Transaction in Own Shares

FOR IMMEDIATE RELEASE 2 January 2014

CAIRN ENERGY PLC ("Cairn" or "the Company")

Transaction in Own Shares

Cairn announces that on 2 January 2014, it has purchased 120,000 shares of 231/169 pence each ("Ordinary Shares") in the Company for cancellation. The average price paid by the Company was £2.7261 per Ordinary Share. The highest and lowest prices paid for these shares were £2.7480 and £2.7140 respectively.

The total number of voting rights in Cairn, as at the date of this announcement, is 594,937,475. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.