09:21     MORNING STAR<00542> - Announcement (1)                              

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    Morning Star Resources Limited                                            
    (Incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (Stock Code: 542)                                                         
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    Further to the announcement dated 7th February, 2005,                     
    the public float portion of the shares in the Company                     
    remains at approximately 23.90% which continues to                        
    be in breach of the minimum public float requirement                      
    of 25%. The Company requires a longer period to fulfil                    
    the public float requirement under Rule 8.08 of the                       
    Listing Rules.                                                            
                                                                              
    The Stock Exchange has stated that it will closely                        
    monitor the trading in the Company's shares to ensure                     
    a false market does not develop and may suspend the                       
    shares of the Company if there is any unusual price                       
    movement.                                                                 
                                                                              
    Shareholders and investors are advised to exercise                        
    extreme caution when dealing in the shares of the                         
    Company.                                                                  
                                                                              
    Reference is made to the announcements issued by                          
    Morning Star Resources Limited (the "Company") dated                      
    3rd June, 30th June, 2nd August, 5th October, 1st                         
    November, 1st December, 2004, 4th January and 7th                         
    February, 2005 (the "Announcements"). Terms defined                       
    in the Announcements shall have the same meanings when                    
    used herein unless the context required otherwise.                        
                                                                              
    The Board of Directors of the Company advises that                        
    the public float portion of the shares in the Company                     
    remains at approximately 23.90%, same as that                             
    disclosed in the Announcement dated 7th February,                         
    2005, which continues to be in breach of the minimum                      
    public float of 25% as required by Rule 8.08 of the                       
    Listing Rules.                                                            
                                                                              
    Subsequent to our announcement on 7th February, 2005,                     
    a substantial shareholder of the Company namely                           
    Bonham Industries Limited ("Bonham") holding                              
    approximately 37.47% of the issued share capital of                       
    the Company, had continued to approach an independent                     
    potential investor directly during the week                               
    commencing 14th February, 2005 with the objective of                      
    placing down up to approximately 27,000,000 shares,                       
    representing approximately 1.12% of the issued share                      
    capital in the Company, to meet the public float                          
    requirement in compliance with the Listing Rules of                       
    the Stock Exchange but there is no firm interest from                     
    this party as of today's date. Bonham will not                            
    continue to approach this party unless a firm interest                    
    is expressed by them.                                                     
                                                                              
    We have also received a notification from Tan Sri Dr                      
    KHOO Kay Peng who is deemed to have an interest in                        
    the shares in our Company by virtue of his indirect                       
    70% interest of the issued share capital of Firstway                      
    International Investment Limited ("Firstway"), a                          
    substantial shareholder holding approximately 37.52%                      
    of the issued share capital