EGM & Trading Update

Tanfield Group PLC
13 December 2004


                         Announcement to Stock Exchange
                               13th December 2004

                               Tanfield Group Plc

                        Result of EGM and Trading update

Tanfield Group Plc is pleased to announce that at its EGM on the 10th December
2004 the motion allowing it to place 30,000,000 new Ordinary shares was duly
passed. As previously announced, these shares have been placed at 10p per share
(raising £3,000,000 before expenses) and will be admitted to trading in two
equal tranches on 15 and 20 December 2004.

Use of Placing Funds

The money raised will be used to further strengthen the Balance Sheet by paying
of an element of debt thereby reducing the gearing of the company. The company
will also use a proportion of the money to buy property that it currently
occupies and is paying rent for and to invest in new plant and equipment
allowing an increase in capacity to match the strong growth in the order book.
The investment in plant and equipment will allow work which is currently being
sub contracted to be brought in house. All of the above are expected to be
earnings enhancing

Trading update

The Directors would also like to take this opportunity to provide an update on
trading. The Directors believe that the Group's trading for the year ending 31
December 2005 should be above market expectations for the following reasons:

Growth in order book

SEV Group - the Electric Vehicle Division

Since the acquisition of SEV in October 2004 that division's order book has
grown by more than £2 million. SEV will start the year 2005 with the healthiest
order book in its history valued at nearly £9 million and there are ongoing
negotiations for several more large orders.

Tanfield Holdings - the Assembled Solutions Division

Work on all of the recent contract wins in the Health, Defence, Industrial
Vehicle and Power Generation Sectors have started. This division over the past
12 months has doubled its value added monthly output and in October and November
achieved record monthly turnover levels. This trend is expected to continue in
2005. This is a substantial challenge for our manufacturing units but the
Directors believe that the necessary resources are in place to achieve the
projected level of growth. The order book in this division continues to increase
and currently stands at more than £18 million. There are also ongoing
negotiations for several significant contracts which will further impact on 2005
results.

Acquisition

The Directors are in the final stages of completing the legal documentation
relating to the proposed acquisition of ClickHere which was referred to in the
announcement released by the Company on 30 November 2004, and it is expected
that a further announcement will be made in the near future.

Enquiries:

Roy Stanley
Tanfield Group Plc Tel. [phone]

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


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