Final conversion of convertible bonds

Max Petroleum Plc

(the "Company")

Final Conversion of Convertible Bonds

30 August 2013

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, is pleased to announce that it has received written regulatory approval from the Ministry of Oil and Gas of the Republic of Kazakhstan permitting the conversion of the Company's outstanding 10% notes, comprising US$28.6 million in principal and accrued interest (the "PIK Notes"), into 0.01p ordinary shares of the Company ("Shares"). The PIK Notes will be mandatorily converted into approximately 358 million Shares at a price of 5p per Share. Following conversion, the Shares will be allotted to the holders of the underlying PIK Notes and application will be made for such Shares to be admitted to trading on AIM. A further update will be announced in due course confirming the expected date of such admission.

The conversion of the PIK Notes, and the earlier conversion of 6.75% convertible bonds into 709 million shares announced on 21 December 2012, trigger certain anti-dilution provisions of warrants held by syndicate partners in the Company's former credit facility with Macquarie Bank Limited (the "Syndicate Warrants"), which will entitle the holders of the Syndicate Warrants to be issued additional warrants granting them a right to subscribe for approximately 49 million Shares at 5p per Share.