24 January 2011

TANFIELD GROUP PLC ("Tanfield" or the "Company")

BOARD CHANGE AND GRANT OF OPTIONS

Board Change

The Company announces that following the sale of Smith Electric Vehicles' assets to Smith Electric Vehicles US, Geoff Allison resigned from the Board of Directors as Managing Director of the Zero Emission Vehicles Division on 21 January 2011. The Board thanks Geoff for his contribution to Tanfield's business.

Grant of Options

The Company announces that on 21 January 2011 it granted 5,800,000 options to various directors and members of staff.  4,000,000 of these options were granted to certain directors of the Company as follows;

The options are to subscribe for new ordinary shares in the Company and the exercise price is 27 pence per ordinary share, being the middle market quotation of the shares at the close of trading on 21 January 2011. The options have been granted for nil consideration.

The options may be exercised at any time after the third anniversary from the date of grant. All share options must be exercised before the tenth anniversary of date of grant, failing which they will lapse.

After granting the above share options the beneficial and other interests of the directors and their families in the shares of the Company are as follows;

Following the grant of the above options, the share capital of the Company comprises 94,077,218 ordinary shares, with voting rights, plus 8,891,334 options over ordinary shares.

Further information:

Tanfield Group plc                                                                            0845 155 7755

Darren Kell / Charles Brooks

Arbuthnot Securities Limited (NOMAD and Broker)          020 7012 2000

James Steel / Edward Gay

ENDS