Final Results

 

TIDMINDY 
 
RNS Number : 0095E 
India Star Energy plc 
14 December 2009 
 

India Star Energy Plc 
 
 
Preliminary results for the year ended 30 June 2009 
 
 
14 December 2009 
 
 
Chairman's Statement 
 
 
I am pleased to report India Star Energy's financial results for the year ended 
30 June 2009. The operating environment for small AIM quoted companies continues 
to be challenging particularly with regard to fund raising. That said, commodity 
prices have been on the rise, and that bodes well for us in the future. 
 
 
The Company's corporate expenses continue to be kept to a bare minimum and this 
is reflected in our financial performance, which showed a post tax loss for the 
year, was GBP57,742 compared to a post tax loss of GBP63,418 in the previous 
financial year. The loss per share for the year stood at 0.03 pence compared to 
0.04 pence in the previous year. The Company's net cash position as at 30 June 
2009 was GBP112,454. Should the Company wish to make any further investments it 
will need to raise additional funds and we have been in discussions with 
potential investors with a view to raising additional funds in the first quarter 
of next year. 
 
 
The Company has three principal investments, the progress of which are 
summarised below: 
 
 
New Fuels International Limited ("NFIL") 
 
 
NFIL is a Seychelles based, specialised Development Company involved in the 
creation of renewable bio-fuels and bio-energy projects. NFIL is establishing an 
international consortium of investors and technology partners to replicate the 
Brazilian bio-fuel model in carefully selected African countries. As an initial 
strategy, NFIL is seeking to develop captive raw material feedstock through 
sugar cane plantation development and small farmer development in markets that 
have a competitive advantage in sugar cane production. This will be matched with 
the establishment of Ethanol processing facilities based on sugar cane as a 
feedstock for domestic and export consumption. 
 
 
India Star has acquired an option to purchase 100 per cent. of the issued share 
capital of NFIL. Under the terms of the share option agreement dated 10 July 
2008, the NFIL Shareholders have agreed to grant to India Star an option to 
purchase all of the Option Shares (including any additional ordinary shares 
issued during the period of the option (the "Option"). The Option is to be 
exercised in whole and within 12 months of entering into the Agreement. The 
initial consideration paid for the Option was GBP250,000 cash. Upon exercise of 
the Option, India Star and the NFIL Shareholders will agree the purchase price 
for the Option Shares or, to the extent that no agreement is reached, the price 
will be determined by an independent investment bank. The Option Shares purchase 
price will be satisfied by the issue of ordinary shares of India Star Energy to 
the NFIL Shareholders. 
 
 
Due to market conditions we have not been able to exercise the option within the 
original option period but we have negotiated an extension of the option by a 
further 12 months. As announced under an amendment deed dated 29 June 2009 it 
has been agreed by all parties that the exercise period of the option be 
extended by 12 months to 10 July 2010. In addition the Company has negotiated an 
increase from 10 to 15 per cent in the discount rate to be used to determine the 
acquisition price of NFIL shares when the option is exercised. 
 
 
Trillium North Minerals Ltd ("Trillium") 
 
 
Trillium is quoted on the Toronto Ventures Exchange ("TVX") and is developing 
its mineral rights in Ontario, Canada. India Star holds 7 million shares 
(representing 11.49 per cent. of its current issued share capital). 
 
 
Trillium is engaged in the acquisition, exploration and if warranted, 
development of mining properties in Canada. It currently holds interests in 
resource properties in Ontario primarily and intends to seek out and acquire 
additional properties, worthy of exploration and development, as finances 
permit. The exploration and development of the properties is accomplished either 
through direct expenditure by the Company or joint venturing of the property to 
another company. The Company controls varying interests in three types of 
properties, Gold/Copper/Zinc/Silver VMS geology, Platinum Group 
Metal/Nickel/Copper VMS geology and Primary Gold Geology. This strategy 
leverages the exploration teams' proven ability to recognise overlooked 
geological opportunities using advanced geological techniques. 
 
 
In April 2009 Trillium announced that that it has entered into an agreement with 
Manicouagan Minerals Inc. ("Manicouagan") pursuant to which Manicouagan can earn 
up to a 70 per cent. interest in three gold exploration properties in the Pickle 
Lake Area, Ontario, for consideration of $2.5 million dollars in exploration and 
paying all remaining option payments to the underlying vendor. 
 
 
In announcing the agreement, Manicouagan noted the Pickle Lake Properties 
consist of three non-contiguous claim groups known as the Pickle Lake East 
Property, the Kasagiminnis Property, and the Dorothy-Dobie Lake Property. 
Collectively the properties cover an area of approximately 7741 hectares or 
77.41 square kilometres. The properties are located in the Pickle Lake 
Greenstone Belt, which is part of the prolific Uchi Geological Subprovince. 
Having historically produced over 30 million ounces of gold. The Pickle Lake 
area includes four past producing mines: Golden Patricia (0.45Moz at 19.9 gpt 
Au), Dona Lake (0.21Moz at 8.6gpt), Central Patricia (0.65Moz at 12.0gpt) And 
Pickle Crow (1.45Moz at 16.1gpt). 
 
 
East West Resource Corporation ("EastWest") 
 
 
East West's exploration efforts are focused on the platinum group metals as well 
as copper and nickel. It has three flagship assets in Ontario: Marshall Lake 
(copper, zinc project), Norton-McFaulds (copper nickel, platinum group elements 
project) and Shebandowan (gold, copper project). These three projects are joint 
ventured with Marshall Lake Mining PLC, White Tiger Mining Corp. and Xstrata 
Copper, respectively. In addition there are eight other projects that are funded 
by joint venture partners. India Star holds 2.5 million shares in the company 
(representing 1.92 per cent. of its current issued share capital). 
 
 
East West Resource Corporation ("East West") announced on 31 July 2009 that it 
proposed to acquire Rainy Mountain Capital Corp. ("Rainy Mountain"). East West 
and Rainy Mountain have now agreed to effect the proposed transaction by way of 
a private placement (the "Private Placement") pursuant to which Rainy Mountain 
will subscribe for, on a post Consolidation basis, an aggregate of approximately 
3,750,000 common shares (the "Shares") of East West at a price of $0.10 per 
Share to result in gross proceeds of approximately $375,000 to East West. The 
Shares will subsequently be distributed to the shareholders of Rainy Mountain. 
Upon the distribution of the Shares to the shareholders of Rainy Mountain, the 
Rainy Mountain shareholders will become shareholders of East West, following 
which Rainy Mountain will be dissolved. As a capital pool company, the only 
asset that Rainy Mountain has, and will contribute to East West, is its cash. 
 
 
Outlook 
 
 
We continue to believe in the long term prospects of our investments. 
 
 
 
 
Haresh Kanabar 
Chairman 
 
 
 
 
Enquiries: 
 
 
India Star Energy Plc 
Haresh Kanabar, Chairman 
0207 297 0010 
 
W.H. Ireland Limited 
Tim Cofman/Katy Birkin 
0121 265 6330 
  INDIA STAR ENERGY PLC 
INCOME STATEMENT 
FOR THE YEAR ENDED 30 JUNE 2009 
 
 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |         Year | 
|                                                                 |         Year |        ended | 
|                                                                 |        ended |      30 June | 
|                                                                 |      30 June |         2008 | 
|                                                                 |         2009 |          GBP | 
|                                                                 |          GBP |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Administrative expenses                                         |     (60,864) |     (85,018) | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Loss from operations                                            |     (60,864) |     (85,018) | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Investment revenues                                             |        3,409 |       21,600 | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Finance costs                                                   |        (287) |            - | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Loss before taxation                                            |     (57,742) |     (63,418) | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Tax expense                                                     |            - |            - | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Loss for the year                                               |     (57,742) |     (63,418) | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
 
+-----------------------------------------------------------------+--------------+--------------+ 
| Loss per ordinary share                                         |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
| Basic and diluted loss per share                                |      (0.03p) |      (0.04p) | 
+-----------------------------------------------------------------+--------------+--------------+ 
|                                                                 |              |              | 
+-----------------------------------------------------------------+--------------+--------------+ 
 
 
 
 
 
All losses for the period are attributable to equity shareholders of the parent. 
 
 
 
 
INDIA STAR ENERGY PLC 
BALANCE SHEET 
FOR THE YEAR ENDED 30 JUNE 2009 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     | Note      |           Year |                | 
|                                                     |           |          ended |           Year | 
|                                                     |           |        30 June |          ended | 
|                                                     |           |           2009 |        30 June | 
|                                                     |           |            GBP |           2008 | 
|                                                     |           |                |            GBP | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Assets                                              |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Non-current assets                                  |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Investments - fair value through income statement   | 2         |        250,000 |              - | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Investments - available for sale                    | 3         |        149,239 |        413,857 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Total non-current assets                            |           |        399,239 |        413,857 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Current assets                                      |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Cash and cash equivalents                           |           |        112,454 |        438,340 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Trade and other receivables                         |           |          4,247 |          9,088 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Total current assets                                |           |        116,701 |        447,428 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Total assets                                        |           |        515,940 |        861,285 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Liabilities                                         |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Current liabilities                                 |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Trade and other payables                            |           |       (20,008) |       (42,993) | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Total liabilities                                   |           |       (20,008) |       (42,993) | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Net assets                                          |           |        495,932 |        818,292 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Equity                                              |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Share capital                                       |           |        330,000 |        330,000 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Share premium account                               |           |        854,350 |        854,350 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Available-for-sale reserve                          |           |      (299,246) |       (34,628) | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Retained earnings                                   |           |      (389,172) |      (331,430) | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
| Equity attributable to equity holders of the parent |           |        495,932 |        818,292 | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
|                                                     |           |                |                | 
+-----------------------------------------------------+-----------+----------------+----------------+ 
 
 
The financial statements were approved by the board of directors and authorised 
for issue on 14 December 2009. They were signed on its behalf by: 
 
 
H. D. Kanabar Director 
 
Company registration number: 05143779 
 
 
INDIA STAR ENERGY PLC 
STATEMENT OF CHANGES OF EQUITY 
AS AT 30 JUNE 2009 
 
 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
|                          |         Share  |            Share |        Available |        Retained | Total       | 
|                          |        capital |          premium |        -for-sale |        earnings |             | 
|                          |                |                  |          reserve |                 |             | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
|                          |            GBP |              GBP |              GBP |             GBP |         GBP | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
| At 1 July 2008           |        330,000 |          854,350 |         (34,628) |       (331,430) |    818,292  | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
| Net losses on available  |              - |                - |        (264,618) |               - |  (264,618)  | 
| for sale investments     |                |                  |                  |                 |             | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
| Loss for the year        |              - |                - |                - |        (57,742) |    (57,742) | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
|                          |                |                  |                  |                 |             | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
| At 30 June 2009          |        330,000 |          854,350 |        (299,246) |       (389,172) |     495,932 | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
|                          |                |                  |                  |                 |             | 
+--------------------------+----------------+------------------+------------------+-----------------+-------------+ 
 
 
 
INDIA STAR ENERGY PLC 
CASH FLOW STATEMENT 
FOR THE YEAR ENDED 30 JUNE 2009 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |         Year | 
|                                                                |        |        Year |        ended | 
|                                                                |        |       ended |      30 June | 
|                                                                |        |     30 June |         2008 | 
|                                                                |        |        2009 |          GBP | 
|                                                                |        |         GBP |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Net cash outflow from operating activities                     |        |    (79,008) |     (70,461) | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Return on investments and servicing of finance                 |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Interest received                                              |        |       3,409 |       21,600 | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Interest paid                                                  |        |       (287) |            - | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Net cash inflow from returns on investments and servicing of   |        |       3,122 |       21,600 | 
| finance                                                        |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Capital expenditure and financial investments                  |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Purchase of investments- fair value through Income statement   |        |   (250,000) |            - | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Decrease in cash and cash equivalents                          |        |   (325,886) |     (48,861) | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Reconciliation to net funds                                    |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Cash and cash equivalents at the beginning of the year         |        |     438,340 |      487,201 | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Decrease in cash and cash equivalents                          |        |   (325,886) |     (48,861) | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
| Cash and cash equivalents at the end of the year               |        |     112,454 |      438,340 | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
|                                                                |        |             |              | 
+----------------------------------------------------------------+--------+-------------+--------------+ 
 
 
 
 
 
 
Notes to the financial statements 
 
 
1.Significant accounting policies 
 
 
Subsidiary 
The company has one subsidiary, Rutland Star Ventures Limited ("RSV"). RSV has 
been dormant throughout the year and its balance sheet at 30 June 2008 and 30 
June 2009 showed net liabilities of GBP79,551, all of which was owed by RSV to 
the company.  The directors have therefore decided not to prepare consolidated 
accounts as the financial and trading position of the company is the same as the 
group. 
 
 
Foreign currencies 
Exchange differences arising on the settlement of monetary items, and on the 
retranslation of monetary items, are included in income statement for the 
period. Exchange differences arising on the retranslation of non-monetary items 
carried at fair value are included in income statement for the period except for 
differences arising on the retranslation of non-monetary items in respect of 
which gains and losses are recognised directly in equity. For such non-monetary 
items, any exchange component of that gain or loss is also recognised directly 
in equity. 
 
 
Financial instruments 
Financial assets and financial liabilities are recognised in the company's 
balance sheet when the company becomes a party to the contractual provisions of 
the instrument. 
 
 
Investments 
Investments are recognised and derecognised on a trade date where a purchase or 
sale of an investment is under a contract whose terms require delivery of the 
investment within the timeframe established by the market concerned, and are 
initially measured at cost, including transaction costs. 
 
 
Investments are classified as either fair value through the income statement or 
available-for-sale, and are measured at subsequent reporting dates at fair 
value. For available-for-sale investments, gains and losses arising from changes 
in fair value are recognised directly in equity, until the security is disposed 
of or is determined to be impaired, at which time the cumulative gain or loss 
previously recognised in equity is included in the income statement for the 
period. Impairment losses recognised in the income statement for equity 
investments classified as available-for-sale are not subsequently reversed 
through the income statement. Investments held at fair value through the income 
statement are valued at cost if their fair value cannot be reliably measured. 
 
 
Derivatives 
The company uses derivative financial instruments for speculative purposes and 
measures derivative contracts at fair value. Changes in the fair value of 
derivative financial instruments are recognised in the income statement as they 
arise. 
 
 
The use of financial derivatives is governed by the company's policies approved 
by the board of directors, which provide written principles on the use of 
financial derivatives. 
 
 
New Standards and Interpretations 
The IASB and IFRIC have issued the following standards and interpretations which 
are in issue but not in force at 30 June 2009: 
 
 
International Accounting Standards (IAS/IFRS) 
IFRS 2 (revised 2008) Share-based payments 
IFRS 3 (revised 2008) Business Combinations 
IFRS 5 (revised April 2009) Non-current Assets Held for Sale and Discontinued 
Operations 
IFRS 7 (revised March 2009) Financial Instruments Disclosures 
IFRS 8 Operating Segments 
IAS 1 (revised May 2008) Presentation of Financial Statements 
IAS 7 (revised April 2009) Statement of Cash Flows 
IAS 16 (revised May 2008) Property, plant and equipment 
IAS 19 (revised May 2008) Employee benefits 
IAS 20 (revised May 2008) Government Grants and Disclosure of Government 
Assistance 
IAS 23 (revised May 2008) Borrowing Costs 
IAS 27 (revised May 2008) Consolidated and Separate Financial Statements 
IAS 28 (revised May 2008) Investments in Associates 
IAS 29 (revised May 2008) Financial Reporting in Hyperinflationary Economies 
IAS 31 (revised May 2008) Interest in Joint Ventures 
IAS 32 (revised 2008) Financial Instruments 
IAS 36 (revised April 2009) Impairment of Assets 
IAS 38 (revised April 2009) Intangible Assets 
IAS 39 (revised July 2008) Financial Instruments: Recognition and Measurement. 
IAS 40 (revised May 2008) Investment Property 
IAS 41 (revised May 2008) Agriculture 
 
 
International Financial Reporting Interpretations Committee (IFRIC) 
IFRIC 12 Service Concession Arrangements 
IFRIC 13 Customer Loyalty Programmes 
IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding 
Requirements and their Interaction. 
 
 
The Directors anticipate that the adoption of these Standards and 
Interpretations in future periods will have no material impact on the financial 
statements other than in terms of presentation. 
 
 
Trade receivables 
Trade receivables are measured at the invoiced amount. Appropriate allowances 
for estimated irrecoverable amounts are recognised in the income statement when 
there is objective evidence that the asset is impaired. 
 
 
Financial liabilities and equity 
Financial liabilities and equity instruments are classified according to the 
substance of the contractual arrangements entered into. An equity instrument is 
any contract that evidences a residual interest in the assets of the company 
after deducting all of its liabilities. 
 
 
Trade payables 
Trade payables are initially measured at the invoiced amount. 
 
 
Equity instruments 
Equity instruments issued by the company are recorded at the proceeds received, 
net of direct issue costs. 
 
 
Cash and cash equivalents 
Cash and cash equivalents comprise cash on hand and demand deposits, and other 
short-term highly liquid investments that are readily convertible to a known 
amount of cash and are subject to an insignificant risk of changes in value. The 
company considers all highly liquid investments with original maturity dates of 
three months or less to be cash equivalents. 
 
 
Provisions 
Provisions are recognised when the company has a present obligation as a result 
of a past event, and it is probable that the company will be required to settle 
that obligation. Provisions are measured at the directors' best estimate of the 
expenditure required to settle the obligation at the balance sheet date, and are 
discounted to present value where the effect is material. 
 
 
Investment income 
Investment income relates to interest income, which is accrued on a time basis, 
by reference to the principal outstanding and at the effective interest rate 
applicable. 
 
2.       Investments - fair value through income statement 
 
 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
|                                      |      |            |             |      2009 |        2008 | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
|                                      |      |            |             |       GBP |         GBP | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
| At 1 July                            |      |            |             |         - |           - | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
| Additions                            |      |            |             |   250,000 |           - | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
|                                      |      |            |             |           |             | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
| At 30 June                           |      |            |             |   250,000 |           - | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
|                                      |      |            |             |           |             | 
+--------------------------------------+------+------------+-------------+-----------+-------------+ 
 
 
 
India Star has acquired an option to purchase 100 per cent. of the issued share 
capital of New Fuels International Limited ("NFIL") a Seychelles based company. 
Under the terms of the share option agreement dated 10 July 2008, the NFIL 
Shareholders have agreed to grant to India Star an option to purchase all of the 
Option Shares (including any additional ordinary shares issued during the period 
of the option (the "Option"). The Option is to be exercised in whole by 10 July 
2010. The initial consideration paid for the Option was GBP250,000 cash. 
 
 
Upon the exercise of the option, India Star Energy Plc and the shareholders of 
NFIL will agree the purchase price for the option shares. The purchase price 
shall be the price determined less GBP500,000 and discounted by 15%. The 
purchase price will be satisfied by the issue of ordinary shares by India Star 
Energy Plc. 
 
3.       Investments - available-for-sale 
 
 
+--------------------------------------+------+------------+--------------+------------+------------+ 
|                                      |      |            |              |       2009 |       2008 | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
|                                      |      |            |              |        GBP |        GBP | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
| At 1 July                            |      |            |              |    413,857 |    560,580 | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
| Net losses transferred to equity     |      |            |              |  (264,618) |  (146,723) | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
|                                      |      |            |              |            |            | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
| At 30 June                           |      |            |              |    149,239 |    413,857 | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
|                                      |      |            |              |            |            | 
+--------------------------------------+------+------------+--------------+------------+------------+ 
 
 
 
          There were no disposals of available-for-sale financial assets in 2009 
or 2008 
 
 
The available-for-sale securities relate to two investments East West Resource 
Corporation and Trillium North Minerals Ltd listed on the TSX-V (Canadian 
exchange). The investments are classified as non- current assets due to their 
relative liquidity and are measured at their fair value at each reporting date. 
Changes in fair value are recorded in equity until they are disposed of or an 
impairment is recognised. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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