Interim Results

Starvest PLC 12 April 2007 Half-year report - six months ended 31 March 2007 Chairman's statement Investment report I am pleased to report a successful six months trading during which Starvest has achieved excellent results from which it intends to declare a special dividend of one penny per share to be paid on 20 June 2007. • Pre-tax profit of £749,000 on turnover of £956,000; this includes a gross profit of £936,000 following the sale of part of the holding in African Platinum plc. • Basic earnings of 1.41 pence per share; fully diluted earnings of 1.23 pence per share. • 27% increase in the value of trade investments of £3.3m since 30 September 2006 to £15.4m at 31 March 2007. • Fully diluted underlying net asset value per share was 37.7 pence at 31 March 2007 when the Company's share price discount to net asset value was 29.7%. All these values are based on mid-market closing prices on a fully diluted pre tax basis. • Share price increase of 56% since 30 September 2006 from 17 pence to 26.5 pence. • 31 March 2007 cash balance of £1.128m • Closing market capitalisation £9.7m. • Unrealised profits as at 31 March 2007 of £12.2m before tax, up from £8.9m at 30 September 2006, a 37% increase. Other matters of interest are: • To provide further cash for investment and in view of the significant share price discount to net asset value, in November 2006 the Company arranged a secured loan of £1m on commercial terms for a period of one year renewable. • The above facility has given the Company the resources to make further investments as follows: o Kefi Minerals plc - mineral exploration interests in Bulgaria and Turkey; o DTT plc - driver training and recruitment services to the road haulage industry; o Oracle Coalfields plc - coal mining in Pakistan; o Red Rock Resources plc - mineral exploration in Australia and Zambia - additional. • A significant development during the period concerns African Platinum plc ('Afplats') a company exploring for platinum group metals in Southern Africa in which the Company invested £100,000 for 10m shares prior to the company being admitted to AIM in May 2002. In addition, the Company acquired warrants exercisable at 1p per share over a further 10m shares. On 16 February 2007, Impala Platinum Holdings Limited ('Implats') announced a recommended cash offer for the entire issued share capital of Afplats. Having exercised all warrants and sold 10,750,000 Afplats shares at various times in the past, on 16 February 2007 the Company held 9,250,000 Afplats shares. Of these, the Company has sold a further 1,000,000 shares. Assuming the offer will be successful, that the Company expects to receive further cash of £4,537,500 in June 2007; after tax, this will provide substantial cash resources for future investment including share buy-backs, and dividends. • 500,000 shares bought for treasury at 17 pence per share. • Starvest now holds investments in twenty-seven companies of which seventeen are traded on AIM, nine on PLUS Markets and one on the Toronto exchange. The companies are listed at the end of this report. The Board continues to be most satisfied with progress in its portfolio of investments. Starvest continues to receive new investment proposals from businesses, mainly in the natural resources sector. Before a commitment is made, these are closely evaluated to ensure that they accord with the Company's medium to long term investment strategy. Dividends and share buy-back As Shareholders will be aware from previous statements, the Board has declared an intention to pay a dividend as soon as adequate profits are available. Also, the Board has taken authority to make purchases of the Company's shares, either for cancellation or to be held in treasury. On 16 January 2007 the Company purchased 500,000 of its own shares in the market at a price of 17 pence per share. It remains the Company's intention to make further purchases as profits and cash resources permit. In addition, the Board has declared a special dividend at the rate of one penny per share to be paid to Shareholders on the register at the close of business on 25 May 2007 with payment being made on 20 June 2007. This dividend represents a yield of 3.77% based on the closing share price on 2 April 2007. The Board will consider future dividends in the context of the resources and investment opportunities available at the time. Extraordinary general meeting The Directors intend to call a general meeting of Members to be held on Wednesday 23 May 2007 for the purpose of considering and if thought fit passing an ordinary resolution to extend by five years to dates between 27 June 2012 and 14 February 2015 the time period during which directors may exercise their options over the Company's Ordinary shares totalling 5,575,000, authority for which was granted in part on 27 June 2002 and in part on 7 October 2004. A formal notice will follow. Further information Those Shareholders who wish to receive electronic copies of regulatory announcements are invited to register their email address on the home page of the Company website: www.starvest.co.uk. Previous reports, quarterly updates and announcements are available from the site. Your Board continues to look to the future with optimism; we expect further progress in the next quarter and plan to issue the Chairman's next update during July 2007. R Bruce Rowan Chairman & Chief Executive 12 April 2007 Profit & Loss Account 6 months to 31 6 months to 31 Period 1 August March 2007 January 2006 2005 to 30 September 2006 Unaudited Unaudited Audited £,000 £,000 £,000 Operating income 956 203 1,699 Direct costs (55) (5) (97) Gross profit 901 198 1,602 Administrative expenses (128) (146) (267) Operating profit on ordinary activities 773 52 1,335 Interest receivable 9 - 7 Interest payable (33) (2) (4) Profit on ordinary activities before taxation 749 50 1,338 Tax on profit on ordinary activities (225) (10) (400) Profit on ordinary activities after taxation 524 40 938 Retained profit for the period 524 40 938 Earnings per share - see note 4 Basic 1.41 pence 0.11 pence 2.5 pence Fully diluted 1.23 pence 0.09 pence 2.2 pence Balance Sheet 6 months to 31 6 months to 31 Period ended March 2007 January 2006 30 September 2006 Unaudited Unaudited Audited £,000 £,000 £,000 Fixed assets 0 0 0 Current assets Debtors 10 227 108 Trading investments - see note 2 3,590 2,289 3,083 Cash at bank and in hand 1,128 - - 4,728 2,516 3,191 Creditors - amounts falling due within one year Other creditors (1,653) (777) (554) Net current assets 3,075 1,739 2,637 Total assets less current liabilities 3,075 1,739 2,637 Capital and reserves Called up share capital 372 372 372 Share premium account 2,026 2,026 2,026 Profit and loss account 677 (659) 239 Equity shareholders' funds 3,075 1,739 2,637 Reconciliation of Movement in Shareholders' Funds 6 months to 31 6 months to 31 Period 1 August March 2007 January 2006 2006 to 30 September 2006 Unaudited Unaudited Audited £,000 £,000 £,000 Total recognised profits relating to the period 524 40 938 Purchase of own shares for Treasury - see note 3 (86) - - Increase in shareholders' funds 438 40 938 Opening shareholders' funds 2,637 1,699 1,699 Closing shareholders' funds 3,075 1,739 2,637 Half-year report notes 1. Half-year report The information relating to the six month periods to 31 March 2007 and 31 January 2006 is unaudited. The information relating to the period ended 30 September 2006 is extracted from the audited accounts of the Company which have been filed at Companies House and on which the auditors issued an unqualified audit report. 2. Basis of accounting The report has been prepared using accounting policies that are consistent with those adopted by the Company in the statutory accounts for the fourteen month period ended 30 September 2006, although the information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The Company will report again for the full year to 30 September 2007. With one exception, the Company's investments at 31 March 2007 are valued at the lower of cost or mid market value. The exception relates to Concorde Oil & Gas plc which, as a matter of prudence, has been valued at 50% against the closing price on 24 November 2006 the date on which trading in the shares was suspended at the request of the company. 3. Share buy back On 16 January 2007, the Company bought 500,000 of its own shares at a price of 17 pence to be held in Treasury. Shareholders' funds were reduced by £85,851. 4. Earnings per share 6 months to 31 6 months to 31 Period 1 August March 2007 January 2006 2006 to 30 September 2006 Unaudited Unaudited Audited £,000 £,000 £,000 These have been calculated on a profit of: 524 40 938 The weighted average number of shares used was: 37,022,204 37,217,259 37,217,259 The weighted average number of shares and outstanding options used was: 42,597,204 42,792,259 42,792,259 Basic profit per share: 1.41 pence 0.11 pence 2.5 pence Fully diluted profit per share: 1.23 pence 0.09 pence 2.2 pence Investment portfolio Starvest now holds trade investments in the following companies: • Addworth plc Active capital investment company www.addworth.co.uk • African Platinum plc Platinum group metals in Southern Africa www.afplats.com • Agricola Resources plc Platinum and uranium exploration www.agricolaresources.com • Belmore Resources (Holdings) plc Zinc exploration in Eire and Northern 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, Colombia and Australia www.blackrockoil.com • Brazilian Diamonds Limited Diamond exploration in Brazil www.braziliandiamonds.com • Carpathian Resources Limited Oil and gas exploration in Central Europe www.carpathian.com.au • Concorde Oil & Gas plc Operational oil and gas projects in the Russian Federation • 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 • Franchise Investment Strategies plc Franchise consultancy and investment • 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 Tantulum exploration in Egypt www.gippslandltd.com.au • Greatland Gold plc Gold exploration in Western Australia and Tasmania www.greatlandgold.com • Hidefield Gold plc Gold exploration in North and South America www.hidefield.co.uk • India Star Energy plc Oil and gas investments • Kefi Minerals plc Mineral exploration in Bulgaria and Turkey www.kefi-minerals.com • Matisse Holdings plc Cash shell • Myhome International plc Domestic services franchiser www.myhomeplc.com • Oracle Coalfields plc Coal mining in Pakistan www.oraclecoalfields.com • Red Rock Resources plc Iron ore and manganese exploration in Australia and Zambia; uranium exploration in Malawi www.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 Helens Capital plc Corporate finance advisor www.sthelenscapital.com • Sunrise Diamonds plc Diamond exploration in Finland www.sunrisediamonds.com Copies of this interim report are available free of charge by application in writing to the Company Secretary at the Company's registered office, 123 Goldsworth Road, Woking, GU21 6LR, by email to email@starvest.co.uk or from the Company's website at www.starvest.co.uk. Enquiries to: Bruce Rowan, Chairman, telephone 020 7486 3997 or John Watkins, Finance Director, telephone 01483 771992 or to john@starvest.co.uk Grant Thornton Corporate Finance 020 7383 5100 Gerry Beaney Colin Aaronson 12 April 2007 End This information is provided by RNS The company news service from the London Stock Exchange

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