Re Agreement

RNS Number:2693F
Hanover Capital Group PLC
18 December 2002

    Hanover Capital Makes an Investment through the Acquisition of Shares in
                      Environmental Credit Trading Company

Hanover Capital Group Plc ("Hanover" or the "Company"), the AIM quoted mining
and natural resource investment company previously known as the Tera Group, has
acquired a strategic shareholding in an environmental credit trading company.
This investment is a part of the Company's initial investment strategy following
its restructuring from a technology related company and the appointment of a
Board which specialises in investing in mining and natural resource projects.

The Company has subscribed for 2,083,333 new ordinary shares, representing 3.99%
of the issued share capital in EIE plc ("EIE").  EIE has been formed as an
environmental investment and trading company with a specific purpose of
investing into projects that have an underlying benefit to the environment via a
mechanism of the Kyoto Protocol.  EIE has a contractual relationship with
International Environmental Management Limited (IEML) in which they invest into
this companies project, primarily in the conversion of waste and the subsequent
manufacture of organic fertilizer at present in Indonesia, China, Malaysia, and
Australia.  These projects generate "carbon credits" under the Kyoto Protocol's
Clean Development Mechanism.  These credits are then traded on an international
basis.

Under the terms of the agreement, Hanover's purchase consideration of the
investment in EIE is in the amount of #500,000 to be satisfied through the issue
of 5,000,000 Hanover ordinary shares of 1p each at 10 per share.

Jo Malins, Financial Director of Hanover currently holds 15.1% stake of EIE.  He
is also a Non-Executive Director of EIE.

In due course and subject to the performance of EIE, it is the intention of
Hanover to substantially increase its investment in EIE in the near future.

Michael Edelson, Non-Executive Chairman commented on the investments:

"Although our main investment focus continues to be mining, we would be short
sighted if we failed to invest in other companies that we believe will provide
Hanover and its shareholders with shareholder value.  The nature of EIE's
business appealed to us as it allows us to be environmentally friendly through
an investment that has the potential of being highly profitable."



                                    - Ends -

For further information, please contact:

Michael Edelson, Non-Executive Chairman, Hanover Capital Group Plc
0161 274 3777

Ana Ribeiro/Simon Robinson, Parkgreen Communications
020 7287 5544




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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