Issue of equity from exercise of share options

25 September 2015

Midatech Pharma PLC

("Midatech" or the "Company")

Issue of equity from exercise of share options

Midatech (AIM: MTPH), the international specialty pharmaceutical company with a diversified portfolio of high-value products in development, today announces the issue and allotment of 10,000 new ordinary shares of 0.005 pence each in the Company ("Ordinary Shares") pursuant to the exercise of certain share options by an employee.

Application has been made for the new Ordinary Shares to be admitted to trading on AIM ("Admission") and it is expected that admission will take place at 8.00 a.m. on 2 October 2015. The new Ordinary Shares will rank pari passu with the existing shares of the Company.

Following the exercise of options, the Company will have 27,820,760 Ordinary Shares in issue, none of which is in treasury. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

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For more information, please contact:

Midatech Pharma plc

Jim Phillips, CEO

Tel: +44 (0)1235 841575

www.midatechpharma.com

Panmure Gordon (UK) Limited (Nominated Adviser and Broker)

Tel: +44 (0)20 7886 2500

Corporate Finance

Freddy Crossley / Adam James / Atholl Tweedie / Duncan Monteith

Broking

Tom Salvesen

Consilium Strategic Communications

Mary Jane Elliott / Ivar Milligan / Matthew Neal / Hendrik Thys

Tel: +44 (0)20 3709 5700

midatech@consilium-comms.com

About Midatech Pharma PLC

Midatech is a nanomedicine company focused on the development and commercialisation of multiple, high-value, targeted therapies for major diseases with unmet medical need. These diseases include diabetes, rare cancers including brain (glioblastoma), ovarian, liver and pancreatic cancer and neurological/ophthalmologic conditions.

Midatech's strategy is to develop its products in-house in rare cancers and with partners in other indications, and to accelerate growth of its business through strategic acquisition of complementary products and technologies.

All of Midatech's product candidates derive from its two multi-applicable platform technologies that can be used alone or in combination to enable the targeted delivery ('right place') and controlled release ('right time') of existing drugs. These technologies are provided through its wholly-owned subsidiaries, Midatech and Q Chip (acquired in 2014).

Midatech's core platform is a drug conjugate delivery system based on a patented form of gold nanoparticles (GNP) combined with existing drugs for the safe and targeted release of therapeutic payloads at specific organs, cells or sites of disease.

The Group's second platform is a sustained release technology acquired with Q Chip that involves the consistent and precise encapsulation of active drug compounds within polymer microspheres enabling their release into the body in a highly controlled manner over a prolonged period of time.

Midatech announced the proposed acquisition of DARA BioSciences Inc., (NASDAQ: DARA), an oncology supportive care pharmaceutical company, in June 2015. The acquisition will add an oncology-focused commercial platform and products in the US.

The Group is headquartered near Oxford, UK, with a nanoparticle manufacturing operation in Bilbao, Spain and an R&D facility in Cardiff, UK.

For further company information see: www.midatechpharma.com.