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12th June 2009

MDM Engineering Group Limited

('MDM Engineering' or the 'Company')

NEXT PHASE OF KALAGADI MANGANESE PROJECT

MDM Engineering Group Limited (AIM:MDM) is pleased to announce that it has commenced work on the Front-End Engineering and Design ('FEED') phase of the Kalagadi Manganese (Proprietary) Limited's ('Kalagadi Manganese') Umtu Sinter Plant project at Hotazel, South Africa. The Company is also currently engaging with Kalagadi on various other matters.

To date MDM Engineering has completed a Bankable Feasibility Study (BFS) for Kalagadi Manganese, and the FEED project represents a continuation of that process, which will incorporate a Control Budget Estimate (CBE) in order to take advantage of the current environment of weaker commodity prices.  The BFS completed during 2008 had a value of ZAR 3.5 Billion.

MDM Engineering's Chief Executive Grant Lowman commented:

'This is a significant step forward in the development of the Kalagadi Manganese project. We look forward to assisting Kalagadi Manganese with the development of this major project which will be the first BEE (black economic empowerment) grass roots mining project developed and controlled by women in South Africa.'

Enquiries:

MDM Engineering Group Limited
Grant Lowman/George Bennett                 Tel:  +27 11 9934300                             

Numis Securities Limited 
John Harrison (Nominated Adviser)        Tel: +44 (0)207 260 1000        

James Black (Corporate Broker)

Pelham Public Relations
Candice Sgroi                                                  Tel: +44 (0) 207 337 1533

James MacFarlane                                        Tel: +44 (0) 207 337 1527

KEY INFORMATION

MDM Engineering Group Limited is a minerals process and project management company focussed on the mining industry. The Company provides a wide range of services from preliminary and final feasibility studies, through to plant design, construction and commissioning. To date, the Company's clients have largely been junior and mid-tier mining corporations with operations in Africa.

In May 2008, the Company successfully listed on the AIM market of the London Stock Exchange. The MDM Engineering core technical team has a 20 year track record of completing a wide range of studies and execution projects across a variety of minerals, including precious metals, base metals, ferrous and non-ferrous metals, uranium and diamonds.

The Company has adopted an approach to project execution based on an open-book Engineering, Procurement, Construction Management ('EPCM' or 'cost-plus') basis. With a core focus on Africa, MDM Engineering is setting the benchmark standard for best practice in the mining services industry through its commitment to providing the highest quality services and actively engaging with clients to ensure maximum transparency. 

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