Issue of Equity

Tanfield Group PLC
31 May 2007



                               TANFIELD GROUP PLC

                         ('Tanfield' or the 'Company')



                                ISSUE OF SHARES



The Company announces that pursuant to the terms of convertible loan notes, one
holder of the convertible loan notes has elected to convert its loan note into
789,474 ordinary shares of 1p each ('Ordinary Shares'). The Company is also
issuing 100,000 Ordinary Shares to an employee who is exercising options over
the Ordinary Shares. The Company will issue 889,474 Ordinary Shares and as a
result will have a total of 292,961,941 Ordinary Shares in issue.



Application has been made for the Ordinary Shares, which will rank pari passu
with all existing ordinary shares, to be admitted to trading on AIM. Admission
is expected to occur on 1 June 2007.


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