North America DGC Development Project Update

For immediate release 10 February 2011

Corac Group Plc

("Corac")

North America DGC Development Project Update

Corac (AIM: CRA) is pleased to announce that its North American Downhole Gas Compressor ("DGC") development project is progressing well against plan, and that the joint team, comprising Corac and its American Partner, has reached the milestone of the first formal design review of the compressor module with agreement on the overall system and deployment architecture. This follows the completion of the well analysis, detailed simulations of the compressor aerodynamic performance and incorporation of knowledge and improvements from our core technology development programme. From this point the development team has moved into detailed design and manufacture, which will take place through the next few months and lead to assembly and testing in the second half of the year.

The North American development project broadens our understanding of the Corac DGC performance as well as that of the core technology in a range of environments. Individual elements of Corac's core technology are already generating interest from global industrial operators with identified opportunities for a variety of uses in the gas industry and broader marketplaces.

Julian Reed, Chief Technical Officer commented

"We are making great progress on this development project and the partnership has worked together well in reaching this stage of setting the design concepts for the DGC in its application for specific well conditions. This collaborative activity defines the system and gives us a stable platform for the next phases of work. The lessons learned from this and other projects, will allow us to accelerate the development programme and work with confidence towards the final assembly."

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