KMG EP 2013 Reserves update

PRESS RELEASE

KMG EP reserves update as at 31 December 2013

Astana, 11 April 2014. JSC KаzМunaiGas Exploration Production ("KМG EP" or the "Company") announces the results of the reserves audit as at 31 December 2013 performed by the independent consultant Miller and Lents, Ltd. ("MLL") at Ozenmunaigas JSC ("OMG"), Embamunaigas JSC ("EMG"), and Ural Oil and Gas LLP ("UOG" where KMG EP holds a 50% stake) fields.

According to the MLL report there were no significant changes in hydrocarbon reserves as at the end of 2013 compared to the reserves as at the end of 2012.

· Proved (1P) reserves increased by 4.6% or 5.4 million tonnes to 122.1 million tonnes (902 million barrels);

· Proved plus probable (2P) reserves increased by 0.6% or 0.9 million tonnes to 148.8 million tonnes (1,101 million barrels);

· Proved, probable plus possible (3P) reserves declined by 0.4% or 0.7 million tonnes to 182.7 million tonnes (1,349 million barrels).

The increase in 1P and 2P reserves is mainly due to:

· consideration of long-term plans for drilling of new wells and geological and technical measures on producing assets;

· revision of estimated annual production decline rate;

· positive test results of exploration wells at Rozhkovskoye field (Fedorovskiy block).

The results of the assessment of liquid hydrocarbons as at 31 December 2013[1]

Assessment of 2P reserves of joint ventures were made separately by independent auditors[2]. KMG EP's share in overall 2P reserves of Kazgermunai (KGM) (50% stake), CCEL (CCEL) (50% stake) and Petrokazakhstan Inc. (PKI) (33% stake) as at the end of 2013 amounted to 51 million tonnes (365 million barrels). Therefore, consolidated 2P reserves of KMG EP including its stakes in KGM, CCEL, and PKI as at the end of 2013 amounted to 200 million tonnes (1,466 million barrels).

Consolidated reserves

Notes to editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4 million tonnes (an average of 251 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million tonnes (1.5 bn bbl), out of which 148.8 million tonnes (1.1 bn bbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block). The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in May 2013.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 5433)Asel Kaliyevae-mail: [email protected]

KMG EP. Public Relations (+7 7172 97 79 08)Elena Pake-mail: [email protected]

Brunswick Group (+44 207 404 5959)

Andrew Mitchell

e-mail: [email protected]

Forward-looking statements

This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.