March 2019 Midatech Pharma PLC ("Midatech" or the "Company") Approval received for Spanish Government Loan for the scale up of MTD201 commercial manufacturing facility Midatech today announces that on 28th March 2019, th

received for Spanish Government Loan for the scale up of

commercial manufacturing facility

Midatech today announces that on 28th March 2019, the Spanish government notified the Company that it has provisionally approved

the Company's Reindustrialisation ("Reindus") loan application relating to Midatech's plans for commercial

scale-up of its key MTD201 Q-Octreotide development product.

The loan amount conditionally approved under Reindus is 6.6m ("Loan"), which brings the total public financing

available for this project to 8.5m, including previous amounts recently approved by the Basque regional government. The

total manufacturing cost of the project is being finalised and is currently estimated at approximately 16m. This quantum

remains subject to finalisation of a number of variables. Provision of the Loan is subject to Midatech providing a 2.6m

guarantee ("Guarantee"), which Reindus requires as part of the terms of the Loan to be paid within 15 days of formal

request by Reindus, which is expected within the next month. The Guarantee, and any other potential costs not covered by the approved

funding such as personnel costs, is likely to be funded by bank finance and other Basque funding institutions. The Loan will accrue

interest at a rate of 1.6%. Repayments commence 3 years after drawdown, and the repayment period thereafter is 10 years.

is a treatment for acromegaly and neuroendocrine (NET) tumours such as carcinoid cancer, and is based on the Company's novel

polymer microsphere technology, Q-Sphera for sustained release delivery. The leading product currently in this $2 billion

market is Novartis' Sandostatin LAR ("SLAR"). Data from Midatech's recent Phase I exploratory

study demonstrated that MTD201 produces a safe and effective sustained delivery profile of Octreotide, with further advantageous

characteristics which strongly supports the continued development of a long-acting octreotide product alternative to SLAR for

treatment of these diseases.

CEO Craig Cook commented The Reindus loan is a real boost to our commercial manufacturing scale up scheduled over the next

18 - 24 months in Bilbao and, together with other alternative options under consideration by the Board such as strategic

manufacturing partnerships, can provide all our manufacturing needs in the medium to long term. For our lead program MTD201, completion

of the commercial manufacturing is required prior to submitting for marketing authorization in the US and EU, and the Reindus

loan allows us to plan and move ahead with more confidence.'

ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE EU REGULATION 596/2014

Pharma (LSE AIM: MTPH; NASDAQ: MTP) is an R&D company focused on delivering innovative oncology and rare disease products

to patients. The Company is developing a range of improved chemo-therapeutics or new immuno-therapeutics, using its three-proprietary

platform drug delivery technologies, all of which are in the clinic, specifically:

of our three technologies are thus focussed on improved bio-delivery and bio-distribution of medicines or agents to areas of the

body where they are needed and can exert their actions in an effective, safe and precise manner.

is headquartered in Oxfordshire, with an R&D facility in Cardiff and a manufacturing operation in Bilbao, Spain. For more

information please visit www.midatechpharma.com.

statements in this press release may constitute "forward-looking statements" within the meaning of legislation in the

United Kingdom and/or United States. Any forward-looking statements are based on currently available competitive, financial and

economic data together with management's views and assumptions regarding future events and business performance as of the time

the statements are made and are subject to risks and uncertainties. We wish to caution you that there are some known and unknown

factors that could cause actual results to differ materially from any future results, performance or achievements expressed or

implied by such forward-looking statements.

should be made to those documents that we shall file from time to time or announcements that may be made by the Company in accordance

with the London Stock Exchange AIM Rules for Companies ("AIM Rules"), the Disclosure and Transparency Rules ("DTRs")

and the rules and regulations promulgated by the US Securities and Exchange Commission, which contains and identifies other important

factors that could cause actual results to differ materially from those contained in any projections or forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. All subsequent written and oral forward-looking

statements by or concerning the Company are expressly qualified in their entirety by the cautionary statements above. Except as

may be required under the AIM Rules or the DTRs or by relevant law in the United Kingdom or the United States, we do not undertake

any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise