Shareholder Letter from Askar Karabayev

TURAN PETROLEUM, INC. EXPLORATION AND OPERATIONS

Shareholder Letter from Askar Karabayev,
Chief Executive Officer of Turan Petroleum, Inc.

July 22, 2009

Dear Shareholder:
This letter is intended to advise you of recent developments involving or affecting the business, operations and affairs of Turan Petroleum. Inc. ("Turan" or "Company").
Kazenercom/Bektayev Litigation and Unauthorized Activities

1. Kazenercom Litigation. As you may be aware, Mr. Yerkin Bektayev, a citizen of Kazakhstan (and one of the former managers of Turan Enerpetroleum, Turan's wholly-owned Kazakhstan subsidiary), and his company, Kazenercom Too (collectively "Bektayev") have been in litigation with Turan for several years now. Having lost in litigation originally brought by Bektayev in Kazakhstan, Bektayev has now transferred his/their efforts to the U.S. courts. After Bektayev filed a new lawsuit in the federal court in the District of Columbia several months ago, the Court transferred the case to the federal court in Los Angeles at Turan's request. Since then, Bektayev has filed several amended complaints with the Court in Los Angeles.

In June 2009, the Court in Los Angeles, in response to motions to dismiss filed by Turan and other parties, ordered Bektayev to include a more definite statement of its/their claims in their amended complaints. Bektayev has now filed an additional amended complaint and the Company and other parties in this case either have filed, or will be filing, motions to dismiss the Bektayev lawsuit again on various grounds. We hope to have a ruling on the motions to dismiss within the next 120 days.

We believe that the claims that have been asserted by Bektayev in the federal court in Los Angeles have no merit. Turan and its management will continue to defend these actions vigorously.

2. Bektayev's Unauthorized Corporate Activities. Last February 2009, as we previously reported to you, Bektayev attempted to hold a purported shareholders meeting in Almaty, Kazakhstan, at which he later claimed to have elected a new "board of directors". Interestingly, one of the first points of business of the "Bektayev Board" was to instruct the Company to transfer the Kazakhstan oil and gas concession held by Turan back to Bektayev individually. Bektayev's attempt to unilaterally elect the Bektayev Board and the actions he has taken in apparently attempting to use this authority to have Turan's oil and gas assets transferred to his personal ownership is nothing more than a deliberate fraud, since in reality there was no "shareholders meeting" since it was never properly called or noticed as required under the Nevada Corporation Law and did not comply with other applicable legal and corporate governance requirements. In this regard, we would make two important points:

3. Bektayev's Latest Improper Activities. Recently, Bektayev has resorted to further corporate sabotage by arranging to have a Canadian law firm, Leschert & Company, distribute a letter dated July 9, 2009, which invites Shareholders to turn their stock certificates in for new certificates that have been or will be authorized by the so-called "Bektayev Board". With this mailing, it appears that Bektayev has arranged to include a copy of recent minutes of the Bektayev Board that makes all sorts of allegations of malfeasance against Turan, its officers and directors, and purports to cancel shares and invites other Shareholders to turn their certificates in for replacement certificates issued by or under the authority of the Bektayev Board. It also appears, from these minutes, that Bektayev has again attempted, through the invalid Bektayev Board, to order the Company to transfer its oil and gas concession in Kazakhstan to Bektayev individually.

We believe that this recent mailing by Bektayev and the Canadian firm is an act of desperation after learning of Turan's recent distribution of "Shareholder Governance Consents", a process that has allowed the Shareholders, under the authority of the Nevada Corporation Law, to readopt the Company's Bylaws; to elect a new Board of Directors; and to reject and negate all corporate actions attempted by Bektayev and his/their affiliates in holding the purported shareholders meeting in Kazakhstan last February and claiming to have elected a new board of directors (See Our Discussion Below).

As a result of the latest mailing by Bektayev and the Canadian firm (apparently) hired by Bektayev, a number of Shareholders have expressed concern and confusion with Bektayev's claims to now control the Company. Although the Company cannot advise Shareholders on their rights under the Nevada Corporation Law or other applicable laws, the Company hopes that Shareholders are able to view Bektayev's actions for they really are and will allow the Company to resolve Bektayev's actions in the U.S. federal courts.

The Company is currently evaluating the latest mailing to Shareholders by the Canadian law firm apparently hired by Bektayev and will take appropriate action to address the latest Bektayev activity and his/their improper communication with Shareholders.

Recent Shareholder Actions

1. Recent Vote of Shareholders by Written Consent. In May 2009 Turan initiated a shareholder voting process, authorized by the Nevada Corporation Law, that allowed the Shareholders of the Company to vote on and approve certain governance matters by written consent. Based on the signed written consents the Company has received from Shareholders (collectively, the "Shareholder Governance Consents"), we have preliminarily determined that Shareholders holding approximately 68% of the outstanding and duly issued shares in Turan have voted for, adopted and approved the following:

Biographical summaries of the members of Turan's new Board of Directors are being compiled and will be distributed to Shareholders in the near future.

2. Implications of the Shareholder Governance Consents. Based on our preliminary tabulation – and excluding shares in the Company that Bektayev owns or claims to control - the Shareholder Governance Consents have confirmed the following:

a. The Shareholders signing the Shareholder Governance Consents presently own or control approximately 68% of all of the outstanding and duly issued shares in the Company;

b. The Shareholders signing the Shareholder Governance Consents held approximately 62.5% of the outstanding shares in the Company in the past when its authorized shares equaled 100 million shares; and

c. The Shareholders signing the Shareholder Governance Consents held approximately 58% of the outstanding shares in the Company in the past when its authorized shares equaled 50 million shares.

As a result of the Shareholder Governance Consents – which Turan's management is in the processing of confirming – it is clear that the Shareholders of the Company have (1) re-asserted control over their Company and have elected a new and more independent Board of Directors to manage the overall affairs of the Company, (2) rejected and unwound all purported actions by Bektayev in attempting to control the Company, and (3) demonstrated that at no time in the past did Bektayev own or control – or even have a right to control - a majority of the shareholder voting power in the Company, even when the Company's authorized shares equaled 50 million shares.

Once we have confirmed our analysis of the Shareholder Governance Consents, we will take appropriate action to advise Bektayev and his/their affiliates, and their counsel, that the Shareholders of the Company have now spoken and it is clear that the so-called Bektayev Board was never elected by a majority of the voting power held by the Shareholders of the Company and that any further attempt, as an improper or illegal interloper, to harm the Company and its Shareholders will be dealt through the U.S. judicial system.

Status of Company's Initial Drilling Program

The initial exploratory well being drilled by the Company on its licensed concession in Kazakhstan is continuing, with preliminary indications that we believe are positive. To date, the Company's drilling contractor has drilled to a depth of approximately 2000 meters (520 meters above the targeted or projected depth of interest) and began to encounter coal at around 1800 meters. According to our geologists, coal indicates that the depositional environment at this depth was a swamp or a shallow deltaic system. This is generally considered a positive indicator. We are currently in a transitional lithology from the clay located above this level through these shallow coal and water environments. As drilling proceeds toward a projected or target depth of approximately 2,520 meters, we hope to encounter limestone with reef structures or other major change of facies soon.

We will continue to keep you posted on the Company's efforts to address the improper actions taken by Bektayev and the so-called "Bektayev Board". In addition, we will also update you on our drilling program as circumstances warrant.

Thank you for your continued support.

Sincerely,

Askar Karabayev

Cautionary Note Regarding Forward Looking Statements

This letter contains certain forward-looking statements within the meaning of Section 121E of the Securities Exchange Act of 1934, as amended. Those statements are sometimes indicated by words such as "anticipates", "expects", "believes", "seeks", "may," "intends", "attempts", "will" and similar expressions. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. Risks and other factors that might cause differences, some of which could be material, include, but are not limited to economic and market conditions; financial and development risks; cost overruns; court decisions and litigation costs, results or outcomes; oil & gas exploration, drilling and production risks; the failure to secure contracts for products or technology; and/or conflicts of interest with existing or future joint venture partners.