Caspian Energy Inc. Provides Update Regarding Aral Petroleum

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 4, 2015) - Caspian Energy Inc. (NEX:CKZ.H) ("Caspian") has been advised that developments have occurred with respect to its wholly-owned subsidiary, Aral Petroleum Capital LLP ("Aral").

As noted in Caspian's management information circular dated November 12, 2014, Aral has a number of outstanding trade payables that it has been unable to discharge due to its limited operational cash flow. Batys-Munai LLP ("BM"), one of Aral's trade creditors, initiated litigation in Kazakh courts in July 2015 against Aral in respect of overdue trade payables in the amount of approximately US$0.54 million. As a result of the litigation, Aral's access to its bank accounts is restricted, and any funds received in such accounts are required to be preferentially distributed to BM until its outstanding payables of US$0.54 million are satisfied.

The only currently committed source of funds available to Caspian and Aral is through a US$10 million loan facility dated May 21, 2014 and amended August 20, 2014 (the "Interim Loan") between Aral and The Sixth Energy Limited ("Sixth Energy"), a principal shareholder of Caspian. Approximately US$1.5 million remains available under the Interim Loan. Following the full draw-down of the Interim Loan, Aral may also request funds, subject to satisfaction of certain conditions and the discretion of the lenders thereunder, pursuant to its secured loan facility dated as of May 20, 2015 (the "Aral Loan") between Aral, Sixth Energy and Meridian Capital CIS Fund, an affiliate of a principal shareholder of Caspian. On the first draw-down under the Aral Loan, the balance owing under the Interim Loan will be consolidated with the Loan Facility, resulting in Aral having access to up to US$51.5 million in debt financing pursuant to the Loan Facility (assuming the full draw-down of the Existing Loan Facility prior to such time), which permits Aral to draw up to a maximum of US$61.5 million.

However, the ability of Aral and the Company to access funds is limited as a result of Aral's ongoing litigation, as BM is preferentially entitled to the proceeds from any draw down of the loan facility. As previously announced, earlier this year, management reassessed Aral's production activities and determined to temporarily cease production at Aral's East Zhagabulak oil field while oil and gas prices remain at current levels. As at the date hereof, the Company's consolidated cash balances are limited, and with operations and production temporarily halted, the consolidated Company's inability to access funds poses a risk to the continued operations of both the Company and its subsidiary, Aral.

Management is pursuing discussions with BM regarding the potential settlement of the outstanding litigation, and separately, with its principal shareholders regarding alternative sources of funding for Caspian while the outstanding claim by BM remains unresolved. A further update will be provided as additional information becomes available.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which we refer to herein, collectively, as "forward-looking information". Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and include statements relating to planned production and exploration activities of Aral. Caspian's actual performance, developments and/or results may differ materially from any or all of the forward-looking statements. Further information which may cause results to differ materially from those projected in the forward-looking statements is contained in Caspian's filings with Canadian securities regulatory authorities. All material assumptions used in making forward-looking information are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although Caspian believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Caspian does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.