MBCI MabCure Inc (CE)

MabCure, Inc. (OTCBB:MBCI):

Dear Shareholders:

I am pleased to update you on the progress of our research and development.

Over the past several months we have been working intensively on advancing our various programs with an emphasis on melanoma and ovarian cancer diagnostics. We consider these two projects near-term in their respective development stages, as I describe below.

In January 2010, we announced the commencement of our clinical trials at the Ramathibodi Hospital in Bangkok, Thailand to evaluate the potential of our panel of monoclonal antibodies (MAbs) to diagnose ovarian cancer in high risk patients. Since the study began, patients have been recruited at a solid pace and in line with our schedule. In addition, we are privileged that the Thai National Cancer Institute has decided to join our study and is currently reviewing our study protocol. The study is estimated to be completed within 5-6 months, as originally planned.

In parallel to our study in Thailand, we are planning to commence a study in collaboration with a major medical center in Belgium of several hundred blood samples which were obtained from patients over the past several years. The purpose of this “retrospective” study is to provide additional proof of the ability of our MAbs to correctly diagnose ovarian cancer, and is of considerable importance given the significant number of blood samples to be tested.

The study will be “blind” to all involved (i.e. the samples will be coded and neither the clinicians nor MabCure scientists will know the identity of the specimens until the study is complete), so as to prevent any bias in the analysis of the results. The study is expected to last several weeks and will commence once a formal agreement has been signed with the Belgian medical center. As a prelude to this study, we conducted a pilot study on a limited number of these “retrospective” specimens to calibrate the optimal technical conditions for our MAbs.

In parallel, we are conducting an independent study in Germany aimed at testing the ability of our antibodies to bind to different ovarian cancer tissue specimens. The purpose of the study is to select those antibodies which are most suitable for use as imaging agents and therapeutic agents. Results from this study are expected within 2 months.

We have also made progress with our anti-melanoma MAbs. Melanoma is the most lethal form of skin cancer, accounting for 75% of deaths from skin cancers. The survival rate for advanced melanoma is as low as 15 percent, but if detected early (before the tumor penetrates the epidermis) the survival rate can reach 99%. According to the National Cancer Institute (NCI), 1 in every 53 people in the U.S. will be diagnosed with melanoma of the skin during their lifetime.

In addition, between to 2 to 8 percent of the Caucasian population in the U.S. and Europe are at a significant increased risk for developing melanoma from the appearance of atypical moles (known as dysplastic nevi or DN) on their skins. This translates to approximately 4M-16M people in the U.S. and 10M-40M people in Europe. Consequently, there is a significant unmet need to identify those moles which have been transformed into melanoma.

We recently initiated an independent third-party study in the U.K. of our antibodies for diagnosing melanoma in tissue specimens. The purpose of the study is to obtain rigorous proof of the specificity of our MAbs, using standards required by the U.S. FDA.

We plan to initiate a follow-up clinical study of our anti-melanoma MAbs by a highly esteemed European group which specializes in melanoma. The purpose of this study is to prepare the groundwork for entering the European market with a diagnostic MAb for Melanoma. Negotiations for this study are currently underway and we will issue a separate press release once the study commences.

It is important to note that the results of the various melanoma studies described above will enhance our patent application position as well as will advance the application of these MAbs as imaging agents and diagnostic agents for melanoma.

In our R&D pipeline, we have a planned pilot clinical study at the Ramathibodi Hospital in Bangkok, Thailand for the diagnosis of prostate cancer in the urine and blood of high risk patients. The study protocol will be submitted shortly to the hospital’s Ethics Committee for approval. The study is scheduled to begin in August and is expected to be completed by the end of the year.

I would like to reassure our shareholders that we are working assiduously to reach our milestones and to obtain clinical breakthroughs, which will benefit cancer patients as well as our investors. I would like to take this opportunity to thank all of our shareholders for their continued support and belief in our company.

Yours sincerely, Dr. Amnon Gonenne President & CEO MabCure, Inc.

About MabCure, Inc.

MabCure is a biotechnology company whose vision is to change the perception of cancer as being a largely incurable disease. MabCure owns proprietary technology for the creation of unique and highly specific monoclonal antibodies (MAbs), which we plan to develop as diagnostic tools, imaging agents, and drugs to treat lethal cancers. MabCure’s initial goal is to develop its novel MAbs as diagnostic tools for the detection of Ovarian and Melanoma cancers at an early stage, when these diseases are still localized and highly curable. For further information visit the Company’s website at www.mabcure.com.

This news release contains “forward-looking statements”. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the change of business focus of the management of the Company and the inability of the Company to pursue its current objectives. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.