Zhaikmunai Receives Regulatory Approvals to Raise $300MM

Zhaikmunai has received all necessary regulatory approvals from the Kazakh authorities required for its placing to raise US $300 million through the sale of 75,000,000 new common units (the "Placing") in the form of global depositary receipts ("GDRs").

The relevant Kazakh authorities have confirmed to Zhaikmunai that they do not intend to exercise their priority right to purchase the GDRs in accordance with Article 71 of the Kazakh Subsurface and Subsurface Use Law and that they approve the Placing. The Placing was conditional upon, inter alia, the receipt of such regulatory approval.

As previously announced, on August 27, 2009 Zhaikmunai signed an amendment agreement with BNP Paribas pursuant to which Zhaikmunai's existing loan facility will be amended and the outstanding defaults under the facility will be waived, subject to the satisfaction of certain conditions including completion of the Placing.

Zhaikmunai expects that all remaining conditions to the Placing will be satisfied and that the closing of the Placing and admission of the GDRs to the Official List of the UK Financial Services Authority and admission to trading of the GDRs on the main market of the London Stock Exchange will occur on September 15, 2009.