MASTERINVESTORPRESENTATION23APRIL 2016

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Disclaimer

Certain statements in this presentation may constitute “forward-looking statements” within the meaning of legislation in the United Kingdom and/or United States. Such forward-lookingstatements include, but are not limited to, statements regarding the expected completion of the acquisition, any expected free cash flow generation, any expected NASDAQ listing, anymarket and growth opportunities, the amount of anticipated cost synergies and other bene fits associated with the acquisition and other statements that are not historical fact. In somecases, 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 statements because theyinvolve 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 ofactivity, performance, or achievements.

Any forward-looking statements are based on currently available competitive, financial and economic data together with management’s views and assumptions regarding future eventsand 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 factorsthat could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but notlimited to uncertainties as to how DARA stockholders may vote in respect to the merger proposal, the possibility that competing offers may be made, the possibility that various closingconditions for the Acquisition may not be satisfied or waived, operational challenges in achieving strategic objectives and executing plans, the risk that markets do not evolve asanticipated, the potential impact of the general economic conditions and competition in the industry. The risks included are not exhaustive.

Reference should be made to those documents that Midatech and DARA shall file from time to time or announcements that may be made by Midatech and/or DARA, in the case ofMidatech, in accordance with the London Stock Exchange AIM Rules for Companies (“AIM Rules”) and the Disclosure and Transparency Rules (“DTRs”) and in the case of DARA the USSecurities and Exchange Commissi on (“SEC”), including the section titled “Risk Factors” of DARA’s most recent Annual Report filed on Form 10-K and Quarterly Reports on Form 10-Q. Thisis in addition to the proxy statement/prospectus to be filed by Midatech and DARA, which shall contain and identify other important factors that could cause actual results to differmaterially from those contained in any projections or forward-looking statements. These forward-looking statements speak only as of the date of this announcement. All subsequentwritten and oral forward-looking statements by or concerning Midatech or DARA are expressly qualified in their entirety by the cautionary statements above. Except as may be requiredunder the AIM Rules or the DTRs or by relevant law in the UK or the US,Midatech and DARA do not undertake any obligation to publicly update or revise any forward-looking statementsbecause of new information, future events or otherwise arising.

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ARapidlyGrowingInternationalSpecialtyPharmaceuticalCompany

Organisation

Technology

Organisation

CommercialForce

Technology

UK-basedpubliccompany(plc)• IPOonLondon’s AIM(MTPH)raising£32millionin2014• ADRslistedonNASDAQ(asMTP)inDec2015• c.100employeesacrossEurope&theUSA• Multipleacquisitionsdrivingfastrevenuegrowth• £16.2m/$24mcashasofDecember31st2015

Oncology/USCommercialTeam(40)• 6fast-growthmarketedproducts• Including1matureproduct inUS• Multipletopline growthexpected in2016vs2015

FullyintegratedR&Dcapabilitieswithtwoplatformtechnologies• FullR&Dcapability• Glycancoatedgoldnanoparticles• CAD“printed”sustainedreleaseparticles

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PartnersUsingMidatech TechnologiesOncology/Neuroscience/Diabetes

CommercialOncology&SupportiveCare(US)

AcquisitionsLateStageStrategic&SynergisticAssets

Research&DevelopmentOrphanOncology /ImmunotherapyNeuro /Ophthalmology

OurApproach– BusinessModel

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Midatech PharmaUS– marketedproducts

Comprehensiveofferingoforalsupportivecareproducts forcancerpatients

Buccal Tablet For Oral Candidiasis In AdultsSerious complication for patients undergoing radio/chemotherapy

Launched H2 2015 – first full year of sales 2016

Hyaluronic Acid Oral Gel For Oral Mucositis85-100% of H&N cancer patients on chemo/radiotherapy develop OM

Leads market in US strong growth expected 2016

Dual Iron DeliveryAnaemia treatment

Oral Spray Treatment For Dry Mouth Xerostomia

The only liquid oral tamoxifen available in the USBreast Cancer

ProductsthroughacquisitionofDARABioSciences Inc.(June2015)

• AddsNASDAQlistingandheadquartersinRaleigh,NCwith32USfieldorganisation

• MergerestablishesMidatechPharma’sUS-basedcommercialarm

• Productsfocusedononcologyandsupportivecare

• Portfolioofsixapprovedproducts

• Providesplatformforadditionalproductlicenseandacquisitionopportunities

Zuplenz®acquiredfromGalenaBiopharma (April2016)

Oralsolubletransmucosal filmtopreventpost-Operative,ChemotherapyandRadiation-InducedNausea andVomitinginUSLaunchedonApril11TH

Patentprotectedupto2029

UNIQUETECHNOLOGIES

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CORONA

LINKER

SULPHUR LAYER

NOBLE METAL CORE

NS

Drugconjugateseliminatedviathekidneysandliver

Smallsize~1.5nmandchargeallowstransporttodiseasesitesthatareotherwiseverydifficulttoreach

Multivalency bindingofseveraltargetingandtherapeuticagentstosinglenanoparticle

Designedtoreleasetheactivecompoundinsidethecell

Payloadsconjugatedtoformsmall(~5nm)medicinesfortargeteddelivery

Enablethetransportofnon-solubleandlipidsolublecompounds todiseasesites

InternalGMPmanufacturingfacility

Inert,biocompatibilityandsmallsizeofdrugconjugatesevadestheimmunesystem

RELEASABILITY

EXCRETABILITY

TARGETING THERAPEUTICS

SOLUBILITY

SCALABILITY

COMPATIBILITY

+

1.4- 1.8nm

Smallestparticles inbiomedicaluse:

10x-20x smallerthanpeers

GoldNanoparticleTechnology(GNPs)

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“PRINTING”DRUGSATSCALE• Easily scalable printing‘000,000particles persecond

SLOWRELEASEControl releaseofAPIoverperiodof3-6monthsfollowingsingleinjection

MICROPARTICLES• Encapsulatedrugsintomicroparticles degradableinapredictableandtuneablefashionCompatiblewithsmallmolecules– peptides,oligonucleotides,proteins

Susta inedReleasedMicrosphereTechnology(SR)

ADVANTAGES• Readilyinjectedviaminimally-invasiveneedlesasfineas30G

• Minimalpain• Eyeandotherdifficultareas• Processandcostefficiency

PROPRIETARYMICROSPHEREPLATFORM• Emulsion-freesynthesiswithproductmonodispersity• Precisecontroloverparticlesize,morphology,kinetics• Highdrugloading,minimalburstrelease,essentialtodevelopmentofsafe&effectivetherapies

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Targetcellsurfacereceptorsunique totumours

Maximise efficacy

Limitside effects&damagetohealthytissue

Focusonorphan liver(HCC) andbrain(GBM)cancer

BreakthroughGNPCancerTherapies:TargetingTumors

S e l e c t iv e T u mo urTa r g e t in g L iv e r & B r a in

THERAPEUTICSAREAS

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HCC:Hepatocellular Carcinoma

Candidateselectionongoing, andINDenablingplanned tocommenceend2016

Sixthmostfrequentcancergloballyandthesecond leadingcauseofcancerdeath– Surgicalresectionisthemajortreatmentoption forHCC

– Only10– 20%ofHCCcanberemovedcompletelyusingsurgery

ReceptorsonHCCtumour cellsbindandinternaliseGNPs,afterwhichthetherapeutic payload isreleased

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Discovery,pre-clinicalandtoxicologyworkcompleted between2012– 2015

FirstinHumanclinical trialsQ22016

UsingGNPtopreferentiallytargetspecific immunecell

GNPimmunemechanisms arebeingactivelyresearchedforfurtherapplicationinoncologyimmunotherapy

D iabetes Vaccine(FP7EE-ASI)

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InnovativevaccineagainstType1Diabetes

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Diabetes:TreatmentForType1Diabetes(T1D)

• Self-dissolving,oral,postagestamp-sizedstripcontainingGNPconjugatedinsulin

•Moreconvenient,saferandmorediscreteformofinsulindeliverythaninjections

• Enhancedpatientcompliance, andeasytouse

MidaSol(JVwithMonoSol,USA)

• CompletedinlifephaseJanuary2016• ClinicalStudyReportisexpected inMay2016

MidaForm InsulinPharmFilm®– GNPbuccalinsulin therapy forneedle-freedeliveryofinsulinfordiabetes treatment

+

+

+

+ Au

!

(Driven byosmoticpressure)

(Slow-disolving)

(Fast-disolving)

Transbuccalinsulin

Outerinactivestrip

Buccalmucosa

InneractivestripcontainingGNPs

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Carcinoid&Acromegaly: Octreotide - Long-ActingDrugDel ivery

Once-monthlyinjectabledepotwithlowerCoGs

Marketworthover$2bn

Significantlyeasiertoreconstituteandadminister• Secondstoreconstitutevs35minutes• Inhomeadministrationwithpatient

friendlydevicevs.currentadministrationinclinicviaIV

• Smallerneedle• Canreduceclinicalvisittimebymore

thanhalf

Long-actingformulationofOctreotideacetateforchronictreatmentofAcromegaly/Cancer

Currently infinalstagespreclinicaldevelopment

• Enteringbio-equivalancestudiesin2016/7

• PlannedUSLaunch in2018/9

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Keypostapprovalactivities(whereneeded) :Reimbursementsubmissions;Promotionalmaterialsubmission/approval;Notificationoflaunch

Q1 17

Phase1/Bioequivalent study

CTAapplicationforTEstudy

Q2 17

ManufactureofClinicalTrialMaterial

TEstudy

ManufactureofRegistrationbatches

Eligibility forCentralisedProcedure

SuitabilityofTradename

NDA/MAApreparation

NDA/MAAReview

Q3 17

Q4 17

Q1 18

Q2 18

Q3 18

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

EstimatedT imeline&KeyMilestonesto Commercial Launch

Single Dose BE/PK

Earliestdate

Earliestdate

Latestdate

Latestdate

BIOEQUIVALENCE ROUTE

THERAPEUTIC EQUIVALENCE ROUTE

Multi Dose BE

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GBM:Gl iob lastoma

Candidateselectionongoing,andINDenablingplannedtocommenceend2016

Dana-FarberistheprincipalteachingInstituteofHarvardMedicalSchoolinBoston,MAandoneofthepremiercancerinstitutesintheUS

ReceptorsonGBMtumourcellsbindandinternaliseGNPswherethetherapeuticpayload isreleased

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Survivaltypically12to15monthswithlessthan5%survivinglongerthanfiveyears

Worldwide,thereareanestimated240,000casesofbrainandnervoussystemtumoursperyear• GBMisthemostcommon,andthemostlethal,ofthesetumours

SignedCollaborativeDealwithDana-FarberCancerInstituteInApril2015

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Ophthotech(Nasdaq:OPHT)isabiopharmacompanyspecialisingintreatingdiseasesofthebackoftheeye

Collaborationwill testthefeasibilityofusingMidatech’sQSpheramicroencapsulation

technologyforsustaineddeliveryofselectOphthotechproducts

QSpherausesinkjetprintingtechnologytoproducemonodispersemicroparticles

• Flowprocess:tanksofinkreplacedbydrug&polymer

SignedCollaborativeDealwithOphthotechinAugust2015

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020406080

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98105112119126133

CsA

Rel

ease

/ µg

/mg

Time / Days

CyclosporineinvitroRelease(P.B.S.receptorsolution)

Intravitrealinjection intotheeyewithminimaltransfertotheblood

Preclinicalin2016

Uveitisgrowingrapidly~$1.3bnmarket,currenttreatedbyeyedrops,

immuno-suppresivesorsystemic

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Uveitis:OpsiSporin - Long-ActingDrugDelivery

OpsiSporin is3-monthlyinjectableformulationofcyclosporine fortreatmentofnon-infectiveuveitis

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Dosingcommenced29/02/2016 (NPS)

• CompassionateuserequestreceivedfromBristolRoyalInfirmaryOncologytotreatyounggirlsufferingfromDIPG

• Patientdoingwellpostdosing,andadditionalpatientsplanned

Ultrararechildhood tumour• 300cases/year,nosurvivors

Ultrahighunmetneed

Opportunity toearnrevenueprior toregistration

Could resultinafasttrackedproduct tomarketforMidatech

DIPG: Di ffuseIntersti tialPontineGl ioma(MTX110)

Midatech activelypursuing localdeliverydirectlyintothe tumour

through ConvectionEnhanced Delivery(CED)thatdelivers

therapeuticconstructsdirectly intothetumourviaaseriesofcathetersfixedinto thesubstanceofthe tumours

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01

03

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Research Preclinical Phase I Phase II Market$

>$.64bn

>$2bn>$.5bn

>$.5bn

>$20bnMidaform® Insulin (JVMonoSol)MTD101JointVentureProduct

ImmunotherapyType1DiabetesVaccineMTX102

Cancer

OpsiSporinMTD202CNS/Ocular

DIPGPontineGliomaMTX110 ExperimentalUseNPSProgramUnderway

Q-OctreotideMTD201

GlioblastomaMTR103

LiverHepatocellularCarcinoma MTR104

DevelopmentP ipel ine

SquamousCellCarcinoma MTR105

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ExecutingonS trategicObjectivesto2019

Tohaveacquiredatleast2othervalueenhancingbusinessesQ-Chipin2014DARABioSciences– Dec2015Zuplenz(product)– Dec2015

Established andcontinue toexpandUScommercialpresence

EstablishEUcommercialorganisation

Tohave>2productslicensedtopartners•1todate

Tohave>1ownproductmarketed•Q-Octreo oncourse

Tobebreaking-even

Tobegrowingtop-linerevenueeachyearbyminimum50%•Estimatefor2015Vs2014=700%Growth•Marketexpectation2016Vs2015=700%Growth

Toberecognised asaleadingemergingspecialtypharmacompanyglobally

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ExpandPartners&Applications

EstablishPartnershipsforQ-Octreotide• Midatech willpromoteintheUSincancer

• USpartnerforendocrinologycurrentlyunderdiscussions

AllowAccesstoQ-Sphera&GNPPlatforms• Capitalise ontheexistingpartnerships

SecurePartnerforOpsiSporin Programme• Experiencedophthalmologycompany

LeverageExistingCommercial Partnerships

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2016 ExpectedNewsF low

Zuplenz:UScommerciallaunchinH1

Gelclair: Maintenanceofgrowth&leadership position inUSmarket

Oravig: FirstfullyearofsalesinUSpostlaunchinQ42015

Firstbraintumour cancer therapyintopatientsH1

Firstimmunotherapy vaccineinclinicaltrialsinH1

Jointventure insulin PhaseIia resultsH1

AGMinMayFurtherdeployment ofcoretechnologiesvialicensingdealstonew&existingpartnersincreasingrevenue

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ü

Summary

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AcquiredDaraBiosciences,anoncologysupportivecarepharmaceuticalcompany• Addsanattractiveportfolioofcancersupportivecareproducts• EstablishesfullyintegratedUS-basedcommercialorganisation(Midatech PharmaUS)

2015Highlights

In2015Midatech executedagainstall keyareasofitsbusinessmodel

Establishedtworesearchcollaborationsthatexpandedpipeline• DanaFarbertotestMidatech’s targetednanomedicines againstglioblastoma• Ophthotech Corporationtoexploreopportunitiesinocularindications

AcquiredZuplenz (ondansetron),amarketedanti-emeticapprovedintheUS• Approvedforuseinmultipleindicationsandrecentlylaunchedintothe$10bnUSmarket• Bolstersmarketedoncologyproductportfolio

EstablishedsupplyagreementforQ-Octreotide signedwithCenturionPharma• FocusedondevelopmentandcommercialisationofproductsinTurkishmarket

CommencementofPhaseIIa studyofMidaform InsulinType1DiabetesProgram• SmalltrialtoestablishPK/PDprofileofMSL-001

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Totalrevenuefortheyearup763%to£1.38m(2014:£0.16m,2013:£0.15m)

£16.18mcashanddepositsat31December2015(2014:£30.33m,2013:£2.39m)

Netlossaftertaxof£11.74m(2014:£8.82m,2013:£4.08m)

Netcashoutflowintheyearof£14.17m(2014:£27.94minflow, 2013:£2.25minflow)

Taxcreditreceivableof£1.20m(2014:£0.84m,2013:£0.80m)

2015FinancialHighlights

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Summary

LeadingPlatformTechnologies• GNPTechnology• SustainedRelease

• UScommercialarmhas4productsinoncology,drivingfastrevenuegrowth

• Ownproductlaunchesfrom2018-19athighmargin

Midatech PharmaAnInternationalSpecialtyPharmaCompany

• Drivingrevenuegrowth• Developingclinicalportfolio• Seekingattractiveacquisitiontargets

On-trackExecutionOfThree-ProngedStrategyForGrowthAndValueCreation

Photographofsectionthroughneedleshowingmicrospheres

Representation ofagoldnanoparticle

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ThankYou

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Cutt ing-EdgeCancerTherapies

Combining chemotherapeuticmedicineswithtumour-targetingmolecules orpeptides viaGNPtechnology

Highlytoxicdrugsspecifically targetedtotumorcellswhilesparingnormaltissue

Focusonliver cancerandbrain cancer

Solubilise,mobilise,functionalise, activetherapeuticagents forreleaseatspecificorgans,cellsorsitesofdisease

Multiple agentsattachedtoasingleGNP

Target via:• unique tumour cellsurfacereceptors• preferentialuptakebycellfornutritionorcellprocesses

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