Gulf Keystone Petroleum Regulatory News (GKP)

Not for release, publication or distribution in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction.

26 March 2012

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Exercise of Options

The Company has been notified by employees of exercises of options under the Share Option Plan at an average price of 33 pence per share.

Consequently, the Board has approved the issue of 322,000 new common shares of USD 0.01 ("Option Shares") raising gross proceeds of £106,285.

Following the issue of the Option Shares the total issued share capital of Gulf Keystone will be 876,181,620 common shares of USD 0.01. The Company does not hold any common shares in treasury and so the total number of voting rights in Gulf Keystone is 876,181,620.

Application will be made for admission of the Option Shares to trading on the AIM Market of the London Stock Exchange with effect from 29 March 2012.

Enquiries:

or visit: www.gulfkeystone.com

Notes to Editors:

§ Gulf Keystone Petroleum Ltd. (AIM: GKP) is an independent oil and gas exploration and production company focused on exploration in the Kurdistan Region of Iraq.

§ Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for fourexploration blocks in Kurdistan, including the Shaikan block.

§ Shaikan is a major discovery with independently audited gross oil-in-place volumes of between 8 billion barrels to 13.4 billion barrels.

§ The Company's shares have traded on the AIM market of the London Stock Exchange since listing on 8th September 2004.

§ Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with further offices in Erbil, Kurdistan (Iraq), Algiers, Algeria and London, UK.

Not for release, publication or distribution, directly or indirectly, in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.