 2006

Macau Property Opportunities Fund
15 January 2007



                    Macau Property Opportunities Fund Limited

                                  Investor Update
                                Fourth Quarter 2006

Highlights


*  Three acquisitions announced totalling USD148 million

*  Progress ahead of schedule with 80% of funds committed

*  Eight further sites under negotiation worth approximately USD220 million

*  Residential market boosted by interest rate cut and launch of key
   developments

*  Strong reception to launch of premium residential development 'One Central'


Fund Activity-

The Investment Manager's focused and highly selective investment process led to
the acquisition in the fourth quarter of three strategically positioned
properties with an expected combined acquisition and development cost of USD148
million. These attractively valued properties now commit approximately 80% of
the capital raised in the June 2006 AIM listing, well within the Company's
expected 18-month investment period. In line with one of the Company's target
investment segments, the three transactions were for residential sites, all
located on Macau Peninsula, each bringing with them unique and valuable aspects
to the portfolio.

Property 1, located in an established neighbourhood, is ideally suited for an
apartment redevelopment targeted towards local residents seeking to upgrade in
this vicinity. The initial architectural and planning approval process for this
site is underway. Property 2 is located in an up-and-coming area for entry-level
buyers very close to the China border. The Company intends to develop the site
to cater for this rapidly growing market segment and is currently in
negotiations to acquire adjacent land which will enhance the overall project
value. Property 3 is a luxury residential tower in a high-end mixed-use
waterfront project, 'One Central', being jointly developed by Hongkong Land and
Shun Tak Holdings. Due for completion in 2009, this is a development of
unprecedented quality and positioning and gives the Company immediate
participation in one of its core target segments, the premium luxury residential
market.

In addition to the above transactions, the Manager continues to identify and
progress an attractive deal pipeline across a variety of sectors and prime
locations. To-date, 65 sites with a combined acquisition value of USD1.3 billion
have been assessed. Of these, eight sites with a combined value in excess of
USD220 million, are at various stages of negotiation. These include two
properties referred to in the previous update, worth a combined USD80 million,
where the acquisition process has been lengthened by complex title issues. This
is not uncommon in Macau where fragmented ownership structures often result in
extended negotiation and due diligence lead-times.

The Manager continues to stress the importance of quality, location and
positioning when selecting assets and believes the next five years will see the
creation of new key locations and the crystallisation of demand trends across
all property sectors. The Manager therefore continues to avoid specific sectors
and locations where it believes there is danger of over-development.


Summary

Consistent with the Manager's niche investment approach, the Company will
continue to focus on acquiring assets with clear differentiation and
sustainability of future demand, despite the often longer and more complex
negotiations involved. The recent acquisitions have given the Company a strong
base from which to continue constructing a strategic portfolio.


Market Overview

The residential property market picked up significantly in the fourth quarter
with activity driven largely by the launch of several key residential projects.
The highest profile was the premium luxury development 'One Central Residences',
being developed jointly by Hongkong Land and Shun Tak Holdings, where the public
sales surpassed all expectations. All units released to the public are reported
to have been sold out within ten days despite an anticipated two-year sales
programme, with several secondary transactions reportedly taking place since at
prices 10 - 15% higher. The public sale did not include any units in Tower 6 of
One-Central which was acquired in full by the Company. It is the Company's
current intention to retain this asset until completion of the project in 2009.

Buying sentiment was also boosted by a 25 basis point drop in lending rates in
November and continued double digit growth in household income. In the
residential leasing market, expatriate numbers continue to swell in the
territory, putting upward pressure on rentals, and gradually restoring yields to
more realistic levels as achieved rents catch up with capital values.

The Manager believes that future property prices and sentiment will be heavily
influenced by 'milestone' events in the ongoing creation of the new Macau. The
successful launch of One Central is one of the first of many such milestones.
The opening of the much anticipated Venetian Macau and the first large
conventions due to be staged at the new Venetian Convention Centre, both
scheduled for the second half of 2007, will likely be the next high profile
events to receive significant international coverage.

In the retail sector, Las Vegas Sands Corp. continues to surprise the market,
with 400 retailers reportedly now committed to The Venetian Macau shopping mall
representing 70% of the 1.2 million ft(2) of space available. The influx of top
international retailers is set to dramatically change Macau's retailing
landscape and will drive the strong anticipated growth in the Territory's
non-gaming revenues.

As anticipated, the office sector remains sluggish, with demand showing few
signs of absorbing existing supply or driving rental expectations upwards. This
is a sector that the Manager continues to avoid at this time.

On the political front, the recent investigations into the activities of some
Macanese government officials is viewed as a long-term positive by the Manager
since it is likely to result in greater transparency, fairness and efficiency of
planning and regulatory processes. In the short term, however, the uncertainty
created by such investigations may slow down certain approval processes within
government, although the Manager has not experienced any such delays to-date.

Announcements of new projects continue unabated. Recent news included the
confirmation by Wynn Macau of a second hotel block following the success of its
initial phase. Furthermore, the Galaxy StarWorld casino & hotel opened on the
Macau Peninsula to much acclaim and initial success.  More recently, Macau
Studio City announced a USD8 billion, six million square feet development
project adjacent to The Venetian on the Cotai Strip.  This project will include
a leisure resort alongside facilities for television and cinema production,
retail outlets, gaming, various types of entertainment and hotels.

(The Company's first half results for the period to end-December 2006 are
expected to be released by the end of February 2007.)


                                    --Ends--


About the Macau Property Opportunities Fund

MPOF, which raised £105 million in a placing and commenced trading on the
Alternative Investment Market of the London Stock Exchange on 5 June 2006, is a
closed-end investment company incorporated in Guernsey. The Company's investment
policy is to provide shareholders with an attractive total return, which is
expected to comprise primarily capital growth, but with the potential for
dividends over the medium to long term.  MPOF focuses on investing in property
opportunities primarily in Macau, but also potentially in the Western Pearl
River Delta region and in exceptional circumstances, greater China.

The Manager of MPOF is Sniper Capital Limited and the Investment Adviser is
Sniper Capital Management Limited.


About Sniper Capital Limited

Sniper Capital is an independent investment manager specialising in property
investment in niche, undervalued and developing markets. The Company's
investment strategy is to identify, acquire and develop properties clearly
differentiated by location, value and sustainability of demand. Sniper Capital
currently manages two funds with combined assets of US$200 million.


For further information:

Investment Adviser
Sniper Capital Management Limited
Investor Contact
Tel: [phone]
Email: [e-mail]
www.snipercapital.com

Public Relations
Hogarth Partnership Limited
No. 1 London Bridge
London SE1 9BG
Andrew Jaques / James Longfield / Sarah Richardson
Tel: [phone]

Nominated Adviser and Broker
Collins Stewart Europe Limited
Hugh Field
Tel: [phone]

Company Secretary & Administrator
Heritage International Fund Managers Limited
Mark Huntley / Laurence McNairn
Tel: [phone]


Stock Codes:

Bloomberg:  MPO LN
Reuters:    MPO.L



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