Issue of Equity

Tanfield Group PLC
10 December 2004


Embargoed: 07.00 hrs 10 December 2004


                               Tanfield Group PLC

                                    Placing

The Directors of the Tanfield Group plc ('Tanfield' or 'the Company') today
announce that the Company has conditionally placed of 30,000,000 new Ordinary
Shares at a placing price of 10p per share and 11,000,000 existing Ordinary
Shares also at 10p per share from the holding of founder and Chief Executive Roy
Stanley.

The placing is conditional on passing of resolutions to increase the authorised
share capital of the Company and disapply preemption rights at the previously
announced EGM which will take place today.

Following the placing Mr Stanley will hold 38,797,074 Ordinary Shares in the
Company.

15,000,000 of the new Ordinary shares are expected to be admitted to trading on
AIM on 15 December 2004 and the balance, a further 15,000,000 being issued under
the Enterprise Investment Scheme, are expected to be admitted on 20 December
2004.

Enquiries:

Roy Stanley
Tanfield Group Plc Tel. [phone]

Ruari McGirr
Daniel Stewart & Co Plc Tel. [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange