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BMB Munai, Inc. Announces Gas Utilization Project Commencement

Posted on: Tuesday, 18 April 2006, 00:00 CDT

ALMATY, Kazakhstan, April 17 /PRNewswire-FirstCall/ -- BMB Munai, Inc. (BULLETIN BOARD: BMBM) announced today that the Company's subsidiary Emir Oil Company has executed an agreement with Ecotechnic Chemical AG to have Ecotechnic Chemical AG construct a natural gas utilization facility employing Ecotechnic Chemical's proprietary processing technology. Ecotechnic Chemical AG has completed approximately forty similar projects in the Russian Federation.

The facility will be constructed on the exploration license territory held by Emir Oil LLP. The project is scheduled to be completed by the end of the current calendar year at a cost to Emir Oil, LLP of approximately $3,000,000. The processing facility will have initial capacity to process 3,532 mcf per day. The processing capacity can be enlarged at substantially lower incremental cost to meet the requirements of increased field production. The current price range for natural gas in region during the past 12 months has been between $.60 and $.90 per mcf.

Upon completion of construction, the gas utilization plant will be operated as an equal joint venture between Emir Oil LLP and Ecotechnic Chemical AG. In exchange for providing financing for the facility, Emir Oil, LLP will be paid 25% of the operating income of the joint venture and will also receive 50% of the net income as owner of one-half interest in the joint venture.

The Company stated that the decision to commence the gas utilization project at the current time is a further step toward transitioning BMB Munai from the exploration stage to the production stage under its license agreement. The Company has received written confirmation from the deputy governor of the Mangistau region that there is a ready market for natural gas in the region.

BMB Munai is an independent oil and gas company engaged in the exploration, development and production of crude oil and natural gas in Western Kazakhstan. Company maintains administrative offices in Salt Lake City, Utah and Almaty, Kazakhstan.

The information contained in this release includes forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied. Forward-looking statements involve risks and uncertainties, including but not limited to, risks described in the Company's periodic reports on file with the Securities and Exchange Commission.

BMB Munai, Inc.

CONTACT: US, Adam R. Cook, Corporate Secretary, +1-801-355-2227,USoffice@bmbmunai.com, or Kazakhstan, Daniyar Uteulin, Vice President forInvestor Relations, +7 (3272) 375-125, KZoffice@bmbmunai.com, both of BMBMunai, Inc.

Source: PRNewswire-FirstCall

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