The Phase 3 ONWARD Trial Meets its Screening Target and Nears Enrollment Completion Study Drug Continues to Appear to be Well-Tolerated Patient Retention Currently Exceeds Expectations Charlottesville, VA

The Phase 3 ONWARD Trial Meets its Screening

Target and Nears Enrollment Completion

Study Drug Continues to Appear to be Well-Tolerated

Patient Retention Currently Exceeds Expectations

Charlottesville, VA - July 06, 2021 -

Adial Pharmaceuticals, Inc. (NASDAQ: ADIL; ADILW), a clinical-stage biopharmaceutical company focused on the development of treatments

for addictions, today announced that the Company has made significant progress on its pivotal ONWARD Phase 3 clinical trial having met

100% of its patient screening target and having achieved 90% of its patient enrollment target. The ONWARD trial is evaluating AD04 as

a therapeutic agent for the treatment of Alcohol Use Disorder (AUD) in persons with certain target genotypes related to the serotonin

transporter and receptor genes.

ONWARD Trial Recent highlights:

"We are on track to deliver trial

data in the first quarter of 2022," said Schuyler Vinzant, Adial's Vice President of Development.

William Stilley, Adial's Chief Executive

Officer, commented, "Full trial enrollment is expected in the coming weeks as we drive toward generating data from ONWARD as we

advance our science with the goal of bringing help to those with addiction. The ramifications for all addictions, and even other mental

health disorders, could be powerful and significant."

About the Landmark ONWARD Pivotal Phase

The ONWARD trial is a 24-week, multicenter, randomized,

double-blind, placebo-controlled, parallel group, Phase 3 clinical study to evaluate the efficacy, safety and tolerability of AD04 in

patients with Alcohol Use Disorder (AUD) and selected polymorphisms in the serotonin transporter and receptor genes. Patients are genetically

screened prior to enrollment in the ONWARD trial so that only genetically positive patients are enrolled. The primary endpoint for analysis

of efficacy is the change from baseline in the monthly number of heavy drinking days during the last 8 weeks of the 24-week treatment

period. ONWARD is currently being conducted in 25 clinical sites in seven countries in Scandinavia and Central and Eastern Europe (Sweden,

Finland, Poland, Latvia, Estonia, Bulgaria and Croatia). The principal investigator is Professor Hannu E.R. Alho, Emeritus Professor of

Addiction Medicine at the University of Helsinki.

About Adial Pharmaceuticals, Inc.

Adial Pharmaceuticals is a clinical-stage biopharmaceutical

company focused on the development of treatments for addictions. The Company's lead investigational new drug product, AD04, is a

genetically targeted, serotonin-3 receptor antagonist, therapeutic agent for the treatment of Alcohol Use Disorder (AUD) and is currently

being investigated in the Company's landmark ONWARD pivotal Phase 3 clinical trial for the potential treatment of AUD in

subjects with certain target genotypes, which are to be identified using the Company's proprietary companion diagnostic genetic

test. A Phase 2b clinical trial of AD04 for the treatment of AUD showed promising results in reducing frequency of drinking, quantity

of drinking and heavy drinking (all with statistical significance), and no overt safety concerns (there were no statistically significant

serious adverse events reported). AD04 is also believed to have the potential to treat other addictive disorders such as Opioid Use Disorder,

gambling, and obesity. The Company is also developing adenosine analogs for the treatment of pain and other disorders. Additional information

is available at www.adialpharma.com.

Forward Looking Statements

contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws. Such statements are based

upon various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties and

other factors that may cause actual results, performance or achievements to be materially different from any future results, performance

or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include

the words "believes," "expects," "anticipates," "intends," "projects," "estimates,"

"plans" and similar expressions or future or conditional verbs such as "will," "should," "would,"

"may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking

statements include the foregoing. The forward-looking statements include statements regarding there being a correlation between the high

retention rate and the AD04's tolerance, the projected timeline for the provision of data in the first quarter of 2022, having the

ONWARD trial fully enrolled in the coming weeks, the ramifications of the trial being powerful and significant for all addictions,

and even other mental health disorders and the potential of AD04 to treat other addictive disorders such as opioid use disorder, gambling,

and obesity. Any forward-looking statements included herein reflect our current views, and they involve certain risks and uncertainties,

including, among others, our ability to continue to enroll patients within the timelines anticipated and complete clinical trials on time,

provide data when anticipated and achieve desired results and benefits as expected, our ability to obtain regulatory approvals for commercialization

of product candidates or to comply with ongoing regulatory requirements, regulatory limitations relating to our ability to promote or

commercialize our product candidates for specific indications, acceptance of our product candidates in the marketplace and the successful

development, marketing or sale of our products, our ability to maintain our license agreements, the continued maintenance and growth of

our patent estate, our ability to establish and maintain collaborations, our ability to obtain or maintain the capital or grants necessary

to fund its research and development activities, and our ability to retain our key employees or maintain our Nasdaq listing. These risks

should not be construed as exhaustive and should be read together with the other cautionary statement included in our Annual Report on

Form 10-K for the year ended December 31, 2019, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the

Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake

no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed

circumstances or otherwise, unless required by law.

Crescendo Communications, LLC

David Waldman / Natalya Rudman

Email: adil@crescendo-ir.com