Potential Equity Fundraising

THIS REPORT IS NOT DIRECTED AT PERSONS IN THE UNITED STATES OR PERSONS RESIDENT OR LOCATED IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE REPORT WOULD BREACH ANY APPLICABLE LAW OR REGULATION

SILENCE THERAPEUTICS PLC

Potential Equity Fundraising

19 March 2014

In view of recent corporate transactions, capital inflow and investor interest in the RNA interference sector, Silence Therapeutics plc ("Silence" or the "Company") today announces that it has been actively considering certain options to strengthen its balance sheet, in order to capitalise on its world leading technology in this space.

As at the date of this announcement, the Company's net cash position is £18.9m, and the Company is confident it has sufficient working capital to meet its present requirements, including the funding of its current Phase 1b/2a study in pancreatic cancer and the Phase 1b element of the planned head and neck study. However, given the significant opportunity that is presented in RNA therapeutics and the Company's leading position in this area, further capital would enable the Company to strengthen its competitive position relative to its global peers.

Accordingly, Silence has retained its Nominated Adviser and broker, Canaccord Genuity Limited ("Canaccord"), and ABG Sundal Collier ("ABG") (together the "Advisers") to explore the financing opportunities available to the Company. Following recent discussions with a limited number of institutional investors to consider, amongst other things, their interest in a potential future substantive equity financing, the Company is pleased to announce it has received an encouraging indicative level of interest and support, but there can be no guarantee that the financing goes ahead.

Should the Company decide to proceed with a substantial financing, the use of proceeds would be intended to support existing clinical projects and to expand pre-clinical capabilities and capacities. Specifically, the Company would direct these funds towards further delivery technologies of RNA molecules, expansion of its pre-clinical and clinical pipelines, and increasing internal capabilities and capacities. Further announcements will be made in due course and as appropriate.

Subject to a successful raise the Company intends to review its options in regard to moving to a more senior market.

Ali Mortazavi, Chief Executive of Silence Therapeutics, commented: 'The resurgence of RNA-based therapeutics has created a unique opportunity for us to capitalise on our world-leading technology. For the first time in many years we are approaching a fundraising from a position of strength with an exciting pipeline. Silence Therapeutics has broad delivery technologies in RNA therapeutics, which allow us to diversify our payloads from short interfering RNAs to micro RNAs and messenger RNAs. We look forward to the future with increased confidence.'

For further information contact: