Acquisition

Tanfield Group PLC
09 June 2005


                                  Announcement

                         Acquisitions and Board Changes

Acquisition of Norquip and Saxon

The Board of Tanfield Group plc (TGL) is pleased to announce the acquisition of
the assets and business of Norquip Limited and Saxon Limited. These companies
are both long established businesses with strong international reputations 
within their markets. Norquip has been a leading supplier to the airport sector,
designing and manufacturing highlifts  for catering and passenger transfer and a
range of airport ramp equipment. Saxon is a long established producer of 
specialist vehicles with extensive design and manufacturing skills particularly
within the fire fighting and rescue  vehicle sector. Both companies also provide
a national service and maintenance capability to its customers

The directors believe that these acquisitions are a good strategic fit with
TGL's existing businesses and provide a  good opportunity to substantially
increase the provision of zero and low emission vehicles to the airport sector.
SEV,  the Group's electric vehicle manufacturer will be able to offer its
airport customers the full range of electrified  ramp equipment which had been
provided by Norquip upon diesel platforms. Tanfield Holdings will run the Saxon
spares  business. There is a large fleet of Saxon vehicles in the field with an
ongoing spares and maintenance requirement. The  Board will review the ongoing
manufacturing strategy for Saxon over the next six months.

Currently both companies are not trading, the previous owner having decided to
exit these markets, 6 months ago, in  order to focus upon its core mining
business. The deal is an asset purchase of which the total cost to TGL is
£280,000.  The purchase price includes the names of the businesses, the IP, the
rights to all designs and all work in progress, a  substantial amount of stock,
and all the manufacturing jigs and fixtures. There are no liabilities attached
to the deal.

TGL is in the process of moving all the assets to its facilities in the North
East of England and is already quoting  for supply to customers significant
volumes of Norquip equipment.

Board Changes

With an eye on succession planning, the following Board changes are announced.
Mr Jon Pither, who has served on the  Board as Chairman since the Group came to
the market has decided to stand down and take up a post as a non-executive 
Director of the Group. Mr Roy Stanley will take on the role of Chairman,
combining this role, for a period of time,  with his role as Chief Executive of
the Group. The Board is very grateful to Jon for the invaluable service he has 
provided to the Group in his role as Chairman and are pleased that he has agreed
to stay on the Board and continue to  advise on the strategic direction of the
Group.

The Board is also pleased to announce the appointment of Mr Martin Groak as a
Non-Executive Director of the Group. The  Board believes that Martin will
provide valuable help in establishing the strategic and tactic direction that a
growing  group needs.

Martin is aged 54 and a Chartered Accountant with an Economics Degree from
London University. He is multi-lingual with over 25 years of international
financial management experience. He is an independent director of The AIM VCT
Plc, a quoted venture capital trust of which he is the audit committee chairman.
He is also non-executive director of several AIM listed companies.


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