Tanfield Regulatory News (TAN)

The following amendment has been made to the 'Placing, Trading Update and Director's Dealing' announcement released on 17th July at 7am under RNS No: 7907H.

Roy Stanley's shares were originally listed as 12,478,756. The correct amount is 12,617,661.

All other details remain unchanged.

The full amended text is shown below.

TANFIELD GROUP PLC ("Tanfield" or the "Company")

Tanfield Group plc placing raises £2m to support Smith Electric Vehicles Corp., trading update and Director's Dealing

Tanfield is pleased to announce that it has raised approximately £2.0m net of expenses to enable the company to provide a loan facility to its associate company Smith Electric Vehicles Corp. ("Smith"). These funds were raised by way of a placing of 5,135,714 new Ordinary Shares of 5 pence ("Shares") with institutional and other investors at a price of 42 pence per Share, realising gross proceeds of £2.2m.

Tanfield, which owns a 24% stake in Smith, has agreed to provide a short-term bridging loan to Smith, a US entity, to provide liquidity support prior to Smith's planned initial public offering ("IPO"). The loan matures 180 days from issuance and must be repaid upon the closing of Smith's IPO. Smith has engaged with its key shareholders to obtain bridge financing totalling in excess of $12m. Tanfield will earn market rates for the provision of the loan. In the event the IPO does not take place and the loan had been drawn down, Tanfield's loan, along with the other providers of bridging finance, would stand as a senior unsecured obligations of Smith.

Trading Update

In the first quarter of 2012, Tanfield raised approximately £11.4m net of expenses by way of a placing of new equity to invest in its supply chain. This enabled Tanfield to grow its global powered access business in response to its order book demand. Since that date, it has secured increased volumes from its suppliers, enabling increased output from all of its manufacturing sites. Demand for powered access products has held up and, as its lead times come down, order intake rates should continue to rise. Tanfield continues to expect to reach break-even volumes during the second half of the current financial year. Given the importance of managing working capital in its growth process, Tanfield chose to raise additional funds to support Smith rather than risk jeopardising the growth in its powered access business.

Darren Kell, Chief Executive, commented "Given that Tanfield is Smith's largest shareholder, Tanfield is keen to support the company in its planned IPO. This fundraising that will enable Tanfield to participate in a lending facility that gives Smith that support without risking the progress achieved year to date in the powered access business."

Directors Dealing

As a result of his participation in the placing Roy Stanley, a director of the Company, will acquire 238,905 Shares at a price of 42 pence each. Following this acquisition Mr. Stanley will hold 12,617,661 Shares.

Admission and Placing Statistics

Application has been made for the placing shares to be admitted to trading on AIM, which is expected to occur on the 23rd of July 2012.

The Placing Shares represent approximately 4.1 per cent. of the Company's existing Ordinary Shares and will, when issued, represent approximately 4.0 per cent. of the Company's share capital as enlarged by the placing.

Following Admission of the placing Shares, the Company will have 128,971,225 Ordinary Shares in issue. This figure may be used by Shareholders, from Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

For further information:

A registration statement relating to Smith's common stock has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

ENDS