First oil sales from Bomen, Canton on schedule

1 May 2015

Hydrodec Group plc

("Hydrodec" or the "Company")

First oil sales from Bomen, Australia; Canton on schedule for first oil in May

Hydrodec Group plc (AIM: HYR), the cleantech industrial oil re-refining group, is pleased to confirm that it has made its first commercial oil sale from its Australian plant now re-located to Southern Oil's Bomen facility in Wagga Wagga. The re-located plant is fully commissioned, and the tolling arrangement with Southern Oil has commenced. The plant will not only benefit from operating efficiencies under a single operating structure, but also offer better logistics and other location advantages.

Hydrodec can also confirm that commissioning of the rebuilt and expanded plant in Canton, Ohio remains on schedule for first oil in May, a sequential startup of all six processing trains during the month and first commercial sales expected before the month end as previously advised.

Commenting on the commercial milestone, Ian Smale, Chief Executive of Hydrodec said: "Re-starting operations in Australia through Southern Oil is a significant milestone for the Australian business and an important step forward in delivering the Hydrodec strategy. The move will create a more resilient commercial platform for Hydrodec in Australia as well as benefit from a constructive relationship with our new operating partner. We now look forward to start up in Canton to complete the repositioning of our transformer oil business."

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Notes to Editors:

Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia. In 2013, Hydrodec acquired the business and assets of OSS Group, the UK's largest collector, consolidator and processor of used lubricant oil and seller of processed fuel oil, with a national network of oil storage and transfer stations. Used oil is converted into processed fuel oil at OSS's plant at Stourport and principally sold on to the UK quarry and power industry. In April 2015, Hydrodec further acquired the business and assets of Eco Oil, a leading UK waste oil collector and supplier of recycled industrial fuel oil into the power and road stone industries. It is also one of four significant providers of waste management services to the marine industry in the UK, specifically oily-water slops or marine pollutant (MARPOL). In line with our stated intention to develop a base oil re-refinery in the UK, we have an exclusive licence agreement with California-based Chemical Engineering Partners (CEP) to develop the CEP wiped-film evaporation and hydrogenation technology in the UK as well as the basic engineering for a 75 million litre per annum capacity base oil re-refinery.

Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.