Press releases on the preferred shares buyback programme

03 November, 2011

KMG EP announces dates of the closing specialised trade for the repurchase of its preferred shares on KASE

Astana, 3 November 2011. JSC KazMunaiGas Exploration Production («the Company», «KMG EP») is pleased to announce that closing specialised trade for the repurchase of the Company’s preferred shares will be held on KASE from 21 November to 20 December 2011. Settlement date is 23 December 2011.

The Company has now repurchased around 1.9 million preferred shares for an aggregate amount of about 35 billion Tenge under the preferred shares buyback programme. The Company will make an announcement informing of the results of the closing trade.

As previously informed, the Company approved its preferred shares buy back program to be implemented through consequent separate thirty-day specialized trades on KASE in compliance with the exchange rules. The programme will be completed till December 31, 2011. The closing specialised trade in frames of the current programme gives to the holders of preferred shares opportunity to sell their securities with greater transparency and liquidity. The majority of preferred shares are currently distributed among about 20,000 individual shareholders, including present and former employees of KMG EP and their families.


Any preferred shareholder who wishes to sell their shares must place them on account with the Central Securities Depository on or before the time at which such shareholder makes an offer to sell the shares.

Holders of preferred shares must provide limited counter orders to sell their preferred shares. Limited counter orders must indicate a share price at which the shareholder wishes to sell their shares. This price must be denominated in tenge up to two decimal places. The amount of financial instruments specified in the order should be equal to the number of preferred shares that the shareholder wishes to sell. The order volume must be equal to the product of the amount of shares to be sold multiplied by the specified share price.

Limited orders will be accepted at the cut-off price set by the Company at the end of the specialised trade in compliance with applicable laws, regulations and Company’s policies. Limited orders that specify a price equal or less than this cut-off price will be accepted and executed. Limited orders that specify a price greater than the cut-off price will not be accepted by the Company.

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates - about 2.2 bn barrels. 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. The International rating agency Standard & Poor's (S&P) confirmed KMG EP’s “BB+” corporate credit rating in July 2010 and “GAMMA-6” rating in September 2011.

For further details please contact us at:

Regarding specialized trade:
RFCA call-center - 8 800 080 01 77 (calls are free of charge within Kazakhstan).

KMG EP. Public Relations (+7 7172 97 7600)
Daulet Zhumadil

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

Pelham Bell Pottinger (+44 207 861 3147)
Elena Dobson

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.

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