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KAZAKHSTAN KAGAZY PLC
("Kazakhstan Kagazy" or the "Group")

UNAUDITED FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2015¹

Kazakhstan Kagazy PLC (KAG LI) announces its unaudited consolidated financial results for the 6 month period ended 30 June 2015 (the “Period”).

Financial highlights

• Group revenue of US$ 22.2 million (US$ 26.6 million H1 2014)
• Gross profit of US$ 6.4 million (US$ 8.5 million H1 2014)
• Gross margin of 28.6% (32.0% H1 2014)
• EBITDA before exceptional items of US$ 1.2 million (US$ 3.6 million H1 2014)
• EBIT before exceptional items of US$ (0.2) million (US$ 2.2 million H1 2014)
• Operating Cash Flow of US$ (0.7) million (US$ 3.3 million H1 2014).

On February 11 2014 the Kazakh Tenge (“KZT”) was devalued by 19%. The average exchange rates used for the 6 months period ended 30 June 2015 and 2014 are 185.3 and 176.4 KZT per US$, respectively. As a result, all financial indicators are 5% lower when being converted into US$ (the “Conversion Effect”).

The Group's revenue for the Period dropped by US$ 4.4 million in comparison to the same period in 2014, of which US$ 1.1 million is attributable to the Conversion Effect with the remaining decrease of US$ 3.3 million attributable to the decrease of the sales price of paper and corrugated packaging. Although production and sales volumes of both paper and corrugated packaging remained stable, average prices decreased by 30% and 8% respectively, due to the competitive pressures that our clients have been facing following the devaluation of the Russian Ruble, as the Company reported in detail on March 17 2015.

The Group's Gross Profit dropped by US$ 2.1 million, from which US$ 0.3 million is attributable to the Conversion Effect, US$ 1.8 million is due to the decrease of the sales price of paper and corrugated packaging.

The Group's EBITDA before exceptional items dropped by US$ 2.4 million, mainly due to the decrease in the Group’s Gross Profit.

The Group's Operating Cash Flow dropped by US$ 4.0 million, largely due to a decrease in the Group’s EBITDA by US$ 2.4 million and an increase in exceptional payments of US$ 1.6 million, including payments for legal expenses incurred during the Period.

Operational summary

Production of paper for the Period amounted to 26.6 thousand tons compared to 26.3 thousand tons for H1 2014.

Production of corrugated packaging for the Period amounted to 40.2 million square meters compared to 40.5 million square meters for H1 2014.

Sales of paper to third parties for the Period amounted to 10.7 thousand tons compared to 10.1 thousand tons for H1 2014.

Sales of corrugated packaging for the Period amounted to 40.1 million square meters compared to 40.4 million square meters for the same period of 2014.

The average selling price of paper decreased by 30%. The average selling price of corrugated packaging decreased by 8%.

The Group’s 2014 Annual Report and Consolidated Financial Statements along with earlier financial reports are available at http://kazakhstankagazy.com/en/investor-relations/reports.html.

For more information please contact:

Kazakhstan Kagazy PLC
Hugh McGregor
General Counsel and Company Secretary
+ 7 (727) 244 87 87

Daniel Stewart & Company PLC
David Coffman / Liz Kirchner (Financial Adviser) / Martin Lampshire (Broker)
Tel +44 (0) 20 7776 6550

About Kazakhstan Kagazy PLC
London Stock Exchange listed Kazakhstan Kagazy PLC is the largest paper, packaging and recycling group in Kazakhstan and Central Asia.

¹Note: H1 2014 results have been restated to reflect the deconsolidation of Class B warehouses. H1 2014 results of Paper business have also been restated to include the effect of depreciation expenses in calculation of gross profit.