Regulatory Update

Max Petroleum Plc

(the "Company")

Regulatory Update

Two year appraisal extension of the Blocks A&E Licence

Trial Production Project status at Asanketken

Full Field Development status at Borkyldakty

Approval to Register Sberbank Pledge

4 March 2013

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, is pleased to announce that the Ministry of Oil and Gas of the Republic of Kazakhstan ("MOG") has advised the Company that it will provide various regulatory approvals for the Blocks A&E Licence in Western Kazakhstan (the "Licence"), including:

·; extending the exploration period of the Licence by two years until March 2015 for further appraisal of the Licence ("Appraisal Extension");

·; granting the Asanketken Field trial production status ("ASK TPP"); and

·; granting the Borkyldakty Field full field development status ("BOR FFD").

The regulatory approvals will become effective once the amendments to the Licence are executed specifying the mandatory work programme commitments associated with each approval. The Company expects to receive final approval for the Appraisal Extension and ASK TPP during April 2013 and for BOR FFD before 30 June 2013.

Two-Year Appraisal Extension and 2013 Shallow Drilling Programme

The Appraisal Extension will allow the Company to continue appraising and developing its existing post-salt discoveries, drill its two remaining post-salt prospects, and finish drilling the pre-salt NUR-1 well on the EMBA B prospect, with an option to drill the KURZHEM-1 well on the EMBA A prospect in the event the NUR-1 well is successful. Any pre-salt drilling operations are subject to the Company obtaining additional financing.

As of 5 March 2013, the Company will be required temporarily to suspend production from a total of three wells currently on test or trial production at Asanketken, Baichonas West, and Borkyldakty pending execution of the amendment to the Licence for the Appraisal Extension. Production from the Zhana Makat Field is unaffected. The temporary suspension will reduce the Company's daily production by approximately 1,000 barrels of oil per day ("bopd"), all of which is sold on the domestic market. Due to the expected timing of the execution of the applicable amendments, the Company does not expect a material impact to its cash flow from operations as a result of the temporary suspension.

The Company intends to drill between 30-40 post-salt wells during 2013, financed through a combination of cash flow from operations and proceeds from the Company's US$90 million senior credit facility (the "Facility") with SB Sberbank JSC ("Sberbank"). The Company's shallow drilling campaign is primarily focused on drilling appraisal and development wells at Zhana Makat, Sagiz West and Uytas, with additional drilling planned at Baichonas West, Eskene North, Borkyldakty, East Kyzhylzhar I, and Uytas North. The Company has three shallow rigs under contract, with one rig currently operating in the Zhana Makat Field. A second rig is now mobilising to the Baichonas West Field and is expected to begin drilling the BCHW-2 appraisal well as soon as practicable. A third rig is expected to begin drilling a 13 well appraisal programme in the Uytas Field in May 2013.

Trial Production Status at the Asanketken Field

The MOG's regulatory approval to convert the Asanketken Field to TPP status will allow the Company to resume continuous production from all four wells in the field and gather the required technical data to progress Asanketken to FFD status during 2014. The Asanketken wells currently have a combined productive capacity in excess of 2,000 bopd. ASK TPP is subject to finalising an amendment to the Licence and obtaining a gas flaring permit for the field, both of which are expected to occur in April 2013.

Full Field Development Status at the Borkyldakty Field

The MOG has approved the general terms to convert the Borkyldakty Field to FFD, subject to review and final approval by several other regulatory agencies. BOR FFD will allow the Company to sell 80% of its oil production on the export market under the terms of the Licence. Borkyldakty will be the Company's second discovery to transition to FFD status. Final regulatory approval for BOR FFD is expected before 30 June 2013.

Approval to Register Sberbank Pledge

The Company also received permission from the MOG to register a pledge of the Licence as security in favour of Sberbank. Registration of the pledge is required in order for the Company to increase the borrowing capacity of the Facility from US$60 million to US$90 million. The Company expects to finalise the pledge registration with the MOG during March 2013.

Robert B. Holland and James A. Jeffs, Co-Executive Chairmen, commented:

"We appreciate the continued support of the Kazakh Government, granting us additional time to finish testing the EMBA B Prospect while we transition to the appraisal and development of our eight shallow discoveries in Blocks A&E. Combined with our recent balance sheet restructuring, we are in a strong position to build significant shareholder value through increased production, revenue, and reserves from our post-salt assets, while also retaining the significant upside potential of our deep, pre-salt portfolio.

We have more work to do before we will be in a position to finish NUR-1, but having the time necessary to complete the well and then if appropriate drill a second well at EMBA A is obviously a critical step forward. Over the last several months, we have been working with Kazakh and international industry experts to refine a technical plan to finish drilling NUR-1. We are confident that NUR-1 can be re-entered and we can drill through the salt successfully. We intend to find the financial and technical resources to finish the job, without compromising the inherent value in our shallow programme."