Update on Operational Incident at Canton

2 December 2013

Hydrodec Group plc

("Hydrodec" or the "Company")

Update on Operational Incident at Canton, Ohio Re-refining Facility

Hydrodec Group plc, the cleantech industrial oil re-refining group (AIM: HYR), is able to provide an update on the situation at its re-refining facility in Canton, Ohio in the United States following an incident on Sunday, 1 December.

The site is now safe and secure, although as yet without mains power. The Company is working closely with the fire department and with the loss adjustors from the insurance company to establish the cause of the incident. There will be no oil handling at the plant until power is restored; processing will only be possible once there has been a full assessment of the cause and damage, and repairs have been made.

Importantly, the Company's emergency shut-down system and associated procedures operated successfully, with staff safely evacuated. This undoubtedly minimised damage or environmental impact beyond the main process building where the incident was successfully contained.

A Company incident committee has been formed, chaired by Ian Smale, Chief Executive, with the operational response team in Canton led by Michael Pitcher the Hydrodec of North America President. Our partners, G&S Technologies, are fully engaged with the Hydrodec team managing the communication with our suppliers and customers to minimise the business consequences.

The Board of the Company has met today and the operational, health, safety and environment (OHSE) committee sat to consider the Company's emergency response. The OHSE committee considers that both the on-site and off-site response have been carried out in accordance with the high standards set and expected by the Company's emergency and safety policies and practice.

The Company will post updates on its website, and where appropriate make any market announcements when more information becomes available regarding the timeframe for a return to operations for the facility.

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