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Shaikan-1 has been independently evaluated by Dynamic Global Advisors ("DGA"). This final evaluation report reviewed the data from the Cretaceous, Jurassic and Triassic formations of Shaikan-1 tested to a depth of 2,950 meters and was carried out in accordance with the Petroleum Resources Management System ("PRMS") guidelines, using SPE definitions.

Key findings:

· The range of oil in-place for the Shaikan structure has been increased to a gross 1.9 (P90) to 7.4 (P10) billion barrels of oil, with a mean of 4.2 billion barrels of oil in place. Previous estimates were 1.0 (P90) and 5.0 (P10). In addition, there is upside potential (P1) up to a total of 13 billion barrels of oil in place.

• There are also prospective resources below 2,950 meters (lower Triassic and Permian). The DGA Executive Summary states that: "Potential resources for these deeper formations are ~ 1 to 5 BBO and 6 to 14 TCF, which is in addition to the P1 upside estimate of 13 BBO".

· In addition the DGA Executive Summary confirms that: "This discovery greatly reduces the geologic risks in the Sheikh Adi, Akri Bijeel and the Ber Bahr blocks, Gulf Keystone's adjacent opportunities. The Shaikan discovery proves the presence of hydrocarbon source and migration in the area.

• The Shaikan-1 well has discovered a significant resource of oil and gas in the Cretaceous Sarmord, Jurassic Barsarin, Sargelu, Alan, Mus, Butmah, Baluti and Triassic Kurre Chine formations

Shaikan Oil-in-place summary

Todd Kozel, Executive Chairman of Gulf Keystone, commented:

"This report independently corroborates the world class quality of the discoveries and provides invaluable data for our next test wells appraising these finds. We are delighted with the results of the final DGA report evaluating Shaikan-1 and we look forward to realizing as much of the upside potential of this discovery as possible."

A copy of the final report is available on the Company's website at www.gulfkeystone.com

Notes:

Discovered Petroleum initially-in-place is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production.

The PRMS guidelines and reserves definitions can be found in full at the Society of Petroleum Engineers website http://www.spe.org/spe-app/spe/industry/reserves/index.html