KMG EP Board of Directors' decisions

PRESS RELEASE

Results of the Board of Directors' meeting of KMG EP

Astana, 18 September, 2012. JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") held its Board of Directors ("the Board") meeting.

KMG EP's Board of Directors approved the transfer of subsoil use rights to JSC "EmbaMunaiGas" effective from 1 October, 2012 under the following six contracts: No.37 Kenbay field; No. 61 SE Novobogatinskoye field; No. 211 Botakhan, Makat, Dossor, Tanatar, Kamyshitovoye, etc. 23 fields in total; No. 413 Prorva, Kulsary, Karaton, Koschagyl, etc. 15 fields in total; No. 327 Taisoigan field; No. 992 Novobogatinskoye West field.

The Board of Directors also approved the distribution of dividends of LLP "JV Kazgermunai" for the first half of 2012 of US$300 million. The share of KMG EP will be US$150 million.

The Board decided to change the structure of payments to NC KMG for services. Part of the total will be fixed at 4.5 billion Tenge (US$30 million) for oil export and other services and payment above this will only be made in the event of the completion of acquisition deals. The total amount shall not exceed 10 billion Tenge (US$67 million).

At the meeting it was also decided to call an extraordinary General Meeting of Shareholders of the Company on 6 November, 2012 at 10:30 a.m. Astana time. The agenda of the EGM will include: amendments to the Company's Charter and approval of the Company's Corporate Governance Code.

The Board thanked Paul Manduca, who attended his final Board meeting as an Independent Non-Executive Director, for his contribution over the past six years.

NOTES TO EDITORS

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates - about 2.2 bn barrels. 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.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 54 33)

Asel Kaliyeva

E-mail: [email protected]

KMG EP. Public Relations (+7 7172 97 79 15)

Zhuldyz Dzhumadilova

E-mail: [email protected]

Pelham Bell Pottinger (+44 207 861 3147)

Elena Dobson

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.