The Board of Directors of JSOC Bashneft held its scheduled meeting yesterday and considered issues relating to the Annual General Meeting of Shareholders. The Board of Directors decided to convene the Annual General Meeting of Shareholders of JSOC Bashneft on 29 June, 2012 in Ufa in the form of joint presence of shareholders and approved the following agenda:

1. On the approval ofthe procedure for holding the Annual General Meeting ofShareholders ofJSOC Bashneft for 2011
2. On the approval of the annual report, the annual accounting reports, including the profit and loss statement of JSOC Bashneft for 2011
3. On the distribution of profit (including dividend payment (declaration)) and losses of JSOC Bashneft for 2011 fiscal year
4. On the approval of the number of members of JSOC Bashneft’s Board of Directors
5. On the election to the Board of Directors of JSOC Bashneft
6. On the election to the Audit Commission of JSOC Bashneft
7. On the approval of the auditor of JSOC Bashneft for conducting the audit for 2012 in accordance with Russian Accounting Standards
8. On the approval of the auditor of JSOC Bashneft for conducting the audit for 2012 in accordance with International Financial Reporting Standards
9. On the approval of the Regulations on the Board of Directors of JSOC Bashneft in the new version
10. On the approval of related-party transactions

The Board of Directors set the date for compiling a list of the persons entitled to participate in the General Meeting of Shareholders at 15 May, 2012.

The Board of Directors decided to recommend to the Annual General Meeting of Shareholders to approve the dividend payment for 2011 in the amount of 99 rubles per 1 ordinary registered and per 1 preferred registered share of JSOC Bashneft and to make dividend payments no later than 28 August, 2012.

The meeting of shareholders is also recommended to approve OOO FinExpertiza as the auditor of JSOC Bashneft responsible for conducting the audit for 2012 in accordance with Russian Accounting Standards, and to approve Deloitte & Touche CIS to conduct the audit for 2012 in accordance with International Financial Reporting Standards.

In May 2012, the Board of Directors will consider additional issues relating to the preparation for the Annual General Meeting of Shareholders.

At the meeting on 23 April 2012, the Board also addressed other issues relating to the Company’s day-to-day operations, including approval of related-party transactions.

The Board of Directors also approved the possibility of Bashneft entering into a consortium with other companies in the course of submitting an application for participation in the fourth licensing round in Iraq that will take place on 30–31 May, 2012, and instructed the management of the Company to continue the feasibility study for this project.