Allarity Therapeutics CEO Letter to Shareholders BOSTON

Allarity Therapeutics CEO Letter to Shareholders

BOSTON, August 11, 2023

Dear Allarity Therapeutics Shareholders:

As we recently marked the end of my first year as CEO, I wanted to

reflect on our collective journey, address concerns that have been raised, acknowledge challenges we have faced, and highlight the significant

progress we have towards "Realizing the Promise of Personalized Cancer Care." As always, your continuing support of, and trust

in, our mission remain essential to our progress, and I am grateful for your steadfast dedication to Allarity Therapeutics.

First, from the time of our Nasdaq listing in late 2021 to the present

time, we acknowledge and are equally frustrated by the decline of our market capitalization. Our executive management and clinical teams

continue to firmly believe that Allarity's current share price and market capitalization are truly not indicative of the underlying

value of our therapeutic programs, our DRP platform technology, or our Company.

That being said, I am thrilled to acknowledge that we have succeeded,

despite an incredibly difficult life sciences capital market environment over the past 18 months, to raise capital needed to advance our

clinical programs towards anticipated interim data readouts for our two Phase 2 clinical trials (for stenoparib and IXEMPRA ) later

Since the start of 2023, Allarity Therapeutics has successfully raised

a total of $18.5 million of new investment capital. We have doggedly succeeded in these new capitalizations against the backdrop of a

capital market (for sub-$100M market capitalization public companies) that has seen an overall decline of 55% since January 2022 and during

which dozens of biotech companies in our sector have gone bankrupt, been dissolved, or substantially suspended operations and laid off

employees. Despite these very challenging headwinds, we have persisted in securing the necessary financing to advance our vision and the

potential of our innovative oncology therapeutics pipeline together with our core DRP companion diagnostics platform.

I am extremely pleased with, and thankful for, the non-stop efforts

and commitment of our executive team, our employees, and our external team of advisors, legal counsel, and consultants for helping us

weather this continuing storm. But, the reality is that we cannot advance our clinical programs and enhance shareholder value without

accessing new capital to support our efforts. So, we must "continue the march" towards that goal.

Our success in raising new capital resulted, among other clinical program

progress, in the initiation of Allarity's first combination therapy study, for stenoparib + dovitinib in a Phase 1b/2 clinical trial,

in early 2023. This milestone marks the first major event in the strategic refocus of our pipeline development activities announced in

August of last year.

Therapeutics, Inc. I 24 School Street, 2nd Floor I Boston,

MA I U.S.A. I NASDAQ: ALLR I

Additionally, Allarity recently issued two press releases highlighting

positive clinical data from studies prospectively using our DRP companion diagnostics (CDx) to improve cancer treatments.

These prospective trial data support what we have seen in many previous

retrospective studies: the significant potential for our DRP CDx to improve cancer patient care by identifying those most likely

to respond to a given treatment. With these recent data, we remain highly optimistic about the progress of our ongoing clinical programs

and the advancement of our core DRP platform. Our commitment to DRP CDx is unwavering and with your ongoing trust and support,

we will continue to push through these challenging times to finance our clinical programs and succeed in Allarity's vision to advance

personalized medicine for cancer patients.

I am further pleased to announce that our PARP inhibitor, stenoparib,

is now our lead clinical asset, and is currently being advanced in two out of three of our ongoing clinical trials. We will continue to

focus our energies, efforts, and resources on advancing clinical development of stenoparib, supported by continuing clinical development

of our IXEMPRA and dovitinib assets, both of which we continue to believe have substantial clinical and commercial potential.

Most recently, we announced the expansion of our Board of Directors

with several new, highly-qualified and independent Directors, which completes a Board restructuring that we initiated shortly after Allarity

was listed on Nasdaq. Our Board is now the strongest and most qualified that it has ever been, and will provide us with the highest level

of corporate oversight and guidance.

On the heels of our Board expansion, we also recently announced a clinical

development collaboration with FivepHusion in which Allarity will support their clinical advancement of Deflexifol (a novel and

promising formulation of the widely used chemotherapeutic 5-fluorouracil (5FU)) with our validated 5FU-DRP CDx, among others, to

select and treat cancer patients most likely to respond to Deflexifol . This exciting clinical collaboration demonstrates our continued

commitment to "Realizing the Promise of Personalized Cancer Care" through the use of DRP CDx, and also provides us with

an opportunity to monetize certain of our validated DRP CDx's that are outside the scope of our own therapeutic development

Therapeutics, Inc. I 24 School Street, 2nd Floor I Boston,

MA I U.S.A. I NASDAQ: ALLR I

Additionally, we continue to explore potential strategic partnerships,

merger & acquisition opportunities. Both the Board and the executive management team take evaluation of such potential opportunities

seriously. Our evaluation reflects not only our commitment to advancing the mission and pipeline of Allarity, but also our efforts to

enhance shareholder value.

In closing, over the past year, we have been working tirelessly to

reset the stage for Allarity to enjoy a stronger financial footing. Our goal is to succeed in advancing our clinical programs, thereby

optimizing the potential for enhanced Shareholder value, while also achieving our vision and mission to improve care for cancer patients.

Looking ahead, I am filled with optimism and excitement about the future

of Allarity Therapeutics. Our clinical portfolio of former Big Pharma drug candidates, dovitinib, IXEMPRA , and especially stenoparib,

together with their respective DRP CDx's, holds immense potential for "Realizing the Promise of Personalized Cancer Care"

and improving patient outcomes. Our proprietary DRP platform continues to demonstrate its predictive power in prospective (as well

as retrospective) clinical trials. This unique combination of novel cancer drug + patient-selective DRP CDx positions us at the forefront

of personalized medicine, enabling us to positively impact and improve cancer patients' lives worldwide.

I want to express my deep gratitude to our dedicated Allarity team,

whose unwavering commitment and hard work have been instrumental in overcoming the many obstacles we have faced throughout the last 18

months and brought us to this point of solid advancement toward achieving our mission. Their expertise and passion drive us forward every

day. I want to sincerely thank you, our Shareholders, for your continued support and belief in our team and our important mission, and

to assure you that we remain steadfast in our commitment to creating long-term value.

Thank you for your continuing trust and partnership. I ask you to stay

on this journey with our dedicated team. Allarity Therapeutics will continue to push the boundaries of what is possible in oncology therapeutic

development and to improve the lives of cancer patients worldwide.

CEO, Allarity Therapeutics

Therapeutics, Inc. I 24 School Street, 2nd Floor I Boston,

MA I U.S.A. I NASDAQ: ALLR I

Forward-Looking Statements

This lettter contains "forward-looking statements" within

the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide Allarity's current expectations

or forecasts of future events. The words "anticipates," "believe," "continue," "could,"

"estimate," "expect," "intends," "may," "might," "plan," "possible,"

"potential," "predicts," "project," "should," "toward," "would"

and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not

forward-looking. These forward-looking statements include, but are not limited to, statements related to the expected availability of

capital to fund its anticipated clinical trials, statements related to advancing dovitinib in combination with stenoparib or another therapeutic

candidate or other approved drug, any statements related to ongoing clinical trials for stenoparib as a monotherapy or in combination

with another therapeutic candidate for the treatment of advanced ovarian cancer, or ongoing clinical trials (in Europe) for IXEMPRA

for the treatment of metastatic breast cancer, statements relating to the effectiveness of the Company's DRP companion diagnostics

platform in predicting whether a particular patient is likely to respond to a specific drug, including but not limited to Deflexifol ,

and statements related to the Company's ability to maintain compliance with the Nasdaq Listing Rule. Any forward-looking statements

in this press release are based on management's current expectations of future events and are subject to multiple risks and uncertainties

that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements.

These risks and uncertainties include, but are not limited to, the risk that the Company is not able to raise sufficient capital to support

its current and anticipated clinical trials, the risk that results of a clinical study do not necessarily predict final results and that

one or more of the clinical outcomes may materially change following more comprehensive reviews of the data, and as more patient data

become available, the risk that results of a clinical study are subject to interpretation and additional analyses may be needed and/or

may contradict such results, the receipt of regulatory approval for dovitinib or any of our other therapeutic candidates or, if approved,

the successful commercialization of such products, the risk of cessation or delay of any of the ongoing or planned clinical trials and/or