Caspian Energy Reports on Debenture Amendments

Caspian Energy announced that the previously disclosed amendments to the terms of the Company's US $16,000,000 aggregate principal amount Secured Convertible Debentures, due March 2, 2011, were approved at a special meeting of the Company's shareholders on December 1, 2009.

The Company has received correspondence from counsel to Mr. Maurizio Barnaba, a director of the Company, and certain other shareholders (collectively, the "Dissident Shareholders") challenging the validity of the vote taken at the Meeting and advising that the Dissident Shareholders intend to commence an application in the Ontario Superior Court seeking, among other things, an order declaring that the vote was invalid or otherwise setting aside the vote.

The Company believes that the Dissident Shareholders' allegations are wholly without merit and has established a special committee of directors consisting of all of the directors of the Company other than Mr. Barnaba to respond to them. The Company will vigorously defend the validity of the vote in any proceedings.

The Company also announced that Mr. John McBride has resigned from the board of directors effective December 3, 2009.