ReNeuron : Preliminary Results for the year ended 31 March 2022

ReNeuron Group plc

("ReNeuron" or "the Group")

Preliminary Results for the year ended 31 March 2022

Strategic shift to fully focus on ReNeuron's Proprietary Exosomes Platform

ReNeuron Group plc (AIM: RENE), a UK based leader in stem cell derived exosome technologies, announces its preliminary results for the year ended 31 March 2022.

OPERATIONAL HIGHLIGHTS

Exosomes Platform

• Following a strategic review in January, ReNeuron is now fully focused on expanding its proprietary customisable exosomes platform
• Seven discovery-stage collaborations proceeding with global pharma, biotech and academic institutions, with the Group committed to adding new long term value creating partnerships
• Exciting pre-clinical data announced showing that ReNeuron's exosome drug delivery technology can effectively deliver therapeutic proteins to the brain to potentially treat neurological diseases

Corporate and Organisational Development

• In July 2021, Iain Ross was appointed as Non-Executive Chairman and following Olav Hellebø's resignation as CEO in February 2022, Mr Ross became Interim Executive Chairman until the appointment of a new CEO
• In October 2021, Catherine Isted, ACMA, joined the Board, replacing Michael Hunt as Chief Financial Officer
• Additionally, during the period, the Board was reconfigured with former Chairman, Dr Tim Corn and Non- Executive directors Mark Evans and Sir Chris Evans OBE stepping down. Two new independent Non- Executive directors, Barbara Staehelin and Martin Walton, have joined the Board
• Additionally, Dr Stefano Pluchino was appointed as Chief Scientific Officer and Dr Randolph Corteling as Head of Research, greatly increasing the Group's exosomes expertise

Fosun Pharma

• Fosun Pharma continues to progress development of CTX in stroke disability in China. In January 2022 ReNeuron announced that it had signed an additional agreement, setting out the first steps for the technology transfer of the CTX drug product into China
• Post period end in July 2022, ReNeuron signed a Supplemental Terms Agreement with Fosun Pharma. As a result, the Group expects to receive approximately £1 million over the next 24 months with up to a further £5 million over the medium to long term

Induced Pluripotent Stem Cell (iPSC) Platform

• Collaboration signed with University College London (UCL) investigating the use of ReNeuron's iPSC platform to potentially generate CAR-T and/or CAR-NK cells
• Positive data from a separate UCL collaboration demonstrating that ReNeuron's iPSCs can be differentiated into Schwann cells with potential applications such as peripheral nerve damage repair

hRPC (human retinal progenitor cells) for retinal diseases

• In January 2022, as a result of the strategic review and following consultation with the Company's Scientific Advisory Board, the Board took the decision to halt development of its Retinitis Pigmentosa programme as it became clear that a further phase II trial would be required. The view was that the size of the additional investment required would not be in the best interests of shareholders
• The Board's intention is to complete the Retinitis Pigmentosa data package and out-licence the programme to a third party

FINANCIAL HIGHLIGHTS

• Revenue for the period of £403,000 relating to research and collaboration activities and royalty income (2021: £257,000)
• Loss for the period of £9.7 million (2021: loss of £11.3 million) reflecting lower costs
• Reduced costs incurred in the period of £11.6 million (2021: £13.2 million) primarily driven by lower R&D spend following the strategic decision to curtail clinical development activities
• Increased net cash used in operating activities of £7.4 million (2021: £6.1 million) with the prior year benefitting from the receipt of two R&D tax credits relating to financial years 2019 and 2020
• Cash, cash equivalents and bank deposits at 31 March 2022 of £14.5 million (31 March 2021: £22.2 million) providing a cash runway until at least mid-calendar year 2023

Iain Ross, Chairman said: "During the period tough decisions have been taken, the business model re-focussed and the Board and Management team strengthened in line with our future goals. Personally, I have been most impressed with the competence, resilience and determination of the ReNeuron team and look forward to driving the business forward, executing a realistic plan and achieving meaningful milestones over the next 12 months."

Analyst briefing

Iain Ross, Interim Executive Chairman, Catherine Isted, Chief Financial Officer and Dr Randolph Corteling, Head of Research will be hosting a briefing for analysts which will take place at 75 King William St, London, EC4N 7BE on Monday 4 July 2022 at 13.00 (GMT) / 08:00 EST. A live webcast of the presentation will also be available for those unable to attend the meeting in-person.

For more information and to register to attend the meeting in-person or require the link to the live webcast, please email reneuron@walbrookpr.comor call +44 (0)20 7933 8785.

Investor Briefing

Management will be hosting a live online presentation relating to the preliminary results via the Investor Meet Company platform at 15.00 (GMT) on Monday 4 July. The presentation is open to all existing and potential shareholders.

Investors can sign up to Investor Meet Company for free and register for the presentation here: https://www.investormeetcompany.com/reneuron-group-plc/register-investor

About ReNeuron

ReNeuron is a UK based leader in proprietary stem cell derived exosome technologies, harnessing its unique stem cell technologies to develop 'off the shelf' treatments for diseases with significant unmet needs.

ReNeuron's stem cell derived proprietary exosome technology platform offers a delivery mechanism for a variety of payloads such as siRNA, mRNA, proteins, small molecules and genes. The Group has a growing number of partner collaborations with Global Pharma, Biotech and academic partners in this fast-expanding area of scientific and commercial interest. ReNeuron also has the ability, through its conditionally immortalised induced pluripotent stem cell (iPSC) platform, to make allogeneic tissue cells of choice and has the potential to produce exosomes with tissue specific targeting ability.

The Group has out-licenced its CTX Programme for stroke disability and hRPC programme in retinitis pigmentosa to Fosun in China and is looking to out-license both of these programmes in other territories.

ReNeuron's shares are traded on the London AIM market under the symbol RENE.L. For further information visit www.reneuron.com

This announcement contains forward-looking statements with respect to the financial condition, results of operations and business achievements/performance of ReNeuron and certain of the plans and objectives of management of ReNeuron with respect thereto. These statements may generally, but not always, be identified by the use of words such as "should", "expects", "estimates", "believes" or similar expressions. This announcement also contains forward-looking statements attributed to certain third parties relating to their estimates regarding the growth of markets and demand for products. By their nature, forward-looking also statements involve risk and uncertainty because they reflect ReNeuron's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors could cause ReNeuron's actual financial condition, results of operations and business achievements/performance to differ materially from the estimates made or implied in such forward-looking statements and, accordingly, reliance should not be placed on such statements.

Interim Results for the year ended 31 March 2022

CHAIRMAN'S STATEMENT

Following the strategic review in January 2022, the Board took some tough decisions from a business and organisational perspective. As a result, during the course of the year the Group has made a number of changes to not only re-organise the business to fully focus on exosomes, but also to put in place the right team both at the Board and Executive level in order to build a sustainable growing business and ultimately to deliver shareholder value.

I was appointed Chairman in July 2021, and having worked with the team for six months, in January 2022 the Board under my leadership took the tough decision to halt the Retinitis Pigmentosa (RP) programme and fundamentally re-organise the business and its priorities. Upon reviewing the RP data we believed that we could not justify substantial further investment into the RP programme and that the programme's future was better served in the hands of a partner. This decision has allowed us to increase the speed at which we can invest in and progress our proprietary exosomes platform. We believe this platform is differentiated from others in the field and allows our exosomes to be customised and optimised for specific payloads and targets. We believe our position as a leader in this growing field of science offers the best opportunity of returns for our shareholders.

In addition to having leading edge science and IP in the field I believe we now have the right combination of skill sets in our executive team having made three key hires during the year to build and grow our exosomes platform business. Catherine Isted joined as CFO having spent her career to date in healthcare, most recently at Oxford Biomedica building their viral vector-based platform business. Catherine has already made a significant contribution since joining the business. Additionally in the year, Dr Stefano Pluchino joined ReNeuron as Chief Scientific Officer and Dr Randolph Corteling re-joined ReNeuron as Head of Research. Between them they bring over 30 years of experience in exosomes and their extensive knowledge in the field is invaluable as the Group looks to maximise the potential in this fast growing area of science.

In addition, we have evolved the Board to align with the needs of the business and whilst it has reduced in size, it has increased in independence. Accordingly, I want to thank Olav Hellebø, Sir Chris Evans, Dr.Tim Corn and Mark Evans for their significant contribution over a number of years. We have welcomed the appointments of two new Independent Non-Executive Directors, Barbara Staehelin and Martin Walton. I intend that ReNeuron will continue to operate to the highest levels of governance and as diversity and inclusion are a core part of our culture, I am pleased to note that we currently have 40% female board member representation.

With the excellent team we now have in place, the focus over the year ahead will be to deliver on our promises, to build on the partnerships we already have in place and look to expand the best of these into new long term value creating partnerships. We will continue to expand our technology platform and work with delivery of therapeutic proteins to the brain, producing further data around the customisable nature of our proprietary platform and our optimised exosomes product candidates. The management team will also continue to assess all opportunities to monetise value from ReNeuron's assets, be that its stem cell legacy assets, induced pluripotent stem cell (iPSC) platform or proprietary stem cell lines, to build sustainable value for shareholders. The Board anticipates further strengthening of the team including the appointment of a CEO in the year ahead and I personally look forward to the coming year and to helping the team to build and release value commensurate with the quality of our scientific leadership.

Iain Ross

Chairman