Update on activity at Canton re-refining facility

16 December 2013

Hydrodec Group plc

("Hydrodec" or the "Company")

Update on activity at Canton re-refining facility

The Board of Hydrodec Group plc, the cleantech industrial oil re-refining group (AIM: HYR), can provide an update on its Canton, Ohio re-refining facility, and confirm plans to grow plant capacity significantly in 2014.

Following a site visit and report to the Board from the Chief Executive, the Company can report that the facility is safe, and has restored operational capability in order to receive and dispatch oil to support and retain the existing supply chain, with welcome and close assistance from its partners G&S Technologies.

The Company has been working closely with all relevant authorities and stakeholders to assess properly the cause and extent of damage to the plant. Current activity both at the site and at Hydrodec's headquarters is focused on recovery and/or repair of damaged production units or their replacement.

The Board is able to reconfirm the commitment from the Company to implement a 50 per cent uplift in pre-incident capacity at Canton by the end of 2014 as originally planned.

The Board has reviewed and is comfortable with its insurance cover relating to damage and business interruption. Senior management continue to work closely with both Hydrodec's insurance broker and insurance provider regarding the investigation and claim process.

The Company intends to issue a year end trading update in January when it expects to have further news regarding the Canton plant and associated insurance positions.

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