Related party loan

Starvest PLC 08 March 2007 Starvest plc ('the Company') Related party loan The Company announces that it has entered into a loan agreement dated 6 November 2006 with Mr Eirion Andrew Charles Neubauer and associated family interests ('the lenders') whereby the lenders have lent the Company the sum of £1 million at a commercial rate of interest for a period of one year ending 6 November 2007, such period to be extended by mutual agreement. Under the terms of the loan agreement, the lenders have the right to a charge over certain of the Company's assets. The funds, which have been drawn down, are intended be used by the Company to progress its investment programme. The Starvest directors remain confident of the long term prospects of the companies in which it invests and sees many new opportunities not least in the resource sector. Given the current discount of the Company's share price to its net asset value, the directors believe that debt is a cost effective means of funding further investment. As a substantial shareholder in the Company, the lenders are a related party of the Company and, by virtue of its size, the loan falls to be disclosed as a related party transaction. The Starvest directors, having consulted with the Company's nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned. Enquiries to John Watkins, 01483 771992; john@starvest.co.uk 8 March 2007 End This information is provided by RNS The company news service from the London Stock Exchange

Companies

Starvest (SVE)
UK 100

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