Sale and Purchase of Shares

Press Release

For: Chagala Group

Date: 31 May, 2016

Re: Sale and Purchase of Shares.

Hong Kong - Chagala Group Limited ("the Company"), the London-listed specialist services and facilities provider to the oil and gas industry in Kazakhstan (symbol: CGLO), announces that the Company has received notification that Sturgeon Central Asia Balanced Fund, an investment fund managed by Sturgeon Capital Limited Fund has sold 1,875,000 ordinary shares representing 8.82% of the total outstanding shares of the Company at a price of $1.85 on 31 May 2015. In addition Sturgeon Central Asia Equities Fund, managed by Sturgeon Capital Limited has sold 1,200,000 ordinary shares representing 5.65% of the total outstanding shares of the Company at a price of $1.85.

After these transactions, Sturgeon Capital Limited Fund holds no shares of the Company.

Equally, the Company announces that TIPP Investments PCC, a public investment fund, acquired 3,075,000 ordinary shares representing 14.47% common shares at an average price of $1.85.

Notification made in accordance with DTR 3.1.2 R

For details please see attached documents. http://www.rns-pdf.londonstockexchange.com/rns/0675A_-2016-6-2.pdfhttp://www.rns-pdf.londonstockexchange.com/rns/0675A_1-2016-6-2.pdf 

Chagala Group

Chagala is a service company focused on providing long and short term accommodation solutions to domestic and international oil and gas companies developing Kazakhstan's largest hydrocarbon discoveries. With the ownership of hotels, guest houses, serviced apartments, remote site facilities, restaurants and offices in its portfolio, Chagala is well positioned to capitalize on the oil and gas investment being made in Kazakhstan.

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