BMB MUNAI, INC. REACHES AGREEMENT IN PRINCIPLE ON
TERMS FOR RESTRUCTURING U.S. $60,000,000 CONVERTIBLE SENIOR NOTES
AND AGREES TO EXTEND NOTEHOLDERS’ REDEMPTION RIGHTS
ALMATY, KAZAKHSTAN – September 13, 2010 - BMB Munai, Inc. (NYSE Amex: KAZ) today
announced that it has reached an agreement in principle with the holders of its U.S. $60,000,000 aggregate
principal amount of 5.0% Convertible Senior Notes due 2012 (the “Notes”) on general terms for the proposed
restructuring of the Notes. In connection with the proposed restructure, the Company and the holders of the
Notes (the “Noteholders”) have executed a Supplemental Indenture No. 2 extending the terms of the redemption
rights available to the Noteholders.
The proposed restructuring of the Notes is subject to confirmatory due diligence and the negotiation and
execution of definitive agreements, including a revised Indenture governing the Notes. Assuming the parties enter
into definitive agreements, the closing and consummation of the Note restructure is expected to be contingent
upon regulatory and shareholder approvals and other conditions.
The Note restructure contemplates that the Company will secure the Notes. The security will include: (i)
a first priority pledge of the Company’s equity interest in its wholly-owned subsidiary, Emir Oil, LLP; (ii) a
guarantee of payment of the Notes by Emir Oil and any future subsidiary of the Emir Oil or the Company; (iii) the
guaranty obligation of Emir Oil to initially be secured by its exploration license(s); and (iv) a pledge of
the production licenses for the Aksaz, Dolinnoe and Kariman fields once they become pledgable and the pledge
over the exploration license shall cease to be effective.
In addition to securing the Notes, the Company will agree to certain changes to the payment terms of the
Notes. Upon consummation of the plan of restructure, the Company will make a $1,000,000 cash payment
towards the principal balance of the Notes, which will r