Karren Quits as Chaparral Resources CEO

Chaparral Resources has announced that Howard Karren has resigned as chairman, president and chief executive officer for personal reasons. He is succeeded by Mr. John McMillian, currently a director of the company, who has been selected by the Board of Directors to replace Karren. Mr. McMillian is the former chairman, president and chief executive officer of Allegheny & Western Energy Corporation and of Northwest Energy Corporation. Mr. McMillian is also a director of Marker International and Excalibur Technologies. Mr. McMillian will become chairman and chief executive officer and has also assumed the duties of president on an interim basis.

The company also announced that Mr. J. Michael Muckleroy has resigned as a director and has been replaced by Mr. James A. Jeffs, a former director of the company. Mr. Jeffs, age 46, is managing director and chief investment officer for Whittier Trust Company. He has been instrumental in helping arrange financing for the company in the past and is expected to continue to assist the company with its financial and operational efforts in the future.

Chaparral Resources Inc. is an international oil and gas exploration and production company. The company participates in the development of the Karakuduk Field through the Karakuduk Munay Inc. Joint Venture, which is held 50-50 by Chaparral and Kazakh investors, including KazakhOil, the government-owned oil company. Chaparral is the operator.

McMillian noted that a drilling rig is currently on location in the Field and is expected to begin drilling operations in January 1999. It is anticipated that this drilling rig will enable the company to increase production and generate additional revenue through crude oil sales. The company is currently producing approximately 700 barrels of oil per day from two wells which were placed on production during 1998.