Final Results

Starvest PLC
31 October 2006


Tuesday 31 October 2006


Results for the fourteen month period ended 30 September 2006


Chairman's Statement to Shareholders


I am pleased to present my fifth annual statement to Shareholders for the
fourteen month period ended 30 September 2006.

Highlights

Your Directors' chosen investment policy has generated exciting results during
the fourteen months to 30 September 2006 which record:

•         a gross profit of £1.6m,

•         a profit before tax of £1.335m, and

•         a profit after tax of £938,528.

As at 30 September, the Company had:

•         net current assets and net assets of £2,637,433, an increase of 55%
          during the period;

•         trade investments with a mid market valuation of £12.1m; although this
          is lower than the peak valuation earlier in the period, this 
          represents an increase of 86% since July 2005;

•         unrealised investment profits of £8.9m.

The underlying net asset value per share based on the mid market quotations as
at 30 September 2006 was 28.29 pence, an increase of 67% since 31 July 2005.
These values are stated on a fully diluted basis but before tax on unrealised
profits.  The month-end values since July 2004 are as follows:


Review of business and current activities

Your Company has 78% by value of its current investments in the natural resource
sector where declining sentiment has been a feature of the market and therefore
of share prices during the past few months.   Therefore, as occurred during the
previous year, it is not surprising to find that the net asset value has fallen
since the high points during the period January to May 2006.

This situation presents both challenges and opportunities.  Notwithstanding the
market conditions, your Board remains of the opinion that the natural resources
sector holds considerable promise for exciting growth in the medium term.  Much
is written about the insatiable demand of China for access to natural resources;
we believe that the population explosion leading to increased economic growth in
India will significantly increase its demands too.

The fact that your Company was able to take profits early in 2006 has enabled us
to acquire several new investments at attractive prices as well as add to
existing holdings.

Your company now holds a spread of twenty-five investments of which fifteen are
quoted on AIM, nine are quoted on PLUS (formerly Ofex) and one which expects to
be admitted to AIM by the end of the calendar year.

Your Company has board representation on seven investee companies:  Tony Scutt
is a non executive director of Addworth plc, Agricola Resources plc and of
Beowulf Mining plc; John Watkins is a non executive director of Greatland Gold
plc, Franchise Investment Strategies plc, Red Rock Resources plc and of Regency
Mines plc.

The Company continues to seek opportunities to invest in small company new
issues and support pre-IPO opportunities so as to enhance shareholder value and
to make disposals as market conditions permit.

Funding requirement

In my 2004 Annual Report, I indicated that a further fundraising was possible.
In the event, we were able to take acceptable profits and so raise cash to
finance new investment opportunities; this has been repeated during the
2005-2006 period.  Consequently, we have avoided the need to dilute the existing
shareholdings.

In addition, during the past trading period we have made good use of a bank
borrowing facility.

Dividends

In the past we indicated an intention to pay a first dividend when circumstances
permit and to accelerate this process we called an Extraordinary General Meeting
with the intention to lodge a petition to the High Court to have the deficit on
the profit and loss account eliminated by offset against the share premium
account.  In the event, this process was rendered obsolete by the profits we
were able to take earlier in the year.  Whilst the payment of a dividend is now
technically possible, we do not propose it until greater liquid resources are
available; we will keep the matter under review.

Shareholder information

We expect to make a net asset value statement immediately prior to the annual
general meeting.  Thereafter, we expect to issue an interim statement during mid
April and quarterly updates by mid January and mid July.

Announcements made to the London Stock Exchange are sent to those who register
at the Company website, www.starvest.co.uk where historic reports and
announcements are also available.

Outlook

Given the increased spread of investments, the Directors look forward with
optimism to reporting increased asset values in the year ahead.



Annual general meeting

We plan to hold our annual general meeting on Tuesday 12 December when we look
forward to meeting those Shareholders able to attend.

R Bruce Rowan

Chairman & Chief Executive

30 October 2006

Telephone:  [phone]



Review of portfolio

The Starvest portfolio value has increased dramatically over the past four
years:


At 30 September 2006, the portfolio comprised investments in the following
companies:


Addworth plc - (AIM ticker: ADW)

Website: www.addworth.co.uk

Addworth is an active capital investment company specialising in the financing,
promotion and launching of early-stage entrepreneurially-managed companies,
seeking eventual admission to the AIM or PLUS markets.  Addworth provides
strategic consultancy services for their further development while retaining key
equity interests and thereby establishing its own investment portfolio.
Successful introductions notably include EBTM plc (formerly known as e-retail
plc), Myhome International plc, The Core Business plc, Cheerful Scout plc, and
Yellowcake plc.  Addworth recently recorded its first interim profit, and is
presently working on promoting a number of new flotations in a range of market
sectors.


African Platinum plc ('Afplats') - (AIM ticker:
APP), formerly, Southern African Resources plc

Website:  www.afplats.com

Afplats is a mineral exploration and investment business focused on platinum
group metals (PGM) in Southern Africa.  The company's flagship project is
Leeuwkop on the western limb of South Africa's Bushveld Complex, the world's
major platinum region.  Afplats' definitive feasibility study estimates a
Leeuwkop resource of 53 million ounces, making this project one of the most
attractive development opportunities on the Bushveld Complex.

A resource update on the adjacent Imbasa and Inkosi properties further increased
the 4E mineral resource to 92 million ounces, making Afplats and its black
economic empowerment partners one of the top four PGM resource bases in Southern
Africa.

A low-cost mine producing some 300,000 ounces of 4E per year for over 20 years
by 2011 is planned as the first phase of the Leeuwkop development.  Market
demand for PGMs continues to be robust, and with platinum in supply deficit and
prices strongly supported, the outlook is attractive.  Furthermore Afplats has
exploration rights over potential PGM targets in Botswana, Zimbabwe, and
Mozambique.

Although US investors now hold an important part of the Afplats equity, the
company has abandoned plans for a secondary listing on the American Stock
Exchange.  Afplats remains a key element in the Starvest portfolio.


Agricola Resources plc - (PLUS ticker: AGRI)

Website: www.agricolaresources.com

Agricola's focus is directed towards finding and developing uranium deposits in
Finland where the planned expansion of that country's nuclear energy capability
makes any future supply of indigenous uranium in place of present imports, a
project of national significance.  Agricola has two separate claim licence
areas, Kauhee and Hautajaervi, covering a total of 153 sq km.  Following its own
exploration programme in 2005 which had yielded promising results, Agricola has
entered into a formal option agreement with Cooper Minerals Inc., a
Toronto-quoted mining company, for the acquisition of an undivided 50% interest
in certain reconnaissance licences held by Agricola and located in the
Paukkajanvaara Kauhee concession area, where test mining in 1960/61 produced 30
tonnes of yellowcake.  Meanwhile radon surveys to define further drilling
targets in both licence areas have been undertaken and results will be announced
in due course.



Belmore Resources (Holdings) plc - (PLUS ticker: BEL)

Website: www.belmoreresources.com

Belmore is a minerals exploration company focused entirely on the Republic of
Ireland and Northern Ireland, with the objective of discovering and delineating
world-class mineral deposits.  Its exploration drilling activities have so far
been confined to zinc exploration properties in County Clare, where it holds a
50% interest in eight prospecting licences covering 330 sq.km.  Previous
exploration work had identified a high-grade resource of zinc and lead-rich
massive sulphides, assessed at some 400,000 tonnes at 12% zinc plus lead.
Further drilling is envisaged this year on three newly-awarded licences in the
County Clare area.


Beowulf Mining plc - (AIM ticker: BEM)

Website: www.beowulfmining.com

Beowulf's activities remain focused on the exploration and development of
mineral deposits in Northern Sweden, where it has six project areas considered
to have commercial potential:  Ruoutevare (iron titanium), Kallak (iron), Ballek
(copper gold), Jokkmokk (copper gold), Grundtrask (gold) and Ussalahti (copper
gold).

The Ruoutevare project is closest to development under current plans, a scoping
study of the deposit having been carried out by the Swedish Raw Materials Group
to assess and confirm the initial viability of the project, albeit subject to
further review of transport means and costs for the product evacuation and of
operating factors in the achievement of projected production levels.  A
production target of 10 million tonnes per year, with start-up in 2008 is
currently assumed.

Latest drilling results on the Grundtrask project show higher gold grades than
had been recorded from previous intersections, leading to the belief that
further gold-bearing bedrock structures remain to be discovered.


Black Rock Oil & Gas plc - (AIM ticker: BLR)

Website: www.blackrockoilandgasplc.co.uk

Black Rock is an oil and gas exploration company which aims to identify new
projects with a real chance of leading to production.  It has recently confined
its efforts to building a portfolio of interests in the North Sea, the Celtic
Sea, and Colombia.  In the latter, it has acquired a 50% non-operated equity
interest in the 249,000 acre Las Quinchas Association Contract located in the
prolific Middle Magdalena Valley.  This has provided Black Rock with access to
significant oil from the three known fields of Arce, Baul, and Bukhara.  Arce
alone is estimated to contain gross recoverable oil reserves of 5 million
barrels, and is expected to commence commercial production during 2007.  Black
Rock also has a 50% holding in the Alhucema Association Contract where seismic
acquisition will be undertaken this year.

Black Rock has recently succeeded in obtaining a $US4.27 million funding of its
15% share of appraisal drilling and testing costs of the 49/8c-4 well in the
Wintershall-operated Monterey Gas Field in the Southern Gas Basin of the UK
North Sea.



Brazilian Diamonds Limited - (AIM ticker: BDY)

Website: www.braziliandiamonds.com

Brazilian Diamonds is a leading Brazil-based exploration company focused on the
discovery of kimberlites on its extensive portfolio of properties in the State
of Minas Gerais, south of Brasilia, with a view to becoming a significant
producer of diamonds from the 140 kimberlites it currently holds.  Its diamond
exploration data bases have been acquired largely from De Beers for cash and
shares.

Brazilian Diamonds await final approval of the development of the Canastra 1
kimberlite body with the mine ready and able to commence production on receipt
of the requisite clearance from the Federal Environment Agency.  The company
also forms joint ventures for non-core activities on its properties.  Thus a
recent feasibility study was undertaken to assess a proposed joint venture
operation with two major Brazilian companies to mine alluvial diamonds on its
properties in the Santo Antonio do Bonito river drainage area, and with some
success, as among the 31 diamonds weighing a total of over 19 carats, there was
a 5.9 carat light pink stone worth an estimated US$ 45,000!

With the intensifying world shortage of natural rough diamonds and demand
expected to be almost double available supply by 2015, the outlook for diamond
prices remains especially strong.


Carpathian Resources Limited - (AIM ticker: CPNR and Sydney ASX)

Website:  www.carpathian.com.au



Carpathian Resources, based in Perth, Western Australia, is an oil and gas
exploration and production company focusing on the Czech Republic and Slovakia.
Its production assets are located in Northern Moravia of the Czech Republic,
where it holds a 60% interest in the Janovice gas field, with a recently
up-graded estimate of 4 billion cubic feet of gas-in-place, from which 34
million cubic feet are produced per day; this gives Carpathian £0.8 million per
annum cash flow, net of operating costs, with an ultimate target 80% recovery
over the field's life.

Other projects include the Morava project (90% interest) situated in the
northern part of the Vienna Basin, a prolific oil and gas producing region,
which offers interesting potential, enhanced by the OMV discovery of an
estimated 140 billion cubic feet gas field only 20 km north of Vienna and 75 km
south west of Morava.  One or more Morava and Roznov project (90% interest)
locations are likely to be selected for drilling in the coming months.

Carpathian is operating cash-flow positive before exploration expenditure.



Concorde Oil and Gas plc - (PLUS ticker:  CDEP)

Concorde was established by a team of managers knowledgeable and
well-experienced in operating in the Russian Federation oil and gas sector, with
the intention to invest or acquire operational oil and gas assets in the
Federation.  With Russian production developing rapidly to meet increasing
demand from both the domestic and export markets, smaller foreign operators are
meeting considerably less interference from central officialdom than that
experienced by major oil companies attractive opportunities.

Concorde was admitted to OFEX in September 2005 and as the market warmed to
management's acquisitive intentions, the price of the company's shares soared to
levels far beyond those at which management could reasonably expect to attract
substantial new equity from City institutions to finance acquisition targets.
By early summer Concorde had found its ideal first target, Pechora Oil, only to
discover that the flow of available City funds had dried up so that insufficient
capital was raised to complete the deal.  As a consequence, Concorde's share
price has been subjected to considerable uncertainty and volatility, as the
market awaits news of success in its search for investment targets.



The Core Business plc -  (AIM ticker: CORE)

Website:  thecorebusiness.co.uk

The Core Business was founded with the long-term strategy of generating capital
growth through creating, launching, and distributing personal care products and
beauty brands from make-up and skincare to men's grooming and haircare; it was
admitted to AIM in March 2006.  It has won five new consultancy projects,
including a contract with a major blue chip retailer, and launched a new
sun-care brand in its first three months after flotation.  It is experiencing
considerable retailer interest as a result of its dynamic work in presenting its
brands and consultancy services.

As one of Starvest's early diversification investments outside the natural
resource sectors, its promising start has been encouraging.



Franchise Investment Strategies plc: - (PLUS ticker:  FIN)

Franchise Investment Strategies (FIS) was introduced to OFEX in August 2005 as a
spin-off from the highly successful Myhome International, which had developed a
franchise model applied to the home servicing sector with rapid adoption
country-wide.  This led to an assumption that the same franchise model should be
adapted to other sectors, thus warranting the creation of a diversified
investment holding company with equity stakes being taken in a number of
particularly strong franchise businesses that might develop into marketable
quoted companies.  An early success saw, DTT (Driver Transport Training) brought
to OFEX.

But with the rapid expansion of Myhome and consequential demands on management
time, it became necessary to find new management with requisite experience; this
has proved difficult.  A liquidation of FIS has been considered, but not
pursued.  For the present the original FIS strategy remains, and viable
solutions are under review.  It holds equity stakes in both DTT and Myhome
Interational.


Franconia Minerals Corporation - (PLUS ticker: FRA and
Toronto TSV-V)

Website: www.franconiaminerals.com

Alberta-based Franconia Minerals now has four active exploration properties in
the continental USA.  The most advanced is the Birch Lake property in the Duluth
Complex of Minnesota, with an inferred 39 million tonnes PGM, and an inferred 51
million tonnes PGM at the nearby Maturi Resource.  In the former a two-part
drilling programme of in-fill and delineation drilling is underway to better
quantify the resource and enable pre-feasibility level mine planning, so as to
progress the project towards early feasibility determination and to assist with
the State's environmental and permitting process.  Both resources are considered
viable at present metal prices, and are likely to be finally mined concurrently
with processing at a central Franconia-owned plant.

The San Francisco property in Beaver County, south-west Utah is 100%
Franconia-controlled, lying in a region of extensive past and present mining;
this is a high-grade zinc target where a four hole, 6000 foot diamond-drilling
programme was completed in July 2006.

The Red Knoll copper project in Arizona is a promising target.  Under
Franconia's exploration agreement this will become a 100% Franconia interest on
the company spending $2 million on a four year exploration programme.


Fundy Minerals Limited - (PLUS ticker: FUND)

Website:  www.fundyminerals.com

New Brunswick-based Fundy is actively involved in the exploration of gold,
diamonds and base metals in Canada and West Africa, and in the development of
technology in mineral and metal extraction.  The Company has a 100% interest in
eight mineral exploration and development properties and a high-grade limestone
deposit, all in the Province of New Brunswick.  In Liberia where a significant
quantity of alluvial diamonds have been extracted by artisans from its local
property, Fundy is searching for their kimberlitic source.

Fundy listed on OFEX in April 2005 and has announced its intention to move to
AIM in the near future.  The past year saw it expanding its interests on all
fronts: increasing its claim interests in Canada with strategic staking;
purchasing the limestone interest; acquiring its 2000 sq km reconnaissance
permit in Liberia, which it now plans to convert into an exploration permit; and
agreeing to acquire from a private US company the 100 sq km Grand Bassa gold
project, subject to Liberian Government approval.


Gippsland Limited - (AIM ticker: GIP and Sydney ASX)

Website: www.gippslandltd.com.au

Gippsland is an Australian-based international resource company, dually listed
in Sydney and on AIM that focuses on world-scale projects that have often been
overlooked by major resource groups. It prides itself on its proven ability to
enter into equitable joint ventures with overseas nationals.

This has resulted in its prime assets becoming the 40 million tonne Abu Dabbab
and the 98 million tonne Nuweibi tantalum-tin-feldspar projects in the Central
Eastern Desert of Egypt, adjacent to the Red Sea.  These projects already
suggest one of the World's largest future tantalum suppliers.  The close
Egyptian relationship is further evidenced by the Wadi Allaqi  project, located
to the south-east of Aswan, which has yielded highly encouraging results from
recent gold exploration work, with further drilling targets now  being prepared.

The Abu Dabbab project alone has a capital requirement of $65 million which is
to be funded by a combination of debt and equity.  The anticipated 650,000 lbs
tantalum production has been pre-sold by Gippsland for at least the first 5
years.


Greatland Gold plc - (AIM ticker: GGP)

Website:  www.greatlandgold.com



Greatland Gold, a mineral exploration and development company focused on three
gold projects covering a total area of some 300 sq km in Tasmania and Western
Australia, was admitted to trading on AIM in early July 2006.  The company's
initial focus is on the Firetower project in Northern Tasmania, with an initial
inferred resource of 90,000 ounces of gold with mining envisaged by open pit
with a low stripping ratio.  With a £300,000 budget allocated for Firetower
exploration work to end November, Greatland plans to carry out immediate infill
diamond drilling to delineate high grade zones.


Hidefield Gold plc - (AIM ticker: HIF)

Website: www.hidefieldgold.com



Hidefield acquires and develops highly prospective mineral projects in North and
South America.  It has built  a diverse portfolio of projects, some of which are
directly held, as in South America and in Alaska, while others are held in
independent self-funded associate companies situated in Canada, Nevada, and
Arizona, the principal investments being the 31% owned Alto Ventures involved
in Canadian projects and the 22% owned Columbus Gold  involved in Stateside
projects.

Its principal direct gold project interests are in Argentina where it is
actively exploring the advanced stage East Santa Cruz projects.  Assay results
have led to a follow-up drilling programme on these properties and should enable
sufficient resources to be outlined to lead to a pre-feasibility study for the
development of its first gold mine.  Hidefield also operates in joint venture
with Minera Sud Argentina SA in exploring a number of gold licences in
Patagonia.  In Brazil its operations are located in the 'Iron Triangle' area of
the Minas Gerais province where it is evaluating the advance stage Cata Preta
gold project.

Elsewhere it has a 60% interest in the Alaskan Golden Zone and South Estelle
mineral project which, subject to its future expenditures, could become 100%
owned.  The Golden Zone has a measured and indicated resource of 250 k ounces of
gold, 1.2 m ounces of silver and 6.1m ounces of copper.



India Star Energy plc - (AIM ticker: INDY)

India Star Energy is an investment company focused on gold, platinum group
metals and uranium interests in Canada.  It has made three investments to date:
a 15% stake in Canadian Golden Dragon with interests in two high grade platinum
and palladium properties in Ontario, the Norton Project and the Seagull
Property; an interest in East West Resources, a Canadian exploration company
with a portfolio of early-stage properties for platinum, palladium, gold and
base metals, and a significant discovery of the 'Lucy' copper-molybdenum deposit
in Thunder Bay; and a 50% interest in a joint venture with East West to find and
develop uranium properties, the first being a NW Ontario property called
Magotte.



KEFI Minerals plc

Kefi Minerals plc is being formed to raise funds for mineral exploration in
Turkey and Bulgaria.  The tenements in these countries are being transferred
from EMED plc (AIM - EMED), a mineral exploration company based in Cyprus.  AIM
admission is planned during December 2006.



Matisse Holdings plc - (AIM ticker: MAT)

Matisse was originally set up for investment in publishing businesses.  It
presently has its shares suspended through the application of AIM regulations
governing inactive cash shells.


Myhome International plc - (PLUS ticker: MYH)

Website: www.myhomeplc.com

Myhome is a leading residential homecare services franchise business enjoying an
impressive rate of expansion throughout the UK, while continuing to extend the
range of services offered to its clients.  These have been complemented by the
acquisition of garden servicing providers, nicenstripey, ovenclean, surface
doctor and autosheen which have brought to Myhome many new franchisees and
further important cross-selling opportunities.  The 300th franchise was recently
signed.

Myhome has set up a Brisbane platform for rolling out its franchise businesses
throughout Australia and later New Zealand, having also awarded a master
franchise in Ireland, and has thus rapidly become a multi-branded, multi-product
international residential franchise operation.


Red Rock Resources plc - (AIM ticker: RRR)

Website: www.rrrplc.com



Red Rock, in which Regency Mines hold a 61% equity interest, is a mineral
exploration and development company focused on iron ore and manganese projects
in Western Australia, Tasmania and Zambia.  In Western Australia, the company is
in joint venture partnership with Jupiter Mines, who have been undertaking
exploration work on its Mt Ida and Mt Hope prospects, which has led to an
important high grade iron discovery raising hopes for the prospects of the Mt
Alfred property, 10 km to the north of Mt Ida.

The Chiwefwe licence in Zambia has yielded an identified 2.3 mt manganese
resource, which after the completion of a sampling and trenching programme, has
the potential to become a world class deposit with an indicated 21 mt resource.
This is being followed up with 1,000 metres of diamond drilling; a fast track
cheap production plan using bulldozers could then follow.

In addition, Red Rock has acquired the Clintheche and Machinga properties in
Malawi, where the exploration target is uranium which, with various uranium
licenses in the Northern Territory of Australia, has raised market comment of a
possible later spinning-off of Red Rock's uranium interests.


Regency Mines plc - (AIM ticker: RGM)

Website: www.regency-mines.com



Regency Mines is a mineral exploration and investment company.  In addition to
its controlling interest in Red Rock Resources plc, it has interests in copper
and nickel properties in Western Australia, Queensland, and Papua New Guinea
(PNG).  Preliminary exploration work has recently established a nickel and
cobalt discovery at its 75% owned PNG project on the Mambare Plateau.

Exploration effort has been concentrated on its Bundarra copper-gold property in
Queensland, and encouraging results obtained will lead to further exploration
work being undertaken, including drilling.  A new subsidiary, Range Mines Ltd
has been established to hold acquired interests in zinc properties.


Sheba Exploration (UK) plc - (PLUS ticker: SHE)

Website: www.shebagold.com



Sheba is a mineral exploration company operating solely in the Tigray State of
Ethiopia, within the Northern Ethiopia Goldfields area, which was specifically
chosen for its numerous gold occurrences, most of which have not been explored.
Sheba holds a 100% interest in two mineral concessions for gold and base metals
covering 118 sq km. In the Mereto concession, the company is drilling bedrock
gold occurrences, while at Bhiza it has discovered gold and copper anomalies in
soil and bedrock, which it is exploring in detail.  Gold in soil anomalies of
significant area and concentration have been discovered and are being followed
up by rock sampling in trenches and pits.

Sheba has declared its medium-term strategy aims as being to build up its
overall gold exploration portfolio, beginning with exploration at Bhiza over the
next three years, while joint venturing mature properties to raise capital for
resource estimation and new property acquisitions, and to initiate feasibility
studies of small-scale mining of gold.


St Helen's Capital plc - (PLUS ticker: SHCP)

Website: www.sthelenscapital.co.uk

St Helen's Capital is a fully-integrated corporate financial services firm with
a fast-growing list of clients formed by start-up, early-stage and fast growing
companies.

Its services on offer include fund-raising, financial services recommendations,
leasing, mergers and acquisitions, and business services advice. It sees itself
as a one-stop shop for growth companies - a reliable experienced corporate
adviser.  It has thus rapidly established itself as a major conduit for
fledgling companies seeking to access the PLUS (formerly OFEX) market, and more
recently to an increasing extent, to the AIM market.


Sunrise Diamonds plc: (AIM ticker: SDS)

Website:  www.sunrisediamonds.com

Sunrise Diamonds is focused on the identification, acquisition,
exploration and development of diamond projects on its present
Finland operations in the Karelian Craton, a prospective block
which, over the border in Russia, hosts world-class diamond
deposits.

Formed in February 2005 to acquire the diamond exploration interests of Tertiary
Minerals plc, and admitted to trading on AIM in June 2005, Sunrise met with
early success, with the discovery of two new kimberlites in the Kuusamo cluster
and the recovery of micro-diamonds from one of these kimberlites.  By mid 2006 a
total of seven kimberlites had been found.

Sunrise had acquired from BHP Billiton its diamond exploration database for the
whole of Finland, which it has since analysed in detail to determine an
extensive field programme to follow up twenty diamond targets in its areas,
while identifying other possible acquisition opportunities elsewhere in Finland.
  Sunrise has signed a joint venture agreement with Canada's Nordic Diamonds
Ltd, and is also evaluating other diamond exploration opportunities world-wide.



Profit and loss account

for the fourteen month period ended 30 September 2006

                                                                      Period ended           Year ended
                                                                      30 September         31 July 2005
                                                                              2006
                                                                                 £                    £
                                                                                           

Operating income                                                         1,699,430              602,871
Direct costs                                                              (97,613)             (33,800)
Gross profit                                                             1,601,817              569,071
Administrative expenses                                                  (266,683)            (205,038)
Profit on ordinary activities before taxation                            1,335,134              364,033
Interest receivable                                                          7,728               25,148

Interest payable                                                           (4,334)                    -
Profit before taxation                                                   1,338,528              389,181
Tax on profit on ordinary activities                                     (400,000)             (85,000)
Profit on ordinary activities after taxation                               938,528              304,181
Retained profit for the year                                               938,528              304,181

Earnings per share - basic                                               2.5 pence            0.8 pence

Earnings per share - fully diluted                                       2.2 pence            0.7 pence


There are no recognised gains or losses in either year other than the profit for the year.

All of the operations are considered to be continuing.


Balance sheet

As at 30 September 2006

   
                                                         30 September 2006             31 July 2005
                                                          £             £             £             £
Fixed assets

Investments                                                             2                     435,794
Current assets

Debtors                                             107,902                       50,538

Trade investments                                 3,082,898                    1,578,456

Cash at bank                                              -                      193,693
                                                  3,190,800                    1,822,687
Creditors - amounts due within one                (553,369)                    (559,576)
year
Net current assets                                              2,637,431                   1,263,111
Total assets less current                                       2,637,433                   1,698,905
liabilities

Share capital and reserves

Called-up share capital                             372,173                      372,173

Share premium account                             2,026,396                    2,026,396
Profit and loss account                             238,864                    (699,664)


Equity shareholders' funds                                      2,637,433                   1,698,905



Cash flow statement

for the period ended 30 September 2006


                                                           Period ended
                                                           30 September                Year ended
                                                                   2006              31 July 2005
                                                                                     
                                                                      £                         £


Net cash outflow from operating                               (234,249)                 (430,013)
activities
Returns on investment and servicing
of finance:
Interest receivable                                  7,728                    25,148
Interest payable                                   (4,334)                         -
                                                                  3,394                    25,148
Taxation paid                                                  (86,472)                   (7,859)
Decrease in cash in the year                                  (317,327)                 (412,724)


The financial information set out above does not constitute statutory accounts
as defined in section 240 of the Companies Act 1985.



The balance sheet at 30 September 2006, the profit and loss account, and the
cash flow statement for the period then ended have been extracted from the
Company's statutory financial statements upon which the auditors' opinion is
unqualified and does not include any statement under Section 237 of the
Companies Act 1985.

Copies of the report and financial statements will be posted to Shareholders no
later than 14 November and be available for a period of one month thereafter
from the Company Secretary at the registered office.


123 Goldsworth Road, Woking, Surrey, GU21 6LR

email:  [e-mail]


Alternatively, the report may be downloaded from the Company's website,
www.starvest.co.uk.


END


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