MDM ENGINEERING GROUP LIMITED

("MDM" or the "Group")

Operating Update

Following the announcement by First Uranium Corporation Limited ("First Uranium") that, as the environmental authorisation for the tailings storage facility for its Mine Waste Solutions tailings recovery project has been withdrawn, it is seeking to delay the development thereof, MDM announces that it believes that the Phase 2 construction of the First Uranium Gold and Uranium Project in Stilfontein, South Africa (the "Project") may be suspended. MDM has not yet received any formal notification from First Uranium regarding the suspension and as to the revised timetable for the Project but will notify the market when further information is available.

MDM's management believe that this suspension could result in the Group's profit before tax for the year to 31 March 2010 being approximately 4-8% below management's expectations prior to the suspension of the Project.

For further information please contact:

MDM Engineering Group Limited

George Bennett / Dominique de la Roche

Tel: +27 (11) 993 4300

Numis Securities Limited

John Harrison (Nominated Adviser)

James Black (Corporate Broker)

Tel: +44 (0) 207 260 1000