Faron Pharmaceuticals Ltd.

("Faron")

Exercise of options, Directors Dealing

Issue of equity

Company announcement, August 31, 2023 at 14:00 p.m. BST / 16:00 p.m. EEST

TURKU, FINLAND / BOSTON, MA - Faron Pharmaceuticals Ltd. (AIM: FARN, First North: FARON), a clinical- stage biopharmaceutical company focused on tackling cancers via novel immunotherapies, announces that it has received notifications from option holders to exercise 2015B options over 18,022 in the Company at an exercise price of EUR 2.90 (approx. GBP 2.48) per share, raising gross proceeds of approx. EUR 52,264 (approx. GBP 44,695) and 2015D options over 67,127 shares in the Company at an exercise price of EUR 1.09 (approx. GBP 0.93) per share, raising gross proceeds of approx. EUR 73,168 (approx. 62,428), under the Company's 2015 Option Plan ("New Ordinary Shares"). The terms and conditions of the 2015 Option Plan are available on the Company's website at
consolidated-terms-and-conditions-of-the-option-plan-2015.pdf (faron.com) (https://www.faron.com/sites/faron-corp/files/faron/investor/general-meeting/2021/consolidated-terms-and-conditions-of-the-option-plan-2015.pdf)

As part of the above exercise of 2015D options, John Poulos, Non-Executive Director of the Company, has given notice to exercise options over 20,000 new ordinary shares at exercise price of EUR 1.09 (approx. GBP 0.93). Following this exercise and admission, John Poulos will be interested in 20,000 ordinary shares in the Company, representing 0.03% of the Company's enlarged issued share capital.

The notification below, which has been made in accordance with the requirements of the EU Market Abuse Regulation, provides further detail.

Notification
of a
Transaction
pursuant to
Article 19(1)
of Regulation
(EU) No.
596/2014
1 Details of the person
discharging managerial
responsibilities/person
closely associated
a. Name John Poulos
2 Reason for notification
a. Position/Status Non-Executive
Director
b. Initial notification/ Initial Notification

Amendment
3 Details of the issuer,
emission allowance market
participant, auction
platform, auctioneer or
auction monitor
a. Name Faron
Pharmaceuticals Oy
b. LEI 7437009H31TO1DC0EB42
4 Details of the
transaction(s): section to be
repeated for (i) each type of
instrument; (ii) each type of
transaction; (iii) each date;
and (iv) each place where
transactions have been
conducted
a. Description of the financial Options over
instrument, type of ordinary shares
instrument ISIN: FI4000153309
Identification Code
b. Nature of the transaction Exercise of options
to acquire ordinary
shares at an
exercise price of
EUR 1.09 (approx.
GBP 0.93)
c. Price(s) and volume(s)
Price(s) Volume(s)
EUR 1.09 20,000
(approx. GBP
0.93)

d. Aggregated information N/A

- Aggregated Volume

-Price
e. Date of the transaction August 28, 2023
f. Place of the transaction AIM & Nasdaq First
North Growth Market

Applications will be made to the London Stock Exchange and Nasdaq Helsinki to admit the New Ordinary Shares to trading on AIM and Nasdaq First North Growth Market, respectively. Admission of the New Ordinary Shares is expected to occur on or around September 11, 2023 following issue and registration of the New Ordinary Shares on or around September 12, 2023 ("Registration"). The New Ordinary Shares will rank pari passu with existing ordinary shares.

Faron's enlarged issued number of shares immediately following Registration will be 66,246,522 ordinary shares with voting rights attached. The Company has no shares in treasury; therefore upon, and subject to, Registration, the total number of voting rights in Faron will be 66,246,522. This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify an interest in, or a change to their interest in, the issued shares and votes of the Company.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").

For more information please contact:

Investor Contact

LifeSci Advisors

Daniel Ferry

Managing Director

daniel@lifesciadvisors.com

+1 (617) 430-7576

Media Contact

Faron Pharmaceuticals

Jennifer C. Smith-Parker

Head of Communications

Jennifer.Smith-Parker@faron.com

Cairn Financial Advisers LLP, Nomad

Sandy Jamieson, Jo Turner

Phone: +44 (0) 207 213 0880

Peel Hunt LLP, Broker

Christopher Golden, James Steel

Phone: +44 (0) 20 7418 8900

Sisu Partners Oy, Certified Adviser on Nasdaq First North

Juha Karttunen

Phone: +358 (0)40 555 4727

Jukka Järvelä

Phone: +358 (0)50 553 8990

About Faron Pharmaceuticals Ltd.

Faron (AIM: FARN, First North: FARON) is a global, clinical-stage biopharmaceutical company, focused on tackling cancers via novel immunotherapies. Its mission is to bring the promise of immunotherapy to a broader population by uncovering novel ways to control and harness the power of the immune system. The Company's lead asset is bexmarilimab, a novel anti-Clever-1 humanized antibody, with the potential to remove immunosuppression of cancers through targeting myeloid cell function. Bexmarilimab is being investigated in Phase I/II clinical trials as a potential therapy for patients with hematological cancers in combination with other standard treatments. Further information is available at www.faron.com (https://eur01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.faron.com%2F&data=05%7C01%7C%7Ca4ae0afa96854c5c5f2a08db771ae20d%7Ca2d9b7a432f64a96b03727499230d5fd%7C1%7C0%7C638234729855975666%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=%2FNadoN9wXIGZtfCkFVuLSTXPpNg3%2BBXoRfIQaIPce6k%3D&reserved=0).