Sareum Regulatory News (SAR)

SAREUM HOLDINGS PLC

("Sareum" or "the Company")

SAREUM NOTIFIED OF FUNDING AWARD FROM INNOVATE UK

Award of up to £140,000 to investigate the potential of TYK2 inhibitors to treat adolescent leukaemia

Sareum, the specialist cancer drug discovery and development business, is pleased to announce that it has received notification from the UK's innovation agency, Innovate UK, that it has been successful in its latest application to the Biomedical Catalyst and has been awarded funding of up to £140,000.

The award will provide funds for Sareum to investigate the potential of lead molecules from its TYK2 autoimmune disease programme to treat T-Cell Acute Lymphoblastic Leukaemia (T-ALL). T-ALL is a rare type of leukaemia that most often occurs in late childhood and early adolescence.

The Company has previously demonstrated the efficacy of its lead TYK2 molecules in models of autoimmune diseases, such as psoriasis and multiple sclerosis, in collaboration with co-development partners, SRI International. There is evidence in the scientific literature that TYK2 inhibition may be a strategy for treating T-ALL and this funding award will enable Sareum to further determine the feasibility of this novel approach.

Receipt of the funding award is conditional on Sareum contributing up to £60,000 during the funding period, as well as a compliance review by Innovate UK and execution of final documentation. The funding period is expected to start in August 2015 and continue for 12 months.

The £180 million Biomedical Catalyst is an integrated translational funding programme, jointly operated by the Medical Research Council and Innovate UK, providing responsive and effective support for the best life science opportunities arising in the UK. The programme was announced by the Prime Minister David Cameron in December 2011 as part of the UK Government's Life Sciences Strategy.

Sareum's CEO, Dr. Tim Mitchell, commented:

"We are delighted to have won this award from the Biomedical Catalyst, which will give us the opportunity to demonstrate the potential of our TYK2 inhibitors in leukaemia. If successful, we believe commercial interest in this programme may increase further. We see this award as being a positive validation of Sareum's science as competition for these funds is very strong. Success from this feasibility award may lead to other opportunities to secure additional funding awards to advance the programme further."

For further information:

Notes for editors:

Sareum is a drug discovery and development company delivering targeted small molecule therapeutics, focusing on cancer and autoimmune disease, for licensing to pharmaceutical and biotechnology companies at the preclinical or early clinical trials stage.

Sareum operates an outsourced research model, working with collaborators (SRI International, the CRT Pioneer Fund and Hebei Medical University Biomedical Engineering Center) and a world-wide network of research providers. Its research pipeline includes two programmes undergoing pre-clinical IND-enabling studies.

SKIL® (Sareum Kinase Inhibitor Library) is Sareum's drug discovery technology platform that has so far produced the Company's Aurora+FLT3, Aurora+ALK, VEGFR-3, FLT3 & TYK2 kinase cancer and autoimmune disease research programmes. SKIL® can also generate drug research programmes against other kinase targets.

Sareum Holdings plc is listed on the AIM market of the London Stock Exchange, trading under the symbol SAR. For further information, please visit www.sareum.co.uk

T-Cell Acute Lymphoblastic Leukaemia (T-ALL) is a rare type of leukaemia that is more common in older children and teenagers. It affects a type of white blood cell called T-cells. It is aggressive and progresses quickly. Around 200 people are diagnosed with T-ALL in the UK every year. It usually occurs in late childhood or early adolescence and is significantly more common in boys than girls.

Innovate UK is the new name for the Technology Strategy Board - the UK's innovation agency. Taking a new idea to market is a challenge. Innovate UK funds, supports and connects innovative businesses through a unique mix of people and programmes to accelerate sustainable economic growth. For further information visit https://www.gov.uk/government/organisations/innovate-uk

Catalysts are run jointly by Innovate UK and the Research Councils. A Catalyst is a form of research and development funding which focuses on a specific priority area and aims to help take projects from research to as close to commercial viability as possible. The Catalyst model supports projects in priority areas where the UK research base has a leading position and where there is clear commercial potential.Current Catalysts include: Biomedical Catalyst, Agri-tech Catalyst and the IndustrialBiotechnology Catalyst. For more details please visit: https://www.gov.uk/innovation-get-details-about-innovate-uk-funding-competitions#catalysts