Caspian Energy Announces Mailing of Management Information Circular Relating to Its Previously Announced Agreement to Acquire the Remainder of Aral Petroleum

CALGARY, ALBERTA--(Marketwired - Nov. 14, 2014) - Caspian Energy Inc. (NEX:CKZ.H) ("Caspian" or the "Company") is pleased to announce that it has mailed its management information circular (the "Circular") to the Company's shareholders (the "Shareholders") with respect to a Shareholder meeting to be held on December 12, 2014 (the "Meeting") pursuant to which, among other things, the Shareholders will be asked to consider, and if deemed advisable, approve the transactions (the "Transactions") contemplated by the previously announced share purchase agreement dated August 1, 2014, as amended November 11, 2014 (the "Share Purchase Agreement") between the Company, its wholly-owned subsidiary Caspian Energy Limited, Asia Sixth Energy Resources Limited ("Asia Sixth"), Groenzee B.V. ("Groenzee") a wholly-owned subsidiary of Asia Sixth, and four other parties ("Investors"). Pursuant to the Transactions, Caspian will acquire all of the remaining interests in Aral Petroleum Capital LLP ("Aral"), the operating entity of the East Zhagabulak oil field in Kazakhstan, not already owned by the Company. In connection with the Transactions, the Investors will be terminating their respective interests in previously executed agreements to acquire interests in Aral. Under the terms of the Share Purchase Agreement, the Company will acquire, in exchange for the issuance of Caspian common shares to Asia Sixth and the Investors, all of Asia Sixth's interests in Aral (including through Groenzee) and the debt owed by Groenzee to Asia Sixth (being approximately US$139 million)(collectively the "Purchased Assets").

The aggregate purchase price for the Purchased Assets is US$47,114,778. Assuming (i) the full draw down of the US$3 million convertible loan facility provided by Meridian Capital International Fund ("Meridian") and Firebird Global Master Fund Holdings, Ltd., Firebird Avrora Fund, Ltd., Firebird Republics Fund, Ltd., Firebird New Russia Fund, Ltd. and Firebird Fund L.P. (collectively, "Firebird") pursuant to a loan agreement dated July 7, 2014 as amended on November 4, 2014, and (ii) the conversion of such convertible loan amount into common shares of Caspian, at Closing (as defined below), it is expected that nominees of Asia Sixth will be issued 162,743,814 common shares and the Investors will be issued in the aggregate 115,450,742 common shares (based on an exchange rate of $1.00 US dollar to $1.0677 Canadian dollars for the drawdown of the first US$1.5 million and an exchange rate of $1.00 US dollar to $1.1357 Canadian dollars for the second US$1.5 million). The shares will be issued at an average price of US$0.17 per share. Immediately upon the completion of the Transactions ("Closing"), Sixth Energy Limited ("Sixth Energy") and Excellent Harvest Holdings Ltd. ("Excellent Harvest") (parent companies to Asia Sixth) as the nominees of Asia Sixth, will own directly and indirectly 33.4% and 1.7% of all issued and outstanding shares of Caspian, respectively. Meridian and Firebird will own 26.5% and 8.8% of Caspian, respectively, and the Investors will own, in the aggregate, 24.9%.