Update on the situation at Ozenmunaigas

 Update on the situation at Ozenmunaigas

 Astana, 05 March 2010. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company"), reports a violation of work discipline and a disruption of operational activities at its Ozenmunaigas production unit ("OMG").

The management of KMG EP is taking measures to stabilise the situation at OMG and resolving the issues as quickly as possible within their competency and the law. The management considers the unauthorised leave from work as an illegal strike.

At this stage the Company deems it prudent to report that the resulting losses in production at OMG are currently estimated to be within 1% of KMG EP's consolidated output. The extent of the impact on the Company's annual production ultimately depends on how promptly the situation is resolved and production is restored to the planned level. The full impact will be evaluated at a later date.

 Please refer to the Company's website for further details.

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 total volume of proved and probable reserves, as at the end of 2008, was 241mmt (1.8bn bbl), excluding the relevant proportion of reserves at Kazgermunai and CCEL; including the share of reserves from Kazgermunai and CCEL the 2P reserves are over 2.1 bn barrels. The Company's 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. In July 2009 International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating and assigned the Company "GAMMA-6" rate.

For further details please contact us at:

«KMG EP». Public Relations (+7 7172 97 7600) Daulet ZhumadilE-mail: [email protected]

«KMG EP». Investor Relations (+7 7172 97 5433) Asel Kaliyeva E-mail: [email protected]

Pelham PR (+44207 337 15 17) 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.