Tanfield Regulatory News (TAN)

26 August 2010

The Tanfield Group Plc ("Tanfield" or the "Company")

Expected Financing Arrangements

In its interim statement published on 18 August 2010, Tanfield announced that, despite its focus on cash preservation, its net cash had fallen to £2.2 million at 30 June 2010 and that, as a priority, it was reviewing alternative ways to fund the continuing cash outflow until it could complete the consolidation of its Electric Vehicle businesses currently under negotiation, successful implementation of which was expected to lead to a cash inflow for the Company.

In view of the absence of available credit facilities, the Company is currently in negotiations to finalise a possible equity fundraising. Such fundraising is expected to be structured on a pre-emptive basis as an open offer to all shareholders and partially underwritten by certain of its Directors, at a substantial discount to the current share price.

The outlooks for the Powered Access and Electric Vehicle businesses have not altered from those set out in the interim statement published on 18 August 2010.

There can be no assurance that the equity fundraising will proceed or that the discussions with SEV US, which remain subject to financing, will lead to a successful outcome. In the absence of such fundraising, or if the expected consolidation of the Electric Vehicle business failed to complete the Company would have to review its financial position and alternative sources of funding.

A further announcement will be made as soon as practicable.

Enquiries

The Tanfield Group Plc 0845 1557755

Charles Brooks

Arbuthnot Securities Ltd (NOMAD) 020 7012 2000

James Steel