KMG EP Update on Domestic Pricing in April 2016

PRESS RELEASE

Update on domestic supply pricing for April 2016

Astana, 26 May, 2016. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") announces an update on the domestic supply pricing for the month of April 2016 which is the first month that KMG EP switched to an oil processing scheme.

According to preliminary data, net revenue achieved from the sale of all refined oil products (net of all costs associated with marketing^[1]) was approximately 28,000 Tenge per tonne of oil processed at Atyrau Refinery (ANPZ) and approximately 42,000 Tenge per tonne of oil processed at Pavlodar Refinery (PNHZ)^[2] for the month of April as a result of switching to the processing scheme. The higher net revenue for April was due to the improved market conditions driven by higher Brent oil prices and stronger light oil products output than expected.

As previously reported, the Company switched to an independent crude oil processing scheme for domestic supply in April 2016. Under the new framework, KMG EP supplies oil directly to ANPZ and PNHZ for processing into oil products. Under the agency agreement, these oil products are then sold via JSC "KazMunaiGas - Refining and Marketing" (KMG RM).  This new processing scheme eliminates the reliance on KMG RM (having no pricing formula) to set the domestic price for KMG EP's oil at its discretion.

Further details can be found in the Company's presentation on the website http://www.kmgep.kz/eng/investor_relations/presentations/.

Notes to Editors

KMG EP is among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tonnes (251 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's volume of proved and probable reserves excluding shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). 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 at its IPO in September 2006.

For further details please contact us at:

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

Saken Shoshanov

e-mail: ir@kmgep.kz

KMG EP. Public Relations (+7 7172 97 79 08)

Elena Pak

e-mail: pr@kmgep.kz

Brunswick Group (+44 207 404 5959)

Carole Cable

e-mail: KMGEP@brunswickgroup.com

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.