Operational Incident at Canton

2 December 2013

Hydrodec Group plc

("Hydrodec", the "Company" or the "Group")

Operational Incident at Canton, Ohio Re-refining Facility

Hydrodec Group plc, the cleantech industrial oil re-refining group (AIM: HYR), can confirm that a material incident took place at its re-refining facility in Canton, Ohio in the United States on Sunday, 1 December which has led to significant damage to the plant.

There were reports of an explosion and there has been a subsequent fire in the reactor building at the Canton plant. The incident occurred at approximately 4pm EST (9pm UK GMT) during routine operations. The Company's emergency shut-down system and associated procedures operated successfully and there are no reports of any casualties on or around the facility, and all Hydrodec employees are safe and accounted for. The local emergency services responded promptly and the fire was extinguished by 5.30pm. Emergency response was also mobilised from nearby Marathon Oil but was ultimately not required. The fire was contained within the reactor building with no identified damage to other buildings, plant or storage at the facility.

The cause of the incident is not yet known, and there is no reliable assessment of damage at this point, though Hydrodec is already working closely with the local authorities and relevant agencies to establish the cause, and to ensure all its rigorous operating procedures were appropriately followed. The plant is currently shut down while the incident is investigated.

Hydrodec has also begun the process of liaising with customers to establish what alternative provision can be made to minimise business consequences.

The Company will update the market as soon as it is able to give an assessment of the time required for repairs to be completed and what arrangements have been put in place with customers during this period.

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