Final Results

    22 October 2010


                              SAREUM HOLDINGS PLC

                          ("Sareum" or the "Company")

                 FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2010

Sareum  (AIM: SAR), the specialist cancer drug discovery business, is pleased to
announce its final results for the year ended 30 June 2010.

Operational highlights:
  * On  track and  in-line with  budget with  the development of cancer research
    programmes. Progress presented at major international partnering events
  * Launched "SKIL" drug discovery platform
  * Three patent applications published


Financial highlights:
  * Loss  on  ordinary  activities  for  period  (after taxation): £0.57 million
    (2009: £1.1 million)
  * Cash in bank at period end: £0.52 million (2009: £0.27 million)
  * Placings in the period to raise £815,000 (before expenses)


Post year end highlights:
  * Placing in August 2010 to raise £200,000 (before expenses)
  * Cash resources sufficient for the foreseeable future
  * Additional patent application filed


Dr  Paul  Harper,  Chairman  of  Sareum,  said:  "Sareum  continues to focus its
research  and cash resources  on its pipeline  of anti-cancer programmes and its
commercial energies on engaging the attention of potential licencees for all its
programmes.

We  continue to supplement the data package  for each of our programmes and take
every  reasonable opportunity to update those companies that have shown interest
in  these programmes, as well as  using major international partnering events to
engage  new interest in our  oncology programmes. The most  advanced of these is
still the Chk1 programme carried out in conjunction with the Institute of Cancer
Research   (ICR)   and   Cancer  Research  Technology  Limited  (CRT).  We  have
demonstrated   that   our   compounds  compare  favourably  with  those  of  our
competitors.

The recent fund raisings will support increased investment in the development of
our  in-house programmes  and satisfy  our working  capital requirements for the
foreseeable future."


For further information please contact:
 Sareum Holdings plc

 Tim Mitchell                  01223 497700



 Merchant Securities Limited

 Simon Clements/Bidhi Bhoma   020 7628 2200



 Hybridan LLP

 Claire Noyce                 020 7947 4350



                 Final Results for the year ended 30 June 2010

Chairman and Chief Executive's Statement

Background

The  key value creator for Sareum's shareholders continues to be the development
and  commercialisation  of  drug  candidates  from  the  Company's in-house drug
development  pipeline.  Our  research  spend  this  year  has  been  targeted on
advancing  our SKIL programmes.    The research emphasis on  Chk1 has focused on
studies  in models designed to build the portfolio of data provided to potential
licencees.

Our  plan has been  to help deliver  successful in-vivo efficacy studies through
our  collaboration with  the Institute  of Cancer  Research and  Cancer Research
Technology Limited. We have also used third party providers of models to provide
corresponding data for our other programmes.

Additionally,  in the period under review  three patent applications relating to
Sareum programmes were published and a further patent application has been filed
post  period-end. These patents protect  families of promising compounds arising
from   Sareum's   research  programmes  and  demonstrate  the  strength  of  our
intellectual property to prospective customers.

The  Company's business model is to concentrate primarily on its in-house cancer
drug  discovery research by outsourcing the  chemistry and biology components of
each  programme. Our in-house expertise and  experience is used to interpret the
relationship  between chemical structure and biological activity associated with
each  of the new compounds  tested.  The information from  each study is used to
assist  in the design of new molecules  which should show more activity and less
toxicity.  The synthesis and testing of new  compounds is undertaken in a world-
wide network of third party laboratories.

As   the   development   programmes   progress,  additional  data  is  generated
demonstrating  the quality of the candidate molecules. Simultaneously, an active
campaign  continues to draw these results  to the attention of companies seeking
to  licence programmes such as these. In particular, the results of our research
are  presented at  important conferences  and seminars  that focus on cancer and
cancer  drugs. This serves to provide an  excellent shop window for our research
as  well  as  an  opportunity  to  engage  with  decision  makers from the major
pharmaceutical companies that are seeking to in-licence new cancer drugs.

Progress with Drug Discovery Programmes

The  Company's principal  asset is  its intellectual  property derived  from its
cancer  drug  discovery  programmes.  Sareum  is  actively  developing five drug
discovery  programmes at  the present  time.  The  Company has continued to make
positive  progress  with  these  drug  discovery  programmes,  resulting  in the
publication of three patents from historic filings.

Sareum's pipeline is built on the expertise of its founders in pre-clinical drug
discovery, particularly in the field of cancer. Sareum concentrates its research
on targeted small molecule therapeutics.

Our  strategy is to  focus on developing  best in class  cancer therapies, where
pre-clinical  and early clinical  data is available  to indicate that disrupting
the  targeted biochemical process will indeed  prevent tumour growth and prolong
survival  without significant side-effects. We can capitalise on these published
results  to direct our own programmes and  to indicate, for instance, whether or
not  the therapy needs to be  administered in combination with additional cancer
therapies.

In  May  2010, Sareum  launched  its  "SKIL"®  technology platform. SKIL (Sareum
Kinase  Inhibitor Library)  includes a  patent-protected molecular  core and the
intellectual  know-how to  fine-tune these  molecules into  inhibitors of a wide
range of kinase enzymes. Aberrant kinase activity is associated with many cancer
types,  as well as other diseases including certain types of auto-immune disease
and diabetes.

This  kinase  class  of  enzymes  constitutes Sareum's ongoing research efforts,
primarily targeting kinases associated with cancer.

SKIL  programme targets include  Aurora kinase, VEGFR-3 kinase  and FLT3 kinase.
Recently,  interesting activity has been found against ALK and TYK2 kinases. ALK
kinase  overactivity  is  associated  with  certain  types  of  lung  cancer and
anaplastic  large cell lymphoma (ALCL),  a cancer of the  lymphatic cells of the
immune  system. Inhibition of TYK2 kinase activity can be used to control immune
disorders such as rheumatoid arthritis, psoriasis and Crohn's disease.

Sareum's  expertise  was  boosted  in  April  2010 by  the appointment of Dr Bob
Jackson  to  the  Scientific  Advisory  Board.  Dr  Jackson  was  formerly Chief
Scientific  Officer at the  cancer drug discovery  company, Cyclacel. During his
distinguished  career  he  has  led  teams  that  have brought many compounds to
clinical trials, including the Aurora kinase inhibitor, CYC116. This appointment
comes  at  an  important  stage  in  the  development  of Sareum's Aurora kinase
programme  and Dr  Jackson's expertise  will be  key to  the development  of the
programme.

Chk1 Kinase

This  is Sareum's most advanced programme and is carried out in conjunction with
one  of  the  world's  leading  cancer  research organisations, The Institute of
Cancer  Research and Cancer Research  Technology Limited. Chk1 kinase inhibitors
enhance   the   effects   of  DNA-damaging  chemotherapeutics  such  as  Campto®
(irinotecan)   and   Gemzar®  (gemcitabine).  During  the  period,  Chk1  kinase
inhibitors  with the potential to be delivered via the oral route (as opposed to
injection)  have  been  developed.  This  gives  our  programme  advantages over
competitor compounds that are in early clinical trials.

In  January 2010, scientists from Sareum  and the ICR published  key data in the
peer  reviewed journal Molecular Cancer Therapeutics.  The article describes how
the programme compound SAR-020106 significantly enhances the anti-tumour effects
of  the cancer chemotherapeutics Campto® (irintotecan) and Gemzar® (gemcitabine)
in preclinical disease models.

The  time interval between the administration of the doses of DNA-damaging agent
and  Chk1 kinase inhibitor is an important factor. To better understand this, in
March  2010 we  entered  into  a  collaboration  with  Physiomics plc to perform
computer  simulations of  the effects  of different  scheduling of such drugs in
living  systems.  The  results  obtained  from  this collaboration have provided
valuable  insights into the importance  of appropriate scheduling of combination
therapies.

Aurora Kinase

During  the period, we have been  concentrating our efforts on developing Aurora
kinase  inhibitors to treat AML, a type of leukaemia. This is partly in response
to  the clinical results  from competitors' Aurora  programmes, which have shown
positive  responses  in  AML  patients,  and  partly  as  a result of our Aurora
compounds  also displaying  potent FLT3  kinase activity.  FLT3 kinase is overly
active  in  many  AML  variants  and  Sareum's Aurora/FLT3 inhibitors are potent
against AML cell lines. Initial results in in-vivo studies are also positive. We
are  now seeking to optimise the properties of these compounds to allow delivery
via  the oral route  whilst maintaining or  improving upon the existing efficacy
and safety profile.

VEGFR-3 (FLT4) Kinase

VEGFR-3 kinase,  also known as FLT4  kinase, is believed to  be important in the
formation  of  lymph  and  blood  vessels  into  a growing tumour. These vessels
provide  nutrients, eliminate waste  and provide a  route for metastasis (cancer
spread).  Sareum  compounds  have  been  shown  to  inhibit  the growth of lymph
endothelial cells by selectively inhibiting VEGFR-3.

Other SKIL Programmes (ALK, TYK2)

We  continually screen  our SKIL  compounds, e.g.  from our  Aurora and VEGFR-3
programmes,  against  a  selection  of  kinase  enzymes, looking for interesting
activity  against  other  therapeutically  relevant  kinases.  Recently, we have
discovered   SKIL   compounds  with  interesting  activity  against  ALK  kinase
(implicated  in certain lymphomas and lung  cancers) and TYK2 kinase (implicated
in  certain auto-immune diseases). Currently, we are developing joint Aurora/ALK
kinase  inhibitors and approaching potential commercial partners, with expertise
in auto-immune disease, with our TYK2 inhibitors.

Earlier-Stage Programmes (FLT3, FASN, PLK1, B-raf)

These  programmes are currently  on hold, pending  a collaborative research deal
with  a pharmaceutical company partner or receipt  of a research grant. FLT3, in
addition  to  being  a  potential  target  for  certain leukaemias, also has the
potential   to  treat  auto-immune  diseases  such  as  multiple  sclerosis  and
rheumatoid  arthritis, which  further expands  the commercial  opportunities for
this programme.

Financial Review

During  the period,  the loss  after taxation  decreased to £0.57 million (2009:
£1.1  million).  The cash  position at the  period end was  £0.52 million (2009:
£0.27  million),  enhanced  by  the  share  placings, announced in September and
October  2009 that raised £815,000 before  expenses. The Company's cash position
was  further improved by a share placing  to raise £200,000 (before expenses) in
August  2010.  As a result of these  placings, the Directors believe the Company
is  able to maintain its  R&D spend to further  advance its cancer drug pipeline
whilst also providing sufficient working capital for the foreseeable future

Outlook

The  Company has an exciting opportunity to  focus solely on its in-house cancer
drug  discovery programmes to generate shareholder  value. The research work for
the ongoing programmes is being provided via third parties, enabling the Company
to operate with a minimal fixed cost base.

The  Company  will  continue  to  build  value  from  its  in-house research and
development  by seeking  to advance  its cancer  drug discovery programmes. With
sufficient  cash resources to fund the ongoing business plan for the foreseeable
future,  the Company looks forward  to further development and commercialisation
of these cancer drug programmes.




Dr  Paul Harper
 Dr Tim Mitchell
Chairman                                                                   Chief
Executive Officer


CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2010

                                     2010              2009

                                        £                 £

 REVENUE

 Discontinued operations                -            31,600

 OPERATING EXPENSES

 Continuing operations          (643,742)       (1,170,007)

 Discontinued operations                -          (14,669)



                                (643,742)       (1,184,676)

 OPERATING LOSS

 Continuing operations          (643,742)       (1,170,007)

 Discontinued operations                -            16,931

                                (643,742)       (1,153,076)

 Finance costs                          -           (3,092)

 Finance income                     3,127            14,436

 LOSS BEFORE TAX                (640,615)       (1,141,732)

 Income tax credit                 71,526            67,860

 LOSS FOR THE YEAR              (569,089)       (1,073,872)

 Attributable to:

 Equity holders of the parent   (569,089)       (1,073,872)

 Basic loss per                   (0.05)p           (0.13)p
 share expressed in pence
 per share







CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2010
                                        2010              2009

                                           £                 £

 NON-CURRENT ASSETS

 Intangible assets                       984             1,575

 Property, plant and equipment         1,230             1,170

                                       2,214             2,745

 CURRENT ASSETS

 Trade and other receivables          26,627            33,619

 Tax receivable                       74,974            67,860

 Cash and cash equivalents           516,781           273,977

                                     618,382           375,456

 LIABILITIES
 CURRENT LIABILITIES

 Trade and other payables             97,558            51,639

 NET CURRENT ASSETS                  520,824           323,817

 NET ASSETS                          523,038           326,562

 EQUITY

 Issued capital                      293,899           204,524

 Share premium                     6,077,821         5,401,631

 Merger reserve                           27                27

 Retained earnings               (5,848,709)       (5,279,620)

 EQUITY ATTRIBUTABLE TO              523,038           326,562
 EQUITY HOLDERS OF THE PARENT



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2010

                                                       2010          2009

                                                          £             £

Net cash flow from operating activities

Continuing operations:

Loss before tax                                   (640,615)   (1,158,663)

Depreciation charges                                  1,729        34,588

Loss on disposal of fixed assets                          -         5,706

Finance costs                                             -         3,092

Finance income                                      (3,127)      (14,436)

Tax received                                         64,412       324,570

                                                  (577,601)     (805,143)

Discontinued operations                                   -        16,931

Decrease in trade and other receivables               6,992       250,083

Increase/(Decrease) in trade and other payables      45,919     (172,683)

Net cash used in operating activities             (524,690)     (710,812)

Cash flows from investing activities

Purchase of tangible fixed assets                   (1,198)         (351)

Sale of tangible fixed assets                             -       706,991

Interest received                                     3,127        14,436

Net cash from investing activities                    1,929       721,076

Cash flows from financing activities

Repayment of leasehold improvements loan                  -      (34,830)

Capital element of finance leases                         -     (179,216)

Share issue                                          89,375             -

Share premium on issue of shares                    676,190             -

Interest paid                                             -       (3,092)

Net cash from/(used in) financing activities        765,565     (217,138)

Increase/(Decrease) in cash and cash equivalents    242,804     (206,874)

Cash and cash equivalents at beginning of year      273,977       480,851

Cash and cash equivalents at end of year            516,781       273,977





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1    General

The financial information set out above does not constitute the company's
statutory accounts within the meaning of section 434 of the Companies Act 2006.

The 2010 figures are based on unaudited accounts for the year ended 30 June
2010. The auditors do not expect to issue a qualified report on the statutory
accounts which will be finalised on the basis of the financial information
presented by the directors in the preliminary announcement and which will be
delivered to the Registrar of Companies following the company's annual general
meeting.

The 2009 comparatives are derived from the statutory accounts for 2009 which
have been delivered to the Registrar of Companies and received an unqualified
audit report and did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.

This statement will be made available online at www.sareum.co.uk


2     Basis of accounting

The financial statements have been prepared under the historical cost convention
and in accordance with International Financial Reporting Standards.


3     Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary
shareholders by 1,086,228 million being the weighted average number of ordinary
shares outstanding during the period (2009: 818.098 million).


4     Dividend

The Directors are not able to recommend a payment of a dividend.


5     Copies of the Report and Accounts

Copies of the report and accounts will be posted to those Shareholders that have
requested them shortly. Copies are also available from the Company's registered
office at 2a Langford Arch, London Road, Pampisford, Cambridgeshire CB22 3FX and
from the Company's website www.sareum.co.uk.


[HUG#1454190]








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Source: SAREUM HOLDINGS PLC via Thomson Reuters ONE