Claim by Lancrenan Investments Limited

PRESS - RELEASE

JSC KazMunaiGas Exploration Production

Claim by Lancrenan Investments Limited

Astana, 23 May 2017. JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") notes recent media reports about proceedings against the Company by Lancrenan Investments Limited filed with the Specialized Interdistrict Economic Court of Astana.

In its claim Lancrenan Investments Limited challenges the decision of the Nominations Committee and the Board of Directors of KMG EP in terms of not considering Mr. Alexander Gladyshev as satisfying the criteria for an independent director, following Mr. Gladyshev's nomination by Lancrenan Investments Limited.

The candidacy of Mr. Gladyshev has been fully admitted to participate in the election process, and Mr. Gladyshev has been included in the shareholders' voting cards as a candidate for the position of an independent director. Effectively, the shareholders were able to vote on all presented candidates, including Mr. Gladyshev, as per the provisions of Kazakhstan's Law on JSC. Thus, there was no violation of shareholders' rights.

Accordingly, the Company believes that the proceedings have no merit.

Notes to Editors

KMG EP is among the top three Kazakh oil producers based on the 2016 results. The overall production in 2016 was 12.2 million tonnes (245 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's volume of proved and probable reserves excluding shares in the associates, at the end of 2016 was 182 million tonnes (1,327 mmbbl). 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 at its IPO in September 2006.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 5433)Saken Shoshanove-mail: [email protected]

KMG EP. Public Relations (+7 7172 97 7887)Bakdaulet Tolegene-mail: [email protected]  

Bell Pottinger (+44 203 772 2500)

Henry Lerwill

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.