March 2023 Midatech Pharma PLC ("Midatech" or the "Company") New Preclinical R&D Programme Focused on Leptomeningeal Disease Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), a drug delivery technology company focused on i

("Midatech" or the "Company")

New Preclinical R&D Programme Focused on

Leptomeningeal Disease

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

a drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines, is pleased to announce a new

research programme coded MTD217 focusing on developing new therapeutic options for metastatic cancers with high unmet needs.

Many cancers exhibit high levels of metabolic

plasticity, i.e. the ability to switch between energy-generating pathways in response to cellular stresses1,

such as those caused by chemotherapy. Highly proliferative cancers frequently use the aerobic glycolysis pathway, known as "the

Warburg effect", to generate energy2. Oxidative Phosphorylation (OXPHOS) is another critical mechanism that enables a

variety of fuel sources to be used to generate adenosine triphosphate (ATP), a molecule present in cells that provides energy for metabolic

processes. When under induced stress, cancer cells switch away from aerobic glycolysis and significantly increase reliance on the alternative

OXPHOS pathway. Inhibiting the OXPHOS pathway represents a potential means of targeting both primary and metastatic tumour lesions in

patients. OXPHOS can be inhibited by a range of small molecule therapeutics, however systemic administration of these generally causes

undesirable toxic effects in healthy cells3.

Midatech's MTD217 programme explores simultaneous

inhibition of key metabolic pathways, including the Warburg effect and OXPHOS. The research is centred around a number of new water-soluble

drug formulations that can be easily infused or injected simultaneously, or sequentially, directly into the cancer microenvironment, disrupting

metabolic functions in a highly localised manner, thus limiting off-target toxicity. The Company has already been able to demonstrate

up to a six-fold synergistic effect of administering its formulation of panobinostat, known as MTX110, with an OXPHOS inhibitor in

vitro with three patient-derived cells lines. On the back of those data, Midatech has established new patent positions to protect

these combination formulations.

The Company's initial target is treatment

of leptomeningeal disease, a lethal complication in which metastatic cancer cells invade the cerebrospinal fluid and central nervous system4.

In collaboration with several large academic centres, Midatech is now accelerating preclinical studies to generate proof of concept data

in this setting that can support a future clinical trial application.

Dr Dmitry Zamoryakhin, MD, MBA, CSO of Midatech,

"We are very excited about accelerating

this promising programme towards first-in-human studies. It capitalises on Midatech's knowledge in direct intratumoral delivery

of drugs, currently being explored in our clinical programme of MTX110 in recurrent glioblastoma. Furthermore, blockage of the OXPHOS

pathway by MTD217 opens opportunities to demonstrate potential synergistic effects with checkpoint inhibitors in solid tumours as well

as exploration of co-treatment with MTX110 in patients with aggressive brain tumours."

Ahmat et.al Tumour microenvironment and metabolic plasticity in cancer and cancer stem cells: Perspectives on metabolic and immune

regulatory signatures in chemoresistant ovarian cancer stem cells. Semin Cancer Biol. 2018 Dec; 53:265-281

2 Trang et.al Therapeutic Drug-Induced Metabolic

Reprogramming in Glioblastoma. Cells 2022, 11, 2956

Targeting Mitochondria for Treatment of Chemoresistant Ovarian Cancer. Int J Mol Sci. 2019;20(1):229. Published 2019 Jan 8.

doi:10.3390/ijms20010229

4 Law et.al A preclinical

model of patient-derived cerebrospinal fluid circulating tumor cells for experimental therapeutics in leptomeningeal disease from melanoma.

Neuro-Oncology 24(10), 1673-1686, 202

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Forward-Looking Statements

Certain statements in

this announcement 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. The Company wishes 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.

Reference should be made

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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

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

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