Operating results for 2010

PRESS-RELEASE

KMG EP announces operating results for 2010

Astana, 11 January 2011. JSC KazMunaiGas Exploration Production ("KMG EP" or "the

Company"), announced today that in the full year ended 31 December 2010 it produced 13,285 thousand tonnes of crude oil (270kbopd), which includes the Company's stakes in Kazgermunai LLP, CCEL ("Karazhanbasmunai") and PetroKazakhstan Inc. This is 1,788 thousand tonnes, or 16% more than in 2009. The increase in production mainly results from the acquisition of 33% stake in PetroKazakhstan Inc. in December 2009. Production plans for 2010 were outperformed by all associated companies and production facilities except Uzenmunaigas.

In 2010 the Company produced 8,766 thousand tonnes (177kbopd) of oil at Uzenmunaigas and Embamunaigas production facilities, which is 196 thousand tonnes, or 2% less than 8,962 thousand tonnes (181kbopd) produced in 2009. Embamunaigas outperformed the production plan by 1%, while Uzenmunaigas produced less than the target by 1%. The decline in Uzenmunaigas production was mainly caused by the failure to perform well service operations and timely oilfield equipment repairs amid a strike by Uzenmunaigas workers over the period from March 4 through March 18. Also during the period from June to September 2010 there were a number of emergency power cuts in the fields, caused by severe weather conditions.

In 2010 the Company's share in the production volumes from associates and joint ventures amounted to 4,519 thousand tonnes of crude oil (93kbopd).

Notes to Editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels. The Company's ordinary and preferred shares are listed on 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. International rating agency Standard & Poor's confirmed the Company's "BB+" corporate credit rating in July 2010 and "GAMMA-6" level of the corporate governance in November 2010.

For further details please contact us at:

«KMG EP». Public Relations (+7 7172 97 7600)

Daulet Zhumadil

E-mail: [email protected]

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

Asel Kaliyeva

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.