Director/PDMR Shareholding

FOR IMMEDIATE RELEASE 19 January 2012

CAIRN ENERGY PLC ("Cairn" or "the Company")

Interests of Director in the Company's Shares

Cairn announces that Sir Bill Gammell, Chairman has gifted 63,000 Ordinary Shares to a charitable trust on 19 January 2012.

Cairn also announces that a trust in which Sir Bill Gammell has a beneficial interest has also gifted 89,000 Ordinary Shares to a charitable trust on 19 January 2012.

Following this announcement, Sir Bill Gammell's beneficial interests in the Ordinary Shares of the Company are as follows:-