KMG EP Tax claim for 2009-2012

KMG EP receives a tax claim for the period between 2009 and 2012

Astana, 09 September 2015. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") announces that the Kazakhstan tax authority has completed their desk audit of KMG EP which commenced in September 2014 for the period between 2009 and 2012. Following the audit, the tax authority has charged an additional 18.2 billion tenge, imposed a penalty of 9.7 billion tenge for late payment and a fine of 10.2 billion tenge. The Company is going to appeal the claim in the near future.

KMG EP made a tax provision of 16.7 billion tenge in the financial statements for the period ended 30 June 2015 mostly related to tax audit of the Company for the period between 2009 and 2012. The provision has been made following discussions with Tax authorities in respect to this tax audit, as it is more probable than not that the Company will ultimately be unsuccessful in defending previously established tax positions. 16.7 billion tenge of a tax provision relate to Corporate Income Tax and Excess Profit Tax in addition to fines and penalties. The Company is currently preparing its appeal to the claims and will further evaluate the adequacy of its provisions as the case progresses through the court system as well as during the preparation of its quarterly and annual accounts.

Notes to editors

KMG EP is among the top three Kazakh oil producers. The overall production in 2014 was 12.3 million tonnes (250 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 2014 was 177 million tonnes (1,303 mmbbl), out of which 132 million tonnes (981 mmbbl) relates to Ozenmunaigas, Embamunaigas, and Ural Oil and Gas (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.

For further details please contact us at:

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

Asel Kaliyeva

e-mail: [email protected]

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

Elena Pak

e-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.