Chairman's Update for Shareholders

Friday 2 January 2009


Chairman's update for shareholders - 2 January 2009
Investment performance
Whilst the past three  months have proved to  be more challenging  in
markets generally,  the valuation  basis adopted  when preparing  the
Starvest annual financial statements at 30 September 2008 has  proved
to be fully justified so that the portfolio valuation at 31  December
2008 is very slightly higher at £3.92m.
The basis  of  valuation is  consistent  with that  adopted  for  the
September 2008 annual report which was based on closing bid prices or
the Directors' lower valuation, if deemed appropriate.
Company statistics

                                    31 December  30 September 30 June
                                           2008          2008    2008
                                  at BID values at BID values  at MID
                                                               Values
Trading portfolio value                  £3.92m         £3.9m  £10.5m
Company asset value net of debt          £3.23m         £3.4m  £11.9m
Net asset value - fully diluted      8.98 pence        9.06 p  27.46p
per share
Share price - bid                       6 pence        12.25p  17.75p
Share price discount to fully             33.2%   35% premium  35.35%
diluted net asset value
Market capitalisation                    £2.09m        £4.28m   £6.2m


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.
During the quarter,  Starvest added to  its investments in  Greatland
Gold plc, an Australian gold explorer, and in Red Rock Resources  plc
with interests in Australia and Zambia.
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 January 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