June 2021 NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN W

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE

DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR

IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW. THIS ANNOUNCEMENT IS NOT AN OFFER TO SELL OR

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AFRICA. NEITHER THIS ANNOUNCEMENT NOR ANYTHING CONTAINED HEREIN SHALL FORM THE BASIS OF, OR BE RELIED UPON IN CONNECTION WITH, ANY OFFER

OR COMMITMENT WHATSOEVER IN ANY JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU. IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED

IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT,

THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE

("Midatech" or the "Company")

UK Placing to Raise 10.0 million

Midatech Pharma PLC (AIM:

MTPH.L; Nasdaq: MTP), a drug delivery technology company focused on improving the bio-delivery and biodistribution of medicines, announces

that it has raised 10.0 million (before expenses) by way of a placing to investors in the UK ("Placing")

of 35,087,720 new ordinary shares of 0.1p each ("Placing Shares") at an issue price of 0.285 per Placing Share ("Issue

Price"). The Placing brings new UK institutions into the Company's shareholder base. Turner Pope Investments (TPI) Limited

("Turner Pope") acted as sole bookrunner for the Placing. Turner Pope participated in the Placing.

The Issue Price of the Placing Shares represents

a discount of approximately 12.3% to the closing middle market price of 0.325 per existing ordinary share on 28 June 2021, being

the last business day before this announcement. The Placing Shares represent approximately 35.6% of the issued share capital of the Company

as enlarged by the Placing.

The allotment of the Placing Shares is being made

pursuant to existing authorities to allot shares and other relevant securities and to disapply pre-emption rights under section 551 of

the Companies Act 2006, which the Directors were given at the Company's General Meeting held on 2 March 2020.

On 17 June 2021, the

Company announced a series of updates to its R&D programmes including:

of the Placing, net of fees and expenses, are expected to be approximately 9.0 million ("Net Proceeds"). We expect the

Net Proceeds will be used to:

Taking into account available

cash resources and the expected Net Proceeds, the Company expects to have sufficient cash resources to fund operations into the first

Further Information on the Placing

The Company and Turner Pope entered into a placing

agreement ("Placing Agreement"), pursuant to which Turner Pope agreed to use its reasonable endeavours to procure placees pursuant

to the Placing. The Placing is not underwritten. Turner Pope has received binding commitments from placees to acquire the Placing Shares

The Placing Agreement contains certain warranties

and indemnities by the Company in favour of Turner Pope. It also contains provisions entitling Turner Pope to terminate the Placing Agreement

prior to Admission, as defined below, if, among other things, a breach of any of the warranties occurs or on the occurrence of an event

fundamentally and adversely affecting the position of the Company.

is conditional upon, inter alia:

for Admission to trading on AIM

Subject to all conditions being met, application

will be made for the 35,087,720 Placing Shares to be admitted to trading on AIM ("Admission").

It is expected that settlement of the Placing Shares and Admission will take place at 8.00 a.m. on or about 6 July 2021 and that dealings

in the Placing Shares will commence at that time.

When issued, the Placing Shares will be fully

paid and will rank pari passu in all respects with the existing ordinary shares.

Upon Admission, the Company's issued share capital will comprise 98,468,387

ordinary shares of 0.1p each with voting rights. The Company does not hold any shares in treasury. Upon Admission this figure of 98,468,387

may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to

notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency

Stamp, Midatech CEO and CFO, said: "It has been a busy 13 months since we announced our Strategic Review and restructuring.

On 17 June 2021 we announced progress in our R&D pipeline across multiple programmes and breakthrough data on the successful encapsulation

of a large molecule protein with Q-Sphera - a world's first. Today's announcement of the Placing gives us the runway

to initiate Phase II and Phase I clinical studies of MTX110 in DIPG and GBM, respectively. Our focus now turns to lining up partners for

This announcement contains inside information

for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).

The person responsible for

arranging the release of this announcement on behalf of the Company is Stephen Stamp, Chief Executive Officer and Chief Financial Officer.

For more information,

About Midatech Pharma

Midatech Pharma PLC (dual listed on LSE AIM: MTPH;

and NASDAQ: MTP) is a drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines. The

Company combines approved and development medications with its proprietary and innovative drug delivery technologies to provide compelling

products that have the potential to powerfully impact the lives of patients.

The Company has developed three in-house technology

platforms, each with its own unique mechanism to improve delivery of medications to sites of disease. All of the Company's technologies

have successfully entered human use in the clinic, providing important validation of the potential for each platform:

The platform nature of the technologies offers

the potential to develop multiple drug assets rather than being reliant on a limited number of programmes. Midatech's technologies

are supported by 36 patent families including 120 granted patents and an additional 70 patent applications. Midatech's headquarters and

R&D facility is in Cardiff, UK. For more information please visit www.midatechpharma.com

Regulatory Information

Turner Pope, which is

authorised and regulated in the United Kingdom by the Financial Conduct Authority ("FCA"), is acting exclusively for the Company

and for no one else in relation to the proposed Placing and will not be responsible to any other person for providing the protections

afforded to their respective clients nor for providing advice in connection with the matters contained in this announcement. No representation

or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted

by Turner Pope nor by any of their affiliates or agents (or any of their respective partners, directors, officers, employees or advisers),

as to or in relation to, the contents, accuracy or completeness of this announcement or any other written or oral information made available

to or publicly available to any interested party or its advisers, or any other statement made or purported to be made by or on behalf

Neither this press release,

nor any copy of it may be made or transmitted into the United States of America (including its territories or possessions, any

state of the United States of America and the District of Columbia) (the "United States"). The distribution

of this press release in other jurisdictions may also be restricted by law and persons into whose possession this announcement comes should

inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation

of the securities laws of any such jurisdiction.

This press release does

not constitute or form part of any offer or invitation to sell or issue, or a solicitation of any offer to acquire, purchase or subscribe

for, securities of the Company.

The Placing Shares have

not been, nor will be, registered under the US Securities Act of 1933, as amended (the "US Securities Act") or the securities

laws of any state or jurisdiction of the United States, and may not be offered or sold within the United States to, or

for the account or benefit of, US person (as that term is defined in Regulation S under the US Securities Act), except pursuant to an

exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and such other applicable state

Accordingly, the Placing

Shares are being offered hereby only outside the United States in reliance upon Regulation S under the US Securities Act in

offshore transactions.

Forward-Looking Statements