Placing to raise £1.67 million

1 NOVEMBER 2013

Sareum Holdings plc

("Sareum" or "the Company")

Placing to raise £1.67 million

Sareum Holdings plc (AIM: SAR), the specialist cancer drug discovery and development business, is pleased to announce that it has conditionally raised £1.67 million before expenses, by way of a placing by Hybridan LLP, of 278,500,010 new ordinary shares of 0.025p each in the capital of the Company (the "Placing Shares") at 0.6p per share.  

The placing was oversubscribed and has been taken up by many new and existing investors.  The proceeds of the placing will provide funds to facilitate the development of Sareum's drug discovery and development programmes.  In particular, the proceeds will fund the Company's commitment to its collaboration with the Cancer Research Technology Pioneer Fund & BACIT (as announced on 24 September 2013), to advance the Checkpoint Kinase 1 (CHK1) inhibitor candidate through further pre-clinical development and readiness for approval for Phase 1 clinical trials.

The funds will also be used to progress Sareum's Aurora+FLT3 programme in pre-clinical development and its TYK2 kinase inhibitor programme towards nomination of a pre-clinical development candidate. In addition, funds will provide working capital for the Company through to early 2015 excluding any exceptional circumstances or further financial commitment with respect to CHK1, which would be triggered once formal application for approval for Phase 1 clinical trials is scheduled.

Dr. Tim Mitchell, Chief Executive Officer of the Company, said:

"We are extremely pleased with the positive response towards this Placing from investors.  Our broadened strategic approach, which now includes entering into collaboration and co-development partnerships intended to bring our programmes to later development stages, provides the potential for more lucrative licensing deal terms and therefore a greater return to shareholders.  With material advancements in our key programmes and the prospect of higher asset values, we look forward to keeping shareholders updated on our progress."

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM and it is expected that admission will become effective and trading will commence on 22 November 2013. The Placing Shares will rank pari passu with the existing ordinary shares of the Company.

Following the admission of the Placing Shares to trading on AIM, the Company will have a total of 1,800,038,273 shares in issue.

Enquiries:

Sareum Holdings plc
Tim Mitchell	01223 497 700
Sanlam Securities UK Limited (Nomad)
Simon Clements	020 7628 2200
Hybridan LLP (Broker)
Claire Noyce / William Lynne	020 7947 4350 / 4361
The Communications Portfolio (Media enquiries)
Ariane Comstive	[phone]
[e-mail]

About Sareum Holdings plc

Sareum is a drug discovery company, headquartered in Cambridge UK, that produces targeted small molecule therapeutics, focusing on cancer and auto-immune disease. Sareum aims to successfully deliver drug candidates for licencing to pharmaceutical and biotechnology companies at the pre-clinical or early clinical trials stage.

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 auto-immune disease research programmes. SKIL can also generate drug research programmes against other kinase targets.

CHK1 Kinase Inhibitors - CHK1 is important in controlling the way many cancer cells respond to DNA damage, which may be a consequence of the cancer itself, or intentionally caused by chemotherapy or radiotherapy. Inhibition of CHK1 affects the ability of the cell to repair this damage and can therefore potentiate the effect of certain chemotherapeutic drugs.  The candidate CHK1 inhibitor to be developed could potentially treat a range of cancers including pancreatic, bowel and non-small cell lung cancer (NSCLC) in combination with DNA-damaging chemotherapy drugs and/or radiotherapy. The inhibitor could also potentially treat certain neuroblastoma and acute myeloid leukaemia (AML) types when dosed alone.  In September 2013 Sareum entered into a co-development agreement with the Cancer Research Technology Pioneer Fund (CPF) and London Stock Exchange-listed investment company, BACIT Ltd.

Aurora+FLT3 Kinase Inhibitors - Aurora kinase is involved in the control of mitosis (cell division), and FLT3 kinase over-activation is the most common mutation in acute myeloid leukaemia (AML, the most common form of adult leukaemia) patients. Aurora+FLT3 kinase inhibitors also have the potential to treat various other forms of cancer.

TYK2 Kinase Inhibitors - The Tyrosine Kinase 2 (TYK2) small molecule drug discovery programme is focussed on autoimmune and inflammatory disorders such as multiple sclerosis, psoriasis and inflammatory bowel disease. In April 2013, Sareum entered into a co-development agreement with independent nonprofit research and development institute, and autoimmune disease specialists, SRI International.

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

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Source: SAREUM HOLDINGS PLC via Thomson Reuters ONE

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