EGM Statement

Tanfield Group PLC
17 November 2004


                             Tanfield Group Plc

                         Extraordinary General Meeting


The Directors of Tanfield today announce that the Company intends to raise up to
£3m (before expenses) through a further institutional placing of new Ordinary
Shares by Daniel Stewart, the Company's Nominated Adviser and Broker. In
addition, one or more Directors may sell Ordinary Shares for an aggregate
consideration of up to £1.2m.

The Placing is conditional, inter alia, on the passing of a special resolution
to give the Directors authority to allot up to 50,000,000 new Ordinary Shares in
the Placing, conditional on the Placing occurring within six months, to be
proposed at the Extraordinary General Meeting which is being convened for 11.00
am on 10 December 2004.

In order to comply with relevant tax legislation the Placing is likely to be
carried out in two stages to enable investors who are VCTs or who wish to apply
for relief under EIS to participate in the Placing.

Application will be made for the Placing Shares to be admitted to AIM.

For further information call:

Tanfield Group Plc
Roy Stanley - Chief Executive            -           01207 521111

Daniel Stewart & Co
Ruari McGirr                             -           020 7374 6742



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