Adjoining of NBK

JSC KazMunaiGas Exploration Production held an extraordinary general shareholders' meeting.

Astana, 17 August 2011. Yesterday, 16 August 2011, JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") held an extraordinary general shareholders' meeting, where the decision was taken to reorganize the Company by adjoining LLP "NBK" ("NBK"), the only shareholder of which is KMG EP. As reported before, the Company closed the deal on the acquisition of NBK from Eastern Gate Management Ltd. in September 2010 for US $35 million.

NBK develops the "Novobogatinskoe West" field under a Subsoil Exploration and Production Contract expiring in 2027 with an option to extend. The field adjoins the licence area of "Embamunaigas" which allows NBK to use its existing infrastructure for oil treating, storage and transportation.

Taking into consideration the convenient geographical location of the "Novobogatinskoe West" field the Company has taken the decision to integrate the assets of NBK with the assets of the production branch of "Embamunaigas".

The voluntary reorganization in the form of adjoining NBK to KMG EP will provide for the production efficiency increase and the optimization of the capital and operating costs.

NOTE

KMG EPis among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL (JSC "Karazhanbasmunai"), PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates - about 2.2 bn barrels. The Company's shares are listed on the 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. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating in July 2010 and "GAMMA-6" rating in November 2010.

NBKholds the license rights, under Subsoil Use Contract Number 992 (issued in September 2002) for hydrocarbon exploration and production at the "West Novobogatinskoe field" in the Atyrau region. Recoverable reserves (2P) of this field are estimated to be 13 million barrels of oil equivalent (according to KMG EP's technical experts' evaluation). Cost of acquired barrel of this asset is $2.7/bbl. According to independent evaluation recoverable volumes are estimated at 12.9 million barrels.

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 Bell Pottinger (+44207 337 15 17)

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.