Quarterly update

Starvest PLC
02 January 2007


RNS announcement 2 January 2007



Chairman's update for shareholders - January 2007

Investment performance

I am pleased to report that the growth in the investment portfolio announced at
the time of the AGM in December has continued so that at the close of business
on 29 December 2006 the Company's net asset value was £13.225m, an increase
during the previous three months of 15%, or £1,725m.  Other achievements of the
past three months have been:
     
•    Net asset value per share pre tax:           32.26 per share, fully diluted

•    Starvest closing share price:                17 pence 

•    Share price discount to NAV:                 47%

•    Closing market capitalisation:               £6.326m

•    With one exception, the net asset values are based on mid-market closing
     prices on Friday 29 December 2006 and after making a full tax provision on
     the realised investment profits.
     
•    The exception relates to the valuation of the investment in Concorde Oil & 
     Gas plc which, as a matter of prudence, has been determined after making a
     provision of 50% against the closing price on 24 November 2006; on this 
     date the shares were suspended at the company's request pending the outcome 
     of an EGM to be held on Monday 18 December 2006.  Concorde has since 
     announced the successful passing of all EGM resolutions, the completion of 
     the $33m acquisition of Russian oil producer Pechora LLP through a $41m 
     financing package agreed with Altima Partners including the issue of 113m 
     new shares at 0.9 pence and an intention to apply for the shares to be 
     re-admitted to trading in the near future.

•    Made a further investment in Kefi Minerals plc which has successfully
     raised funds and been admitted to AIM.  Kefi has mineral exploration
     interests in Bulgaria and Turkey.

•    Myhome International plc has moved from PLUS Markets to AIM.

•    Investment made in DTT plc, a company providing of driver training and
     recruitment services to the road haulage industry; the company is quoted on
     PLUS Markets.

The increase in the portfolio value is due to an improvement in the share prices
of several of the portfolio investments which in turn reflect positive trading
news from these companies and continuing strength in the world's natural
resource markets where high demand levels from China, India and other developing
nations continue.

The Board continues to be pleased with the 26 investments held; we expect
exciting growth in the medium term during which we will take a cautious view in
changing markets.

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
020 7486 3997

Enquiries to Bruce Rowan or John Watkins, 01483 771992; [e-mail]

2 January 2007

End


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