March 2021 Midatech Pharma PLC ("Midatech" or the "Company") Non-binding Heads of Terms for MTX110 Co-development of MTX110 and Unaudited Headline Results for the Year Ended 31 December 2020 Midatech Pharma PLC (AIM: MTP

("Midatech" or the "Company")

Non-binding Heads of Terms for MTX110 Co-development

Unaudited Headline Results for the Year Ended

Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP),

a drug delivery technology company focused on improving the bio-delivery and biodistribution of medicines announces non-binding Heads

of Terms for the co-development of MTX110 and unaudited headline results for the year ended 31 December 2020.

MTX110 - Non-binding

On 26 January 2021, the Company announced that

it was engaged in tentative discussions with a third party around the potential co-development of MTX110. These discussions have now advanced

to non-binding term sheet stage.

If the deal progresses to definitive agreements,

the Company would expect to receive a modest upfront payment upon execution, success-based development and sales milestones and royalties

typical for a licensing agreement with products in a similar stage of development. R&D expenses would be assumed by the two parties

with the apportionment to be agreed based on their respective territories. There can be no assurance on the timing for concluding these

discussions nor any assurance that the parties will enter into definitive agreements. Further announcements will be made in due course,

Unaudited 2020 Headline Results

In March 2020, the Company

announced a strategic review of its operations which led to the termination of further in-house development of MTD201, closure of its

Spanish subsidiary, Midatech Pharma Espa a SL ("MPE"), and the MTD201 dedicated manufacturing facilities in Bilbao,

The closure of MPE resulted

in an immediate halving of the cash burn rate and significant savings in R&D and administrative expenses going forward. Included in

the unaudited headline results for 2020 are R&D expenses and administrative costs of 2.8 million and 1.1 million, respectively,

Also in connection with

the termination of MTD201, the Company has recognised a non-cash impairment loss in 2020 for in-process development of 9.3 million

and goodwill of 2.3 million. In addition, in connection with the purported termination of our license to panobinostat by Secura

Bio, Inc. in June 2020, the Company recognised a non-cash impairment of an intangible asset relating to the license agreement of 0.8

million as of 31 December 2020.

Headline unaudited results, including MPE, for

the year ended 31 December 2020 compared with the prior year are as follows:

The Company expects to publish its audited results for the year ended

31 December 2020 by the end of April 2021.

Our consolidated financial

statements for the fiscal year ended 31 December 2020 are not yet available and our independent registered public accounting firm, Mazars

LLP, has not completed its audit of the consolidated financial statements for such period. Our expectations with respect to our unaudited

results for the period discussed above are based upon management estimates. The estimates set forth in this announcement were prepared

based upon a number of assumptions, estimates and business decisions that are inherently subject to significant business and economic

conditions and competitive uncertainties and contingencies, many of which are beyond our control. This summary is not meant to be a comprehensive

statement of our unaudited financial results for this period and our actual results may differ from these estimates.

This announcement contains inside information

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

For more information, please contact:

Stephen Stamp, CEO, CFO

Tel: +44 (0)1235 888300

Limited (Nominated Adviser and Joint Broker)

Freddy Crossley, Emma

Earl (Corporate Finance)

Rupert Dearden (Corporate

Tel: +44 (0)20 7886 2500

Turner Pope Investments

(TPI) Limited (Joint Broker)

Andrew Thacker / Zoe Alexander (Corporate Broking)

Tel: +44(0)20 3657 0050

IFC Advisory Limited

(Financial PR and UK Investor Relations)

Tim Metcalfe / Graham

Tel: +44 (0)20 3934 6630

Email: midatech@investor-focus.co.uk

Edison Group (US Investor Relations)

Tel: +1 (646) 653 7034

Email: mpaul@edisongroup.com

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 biodistribution 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

Forward-Looking Statements

Certain statements in this press release may constitute

"forward-looking statements" within the meaning of legislation in the United Kingdom and/or United States Private Securities

Litigation Reform Act. All statements contained in this press release that do not relate to matters of historical fact should be considered

forward-looking statements.

Reference should be made to those documents that

Midatech shall file from time to time or announcements that may be made by Midatech 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 Midatech 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, Midatech does not undertake any obligation to publicly update or revise any forward-looking statements

because of new information, future events or otherwise arising.