Balance of Placing to raise £560,000 announced on 23 March 2020

FOR IMMEDIATE RELEASE

OKYO, the life sciences and biotechnology company, focused on the discovery and development of novel molecules to treat inflammatory dry eye diseases and chronic pain, is pleased to announce that further to the announcement made on 23 March 2020 the Company has placed a further 36,269,253 new ordinary shares of no par value in the Company (the “Placing Shares“) at the placing price of 0.5 pence each (the “Placing
Price“) to raise £181,346 (before expenses) (the “Placing“). The Placing Shares will be issued with warrants attached on a one-for-one basis, exercisable at a price of 0.55 pence for a period of five years from today’s date. This utilizes the remaining ability of the Company to admit shares to a regulated market in any 12 month period without publication of a prospectus.

The Placing Shares were placed privately with Panetta Partners Ltd, a major shareholder in the Company and a further strategic investor. The Placing Shares, when issued will represent 5.7% of the Company’s existing share capital and 5.39% of the enlarged share capital. No prospectus will be published in connection with the Placing.

The Placing Price, when announced on 23 March 2020, represented a discount of 60% to the mid-market closing price of the Company’s ordinary shares on 18 March 2020 which discount is now 74.35% based on the mid-market closing price on 28 May 2020. The Directors were mindful in agreeing the arranged Placing Price that markets are currently experiencing exceptional levels of volatility not seen in recent years, and felt it appropriate to proceed at the Placing Price to secure an additional cash resources to allow the further development of the Company’s lead product candidates and to be in a position of financial security until markets return to normal operation.

OKYO intends to use the net proceeds received from this Placing (i) to complete IND enabling studies of Chemerin for dry eye followed by IND submission by Q1 2021, (ii) to complete Pre-IND studies and validation of Proof of Concept for Bam-8 for the treatment of ocular and chronic pain, and (iii) for working capital and other general expenses, as announced on 23 March 2020.

Completion of the Placing

Completion of the Placing is conditional upon the Placing Shares being admitted to listing on the Official List (standard listing segment) and to trading on the London Stock Exchange’s main market for listed securities (“Admission“) on or before 5 June 2020.

Admission, Settlement and Dealings in Placing Shares

Applications will be made to the FCA and to the London Stock Exchange for Admission in respect of all the Placing Shares proposed to be issued on completion of the Placing. It is expected that Admission will become effective, and that dealings in the Placing Shares are expected to commence, at 8.00 a.m. on 5 June 2020.

The rights attaching to the Placing Shares will be uniform in all respects and all of the Placing Shares will rank pari passu, and form a single class for all purposes with, the existing issued shares of no par value in the Company.

Following Admission of the Placing Shares, the enlarged Share Capital will be 672,566,302 ordinary shares of no par value and 35.8% of the ordinary shares will be in public hands.

The Company will make a further announcement upon the closing of the Placing.

The person who arranged for the release of this announcement on behalf of the Company was Tiziano Lazzaretti, Chief Financial Officer of OKYO.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

About OKYO

OKYO Pharma Limited (LSE: OKYO) is a life sciences and biotechnology company admitted to listing on the standard segment of the Official List of the UK Financial Conduct Authority and to trading on the Main Market for listed securities of the London Stock Exchange plc. OKYO is focusing on the discovery and development of novel molecules to treat inflammatory dry eye diseases and chronic pain.

Enquiries:

For further information, please visit the Company’s website at www.okyopharma.com.