15^th July 2010

FINAL

MDM is awarded andalucita expansion project in Peru

MDM Engineering Group Limited ("MDM" or the "Company") has been awarded the engineering work for the plant upgrade for Andalucita S.A.'s project in Peru.

The local engineering group, HAUG S.A., will be utilizing the services of MDM to perform the key process engineering functions, and the mechanical design for this brownfields project

The first DMS plant to be installed will have the capacity to run at 20tph, while the second plant will double the plants capacity.  This upgrade will not only improve the product quality but will also minimize excessive wear & tear to the current plant.  The upgrade will include a degritting plant.

George Bennett, MDM Executive Director said:

"MDM have a long-standing relationship with Andalucita S.A. and extensive experience in andalucita, for this reason we look forward to taking this project to the next level."

Enquiries:

MDM Engineering Group Limited
Martin Smith (CEO)                                                             Tel:  +27 11 993-4300 

George Bennett (Executive Director)                               

Numis Securities Limited
John Harrison (Nominated Adviser)                                Tel:  +44 (0) 20 7260 1000                

James Black (Corporate Broker)

KEY INFORMATION

MDM Engineering Group Limited is a minerals process and project management company focused 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 22 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.