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BMB MUNAI INC
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<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The calculation of the basic earnings per share is based
on the following data:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2011</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2011</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left">Net loss from continuing operations</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,034,768</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(18,967,113</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,785,082</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(23,295,946</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income from discontinued operations</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(123,902,102</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(115,248,057</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Basic weighted-average common shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt">Basic loss per common share from continuing operations</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.34</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.42</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt">Basic income per common share from discontinued operations</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.22</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.07</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Total basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.56</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.48</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2012 cash and cash equivalents included deposits
in Kazakhstan banks in the amount $15,755, as of September 30, 2012 the Company did not have cash and cash equivalents deposited
in any Kazakhstan banks. As of September 30, 2012 and March 31, 2012 cash and cash equivalents included deposits in U.S. banks
in the amount of $37,208,737 and $3,370,177, respectively. The Company’s deposits in U.S. banks are in non-FDIC insured accounts
which means they are not insured to the $250,000 FDIC insurance limit. To mitigate this risk, the Company has placed all of its
U.S. deposits in a money market account that invests in U.S. Government backed securities.</p>
<p style="margin: 0pt; text-align: justify"> </p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Consulting Agreement with Boris Cherdabayev</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 31, 2009 the Company entered into a Consulting Agreement
with Boris Cherdabayev, the Chairman of the Company’s board of directors. The Consulting Agreement became effective on January
1, 2010. Pursuant to the Consulting Agreement, in addition to his services as Chairman of the board of directors, Mr. Cherdabayev
was to provide such consulting and other services as may reasonably be requested by Company management.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Consulting Agreement provides for an extraordinary event payment
equal to the greater of $5,000,000 or the base compensation fee for the remaining initial term of the Consulting Agreement. Pursuant
to the terms of the Consulting Agreement the Sale constituted an extraordinary event.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2011 Mr. Cherdabayev agreed to an amendment to his Consulting
Agreement that will defer, until the escrow amount is released, the $5,000,000 extraordinary event payment that would otherwise
have been payable to him in connection with the Sale.  The amendment provides further, that the extraordinary event payment
will be limited to the amount remaining in escrow if less than $5,000,000, with the possibility of it being reduced to $0 if the
escrow amount is depleted entirely.  Payment of this liability will be paid to Mr. Cherdabayev, if at all, before any
escrow funds are otherwise distributed, as would have been the case had Mr. Cherdabayev not agreed to the amendment. As of September
30, 2012 the $5,000,000 has been accrued and included in deferred consulting and distribution payments on the balance sheet. Subsequent
to September 30, 2012, this amount was paid in full.</p>
<p style="margin: 0pt; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The calculation of the basic earnings per share is based on the following
data:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2011</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2011</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left">Net loss from continuing operations</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,034,768</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(18,967,113</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,785,082</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(23,295,946</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income from discontinued operations</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(123,902,102</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(115,248,057</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Basic weighted-average common shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,787,554</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt">Basic loss per common share from continuing operations</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.34</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.42</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt">Basic income per common share from discontinued operations</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.22</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.07</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Total basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.56</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2.48</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2012 and 2011, there were no options, warrants,
or restricted stock grants outstanding.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><b><i>Shareholder distribution</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 24, 2011, the Company made an initial cash distribution
of $1.04 per share to common stockholders of record on October 10, 2011. The total amount calculated for this distribution to common
stockholders was $58,019,056.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2012, the amount paid was $44,795,757 with $13,223,299
payable. The payable amount includes the amount of the first distribution deferred by certain Company stockholders until the release
of funds from the escrow in accordance with the terms of the Purchase Agreement. These payables have been accrued and included
in deferred consulting and distribution payments on the balance sheet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2012 the Company declared and made a second cash distribution
of $0.30 per share to common stockholder of record on October 15, 2012, the top end of the range per share originally contemplated
when the Company publicly disclosed in its Current Report on Form 8-K dated February 14, 2011 that it had agreed to sell Emir Oil.  The
total amount distributed to common stockholders in connection with this second cash distribution was $16,736,266.</p>
<p style="margin: 0pt; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Emir Oil LLP</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 19, 2011 the Company completed the sale of all of its
interests in Emir Oil LLP to a subsidiary of MIE Holdings Corporation.  In anticipation of the sale of Emir Oil all operations
of Emir Oil have been reclassified as discontinued operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The sale of Emir Oil was valued at $170 million in cash, net of $10.4
million in purchase adjustments. In accordance with the Purchase Agreement, the Company placed $36 million in cash in escrow to
indemnify the buyer for losses arising from the Company’s breaches of representations and warranties, failure to perform
covenants, litigation matters, compliance with (and validity of) Emir Oil’s exploration contract, transfer of certain payables,
defects in ownership of certain facilities and pipelines, or violations of applicable environmental law. On September 20, 2012
the escrow period expired and the entire $36 million that was being held in escrow for indemnification purposes was released to
the Company without any depletion.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The components of discontinued operations for three and six months
ended September 30, 2012 and 2011 were as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2011</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"> <b>September 30, 2011</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%">Revenue</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">16,610,716</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">41,633,064</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,491,217</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,914,188</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: 0.25in">Other (income)/expense</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(126,150</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(180,838</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Discontinued operations</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,245,649</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,899,714</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Prepaid expenses and other assets as of September 30, 2012 and March
31, 2012 were as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table align="right" cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 68%"> </td>
<td style="width: 15%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">September 30,<br />
2012</td>
<td style="width: 2%"> </td>
<td style="width: 15%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">March 31, <br />
2012</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Advances for services</td>
<td style="border-bottom: black 1.5pt solid; text-align: right">$ 536,099</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">$ 1,616,915</td></tr>
<tr style="vertical-align: top; background-color: white">
<td> </td>
<td style="border-bottom: black 2.25pt double; font-weight: bold; text-align: right">$ 536,099</td>
<td> </td>
<td style="border-bottom: black 2.25pt double; font-weight: bold; text-align: right">$ 1,616,915</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 2, 2012 the Company entered into a Management and Services
Agreement, dated as of February 2, 2012, between BMB Munai, Inc. and Lakeview International, LLC (the “Services Agreement”).
Pursuant to the Services Agreement, the Company engaged Lakeview International, LLC (“Lakeview”) to provide management,
administrative and support personnel and services to the Company in furtherance of fulfilling its obligations pursuant to the Purchase
Agreement, and other activities, including the winding down of the Company’s representative office in Kazakhstan.  Lakeview
is a company controlled by a former Company director.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Services Agreement commenced on February 2, 2012 and will continue
through December 31, 2012, unless terminated earlier upon the written agreement of both parties.  In exchange for the
services under the Services Agreement, the Company paid $1,947,500 to Lakeview, which included anticipated out-of-pocket expenses
required to perform the services through the term of the Agreement in the amount of $1,900,000 and a management fee of $47,500.  The
full amount was due and payable upon execution of the Services Agreement.  The Services Agreement provides that in the
event of early termination, Lakeview will be required to return to the Company any portion of the $1,900,000 that has not been
paid to cover out-of-pocket expenses as of the date the Services Agreement is terminated.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From February 2, 2012 (the date the Services Agreement became effective)
to September 30, 2012 the Company has accrued and expensed consulting services in the amount of $1,411,402, the remaining $536,099
has been treated as prepaid expense and will be further accrued and expensed through December 31, 2012.  For the three
and six months ended September 30, 2012, $536,099 and $1,072,197 was expensed as general and administrative expense.</p>
<p style="margin: 0pt; text-align: justify"> </p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 17, 2010 the Company entered into agreement with Montclair
Technology, LLC (the “Borrower”) and Michael Williams (the “Guarantor”) to loan funds to the Borrower in
an amount of up to $200,000. The Guarantor owns a patent and has proprietary know-how to develop oil refining and regeneration
plants and Borrower desires to grant the Company a license to use and employ the technology in Kazakhstan. As further inducement
for the Company to loan funds to the Borrower, Guarantor has agreed to guarantee Borrower’s obligations under any promissory
note made by Borrower pursuant to this agreement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 17, 2010 Borrower issued the Company a promissory note
for $50,000 with interest rate of 18% per annum. After the first transfer in December 2010, the Company made additional transfers
starting January 19, 2011 through September 27, 2011 in the amount of $150,000. Borrower may prepay any or all accrued and unpaid
interest and unpaid principal at any time without penalty. The outstanding principal and unpaid accrued interest under this promissory
note is due one year after the transfer.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result, the Company treated the loan as a promissory note receivable
in its financial statements. At September 30, 2012 promissory notes receivable amounted to $220,875, with $200,000 principal amount
and $20,875 representing the amount of interest accrued.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Because as of September 30, 2012 the initial advance of $200,000
plus interest is in default, the Company created a 100% provision for the outstanding principal and interest on the notes in the
amount of $220,875. The timing of the collection of the promissory note is uncertain and the ability to collect the principal and
interest in full is unlikely from either the Borrower or the Guarantor. Due to the timing uncertainty, accrual of interest income
stopped in the quarter ended December 31, 2011.</p>
<p style="margin: 0pt; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2012 and March 31, 2012 cash and cash equivalents
included:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,<br /> 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">March 31, <br /> 2012</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left">U.S. Dollars</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">37,208,737</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">39,363,094</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Foreign currency</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,184</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">     Total cash and cash equivalents</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,208,737</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">39,372,278</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Less restricted cash</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">36,002,101</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">     Cash and cash equivalents – unrestricted</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">37,208,737</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,370,177</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the Purchase Agreement, at the closing the Company
placed $36 million in cash in escrow to indemnify Palaeontol and its affiliates for losses arising from the Company’s breaches
of representations and warranties, failure to perform covenants, ongoing litigation matters, compliance with (and validity of)
Emir Oil’s exploration contract, transfer of certain payables, defects in ownership of certain facilities and pipelines,
or violations of applicable environmental law. The maximum indemnification obligation of the Company is limited to $39 million
except with respect to losses arising out of fraud or criminal misconduct.  On September 20, 2012 the escrow period expired
and the entire $36 million that was being held in escrow was released to the Company without any depletion for indemnification
obligations.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 -20pt; text-indent: 20pt; text-align: justify"><b><i>Basis of presentation</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s unaudited condensed consolidated financial statements
present the consolidated results of BMB Munai, Inc., including the results of its wholly owned subsidiary, Emir Oil until September
19, 2011. All significant inter-company balances and transactions have been eliminated from the unaudited condensed consolidated
financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited interim condensed consolidated financial information
of BMB Munai, Inc. (the “Company” or “BMB Munai”) has been prepared in accordance with Article 10 of Regulation
S-X promulgated by the Securities and Exchange Commission.  Certain information and disclosures normally included in
financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
have been condensed or omitted pursuant to such rules and regulations.  In the opinion of management, the accompanying
interim condensed consolidated financial information contains all adjustments, consisting only of normal recurring adjustments
necessary to present fairly the Company’s financial position as of September 30, 2012, and results of its operations for
the six months ended September 30, 2012 and 2011.  These financial statements should be read in conjunction with the
annual consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K
for the year ended March 31, 2012.  The results of operations for the six months ended September 30, 2012 may not be
indicative of the results for the fiscal year ending March 31, 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Going concern</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With the Sale of Emir Oil, the Company has no continuing operations
that result in positive cash flow, which raises substantial doubt about its ability to continue as a going concern.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Subsequent event</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2012 the Company declared and made a second cash distribution
of $0.30 per share to common stockholder of record on October 15, 2012, the top end of the range per share originally contemplated
when the Company publicly disclosed in its Current Report on Form 8-K dated February 14, 2011 that it had agreed to sell Emir Oil.  The
total amount to be distributed to common stockholders in connection with this second cash distribution is $16,736,266.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The second cash distribution amount was determined after giving effect
to required fund allocations, (including payment of the $5 million deferred extraordinary event payment to Boris Cherdabayev and
payments to Boris Cherdabayev and Toleush Tolmakov of their deferred initial cash distribution in the aggregate amount of approximately
$13 million), actual costs incurred and other factors.  Messrs. Cherdabayev and Tolmakov agreed to defer and put at risk
until the second cash distribution, the entire portion of the initial cash distribution and Mr. Cherdavayev’s extraordinary
event payment to increase the amount of funds available to the Company’s other stockholders in the initial distribution which
was paid on October 24, 2011.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of estimates</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of unaudited condensed consolidated financial statements
in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets
and liabilities and the disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial
statements and revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates
and affect the results reported in these unaudited condensed consolidated financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Concentration of credit risk</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject the Company to a concentration
of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Functional currency</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company makes its principal investing and financing transactions
in U.S. Dollars and the U.S. Dollar is therefore its functional currency.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Foreign currency translation</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Transactions denominated in foreign currencies are reported at the
rates of exchange prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies
are translated to United States Dollars at the rates of exchange prevailing at the balance sheet dates. Any gains or losses arising
from a change in exchange rates subsequent to the date of the transaction are included as an exchange gain or loss in the unaudited
condensed consolidated statements of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Fair value of financial instruments</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying values reported for cash equivalents, notes receivable,
accounts payable and accrued liabilities approximate their respective fair values in the accompanying balance sheet due to the
short-term maturity of these financial instruments.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash and cash equivalents</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all demand deposits, money market accounts
and marketable securities purchased with an original maturity of three months or less to be cash and cash equivalents. The fair
value of cash and cash equivalents approximates their carrying amounts due to their short-term maturity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Other fixed assets</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other fixed assets are valued at historical cost adjusted for impairment
loss less accumulated depreciation. Historical cost includes all direct costs associated with the acquisition of the fixed assets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Depreciation of other fixed assets is calculated using the straight-line
method based upon the following estimated useful lives:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="width: 50%">Vehicles</td>
<td style="width: 50%; text-align: center">3-5 years</td></tr>
<tr style="vertical-align: top; background-color: white">
<td>Office equipment</td>
<td style="text-align: center">3-5 years</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td>Software</td>
<td style="text-align: center">3-4 years</td></tr>
<tr style="vertical-align: top; background-color: white">
<td>Furniture and fixtures</td>
<td style="text-align: center">2-7 years</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance and repairs are charged to expense as incurred. Renewals
and betterments are capitalized as leasehold improvements, which are amortized on a straight-line basis over the shorter of their
estimated useful lives or the term of the lease.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other fixed assets of the Company are evaluated annually for impairment.
If the sum of expected undiscounted cash flows is less than net book value, unamortized costs of other fixed assets will be reduced
to a fair value. Based on the Company’s analysis at September 30, 2012, no impairment of other assets is necessary.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; text-align: justify"> </td>
<td style="width: 97%; font-style: italic; font-weight: bold; text-align: justify">Income (Loss) per common share</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic income (loss) per common share is computed by dividing net
income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects
the potential dilution that could occur if all contracts to issue common stock were converted into common stock, except for those
that are anti-dilutive.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>    Recent accounting pronouncements</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has reviewed all recently issued, but not yet effective,
accounting pronouncements and does not believe the future adoptions of any such pronouncements are expected to cause a material
impact on the Company’s financial condition or the results of operations.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">BMB Munai, Inc., is a Nevada corporation that originally incorporated
in the State of Utah in 1981.  From 2003 to 2011, the Company’s business activities focused on oil and natural
gas exploration and production in the Republic of Kazakhstan (also referred to herein as the “ROK” or “Kazakhstan”).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 14, 2011, the Company entered into a Participation Interest
Purchase Agreement (the “Purchase Agreement”) with MIE Holdings Corporation (HKEx: 1555), a company with limited liability
organized under the laws of the Cayman Islands (“MIE”), and its subsidiary, Palaeontol B.V., a company organized under
the laws of the Netherlands (“Palaeontol”), pursuant to which the Company agreed to sell all of its interest in its
wholly owned subsidiary Emir Oil, LLP (“Emir Oil”) to Palaeontol (the “Sale”)  The initial purchase
price is $170 million and was subject to various closing adjustments and the deposit of $36 million in escrow to be held for a
period of twelve months following the closing for indemnification purposes.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 19, 2011 the Company completed the sale of all of its
interests in Emir Oil to a subsidiary of MIE.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the Purchase Agreement, the Company is currently
engaged in certain post-closing undertakings to assist the MIE subsidiary with the acquisition of certain contracts, leases and
transfers of rights.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the closing of the Sale, on September 21, 2011,
the Company completed its mandatory redemption (the “Redemption”) of its $61.4 million in principal amount of 10.75%
Convertible Senior Notes due 2013, pursuant to the Amended and Restated Indenture, dated as of March 4, 2011, between the Company
and The Bank of New York Mellon, as trustee.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Sale, the Company voluntary delisted its common
stock from the NYSE Amex (the “Amex”), which became effective following the close of business on September 29, 2011.   The
Company’s common stock is now quoted over-the-counter on the OTCQB, stock symbol “BMBM”.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since September 2011 the Company’s principal business operations
have been focused on satisfying certain post-closing undertakings to assist the MIE subsidiary with the acquisition of certain
contracts, leases and transfers of rights in accordance with the Purchase Agreement and exploring opportunities to exploit the
expertise of Company management staff within the oil and gas sector in the Republic of Kazakhstan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s efforts to satisfy its obligations under the
Purchase Agreement do not generate revenue for the Company.  The Company does not anticipate generating revenue until
such time as it is able to identify and exploit new business opportunities.  No assurance can be given that the Company
will be able to identify or exploit any new business opportunity, or that it will have the funds then available to it that will
enable it to seek to take advantage of any such opportunity.  These factors raise substantial doubt about the Company’s
ability to continue as a going concern.</p>
<p style="margin: 0pt; text-align: justify"> </p>
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<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s unaudited condensed consolidated financial
statements present the consolidated results of BMB Munai, Inc., including the results of its wholly owned subsidiary, Emir Oil
until September 19, 2011. All significant inter-company balances and transactions have been eliminated from the unaudited condensed
consolidated financial statements.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited interim condensed consolidated financial information
of BMB Munai, Inc. (the “Company” or “BMB Munai”) has been prepared in accordance with Article 10 of Regulation
S-X promulgated by the Securities and Exchange Commission.  Certain information and disclosures normally included in
financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
have been condensed or omitted pursuant to such rules and regulations.  In the opinion of management, the accompanying
interim condensed consolidated financial information contains all adjustments, consisting only of normal recurring adjustments
necessary to present fairly the Company’s financial position as of September 30, 2012, and results of its operations for
the six months ended September 30, 2012 and 2011.  These financial statements should be read in conjunction with the
annual consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K
for the year ended March 31, 2012.  The results of operations for the six months ended September 30, 2012 may not be
indicative of the results for the fiscal year ending March 31, 2013.</p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2012 the Company declared and made a second
cash distribution of $0.30 per share to common stockholder of record on October 15, 2012, the top end of the range per share originally
contemplated when the Company publicly disclosed in its Current Report on Form 8-K dated February 14, 2011 that it had agreed to
sell Emir Oil.  The total amount to be distributed to common stockholders in connection with this second cash distribution
is $16,736,266.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The second cash distribution amount was determined after
giving effect to required fund allocations, (including payment of the $5 million deferred extraordinary event payment to Boris
Cherdabayev and payments to Boris Cherdabayev and Toleush Tolmakov of their deferred initial cash distribution in the aggregate
amount of approximately $13 million), actual costs incurred and other factors.  Messrs. Cherdabayev and Tolmakov agreed
to defer and put at risk until the second cash distribution, the entire portion of the initial cash distribution and Mr. Cherdavayev’s
extraordinary event payment to increase the amount of funds available to the Company’s other stockholders in the initial
distribution which was paid on October 24, 2011.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The preparation of unaudited condensed consolidated
financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported
amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the unaudited condensed
consolidated financial statements and revenues and expenses during the reporting period. Accordingly, actual results could differ
from those estimates and affect the results reported in these unaudited condensed consolidated financial statements.</p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Financial instruments that potentially subject the
Company to a concentration of credit risk consist principally of cash. The Company places its cash with high credit quality financial
institutions.</p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Transactions denominated in foreign currencies are
reported at the rates of exchange prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are translated to United States Dollars at the rates of exchange prevailing at the balance sheet dates. Any gains or
losses arising from a change in exchange rates subsequent to the date of the transaction are included as an exchange gain or loss
in the unaudited condensed consolidated statements of operations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying values reported for cash equivalents, notes
receivable, accounts payable and accrued liabilities approximate their respective fair values in the accompanying balance sheet
due to the short-term maturity of these financial instruments.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all demand deposits, money market accounts
and marketable securities purchased with an original maturity of three months or less to be cash and cash equivalents. The fair
value of cash and cash equivalents approximates their carrying amounts due to their short-term maturity.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Other fixed assets are valued at historical cost adjusted
for impairment loss less accumulated depreciation. Historical cost includes all direct costs associated with the acquisition of
the fixed assets.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Depreciation of other fixed assets is calculated using the
straight-line method based upon the following estimated useful lives:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="width: 50%; line-height: 115%">Vehicles</td>
<td style="width: 50%; line-height: 115%; text-align: center">3-5 years</td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="line-height: 115%">Office equipment</td>
<td style="line-height: 115%; text-align: center">3-5 years</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="line-height: 115%">Software</td>
<td style="line-height: 115%; text-align: center">3-4 years</td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="line-height: 115%">Furniture and fixtures</td>
<td style="line-height: 115%; text-align: center">2-7 years</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Maintenance and repairs are charged to expense as incurred.
Renewals and betterments are capitalized as leasehold improvements, which are amortized on a straight-line basis over the shorter
of their estimated useful lives or the term of the lease.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Other fixed assets of the Company are evaluated annually for
impairment. If the sum of expected undiscounted cash flows is less than net book value, unamortized costs of other fixed assets
will be reduced to a fair value. Based on the Company’s analysis at September 30, 2012, no impairment of other assets is
necessary.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic income (loss) per common share is computed by dividing
net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share
reflects the potential dilution that could occur if all contracts to issue common stock were converted into common stock, except
for those that are anti-dilutive.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has reviewed all recently issued, but not yet
effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements are expected to cause
a material impact on the Company’s financial condition or the results of operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">With the Sale of Emir Oil, the Company has no continuing
operations that result in positive cash flow, which raises substantial doubt about its ability to continue as a going concern.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">As of September 30, 2012 and
March 31, 2012 cash and cash equivalents included:</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">March 31, 2012</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left">U.S. Dollars</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">37,208,737</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">39,363,094</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Foreign currency</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,184</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: -10pt">     Total cash and cash equivalents</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,208,737</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">39,372,278</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Less restricted cash</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">36,002,101</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt">     Cash and cash equivalents – unrestricted</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">37,208,737</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,370,177</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Prepaid expenses and other assets
as of September 30, 2012 and March 31, 2012 were as follows:</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table align="right" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 68%; line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="width: 15%; border-bottom: black 1.5pt solid; line-height: 115%; font-weight: bold; text-align: center"><font style="font-size: 8pt">September 30,
2012</font></td>
<td style="width: 2%; line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="width: 15%; border-bottom: black 1.5pt solid; line-height: 115%; font-weight: bold; text-align: center"><font style="font-size: 8pt">March
31, 2012</font></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font-size: 8pt">Advances for services</font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font-size: 8pt">$ 536,099</font></td>
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font-size: 8pt">$ 1,616,915</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold; text-align: right"><font style="font-size: 8pt">$
536,099</font></td>
<td style="line-height: 115%"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold; text-align: right"><font style="font-size: 8pt">$
1,616,915</font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The components of discontinued
operations for three and six months ended September 30, 2012 and 2011 were as follows:</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2011</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> <b>September 30, 2011</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%">Revenue</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">16,610,716</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">41,633,064</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt">Operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,491,217</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,914,188</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: 0pt">Other (income)/expense</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(126,150</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(180,838</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Discontinued operations</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,245,649</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,899,714</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><font style="font-size: 8pt"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Depreciation of other fixed assets is calculated using the
straight-line method based upon the following estimated useful lives:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="width: 50%; line-height: 115%"><font style="font-size: 8pt">Vehicles</font></td>
<td style="width: 50%; line-height: 115%; text-align: center"><font style="font-size: 8pt">3-5 years</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="line-height: 115%"><font style="font-size: 8pt">Office equipment</font></td>
<td style="line-height: 115%; text-align: center"><font style="font-size: 8pt">3-5 years</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font-size: 8pt">Software</font></td>
<td style="line-height: 115%; text-align: center"><font style="font-size: 8pt">3-4 years</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="line-height: 115%"><font style="font-size: 8pt">Furniture and fixtures</font></td>
<td style="line-height: 115%; text-align: center"><font style="font-size: 8pt">2-7 years</font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"></p>
170000000
36000000
61400000
P3Y
P5Y
P3Y
P5Y
P3Y
P4Y
P2Y
P7Y
37208737
39363094
0
9184
37208737
39372278
39000000
200000
20875
200000
0
536099
1616915
536099
1616915
44795757
13223299
0
29914188
0
13491217
0
41633064
0
16610716
55787554
55787554
55787554
55787554
0
-2.07
0
-2.22
-0.03
-2.48
-0.02
-2.56
0
5000000
55787554
55787554
55787554
55787554
500000000
500000000
0.001
0.001
0
0
0
0
20000000
20000000
0.001
0.001
57962
43125
<p style="text-indent: 0pt; font: 8pt Times New Roman, Times, Serif">The Company makes its principal investing and financing transactions
in U.S. Dollars and the U.S. Dollar is therefore its functional currency.</p>
<p style="text-align: justify; text-indent: 0pt; margin-right: 0; margin-left: 27pt; font: 8pt Times New Roman, Times, Serif"> </p>
-220875
1072197
536099
250000
250000
0
-180838
0
-126150
0
-115248057
0
-123902122