Issue of Equity

Stanelco PLC
07 November 2006

                                  Stanelco plc
                                ISSUE OF EQUITY


                         ('Stanelco' or the 'Company')


On 9 October 2006, Stanelco announced details of a proposed Firm Placing of
1,375,000,000 New Ordinary Shares and Open Offer of 600,992,559 New Ordinary
Shares at 0.8 pence per New Ordinary Share, of which 148,278,000 New Ordinary
Shares were being placed subject to clawback to satisfy valid acceptances under
the Open Offer.


Following the passing of the Resolutions at the EGM held yesterday,
1,375,000,000 New Ordinary Shares have been issued pursuant to the Firm Placing
and 600,992,559 New Ordinary Shares have been issued pursuant to the Placing and
Open Offer, all at 0.8 pence per New Ordinary Share, raising approximately £15.8
million before expenses for the Company.


The New Ordinary Shares were admitted to the Official List of the London Stock
Exchange today and trading in these shares commenced at 8.00 a.m.


Following the Firm Placing, Placing and Open Offer, the total issued ordinary
share capital of Stanelco is comprised of 2,977,646,824 ordinary shares of 0.1p
each.

For further information please contact:

Stanelco plc
Martin Wagner, Chief Executive
Sylvia Leavey, Investor Relations
Tel:  [phone]

Press: Financial Dynamics
Jonathon Brill/Billy Clegg
Tel: [phone]

This announcement is for information only and does not constitute an offer or
invitation to acquire or dispose of any securities or investment advice in any
jurisdiction.

Past performance is no guide to future performance and persons needing advice
should consult an independent financial advisor.

The information contained in this announcement is not for release, publication
or distribution, directly or indirectly, to persons in the United States,
Canada, Australia, Japan or the Republic of South Africa. This announcement is
not an offer of securities for sale into the United States. The New Ordinary
Shares have not and will not be registered under the US Securities Act of 1933,
as amended and may not be offered or sold directly or indirectly, in the United
States absent registration or an exemption from registration. There will be no
public offering of securities in the United States. The New Ordinary Shares have
not and will not be registered with any regulatory authority of any state within
the United States.

Teather & Greenwood Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for the
Company as sponsor, financial adviser and stockbroker in relation to the Issue
and no-one else in connection with the arrangements described in this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to customers of Teather & Greenwood or for
advising any other person in connection with the arrangements described in this
announcement.

This announcement has been issued by Stanelco and is the sole responsibility of
Stanelco.

Defined terms used in this announcement are as used in the prospectus of
Stanelco dated 12 October 2006, which may be inspected at the UKLA's document
viewing facility situated at the Financial Services Authority, 25 The North
Colonnade, Canary Wharf, London E14 5HS.



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