H1 and Q2 Production Report

27 July 2017

KAZ MINERALS GROUP Production Report for six months and THE second QUARTER Ended 30 June 2017

l H1 2017 copper production1 more than doubled to 118 kt (H1 2016: 56 kt), on track for full year guidance of 225-260 kt

l Ramp up of new operations continues to deliver quarterly growth in copper production, Q2 2017: 66 kt (Q1 2017: 52 kt)

l Strong first half gold output of 93 koz (H1 2016: 45 koz)

l Bozshakol on track to achieve 2017 copper guidance and top end of gold guidance

§ H1 2017 copper production2 of 52 kt (H1 2016: 10 kt) and gold production2 of 63 koz (H1 2016: 12 koz), lower gold grades expected in H2

§ Sulphide plant at 93% of design ore throughput in Q2, full capacity expected in H2 2017

§ Clay plant continuing to ramp up in line with expectations, ore throughput at 69% in Q2

l Aktogay ramp up progressing well

§ Copper production1 of 33 kt in H1 2017 (H1 2016: 5 kt)

§ Sulphide copper production2 increased to 15 kt in Q2 (Q1 2017: 7 kt)

§ Concentrator ramping up faster than Bozshakol due to experience gained at identical operations and benefit of high grade supergene ore

§ On course to achieve 2017 guidance of 65-85 kt as concentrator ramps up to commercial levels in H2

l East Region and Bozymchak on track for copper production target

§ Copper production2 of 33 kt in H1 2017 (H1 2016: 41 kt)

§ H1 zinc in concentrate production of 32 kt (H1 2016: 40 kt)

§ Full year gold and silver production expected to be towards the upper end of guidance

1 Payable metal in concentrate and copper cathode from Aktogay oxide ore.

2 Payable metal in concentrate.

Oleg Novachuk, Chief Executive, said: "I am pleased to report good progress in the ramp up of the new sulphide concentrator at Aktogay and a strong operational performance from our other assets. At Bozshakol, we expect to achieve 100% of design capacity in the second half of this year as planned. The operational performance has had a positive impact on unit costs supported by limited domestic inflation, with Aktogay and the East Region currently tracking below the guided full year cost range."

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KAZ Minerals PLC ("KAZ Minerals" or "the Group") is a high growth copper company focused on large scale, low cost, open pit mining in Kazakhstan. It operates the Bozshakol and Aktogay open pit copper mines in the Pavlodar and East regions of Kazakhstan, three underground mines and associated concentrators in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan. In 2016, total copper cathode equivalent output was 140 kt with by-products of 75 kt of zinc in concentrate, 120 koz of gold bar equivalent and 3,103 koz of silver bar equivalent.

The Group's new operations at Bozshakol and Aktogay are delivering one of the highest growth rates in the industry and transforming KAZ Minerals into a company dominated by world class, open pit copper mines.

Bozshakol is a first quartile asset on the global cost curve and will have an annual ore processing capacity of 30 million tonnes when fully ramped up and a mine life of 40 years at a copper grade of 0.36%. The mine and processing facilities will produce an average of 100 kt of copper cathode equivalent and 120 koz of gold in concentrate per year over the first 10 years of operations.

Aktogay is a large scale, open pit mine similar to Bozshakol, with a mine life of more than 50 years and average copper grades of 0.37% (oxide) and 0.33% (sulphide). Aktogay commenced production of copper cathode from oxide ore in December 2015 and copper in concentrate production from sulphide ore commenced in February 2017. The sulphide concentrator will have an annual ore processing capacity of 25 million tonnes when fully ramped up. Aktogay is competitively positioned on the global cost curve and will produce an average of 90 kt of copper cathode equivalent from sulphide ore and 20 kt of copper cathode from oxide ore per year over the first 10 years of operations.

KAZ Minerals is listed on the London Stock Exchange, the Kazakhstan Stock Exchange and the Hong Kong Stock Exchange and employs around 13,000 people, principally in Kazakhstan.

This announcement contains inside information.

GROUP PRODUCTION SUMMARY

1 Payable metal in concentrate and copper cathode from Aktogay oxide ore.

2 Payable metal in concentrate.

3 Restated to include silver and gold production from Aktogay.

Copper production in H1 2017 increased by 110% to 118.0 kt from 56.3 kt in H1 2016, as Bozshakol and Aktogay raised ore throughput levels. Aktogay output benefited from the processing of higher grade sulphide material from a supergene enriched level at the top of the ore body. Copper production in Q2 2017 of 65.9 kt was 26% higher than Q1 2017 as both the new open pit mines raised output.

Ore extraction increased by 56% in H1 2017 compared to the prior year period, to 34.4 million tonnes (H1 2016: 22.1 million tonnes), in line with increased processing at Bozshakol and Aktogay.

Ore processed increased by 3.8 times in H1 2017 compared to the prior year period and processing volumes in Q2 2017 were 37% higher than the previous quarter due to rising throughput at the Bozshakol and the Aktogay sulphide concentrators, with Aktogay operating for its first full quarter. 34.4 million tonnes of ore were extracted in H1 2017, with 8.3 million tonnes of oxide ore placed on leach pads at Aktogay, 9.0 million tonnes of clay ore stockpiled at Bozshakol and the remainder processed through the Group's sulphide concentrators.

The average copper grade processed of 0.76% in H1 2017 compares to a grade of 1.28% in H1 2016, when the majority of the Group's production came from the higher grade underground mines in the East Region. The grade of ore processed decreased from 0.80% in Q1 2017 to 0.73% in Q2 2017 as the proportion of ore processed at Bozshakol increased, with a grade of 0.56%.

Zinc in concentrate output of 32.3 kt in H1 2017 was 18% below the prior year period following the closure of the Yubileyno-Snegirikhinsky mine at the end of 2016 and the six day week adopted at Orlovsky from H2 2016. Zinc in concentrate output of 16.8 kt in Q2 2017 increased by 8% compared to the prior quarter as zinc grades recovered from temporarily lower levels at Artemyevsky.

Gold production in H1 2017 increased to 93.0 koz, double the prior year period due to the ramp up of Bozshakol. Higher output from Bozshakol also drove an 18% increase in Q2 production to 50.4 koz, compared to 42.6 koz in Q1 2017. The material extracted in H1 2017 at Bozshakol had a higher than anticipated gold grade which is expected to decline from July 2017.

Silver production increased to 1,756 koz in H1 2017 from 1,560 in H1 2016, mainly due to the ramp up of Bozshakol. In Q2 2017, silver output grew to 961 koz from 795 koz in Q1 2017 as grades increased in the East Region and due to a higher contribution from Bozshakol.

BOZSHAKOL

1 Payable metal in concentrate.

Ore extraction at Bozshakol of 19.4 million tonnes was 76% higher in H1 2017 than the prior year period when the sulphide concentrator was in the early stages of commissioning. Ore extraction in Q2 2017 reduced by 4% compared to the previous quarter, to 9.5 million tonnes (Q1 2017: 9.9 million tonnes), as 0.9 million tonnes less clay bearing material was mined. Sulphide mining volumes in Q2 2017 continued to increase to support the ramp up of the main concentrator.

Ore processing volumes in H1 2017 of 11.7 million tonnes were significantly above the prior year period when the sulphide plant was in the early stages of commissioning and the clay plant was not yet in operation. In Q2 2017, ore processing volumes increased by 31% compared to the previous quarter, to 6.6 million tonnes, as the main sulphide concentrator increased throughput levels to 93% of design capacity from 74% in Q1 2017, partly assisted by less downtime for scheduled maintenance. The clay plant increased ore throughput to 69% of capacity in Q2 2017 compared to 40% in Q1 2017. The ramp up of both concentrators is proceeding in line with expectations and Bozshakol remains on track to achieve full design capacity in the second half of 2017.

In line with the increase in processing volumes, copper production1 in H1 of 52.0 kt was more than five times higher than the prior year period, with the copper grade remaining constant at 0.56% and recovery rates increasing slightly to 83.0% (H1 2016: 82.4%). In Q2 2017, copper production1 increased by 27% to 29.1 kt from 22.9 kt in the prior quarter, driven by increased throughput at both processing plants. Copper recovery rates in Q2 2017 decreased slightly to 82.4% from 83.7% in the previous quarter, mainly due to the increased contribution from the clay plant which is at an earlier stage of ramp up compared to the main sulphide concentrator. The clay plant processed 862 kt of ore in Q2 2017 with a recovery rate of 78.8%, compared to 495 kt processed in Q1 2017 at a recovery rate of 75.5%.

Consistent with copper, gold production also increased significantly compared to the prior year period with output of 62.9 koz in H1 2017. In Q2 2017, gold production increased to 34.4 koz from 28.5 koz in Q1 2017 following the higher volume of ore processed. The grade of gold in ore processed remained elevated at 0.29 g/t in Q2 2017, although this was lower than the 0.33 g/t grade processed in the prior quarter.

Silver production in H1 2017 increased compared to the prior year period and was 200 koz in Q2 2017, up from 161 koz in Q1 2017, reflecting the ramp up in processing volumes and improving silver recovery rates.

During H1 2017, 7.5 kt of copper in concentrate was sent for toll processing at the Balkhash smelter in Kazakhstan, where additional capacity on attractive terms was available for Bozshakol concentrate.

Following first half copper production of 52.0 kt, Bozshakol is on track to achieve 2017 guidance of 95-110 kt. Gold production of 62.9 koz in the first six months has been assisted by the extraction of higher gold content material. The gold content of material extracted fell somewhat in Q2 2017 and continued to reduce in July 2017. However, it is now expected that Bozshakol gold output will be towards the upper end of the full year guidance range of 85-110 koz.

AKTOGAY

1 Payable metal in concentrate.

The results for H1 2017 include output from the Aktogay sulphide plant which recorded its initial production in February 2017 and the cathodes from the oxide plant. Together the assets contributed copper production of 33.0 kt in H1 2017.

With cathode production from oxide at Aktogay now fully ramped up, the mining of oxide ore was stable at 8.3 million tonnes in H1 2017, representing a small decrease of 4% compared to H1 2016. Copper cathode output increased to 10.4 kt, compared to 5.4 kt in H1 2016 when the SX/EW facility was in the early stages of ramp up. Q2 2017 cathode production increased to 5.7 kt from 4.7 kt in the previous quarter, as the seasonal effect of higher temperatures resulted in improved output. Copper cathode production from oxide ore remains on track to achieve guidance of around 20 kt in 2017.

The sulphide concentrator completed its first full quarter of operations in Q2 2017 after commencing production midway through Q1 2017, achieving an ore throughput level of 47% of design capacity, ahead of the 32% of ore throughput achieved by Bozshakol in Q2 2016. The commissioning of the Aktogay sulphide concentrator led to mined volumes increasing by 62% to 2.9 million tonnes in Q2 2017 compared to 1.8 million tonnes in the previous quarter and processing increasing by 79% to 2.9 million tonnes.

The average copper grade of sulphide ore processed at Aktogay continued at an elevated level of 0.72% in Q2 2017, above expectations, due to the mining of a layer of supergene enriched ore. As mining operations continue over the remainder of the year the proportion of supergene enriched ore processed of overall volumes is expected to reduce and the average grade will therefore decline from the current level.

In H1 2017, 5.4 kt of copper in concentrate was dispatched for toll processing at the Balkhash smelter in Kazakhstan, with the remaining concentrate output exported to China based smelters.

Assisted by high grades and a full quarter of operations, copper production from sulphide ore increased to 15.4 kt in Q2 2017 compared to 7.2 kt from six weeks of operations in the prior quarter. With 33 kt of copper production delivered in the first half and further progress in throughput ramp up in the second half expected to offset lower grades, Aktogay is now well placed to achieve the 2017 guidance of 65-85 kt, consisting of around 20 kt from oxide ore and 45-65 kt from sulphide ore.

EAST REGION & BOZYMCHAK

1 Payable metal in concentrate.

Copper production in the East Region and Bozymchak reduced by 19% to 33.0 kt in H1 2017, compared to 40.8 kt in H1 2016, due to the closure of the Yubileyno-Snegirikhinsky mine at the end of 2016 and the adoption of a six day week at Orlovsky from H2 2016 to allow for ventilation maintenance. Bozymchak operated at design capacity throughout the first half of 2017.

Copper production decreased by 9% in Q2 2017 compared to the previous quarter, to 15.7 kt (Q1 2017: 17.3 kt) as a result of lower output from the Orlovsky and Nikolayevsky concentrators. The copper grade of ore processed at Orlovsky was temporarily elevated in Q1 2017 at 3.87% and was 3.57% in Q2, while the processing feed grade also reduced at Nikolayevsky. Production in Q1 2017 at Nikolayevsky was supported by the processing of 80 kt of ore (1.1 kt copper production) from the closed Yubileyno-Snegirikhinsky mine, with minimal volumes processed in Q2 2017.

1 Payable metal in concentrate.

In line with expectations, by-product output in the East Region and Bozymchak was lower in H1 2017 compared to the prior year period due to the closure of the Yubileyno-Snegirikhinsky mine at the end of 2016 and the introduction of the six day week at Orlovsky from H2 2016.

Zinc in concentrate output reduced by 18% to 32.3 koz in H1 2017 (H1 2016: 39.6 koz), with the reduction in ore processing volumes only partially offset by higher grades and recovery rates. In Q2 2017, zinc in concentrate output increased by 8% to 16.8 kt (Q1 2017: 15.5 kt) with grades recovering following the mining of low grade sections at the Artemyevsky mine at the start of the year.

H1 2017 gold output decreased to 29.7 koz, a 9% reduction compared to H1 2016 due to lower ore processing volumes. Gold output was less impacted than zinc and silver by the reduction of processing volumes in the East Region as the majority of production is supplied by Bozymchak, where production reduced by only 5% to 20.9 koz (H1 2016: 22.0 koz). Ore volumes at Bozymchak were 4.5% lower in H1 2017 compared to H1 2016 and the gold grade of ore processed reduced slightly from 1.69 to 1.66 g/t, in line with the mine plan.

Silver production in H1 2017 of 1,282 koz represents a reduction of 15% compared to H1 2016 due to lower ore processing volumes in the East Region. Q2 2017 output grew to 686 koz from 596 koz in Q1 2017 as silver processing grades increased to 40.3 g/t from 31.6 g/t.

Strong gold and silver output in the year to date should result in output from the East Region and Bozymchak being towards the upper end of the 50-60 koz gold and 2,250-2,500 koz silver ranges for 2017. Achieving full year zinc in concentrate production of 70-75 kt is dependent on the confirmation of higher zinc grades in the second half of the year.

APPENDIX - GROUP PRODUCTION SUMMARY

1 Payable metal in concentrate and copper cathode from Aktogay oxide ore.

1 Payable metal in concentrate.

2 Minimal volume recovered from Aktogay material.

1 Payable metal in concentrate.

2 Minimal volume recovered from Aktogay material.