Starvest plc : Net Asset Value(s)

Tuesday 3 July 2012

Net asset value update at 29 June 2012

The steady decline in valuations since early 2011 has again continued during the quarter, although this time it has been a more dramatic 22% fall against just 8% during the March quarter.

Undoubtedly, the reasons behind this have little to do with the operations of the companies we continue to support, but are much more reflective of the general economic uncertainty prevailing in Europe and the reported slowing of increase in activity in China, although notwithstanding the Chinese economy continues to grow apace.

The challenge for the junior companies we support is to raise sufficient new capital to continue their exploration and development plans and to do so at prices that do not excessively dilute the existing shareholders.  This challenge has become tougher with the steady eroding of share prices during the past eighteen months since the high point in late 2010, a period in which the Company price discount to net asset value has also widened, perhaps excessively.

Against this background, the Company announces the net asset values as at 29 June 2012 as follows:

	29 June 2012	31 March 2012	31 December 2011	30  September 2011
Trading portfolio value	£3.41m	£4.31m	£4.75m	£5.47m
Company asset value net of debt	£3.87m	£4.98m	£5.42m	£6.62m
Net asset value per share - fully diluted	10.43 pence	13.33 pence	14.6 pence	17.57 pence
Share price - mid	6.38 pence	10.00 pence	12.00 pence	13.00 pence
Share price discount to fully diluted net asset value	39%	25%	17%	26%
Market capitalisation	£2.37m	£3.71m	£4.41m	£4.77m

All valuations are based on the closing market bid prices or lower directors' valuation as described in the 2011 annual report.

The Company expects to announce its 30 September 2012 valuation in early October and its full year results to 30 September 2012 towards the end of October 2012.

R Bruce Rowan Chairman & Chief Executive 3 July 2012

Enquiries to:

Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director 07768 512404; [e-mail]

Gerry Beaney, Colin Aaronson or David Higell - Grant Thornton Corporate Finance 020 7383 5100

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Source: Starvest plc via Thomson Reuters ONE

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