10 February 2011

Sareum Holdings plc

(“Sareum” or “the Company”)

Placing to raise £500,000

The Company announces that, following investor demand, it has conditionally raised £500,000, before expenses, by way of a placing by Hybridan LLP of 50,000,000 new ordinary shares of 0.025p each in the capital of the Company (the “Placing Shares”) at 1p per share, representing a 40 per cent. discount to the closing market price of 1.65 pence on 8 February 2011, the price which formed the basis for the Board’s decision to undertake the placing. The Placing Shares have been issued to Xcap Securities plc, on behalf of its clients.

Following the results of the recent study that was announced on 7 February 2011 Sareum intends to use the proceeds of the placing to accelerate the advancement of the Aurora+FLT3 Kinase leukaemia drug discovery programme and for working capital generally.

It is the Board’s view that the placing is the most appropriate means of providing capital to accelerate its drug discovery programmes and to provide working capital for the Company. The cost of funds raised through the placing are substantially less than those for an open offer or a rights issue to shareholders.

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 February 2011. 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 1,450,597,713 shares in issue.

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