10:05     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 4th March, 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 Company and the substantial shareholders of the                       
    Company namely Firstway and Bonham will undertake to                      
    the Stock Exchange that they will continue to take                        
    necessary measures to meet the public float                               
    requirement on or before 31st May, 2005.                                  
                                                                              
    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, 7th                            
    February and 4th March, 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 4th March, 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 4th March, 2005                         
    until 7th March, 2005 and during the week commencing                      
    11th April, 2005, the substantial shareholders of the                     
    Company, namely Firstway International Investment                         
    Limited ("Firstway") and Bonham Industries Limited                        
    ("Bonham"), holding approximately 37.52% and 37.47%                       
    of the issued share capital of the Company                                
    respectively, had each approached a newly identified                      
    independent potential investor around middle of April                     
    2005 directly 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 interest from any party as                       
    of today's date, mainly due to the performance of the                     
    Company. Firstway and Bonham will continue