2010 1H Operating Results

PRESS-RELEASE

KMG EP announces operating results for the 1H10

Astana, July 28, 2010. JSC KazMunaiGas Exploration Production (KMG EP or the Company), announces that in the first six months of 2010 it produced 6,283 thousand tonnes of crude oil (257 kbopd) including the Company's stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI), which is 610 thousand tonnes or 11% more than during the same period of 2009. The increase in production results from the acquisition of a 33% stake in PKI, which accounts for 733 thousand tonnes.

In the first six months of 2010 the Company produced 4,316 thousand tonnes (175 kbopd) of oil at production facilities of Uzenmunaigas and Embamunaigas, which is 107 thousand tonnes or 2% less than for the same period of last year. The decline in production was mainly caused by the failure to perform well service operations and oilfield equipment repair on time amid a strike by Uzenmunaigas workers over the period from March 4 through March 18 when some of the workers refused to get back to work.

In the first six months of 2010 KMG EP's the stake in production of KGM, CCEL and PKI amounted to 1,967 thousand tonnes (81 kbopd).

According to preliminary data, during first six months of 2010 the Company supplied 4,310 thousand tonnes of crude oil (175 kbopd), excluding the share in supply from KGM, CCEL and PKI. Of this amount, 3,459 thousand tonnes (141 kbopd) were exported.

The Company's share in the sales volumes from KGM, CCEL and PKI was 2,306 thousand tonnes of crude oil (96 kbopd), including 1,686 thousand tonnes (70 kbopd) supplied to export markets.

Notes to Editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels. The Company's ordinary and preferred shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In December 2009 International rating agency Standard & Poor's assigned KMG EP "GAMMA-6" level of the corporate governance and in July 2010 confirmed the Company's "BB+" corporate credit rating.

For further details please contact us at:

«KMG EP». Public Relations (+7 7172 97 7600)

Daulet Zhumadil

E-mail: [email protected]

«KMG EP». Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

E-mail: [email protected]

Pelham PR  (+44 207 861 3147)

Elena Dobson

E-mail: [email protected]

Forward-looking statements

This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.