Kazmunaigaz Exploration Regulatory News (KMG)

PRESS-RELEASE

Update on the situation at Uzenmunaigas

Astana, 16 June 2011. JSC KazMunaiGaz Exploration Production ("KMG EP" or "the Company") issued an update on the labour action at Uzenmunaigas (UMG) production facility in the city of Zhanaozen (Mangistau region).

Some of the UMG workers, particularly from the transportation units are still not working. At the same time, the number of the protesters is diminishing.

The total loss of oil production caused by the labour action thus far amounts to 85 thousand tonnes, mainly due to disruptions in well servicing and well workover operations. The degree of impact on the annual production of the Company depends on how quickly the Company will be able to get back to normal regime at UMG.

The Company believes that the demands of protesters are unfounded and this was confirmed by the Zhanaozen city court on May 24, 2011. In accordance with the Labour Code, the Company has started the process of dismissing the participants of the labour action for breach of contract.

KMG EP underlines its readiness to consider the labour dispute under the procedures provided by law, including through participation in the conciliation process. However, this may be possible only after the complete cessation of the illegal action and the resumption of work by all personnel of the UMG facility without exception. The representatives of the Unified Trade Union of UMG were informed about the Company's position at a meeting with management, held on 13 June in Astana.

Notes to Editors:

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 November 2010.

For further details please contact us at:

«KMG EP» Public Relations (+7 7172 97 7600)

Daulet Zhumadil

e-mail: pr@kmgep.kz

«KMG EP» Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

e-mail: ir@kmgep.kz

Pelham Bell Pottinger (+44 207 861 3147)

Elena Dobson

e-mail: edobson@pelhambellpottinger.co.uk

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.