Press releases – 2008

DTZ portfolio valuation report as at the 30th of June 2008 values Chagala Group net asset value at US$329,487,843 up 56.8% (US$210,143,104 at 1 October 2007)

06 Aug 2008

Chagala Group Limited, the specialist developer and operator of real estate linked to the oil and gas industry in West Kazakhstan, commissioned international real estate advisors Debenham Zadelhoff Limited ("DTZ") to appraise the market value of its portfolio of property assets and projects. The final report, released on the company's website today (www.chagalagroup.com), concludes that the current market value of the Group's assets, as at 30 June 2008, is US$332,175,955. Adjusted for minorities and net cash position of the Group, this values Chagala's Net Asset Value at US$329,487,843m, which represents an increase of 56.8%, compared to 1 October 2007 (US$210,143,104).

DTZ have valued each of the properties in accordance with the relevant parts of the current RICS Appraisal and Valuation Standards and each property is defined in three distinct categories: properties held as investments, properties in the course of development and properties held for future development. The net annual rent for each of the properties has also been included within the valuation.

DTZ have stated the Market Values of the freehold interests in the properties as follows:

EXISTING PROJECTS AND VACANT LAND $118,934,451
PROJECTS UNDER CONSTRUCTION $47,407,282
PLANNED PROJECTS $165,834,222
TOTAL AS PER DTZ REPORT $332,175,955
Minority Interests Total: -$17,338,560
Net Cash: $14,650,448
TOTAL NAV $329,487,843

Chagala has a portfolio of properties across West Kazakhstan including in the regions of Aktau, Atyrau, Bautino, Uralsk, Ust-Kamenogorsk and Almaty, all were subject to a rise in value under the DTZ appraisal. This reflects the Group's ability to develop existing assets and take advantage of its leading market position to invest in opportunities as they arise.

Tim Abson, Chief Executive of Chagala Group, commenting on the DTZ report, said:

"We are delighted that DTZ's independent appraisal of Chagala's property portfolio has resulted in a 56.8% NAV increase (Oct 2007 US$210,143,104). This increase is a result of a number of factors: the ability to increase rents where appropriate, acquisition of additional land bank and gaining planning consent for increased densities than originally anticipated. Chagala has a unique business model as the market leader in developing and operating real estate linked to the thriving oil and gas sector in West Kazakhstan; we have developed strong relationships with the companies operating in this sector. DTZ's report provides an endorsement of our ability to successfully operate in this market and illustrates the growth potential in the region."

- ends -

Enquiries:

Chagala Group Limited
Tim Abson, Chief Executive
+380 44 2000 457
Bell Pottinger Corporate & Financial
Mike Davies / Victoria Geoghegan
+44 (0)20 7861 3232

Notes to Editors

Chagala Group

Chagala was formed in 1994 and is the leading specialist developer and operator of real estate linked to the emerging off-shore oil and gas industry in West Kazakhstan.

The Company's first facility was opened in 1995 in the city of Atyrau on the Caspian Sea and since then has expanded and diversified considerably.

Chagala's current property portfolio includes: three hotels and two guest houses catering to businessmen working in the rapidly expanding energy sector, 15,000 sqm of office buildings complying with international standards, 235 fully-serviced, high quality apartments, 13 food and beverage outlets, 3,685sqm of storage and garage facilities and 750,000 sqm of land bank for future development.

Additionally, Chagala has a 50.1% stake in a joint venture with Zere to develop and operate a number of shopping centers across Kazakhstan based in Ust-Kamenogorsk, Atyrau, Aktau, Kostanai, Uralsk and Shymkent.

Chagala's diversified property portfolio is located in a number of key centres in West Kazakhstan, In Atyrau, the administrative centre for Kazakhstan's oil & gas industry, Chagala has a 110 bedroom hotel, 235 apartments, 15,000 sqm of offices, food and beverage outlets and is developing a further 60,000 sqm of buildings comprising of 150 serviced apartments, a new office complex, a Chagala Zere Shopping Mall and a wellness centre and clinic, all forming the first phase of an overall 220,000 sqm project.

In Bautino, the supply base for the off-shore oil industry, Chagala has a guest house and is expanding its 96 bedroom hotel by adding 50 new bedrooms. The company is also developing utility accommodation for over 1000 people with warehousing and office space.

In Aktau, a major sea port with oil-loading facilities, Chagala is developing an apart-hotel (1st phase 88 units). Additionally, Chagala is developing warehousing and has a 3.3 hectare beach front site, on which it intends to develop commercial and residential properties. Chagala is also targeting Aktau as a prime location for one of its shopping malls.

In Aksai, Chagala has bought 50.1% of a company that owns and will operate a 150 person accommodation facility used by companies working on the Karachaganak oil and condensate field.

In Almaty, the former capital of Kazakhstan and commercial centre of the country, Chagala has the Company's Head Office and a guesthouse with 12 suites.

In Uralsk, the regional centre connected with the Karachaganak gas field, one of the biggest gas condensate fields in the world, Chagala owns a 52-bedroom hotel and is now developing a complex of 120 serviced apartments; future plans include a shopping mall.