Drilling Update

Max Petroleum Plc

(the "Company")

Drilling Update

Discovery at Baichonas West

3 September 2012

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, announces that the BCHW-1 exploration well in the Baichonas West prospect has reached a depth of 1,430 metres with electric logs indicating 13 metres of net pay over a 20 metre interval in the Jurassic Formation at measured depths between 1,170 and 1,190 metres. Reservoir quality is good with porosities ranging from 18% to 26%.

The Company has set production casing in the well and expects to begin testing BCHW-1 in October 2012 to determine commerciality after obtaining the relevant government approvals. The Zhanros rig will now move to drill the Dossor Northwest prospect in Western Block E, targeting seven mmbo of mean resources.

Michael Young, President and Chief Financial Officer of Max Petroleum commented:

"We are pleased to have made a discovery at Baichonas, the first of our Western Block E prospects to be drilled under the Zhanros deal. The charged reservoirs are slightly thinner than anticipated, but provided the test demonstrates good productivity, we expect Baichonas West to become our seventh commercial discovery."

 Enquiries:

Richard Hook, Chief Operating Officer of Max Petroleum, is the qualified person that has reviewed and approved the technical information contained in this announcement. Mr. Hook is a member of the Houston Geological Society and holds both Masters and Bachelors of Science degrees in geology.