Corporate Presentation

Midatech Pharma plcAugust 2017

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Accordingly, recipients should note that Panmure Gordon is neither advising nor treating as a client any other person and will not be responsible to anyone other than the Company for providing the protections afforded toclients of Panmure Gordon under the COBS nor for providing advice in relation to the proposals contained in this presentation.While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express orimplied) as to, or in relation to, the accuracy, reliability or completeness of the information in this presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all suchinformation being referred to as “Information”) and liability therefore is expressly disclaimed. 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Any failure to comply with this restriction may constitute a violation of United States securities laws.The securities of the Company have not been registered under the Securities Act and may not be offered or sold in the United States or to any US person unless the securities are registered under the Securities Act or an exemption therefrom is available.Certain statements in this presentation may constitute “forward-looking statements” within the meaning of legislation in the United Kingdom and/or United States. In some cases, you can identify forward-looking statements by the use of words such as “may,”“could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “potential,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statementsbecause they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, the acquisition, levels of activity, performance, or achievements. Any forward-lookingstatements 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 anduncertainties. 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. Referenceshould 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-lookingstatements. These forward-looking statements speak only as of the date of this presentation. All subsequent written and oral forward-looking statements by or concerning Midatech are expressly qualified in their entirety by the cautionary statements above. Exceptas 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 eventsor otherwise arising.

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A rapidly growing international specialty pharmaceutical company

UK-based public company (LON: MTPH / Nasdaq: MTP)• >100 employees across Europe and the US• Diversified strategy and sources of revenue with innovative R&D pipeline• Highly experienced pharma management team

Fully integrated R&D capabilities with three platform technologies: “right time, right place”• 1 Q-Sphera™ - “printed” sustained-release particles• 2 GNP - gold nanoparticle carrier system• 3 Nano-inclusion solubilisation• MTP technology, based on known therapeutic agents, avoids NCE risk• At least 2clinical trials planned in 2017

Full service US Sales and Marketing• Sales channel to commercialise high value pipeline• Currently six marketed products: potential aggregate peak sales of up to $50 million• Double-digit top-line growth and break even expected over the next 12 months• Q-Octreotide, the lead pipeline product, expected to file in 2018

Organisation

R&DPipeline

US Commercial

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Highly Experienced Pharma Management Team

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Rolf StahelNon-executive Chairman

Dr. Jim Phillips, MB, ChB, MBAChief Executive Officer

Nick Robbins-Cherry, ACA, MBAChief Financial Officer

Dr. Craig Cook, MD, MBAChief Operating Officer

Rob Rainey, FCA, MBA, MAHead of Corporate Development

David BenharrisPresident, Midatech Pharma US

Overview and value proposition

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Midatech GroupStrong R&D product

pipeline3 technology platforms

Gold nanoparticleLiver cancerBrain cancer

Immunotherapy

Nano inclusionBrain cancer

Sustained releaseOncology

Commercialisationcapability

Portfolio of cancer supportive care products and sales channel

ZuplenzGelclairOravig

Soltamox

Future value upside lies in innovative, drug delivery, built on Midatech’s three proprietary platform technologies

US operation generates revenue and provides the sales channel when pipeline products reach market

Midatech’s international R&D, manufacturing and sales facilities

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Midatech US CommercialRaleigh, North Carolina36 staff, including 20 reps

Midatech Corp HQ and GNP R&DOxford, UK22 staff

Midatech Q-Sphera SR R&DCardiff, UK16 staff

Midatech ManufacturingBilbao, SpainDevelopment-scale manufacturing facility30 staff

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Innovative platform technologies: driving significant future valueQ-Sphera™ Gold Nano Particle (GNP) Nano Inclusion (NI)

Technologies

Sustained Delivery Targeted Delivery Local Delivery

ApplicationsBrain Cancer

Adults Carcinoid

CancerAcromegaly Oncology Immuno-Oncology Brain Cancer

Children

Liver Cance

r

Brain Cancer

Vaccines Tumour Macrophages

Development Programmes

1. MTX110 DIPG1. MTD119 Liver Cancer (HCC)2. MTX102 Diabetes Vaccine

1. MTD201 Q-Octreotide 2. MTD202 OpsiSporin

Development pipeline: 2 programmes entering the clinic in 2017

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RESEARCH PRECLINICAL CLINICAL / REGULATORY PHASES

Immunotherapy

Cancer

Ophthalmology

Q-Octreotide carcinoid/acromegaly MTD201

Glioblastoma

Opsisporin to be out-licensed

Liver hepatocellular carcinoma MTD119

Immuno-oncology vaccine

Immuno-oncology TAM

Development of multiple high-value, targeted therapies for major diseases with unmet medical need

DIPG pontine glioma MTX110/MTR111 named patient basis + clinical trials

Uses gold nanoparticle technology

Uses polymer microsphere technology Uses nano-inclusion technology

Type 1 diabetes vaccine MTX102 to be out-licensed

Development timelines are company estimates

Research and developmentDriving value for shareholders

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Nanotech Gold Nanoparticle GNP for targeted delivery & enhanced biodistribution

Drug conjugates eliminated via the kidneys and liverDesigned to release the active compound inside the cell

Internal GMP manufacturing facility

1.4 - 1.8nm

Smallest particles in biomedical use: 10x-20x

smaller than peers

SOLUBILITY

THERAPEUTICS

Ultra-small gold nanoparticles are bio-inert, non-toxic, non-immunogenic; do not generate immune-response

EXCRETABILITY

SCALABILITY

Multivalency Size

Small size ~1.5nm and defined charge allows transport to disease sites that are otherwise very difficult to reach

Enable the transport of water insoluble and lipid soluble compounds to disease sites

RELEASABILITY

SOLUBILITY

TARGETING

THERAPEUTICS

MOBILITY TARGETING

THERAPEUTICS COMPATIBILITY

CORONA

LINKER

SULPHUR LAYER

NOBLE METAL CORE

Multivalency - enables binding of several targeting and therapeutic agents to a single nanoparticle

Payloads conjugated to form small (~5nm) medicines for targeted delivery

+

THERAPEUTICS

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Q-Sphera – printed microspheres for Sustained Release

PROPRIETARY MICROSPHERE PLATFORMPrecision encapsulation platform enabling tuneable sustained drug release for chronic

diseases:• Emulsion-free synthesis with product monodispersity

• Precise control over particle size, morphology, release kinetics• High drug loading, minimal burst release, essential to development of safe & effective therapies

ADVANTAGES• Tox: non-toxic and well tolerated• Particle size: allows fine gauge needles • PK: easily tuned to range dosing regimes• PK: highly linear reproducible kinetics• PK: each sphere the same, low variability• PK: predictable degradability, 3–6 months• Class 3 solvents: no solvent-related tox• High drug loading: small injectable mass• High API purity: minimal impurities• Microbial and endotoxin control: sterility

assurance via terminal sterilisation and very low endotoxin levels

MICROPARTICLES• Encapsulate drugs into micron sized

particles - (diameter ~25μm)• Compatible with small molecules -

peptides, oligonucleotides, proteins• Tuneable using biodegradable

polymers

”PRINTING” DRUGS AT SCALE• Innovative adaptation of inkjet

technology to enable “printing” of uniform drug-containing microparticles

• Printing ‘000,000 particles per second

Q-Octreotide for Acromegaly and Carcinoidentering human trials in 2017

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Long-acting formulation of Octreotide acetate for treatment of carcinoid (cancer) and acromegaly

Streamlined manufacturing process• Terminal sterilisation avoids aseptic manufacture• Printed particles avoid the need to sieve and fraction• Knock-on benefits to other Q-Sphera™ projects

Product benefits vs Sandostatin® LAR®• Fast and simple to reconstitute reducing errors and wastage• Smaller needle and injection volume improves patient experience

Commencing clinical registration studies• Formulation complete• Human studies to commence in 2H 2017• 505b2 submission in the US expected in late 2018

Commercialisation and market potential• c.$100m, representing c.5% of a $2bn a year market in first line

SSAs, and less than 10% of Sandostatin® LAR’s $1.6bn+ annual sales

• Partner in EU and RoW, use MTP US to market in the USA

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2

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4

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Incorporating Midatech’sQ-Sphera™ technology

Plasma octreotidein Rabbits vs Sandostatin LAR

Plasma IGF1in Rabbits vs Sandostatin LAR

Sandostatin® and LAR® are registered trademarks of Novartis

Direct administration of Midatech Nanotherapeutics into the tumour through Convection Enhanced Delivery (CED):• Delivers therapeutic constructs via a series of catheters fixed

directly into the substance of the tumours

Compassionate use/named patient programme • Five patients treated with MTX110 to date in UK and US• First patient continues to be infused monthly (10 infusions to date)

Clinical / Regulatory• High level of regulatory support received in 2017• Planning for US and EU studies at advanced stage – estimated start

H2 2017• Potential for Orphan Drug designation and paediatric extensions

Ultra rare childhood brain tumour• c.1,000 cases / year worldwide• Median survival 9 months; universally fatal• No treatment options currently available

Commercialisation and market potential• Panobinostat API licensed from Novartis June 2017• Product could be commercially available as early as 2019• Market estimate $50-100m globally

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2

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4

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Incorporating Midatech’snano-inclusion technology

MTX110 for DIPGin compassionate use, and entering human trials in 2017

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CED Infusion port

MTD119 for HCCIND-enabling underway

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Currently in IND-enabling phase• Construct selected, incorporating DM1 (used in ADCs)• Plan to file for first-in-human study in Q4 2017• Orphan Designation applied for

Manufacturing• Manufacturing scale up underway to GMP

Commercialisation and market potential• Co-promote with Midatech’s own sales force in the USA• Global partner sought to co-develop this program• HCC market expected to be worth $550m by 2024 (ex-China)• Sorafenib is the only current approved product but limited

efficacy and too toxic for most patients

Compelling animal data• GNP-conjugation enables otherwise lethal doses of DM1 to be

administered• Clear dose responses• GNP-targeted chemo suppresses tumour growth, and more

effective than current standard of care (Sorafenib)

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3

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Incorporating Midatech’sgold nanoparticle technology

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GNP conjugation improves tolerance to an otherwise lethal dose of DM1in mouse model with human HCC xenograft

GNP-drug more effective than SoC Sorafenib at tumour volume reductionin mouse model with human HCC xenograft

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Commercial platform and products

Midatech Pharma US (MTPUS): fully integrated commercial platformMTPUS commercial operations• MTPUS has an effective and established commercial platform to sell and

market our current oncology supportive care portfolio (6 products)

• 20 reps + 5 field sales managers with access and established relationships in the highest prescribing oncology markets

• Established through acquisition of DARA BioSciences, Inc. for $24 million and of the complementary product Zuplenz for $3.75 million

MTPUS commercial strategy• Leverage oncology platform and access to acquire complementary products

that enhance portfolio and increase revenues

• 2,400 primary call points

• Utilise commercial operations to:

• Acquire additional products and launch internally developed pipeline products• Fund on-going R&D programmes from long-term cash flows

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= Midatech US sales territories

Product portfolio

• For post-chemo radiotherapy anti-nausea and vomiting product

• The 5HT3 market in the US is about $10bn / 20m prescription per annum, just a 0.25% market share would give sales of $25m/pa

• Covered by 11/13 commercial insurers (>250m population)

• Competitive pricing $500/pack (range of competition $250-$1,800)• Superior support and presentation• Zero patient co-pay program• May be taken with or without water and

dissolves in seconds• No stickiness from a patch or gritty

sensation from a tablet

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• Indicated for oral mucositis (caused by chemotherapy or radio therapy), with approx. 400,000 annual sufferers in the US• Expansion study starting in 2017

• Lead product in uncompetitive environment (compounded magic mouthwash)

• Covered by 11/13 commercial insurers (>250m population)

• Superior support and mechanism of action vs. magic mouthwash• Zero patient co-pay program• 3rd year of sales in 2016

• Estimated peak annual sales potential c.$10m

• Buccal tablet for treatment of oral “thrush” associated with radio/chemo therapy and in HIV patients

• Covered by 11/13 commercial insurers (>250m population)

• Over 4m rx written annually for localised treatment

• 0.1% market share = c.$3m annual sales (targeting 0.3%-0.5% market share)

• Superior support and presentation• Zero patient co-pay program• Once-daily, local treatment• Does not interrupt eating or drinking

• Annual sales potential c.$10m

Summary

2016 financial highlights• Total gross revenues for the year up 510% to £9.21m (2015: 844% to £1.51m)

• Statutory revenue for the year up 718% to £6.38m (2015: 2,500% to £0.78m)

• £17.61m cash and deposits at 31 December 2016 (2015: £16.18m)

• Net loss after tax of £20.16m (2015: £10.10m) with net cash inflow in the year of £0.97m (2015: £14.17m outflow)

• Tax credit receivable of £1.44m (2015: £1.20m)

• Entered into a senior secured £6 million loan agreement with Silicon Valley Bank in Q1 2017

• October 2016 Gross £16.7m Equity Raise completed in London

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Anticipated near-term events/ news flow

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• Q-Octreotide: human studies to commence in Q3 2017, for potential 2019 approval

• HCC/ MTD119: IND-enabling, orphan status and planned IND submission for 2018

• Expansion (Ph4) study for Gelclair in bone marrow transplant in USA

• DIPG/ MTX110: commence pivotal studies in the USA and Europe in 2H 2017

• Further M&A/ in & out-licensing opportunities anticipated

Summary

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Midatech Pharma is an international specialty pharma company• Focused on development and commercialisation of multiple high-value, targeted therapies for

major diseases with unmet medical needs• Own product launches from 2019• US commercial arm has six products in oncology treatment and supportive care, driving revenue

growth

On-track for execution of three-pronged strategy for growth and value creation• R&D - developing novel pre-clinical and clinical portfolio pipeline• Commercial – grow and leverage our US commercial capability• M&A/ BD - seeking attractive acquisition targets, products and technology

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Leading proprietary platform technologies• GNP (Gold nanoparticles ) – targeted delivery• Q-Sphera - sustained-release• Nano-inclusion – local delivery• Targeted delivery and release of existing therapeutics to the “right place” at the “right time”

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