Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

Verona Pharma plc

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

Wales Life Sciences Investment Fund LP

4. Full name of shareholder(s)  (if different from 3.):iv

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

3 January 2017

6. Date on which issuer notified:

3 January 2017

7. Threshold(s) that is/are crossed orreached: vi, vii

4.1%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct

Direct xi

Indirect xii

Direct

Indirect

Ordinary

207,500,000

207,500,000

105,500,000

105,500,000

4.1%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

105,500,000

4.1%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

Wales Life Sciences Investment Fund LP, as a stand-alone entity, previously held 8.1% of voting rights of Verona Pharma plc. After this disposal it holds 4.1%

The Wales Life Sciences Investment Fund LP is managed by Arthurian Life Sciences Ltd.

Arix Bioscience plc is the parent of Arthurian Life Sciences Ltd.

Arix Bioscience plc separately holds 2.5% of the voting rights which remain unchanged.

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease to hold:

12. Date on which proxy holder will cease to holdvoting rights:

13. Additional information:

14. Contact name:

Shafia Zahoor

15. Contact telephone number:

020-7290-1057

Note: Annex should only be submitted to the FCA not the issuer

Annex: Notification of major interests in share

A: Identity of the persons or legal entity subject to the notification obligation

Full name

(including legal form of legal entities)

Wales Life Sciences Investment Fund LP

Contact address

(registered office for legal entities)

20 Berkeley Square, London W1J 6EQ

Phone number & email

020-7290-1057

Other useful information

(at least legal representative for legal persons)

B: Identity of the notifier, if applicable

Full name

Shafia Zahoor

Contact address

20 Berkeley Square, London W1J 6EQ

Phone number & email

020-7290-1057

[email protected]

Other useful information

(e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information