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Starvest PLC (SVE)

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Tuesday 02 May, 2006

Starvest PLC

Chairman's update

Starvest PLC
02 May 2006

                                  Starvest plc

                  Chairman's update for shareholders - May 2006

Investment performance

I am pleased to report that the significant progress achieved during the six
months to the interim reporting date of 31 January 2006 has been maintained. The
achievements of the past three months have been:

   •Raised £1.7m cash and made a gross profit of £1.64m by reducing the
    holding in African Platinum plc; the Company continues to have a substantial
    holding of 10.25m ordinary shares in African Platinum plc.

   •Based on mid-market closing prices on Friday 28 April the position was:
      + •Company net asset value pre tax: £17.7m
      + •Net asset value per share pre tax: 42.8 per share, fully diluted
      + •Starvest share price: 26 pence
      + •Share price discount to NAV: 39.27%
      + •NAV increase since 31 January 2006: £1.2m

   •This valuation is arrived at after deducting a full tax provision on the
    realised investment profits.

   •Since the Interim report issued as at 31 January 2006, Starvest has made
    new investments in Sunrise Diamonds plc, and added to its investment in
    Fundy Minerals Limited and St Helen's Capital plc. In addition, it has
    acquired an interest in Greatland Gold Limited, a company with advanced gold
    resources in Western Australia and Tasmania. Starvest has committed to
    further support the company on its admission to AIM which is expected during
    June 2006.

   •The Core Business plc has successfully raised funds and been admitted to

   •Concorde Oil & Gas plc has announced that, subject to raising the
    necessary funds during May, it expects to conclude an acquisition of
    operational oil and gas assets in the Russian Federation, this to be
    followed by a transfer from Ofex to AIM.

   •Myhome International plc declared a first profit with accelerating
    expansion and a share price to match.

The Board continues to be very pleased with the 24 investments held; we expect
continued growth during the next two years during which we will take a cautious
view in changing markets.

Extraordinary general meeting

The resolutions before Members at the extraordinary general meeting held on 14
March 2006 were duly passed. The Company is in the process of submitting a
petition to the High Court to have the deficit on the profit and loss account
cancelled, thus bringing forward the time when a dividend may be paid or the
Company may purchase its own shares. An update will be provided in the annual
report due during September 2006.


A number of Shareholders have enquired as to the status of the Company's shares
for the purposes of capital gains tax and inheritance tax. The Company's
advisers, Grant Thornton, have opined that the tax position of Shareholders
should be as follows:

   •Taper relief: The Company should be regarded as a qualifying company for
    business asset taper relief applicable for capital gains tax purposes.

   •Business property relief: Although the Company's shares are listed on
    AIM, business property relief from inheritance tax is not available where
    the business of the company consists of dealing in securities, stocks or
    shares; this is Starvest's business.

Shareholders should always seek their own professional advice on personal
taxation matters.

The Company now holds trade investments in the following companies:

   •Addworth plc                             Active capital investment company


   •African Platinum plc              Platinum group metals in Southern Africa

   •Agricola Resources plc                    Platinum and uranium exploration

   •Belmore Resources (Holdings) plc               Zinc exploration in Ireland


   •Beowulf Mining plc                   Gold and copper exploration in Sweden

   •Black Rock Oil & Gas plc          Oil and gas in Southern England,Columbia
                                                                 and Australia

   •Brazilian Diamonds Limited                   Diamond exploration in Brazil

   •Carpathian Resources Limited           Oil and gas in the Czech and Slovak

   •Concorde Oil & Gas plc               Operational oil & gas projects in the 
                                                            Russian Federation

   •The Core Business plc                    Personal care and beauty products

   •Franchise Investment Strategies plc             Franchise consultancy and


   •Franconia Minerals Corporation                    North American minerals
   •Fundy Minerals Limited                 Gold and base metal exploration in
                                                       Canada and West Africa
   •Gippsland Limited                           Tantalum exploration in Egypt

   •Greatland Gold Limited                         Gold exploration in Western
                                                        Australia and Tasmania
   •Hidefield Gold plc                     Gold exploration in North and South
   •India Star Energy plc                                Oil & gas investments 
   •Matisse Holdings plc                                           Cash shell

   •Myhome International plc                        Domestic cleaning services

   •Red Rock Resources plc               Iron ore and manganese exploration in
                                                uranium exploration in Malawi.
  •Regency Mines plc                  Copper & nickel exploration in Australia

  •Sheba Exploration (UK) plc                     Gold exploration in Ethiopia

  •St Helen's Capital plc                            Corporate finance advisor


  •Sunrise Diamonds plc                         Diamond exploration in Finland

Shareholders who wish to receive electronic copies of announcements are invited
to register their email address on the home page of the Company website:

Your Board plans to announce the full year results to 31 July 2006 during late
August and to hold the Company's Annual General Meeting during October 2006.

R Bruce Rowan                                           2 May 2006
Chairman & Chief Executive

Enquiries to:

   •Bruce Rowan, telephone 020 7486 3997 or to
   •Tony Scutt, telephone 01483 475909 or to


                      This information is provided by RNS
            The company news service from the London Stock Exchange