Operating results for the first six months of 2017

Production

Overall, KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 5,885 thousand tonnes of crude oil (240 kbopd) in the first six months of 2017, a 3% decrease over the same period of 2016.

Ozenmunaigas (“OMG”) produced 2,703 thousand tonnes (110kbopd), a 3% decrease as compared to the same period of 2016, mainly due to fewer wells drilled. Embamunaigas (“EMG”) produced 1,399 thousand tonnes (57kbopd), 1% less than in the same period of 2016. The total volume of oil OMG and EMG produced was 4,102 thousand tonnes (167kbopd), a 2% decrease compared to the same period of 2016.

The Company’s share of production from CCEL, KGM, and PKI for the first six months of 2017 amounted to 1,783 thousand tonnes of crude oil (73kbopd), which is 6% less than in the same period of 2016, mainly due to a natural decline in production of oil at PKI.

It should be noted that KMG EP is actively studying methods to enhance oil recovery and preparing redevelopment of certain mature fields to stem the natural decline.

Crude oil supplies and sales of oil products

In the first six months of 2017, the Company’s combined crude oil sales from OMG and EMG were 4,084 thousand tonnes (163kbopd). This includes 2,766 thousand tonnes (110kbopd) of crude oil for export and 1,318 thousand tonnes (53 kbopd) of crude oil to the domestic market, which is 32% of the total sales volume.

Out of 1,318 thousand tonnes (53 kbopd) of crude oil supplied by OMG and EMG to the domestic market, 1,042 thousand tonnes (42 kbopd) were supplied to Atyrau Refinery and 276 thousand tonnes (11 kbopd) were supplied to Pavlodar Refinery.

During the first six months of 2017 sales of oil products were 1,282 thousand tonnes as per the oil processing scheme. For more details about volumes of sales of oil products please see Table No.2.

The Company’s share in the sales from CCEL, KGM, and PKI was 1,763 thousand tonnes of crude oil (72 kbopd), including 769 thousand tonnes (30kbopd) supplied to export markets and 994 thousand tonnes (42 kbopd) to the domestic market, which is 56% of total sales volume.

Table No.1. Production and sales of oil in the first six months of 2017

Table No.2. Production and sales of oil products in the first six months of 2017

Notes

KMG EP is among the top three Kazakh oil producers based on the 2016 results. The overall production in 2016 was 12.2 million tonnes (245 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 2016 was 182 million tonnes (1,327 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 78 89)

Bakdaulet Tolegen

e-mail: pr@kmgep.kz

Bell Pottinger (+44 203 772 2500)

Henry Lerwill

e-mail: KMGEP@bellpottinger.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.