1 April 2010

The Tanfield Group Plc ("Tanfield")

US Associate Company Wins Additional US$22m Grant Funding

Tanfield is pleased to announce the anticipated award of further grant funding to its associate company in North America, Smith Electric Vehicles US Corporation ("SEVUS").

The US Department of Energy (DoE) confirmed on 31 March 2010 it is awarding SEVUS a further $22 million grant, towards the production of its Smith Newton electric truck. This funding is in addition to the $10m DoE grant announced in August 2009 and is the result of SEVUS working closely with the DoE for several months.

The DoE funding incentivises major fleet operators to participate in a nationwide demonstration programme. Qualifying companies will receive a subsidy towards the cost of electric trucks, in return for providing operational data back to the DoE. The additional grant means SEVUS can now produce more than 500 of its Smith Newton all-electric commercial trucks for the programme. Some of the funding will also help SEVUS to offset the cost of future product development.

Tanfield owns 49% of SEVUS, with the remainder owned by private investors and SEVUS's senior management team. On 10 March 2010, SEVUS made a conditional, non-binding offer to buy Tanfield's Smith Electric Vehicles Division Assets, conditional, inter alia, on SEVUS financing.

For further information:

The Tanfield Group Plc       +44 (0) 845 155 7755

Darren Kell, CEO

Charles Brooks, FD

Arbuthnot Securities          +44 (0) 20 7012 2000

Nomad & Broker

James Steel

Ed Gay

ENDS