13 December 2010

Sareum Holdings plc

(“Sareum” or “the Company”)

Trading Update and Placing to raise £250,000

Trading Update

The Board of Sareum, the specialist cancer drug discovery business, is pleased with the quality of data that its cancer research programmes have generated in 2010 and is encouraged by the number of discussions currently in progress regarding their commercialisation. The Board believes that the progress in 2010 has led to Sareum’s programmes becoming more competitive when positioned against similar products in development by other companies. Encouraging results have recently been generated in pre-clinical cancer models which are on-going. The Board looks forward to fully analysing this data and announcing the results in the first quarter of 2011.

Placing

In addition, the Company is pleased to announce it has conditionally raised £250,000, before expenses, by way of a placing by Hybridan LLP of 125,000,000 new ordinary shares of 0.025p each in the capital of the Company (the “Placing Shares”) at 0.20p per share.

Sareum intends to use the proceeds of the placing primarily to progress its cancer research programmes.

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 15 December 2010. 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 1,400,597,713 shares in issue.

Dr Tim Mitchell, CEO of Sareum commented:

This placing with an institutional investor leaves the Company well funded for the foreseeable future, and able to make further investments in its valuable pipeline of “best-in-class” cancer research programmes.”

Enquiries:

Sareum Holdings plc

 

Tim Mitchell

01223 497 700

Merchant Securities Limited (NOMAD)

Simon Clements/Bidhi Bhoma

020 7628 2200

Hybridan LLP (Broker)

 

Claire Noyce

020 7947 4350