KMG EP receives payment from KMG RM

PRESS RELEASE

KMG EP receives payment of 44 bn Tenge from KMG RM

Astana, 8 July 2016. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") announces that it has received a payment of 44 bn Tenge (US$130m1) from JSC KazMunayGas - Refining and Marketing ("KMG RM") for crude oil that KMG EP supplied to the domestic market in 2015.

In December 2015, KMG EP and KMG RM agreed to set the price for domestic supplies for 2015 at 37,000 Tenge per tonne at both the Atyrau refinery ("ANPZ") and Pavlodar refinery ("PNHZ"). Over the course of 2015, KMG RM made payments at an average price per annum of 21,288 Tenge per tonne at ANPZ and 31,923 Tenge per tonne at PNHZ. The 44 bn Tenge received represents the difference between the agreed price and what KMG EP actually received from KMG RM over the course of 2015.

The payment is the result of constructive cooperation between KMG EP, KMG RM and JSC "NC "KazMunayGas".

Of the total 44 bn Tenge (US$130m1) received, 24.4 bn Tenge (US$72m1) will be allocated for repayment of JSC Ozenmunaigas ("OMG") debt to KMG EP which was provided to OMG in the form of financial aid in 2015.

Notes to Editors

KMG EP is among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tonnes (251 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's volume of proved and probable reserves excluding shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). 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 at its IPO in September 2006.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 5433)

Saken Shoshanov

e-mail: ir@kmgep.kz

KMG EP. Public Relations (+7 7172 97 79 08)

Elena Pak

e-mail: pr@kmgep.kz

Brunswick Group (+44 207 404 5959)

Carole Cable

e-mail: KMGEP@brunswickgroup.com

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.