Tanfield Group PLC

("Tanfield" or the "Company")

FDG Announcement

The Directors of the Company note the recent announcement made by FDG,  the Chinese electric vehicle manufacturer who Smith formed a Joint Venture with in May 2015, on the Hong Kong Stock Exchange http://www.hkexnews.hk/listedco/listconews/sehk/2016/0228/LTN20160228009.pdf.

As announced on 17 February 2016, the board of Tanfield is currently reviewing the position of the investment in Smith and its carrying value and will update shareholders in due course.

For further information:

Tanfield Group Plc

Daryn Robinson                                                                               0700 349 7489

WH Ireland Limited - Nominated Advisor

James Joyce / Nick Prowting                                                      020 7220 1666

Peterhouse Corporate Finance - Broker

Peter Greensmith / Duncan Vasey                                           020 7220 9797