Director/PDMR Shareholding

FOR IMMEDIATE RELEASE 26 January 2011

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

Interest of Non-Executive Director

Share Purchase on behalf of Dr James Buckee

Cairn was notified today that a total of 784 Ordinary Shares of 8/13 pence each in the Company were purchased on 26 January 2011 on behalf of Dr James Buckee at a price of £4.32665 per Share.

The above purchase follows Dr Buckee's election to receive 100% of his fees in the form of Ordinary Shares and has been made pursuant to an agreement in terms of which shares are purchased on his behalf on a regular basis in accordance with standing instructions.

Following this announcement the above named Director's beneficial interest in the Ordinary Shares of the Company is as follows:-