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As you have mentioned, your Great Grandfather did serve in the railway pioneer regiment and was entitled to his QSA with clasps for Cape Colony and Orange Free State. However, the photograph suggests this may have been taken during his time in the Royal Engineers. He was in his 40s during the Anglo Boer War and serving as 272, CSM. As you rightly state, after he left the Railways he served about 3 months with French's Scouts before he requested a discharge. Do you know if he served in India during his service in the R E? The medal on the photograph is not his Queens South Africa medal, In my humble opinion , I believe the medal shown may well be the 1854 India General
Service medal with 2 clasps.

Dave.....