Chairman's update for Shareholders - 2 April 2009

Thursday 2 April 2009


Chairman's update for shareholders - 2 April 2009
Investment performance
I am pleased to report that  the modest recovery in the Starvest  net
asset value enjoyed during the quarter  to 31 December 2008 has  been
maintained and enhanced during the quarter to 31 March 2009 when  the
closing portfolio net asset value was £4.25m, a 7.9% increase in  the
half year since 30 September 2008.
The prudent  valuation  basis  adopted when  preparing  the  Starvest
annual financial statements  at 30  September 2008 has  proved to  be
fully  justified;  Starvest  now  uses  closing  bid  prices  or  the
Directors' lower valuation, if deemed appropriate.
Company statistics

                            31 March 31 December 30 September 30 June
                                2009        2008         2008    2008
                              at BID      at BID       at BID  at MID
                              values      values       values  market
                                                               values
Trading portfolio value       £4.25m      £3.92m        £3.9m  £10.5m
Company asset value net       £3.62m      £3.23m        £3.4m  £11.9m
of debt
Net asset value - fully        10.01  8.98 pence   9.06 pence   27.46
diluted per share              pence                            pence
Share price - mid         6.25 pence     6 pence       12.25p  17.75p
Share price discount to          37%         33%  35% premium     35%
fully diluted net asset
value
Market capitalisation         £2.18m      £2.09m       £4.28m   £6.2m


Comment
During the quarter, Starvest added to its investment in Regency Mines
plc, a commitment entered into during October 2008.
Market conditions remain fragile, so I  can do no better than  repeat
the comments I made  when issuing the last  update as at 31  December
2008:
"The speculation of which I wrote  in July that the crises  impacting
the financial  markets  would lead  to  world-wide recession  with  a
consequential reduction in demand for natural resources and  services
has proven to be well founded and  as a result many of the  companies
in which  Starvest is  invested  have seen  their share  prices  fall
during the past year.
"It remains  the view  of  the Starvest  board  that demand  for  raw
materials will  return  as  current stocks  are  exhausted  and  that
commodity prices  must return  to levels  at which  it again  becomes
economic to mine newly discovered deposits."
"Conclusion:
"Whilst disappointed that  our fears  have been  realised, the  Board
continues to believe  that it  has within  its portfolio  investments
with considerable  potential  and is  looking  forward to  an  upturn
during 2010, possibly earlier for some."
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 April 2009



Enquiries to:
Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director
01483 771992; [e-mail]
Gerry Beaney or Colin Aaronson Grant Thornton Corporate Finance 020
7383 5100                                                                                                 is 
solely responsible for the content of this announcement.