September 2019 Midatech Pharma PLC ("Midatech" or the "Company") Receipt of Spanish Government Loan for the scale up of MTD201 commercial manufacturing facility Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), the R&D bio

("Midatech" or the "Company")

Receipt of Spanish Government Loan for

MTD201 commercial manufacturing facility

Midatech Pharma PLC (AIM: MTPH.L; Nasdaq:

MTP), the R&D biotechnology company focused on delivering innovative oncology and rare disease products to patients, is pleased

to announce that it has received funding of 6.6m (the "Loan") under the Spanish Government Reindustrialisation

("Reindus") programme to support the Company's manufacturing facility in Bilbao, Spain. This brings the total public

financing available for this project to up to 8.5m, including previous grant and loan amounts recently approved by the Basque

regional government1.

Further to the announcement of 29 March

2019 (the "Loan Announcement"), the Loan is intended to fund activities to scale-up the manufacturing capability of

Midatech's key MTD201 Q-Octreotide development product. The total manufacturing cost of the project is currently estimated

at approximately 16m subject to finalisation of the manufacturing strategy as detailed in the Company's 2018 results.

Midatech has provided a 2.9m guarantee ( 2.6m relating to the principal loan amount as previously reported, plus a

further 300k in respect of future interest) in the form of a cash bond in accordance with the terms of the Loan. Other terms

of the Loan are as set out in the Loan Announcement. The Company continues to explore additional potential funding avenues for

the remainder of the scale-up costs and for additional working capital.

MTD201 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 US$2.5 billion market is Novartis' Sandostatin LAR

As announced on 13 June 2019, the next

phase of clinical development for MTD201 as a differentiated product is scheduled to commence in H2 2019, to support a first indication

in acromegaly, comprising a short Phase I study in healthy volunteers, confirming the use of the sub-cutaneous administration

route, followed thereafter by the pivotal trial in patients.

of which 1.5 million is subject to matched funding.

For more information, please contact:

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

Midatech Pharma PLC (dual listed on LSE

AIM: MTPH; and NASDAQ: MTP) is an R&D company focused on Making Medicines Better' by improving delivery of drugs

in the body. The Company combines existing medications with its proprietary and innovative drug delivery technologies to provide

compelling oncology and rare disease products that have the potential to powerfully impact the lives of patients undergoing treatment

for life threatening diseases.

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:

By improving biodelivery and biodistribution

of approved existing molecules, Midatech's unique R&D has the potential to make medicines better, lower technical risks,

accelerate regulatory approval and route to market, and provide newly patentable products. The platform nature of the technologies

allows the potential to develop multiple drug assets rather than being reliant on a limited number of programmes.

Midatech's headquarters and R&D facility

is in Cardiff, UK, and manufacturing operation in Bilbao, Spain. For more information please visit www.midatechpharma.com

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

and/or United States. Such forward-looking statements include, but are not limited to, statements regarding the ability of Midatech

to successfully test, manufacture, produce or commercialize products for conditions using its technology platforms, and the ability

for products in development to achieve positive clinical results, and the ability to meet or achieve timelines associated with

pre-clinical studies, clinical trials or regulatory submissions. 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.

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

(UK) Limited (Nominated Adviser and Broker)

Emma Earl (Corporate Finance)

Limited (Financial PR and UK Investor Relations)

Email: midatech@investor-focus.co.uk

Westwicke Partners (US Investor Relations)

Tel: +1 339 970 2843

Email: chris.brinzey@westwicke.com

Midatech Pharma PLC (dual listed on LSE

AIM: MTPH; and NASDAQ: MTP) is an R&D company focused on Making Medicines Better' by improving delivery of drugs

in the body. The Company combines existing medications with its proprietary and innovative drug delivery technologies to provide

compelling oncology and rare disease products that have the potential to powerfully impact the lives of patients undergoing treatment

for life threatening diseases.

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:

By improving biodelivery and biodistribution

of approved existing molecules, Midatech's unique R&D has the potential to make medicines better, lower technical risks,

accelerate regulatory approval and route to market, and provide newly patentable products. The platform nature of the technologies

allows the potential to develop multiple drug assets rather than being reliant on a limited number of programmes.

Midatech's headquarters

and R&D facility is in Cardiff, UK, and manufacturing operation in Bilbao, Spain. For more information please visit www.midatechpharma.com

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

and/or United States. Such forward-looking statements include, but are not limited to, statements regarding the ability of Midatech

to successfully test, manufacture, produce or commercialize products for conditions using its technology platforms, and the ability

for products in development to achieve positive clinical results, and the ability to meet or achieve timelines associated with

pre-clinical studies, clinical trials or regulatory submissions. 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.

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