Allarity Therapeutics : CEO Letter to Shareholders

NEWS RELEASE

Allarity Therapeutics CEO Letter to Shareholders

8/11/2023

BOSTON, August 11, 2023

Dear Allarity Therapeutics Shareholders:

As we recently marked the end of my

concerns that have been raised, acknowledge challenges we have faced, and highlight the signi

have towards "Realizing the Promise of Personalized Cancer Care." As always, your continuing support of, and trust

in, our mission remain essential to our progress, and I am grateful for your steadfast dedication to Allarity

Therapeutics.

First, from the time of our Nasdaq listing in late 2021 to the present time, we acknowledge and are equally

frustrated by the decline of our market capitalization. Our executive management and clinical teams continue to

value of our therapeutic programs, our DRP® platform technology, or our Company.

That being said, I am thrilled to acknowledge that we have succeeded, despite an incredibly di

capital market environment over the past 18 months, to raise capital needed to advance our clinical programs

towards anticipated interim data readouts for our two Phase 2 clinical trials (for stenoparib and IXEMPRA®) later

this year.

Since the start of 2023, Allarity Therapeutics has successfully raised a total of $18.5 million of new investment

capital. We have doggedly succeeded in these new capitalizations against the backdrop of a capital market (for

sub-$100M market capitalization public companies) that has seen an overall decline of 55% since January 2022 and

during which dozens of biotech companies in our sector have gone bankrupt, been dissolved, or substantially

suspended operations and laid o

securing the necessary

pipeline together with our core DRP® companion diagnostics platform.

I am extremely pleased with, and thankful for, the non-stop e

employees, and our external team of advisors, legal counsel, and consultants for helping us weather this continuing

storm. But, the reality is that we cannot advance our clinical programs and enhance shareholder value without

accessing new capital to support our e

Our success in raising new capital resulted, among other clinical program progress, in the initiation of Allarity's

combination therapy study, for stenoparib + dovitinib in a Phase 1b/2 clinical trial, in early 2023. This milestone

marks the

last year.

Additionally, Allarity recently issued two press releases highlighting positive clinical data from studies prospectively

using our DRP® companion diagnostics (CDx) to improve cancer treatments.

In our ongoing IXEMPRA® Phase 2 trial in Europe, we announced very early data relating to the use of our

DRP®-IXEMPRA® CDx for patient selection and treatment. The data indicated promising, early signs of

improved clinical bene

disease periods.

Additionally, our concluded Phase 2 trial with one of Allarity's prior programs, LiPlaCis® (a novel liposomal

formulation of the chemotherapeutic, cisplatin) in metastatic breast cancer patients (mBC) showcased the

DRP®'s ability to identify mBC patients that would likely bene

The encouraging results of this clinical study were selected and accepted for abstract presentation at the

2023 ASCO Annual Meeting in Chicago and were published on June 3 of this year.

These prospective trial data support what we have seen in many previous retrospective studies: the signi

potential for our DRP® CDx to improve cancer patient care by identifying those most likely to respond to a given

treatment. With these recent data, we remain highly optimistic about the progress of our ongoing clinical programs

and the advancement of our core DRP® platform. Our commitment to DRP® CDx is unwavering and with your

ongoing trust and support, we will continue to push through these challenging times to

programs and succeed in Allarity's vision to advance personalized medicine for cancer patients.

I am further pleased to announce that our PARP inhibitor, stenoparib, is now our lead clinical asset, and is currently

being advanced in two out of three of our ongoing clinical trials. We will continue to focus our energies, e

resources on advancing clinical development of stenoparib, supported by continuing clinical development of our

IXEMPRA® and dovitinib assets, both of which we continue to believe have substantial clinical and commercial

potential.

Most recently, we announced the expansion of our Board of Directors with several new, highly-quali

independent Directors, which completes a Board restructuring that we initiated shortly after Allarity was listed on

Nasdaq. Our Board is now the strongest and most quali

highest level of corporate oversight and guidance.

On the heels of our Board expansion, we also recently announced a clinical development collaboration with

FivepHusion in which Allarity will support their clinical advancement of De

formulation of the widely used chemotherapeutic 5-

others, to select and treat cancer patients most likely to respond to De

demonstrates our continued commitment to "Realizing the Promise of Personalized Cancer Care" through the use

of DRP® CDx, and also provides us with an opportunity to monetize certain of our validated DRP® CDx's that are

outside the scope of our own therapeutic development programs and focus.

Additionally, we continue to explore potential strategic partnerships, merger & acquisition opportunities. Both the

Board and the executive management team take evaluation of such potential opportunities seriously. Our

evaluation re

to enhance shareholder value.

In closing, over the past year, we have been working tirelessly to reset the stage for Allarity to enjoy a stronger

enhanced Shareholder value, while also achieving our vision and mission to improve care for cancer patients.

Looking ahead, I am

portfolio of former Big Pharma drug candidates, dovitinib, IXEMPRA®, and especially stenoparib, together with their

respective DRP® CDx's, holds immense potential for "Realizing the Promise of Personalized Cancer Care" and

improving patient outcomes. Our proprietary DRP® platform continues to demonstrate its predictive power in

prospective (as well as retrospective) clinical trials. This unique combination of novel cancer drug + patient-selective

DRP® CDx positions us at the forefront of personalized medicine, enabling us to positively impact and improve

cancer patients' lives worldwide.

I want to express my deep gratitude to our dedicated Allarity team, whose unwavering commitment and hard work

have been instrumental in overcoming the many obstacles we have faced throughout the last 18 months and

brought us to this point of solid advancement toward achieving our mission. Their expertise and passion drive us

forward every day. I want to sincerely thank you, our Shareholders, for your continued support and belief in our

team and our important mission, and to assure you that we remain steadfast in our commitment to creating long-

term value.

Thank you for your continuing trust and partnership. I ask you to stay on this journey with our dedicated team.

Allarity Therapeutics will continue to push the boundaries of what is possible in oncology therapeutic development

and to improve the lives of cancer patients worldwide.

With Warm Regards,

James G. Cullem

CEO, Allarity Therapeutics

Forward-Looking Statements

This lettter contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act

of 1995. Forward-looking statements provide Allarity's current expectations or forecasts of future events. The words

"anticipates," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible,"

"potential," "predicts," "project," "should," "toward," "would" and similar expressions may identify forward-looking

statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-

looking statements include, but are not limited to, statements related to the expected availability of capital to fund

its anticipated clinical trials, statements related to advancing dovitinib in combination with stenoparib or another

therapeutic candidate or other approved drug, any statements related to ongoing clinical trials for stenoparib as a

monotherapy or in combination with another therapeutic candidate for the treatment of advanced ovarian cancer,

or ongoing clinical trials (in Europe) for IXEMPRA® for the treatment of metastatic breast cancer, statements

relating to the e

particular patient is likely to respond to a speci

related to the Company's ability to maintain compliance with the Nasdaq Listing Rule. Any forward-looking

statements in this press release are based on management's current expectations of future events and are subject

to multiple risks and uncertainties that could cause actual results to di

forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to,

the risk that the Company is not able to raise su

the risk that results of a clinical study do not necessarily predict

outcomes may materially change following more comprehensive reviews of the data, and as more patient data

become available, the risk that results of a clinical study are subject to interpretation and additional analyses may

be needed and/or may contradict such results, the receipt of regulatory approval for dovitinib or any of our other

therapeutic candidates or, if approved, the successful commercialization of such products, the risk of cessation or

delay of any of the ongoing or planned clinical trials and/or our development of our product candidates, the risk

that the results of previously conducted studies will not be repeated or observed in ongoing or future studies

involving our therapeutic candidates, and the risk that the current COVID-19 pandemic will impact the Company's

current and future clinical trials and the timing of the Company's preclinical studies and other operations. For a

discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results

to di

10-K annual report on

Commission's website at www.sec.gov , and as well as discussions of potential risks, uncertainties and other

important factors in the Company's subsequent

information in this press release is as of the date of the release, and the Company undertakes no duty to update

this information unless required by law.