RNS Number : 0807Y
  Starvest PLC
  02 July 2008
   



    Chairman's update for shareholders - July 2008
    Investment performance
    The past three months have proved to be more challenging than the three previous quarters with a further decline in the net asset value
of �1m or 8.7%.
    There has been speculation that the crises impacting the financial markets would lead to world-wide recession with a consequential
reduction in demand for natural resources and services. In addition, a recent Financial Times article suggested that many private investors,
to whom small-cap resource companies look for support, have become more cautious in their outlook and investing habits citing actual and
anticipated inflation as a key reason. Against this background many of the companies in which Starvest is invested have seen their share
prices fall during the past year.
    It is fact that as resource stocks have risen strongly in the past eighteen months many investors will have taken substantial profits.
It is the view of the Starvest board that demand for raw materials is unlikely to diminish in the foreseeable future; on the contrary, all
the evidence suggests that commodity prices will remain high as China, India and other fast developing nations expand their voracious
appetite for scarce commodity resources. 
    To the extent that cash resources are available, Starvest will continue to seize opportunities to make further investments. During the
June quarter, further investments were made in Greatland Gold plc and Kefi Minerals plc. 
    Company statistics
                                 30 June 2008  Change since 30 June  30 September 2007  30 June 2007
                                                               2007
 Portfolio net asset value             �10.5m                  -45%             �15.1m        �19.2m
 Net asset value - basic per           30.17p                  -43%             42.89p        53.11p
 share
 Net asset value - fully               27.46p                  -42%             38.45p        47.43p
 diluted per share
 Share price                           17.75p                  -44%             29.75p        31.75p
 Share price discount to fully         35.35%          +2.35 points             22.63%           33%
 diluted net asset value 
 Market capitalisation                  �6.2m                  -46%            �10.46m        �11.5m

    With two exceptions, the net asset values are based on mid-market closing prices on Monday 30 June 2008.  As a matter of prudence, two
investments have been valued at less than current market value.
    Conclusion:
    The Board continues to be pleased with the investments now held and to expect exciting growth in the medium term.  More than one
investee company is expected to make positive announcements in the near term leading to a substantial re-rating which will have the effect
of increasing Starvest's net asset value.
    The Company now holds trade investments in the following companies: 
    *     Addworth plc - Active capital investment company - www.addworth.co.uk
    *     Agricola Resources plc - Platinum and uranium exploration - www.agricolaresources.com
    *     Alba Mineral Resources plc - Portfolio of mineral exploration interests - www.albamineralresources.com
    *     Ariana Resources plc - Gold exploration in Turkey - www.arianaresources.com
    *     Belmore Resources (Holdings) plc - Zinc exploration in Ireland - www.belmoreresources.com
    *     Beowulf Mining plc - Gold and copper exploration in Sweden - www.beowulfmining.com
    *     Black Rock Oil & Gas plc - Oil and gas in Southern England, Columbia - www.blackrockpertroleum.com.au
    *     Brazilian Diamonds Limited - Diamond exploration in Brazil - www.braziliandiamonds.com
    *     CAP Energy plc - Oil and gas in North America - www.capenergy.co.uk
    *     Carpathian Resources Limited - Oil and gas in the Czech and Slovak Republics - www.carpathian.com.au 
    *     Concorde Oil & Gas plc - Operational oil & gas projects in the Russian Federation - www.concordeoilandgas.com
    *     The Core Business plc - Personal care and beauty products - www.thecorebusiness.co.uk
    *     DTT plc - driver training and recruitment services to the road haulage industry - www.drivertransporttraining.co.uk
    *     Equity Resources plc, formerly Franchise Investment Strategies plc - Investment company
    *     Franconia Minerals Corporation - North American minerals - www.franconiaminerals.com
    *     Fundy Minerals Limited - Gold and base metal exploration in Canada and West Africa - www.fundyminerals.com
    *     Gippsland Limited - Tantalum exploration in Egypt - www.gippslandltd.com.au
    *     Goliath Resources Inc. -  Copper, gold and molybdenum in Canada and Zambia - www.goliathresources.com
    *     Greatland Gold Limited - Gold exploration in Western Australia and Tasmania - www.greatlandgold.com
    *     Guild Acquisitions plc - Fledgling investment company
    *     Hidefield Gold plc - Gold exploration in North and South America - www.hidefield.co.uk
    *     India Star Energy plc - Gold, platinum group metals and uranium - www.indiastarenergy.co.uk
    *     Kefi Minerals plc - Mineral exploration in Turkey - www.kefi-minerals.com
    *     Lisungwe plc - Nickel and other minerals in Malawi - www.lisungwe.com
    *     Lotus Resources plc - Mineral exploration in China - www.lotus-resources.com
    *     Matisse Holdings plc - Cash shell
    *     Myhome International plc - Home services franchiser - www.myhomeplc.com
    *     Oracle Coalfields plc - Coal in Pakistan - www.oraclecoalfields.com
    *     Red Rock Resources plc - Iron ore and manganese exploration in Australia and Zambia. - rrrplc.com
    *     Regency Mines plc - Copper & nickel exploration in Australia and Papua New Guinea - www.regency-mines.com
    *     Sheba Exploration (UK) plc - Gold exploration in Ethiopia - www.shebagold.com
    *     St Helen's Capital plc - Corporate finance advisor - www.sthelenscapital.co.uk
    *     Sunrise Diamonds plc - Diamond exploration in Finland - www.sunrisediamonds.com
    *     Treslow Limited  - Copper-nickel in Canada
    Shareholders who wish to receive electronic copies of announcements are invited to register their email address on the home page of the
Company website: www.starvest.co.uk.
 R Bruce Rowan  
 Chairman &     
 Chief          
 Executive      
 2 July 2008    


    Enquiries to: 
    Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director 01483 771992; john@starvest.co.uk
    Gerry Beaney or Colin Aaronson Grant Thornton Corporate Finance 020 7383 5100



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