August 19, 2009

 Dear Shareholder:

We are pleased to report to the shareholders of Turan Petroleum, Inc. (“Turan” or “Company”) the following recent developments concerning the Company’s pending litigation.

1.  Kazenercom Too et al  v. Turan Petroleum, Inc et al, U.S. District Court for the Central District of California.

On August 10, 2009, the Court granted motions to dismiss filed by various parties and dismissed the amended and third party complaints previously filed by plaintiffs Kazenercom Too, E. K. Becktayev and their others (“Bektayev et al”) against Turan, members of its management, and certain individuals (“Turan et al”).  The Court dismissed all of Bektayev et al’s federal (U.S.) claims – consisting of U.S. securities and RICO claims – against Turan et al with prejudice, meaning such claims cannot be refiled or reasserted against Turan et al in any court.  In addition, the Court dismissed Bektayev et al’s state law claims without prejudice, meaning that such state law claims potentially can be re-filed in a state court having jurisdiction over the subject matter and the parties.

With the dismissal of Bektayev et al’s amended and third party complaints, the only matters still pending in this litigation are Turan’s claims against Bektayev et al arising out of Mr. Bektayev’s attempt - as a minority shareholder – to call a meeting of Turan shareholders in Kazakhstan in February 2009, elect his own board of directors (the “Bektayev Board”), and seize certain of the Company’s funds.  Turan’s claims seek a judicial determination that the attempted February 2009 shareholders meeting in Kazakhstan did not comply with the Nevada Corporation Law or the Company’s governing documents and is void, that the Bektayev Board was not properly elected, and that the activities being conducted by Bektayev and his associates in claiming to be the new board of Turan and in seeking to seize Turan’s funds constitute fraudulent misrepresentation and have violated the rights and interests of Turan and its shareholders.

Turan will continue to pursue vigorously its claims against Bektayev el al that remain in this litigation and believes that it will ultimately prevail on these claims and put a stop to the fraudulent misrepresentations being made by Mr. Bektayev and his associates in their illegal attempt to take control of Turan and seize ownership of its oil and gas license in the Republic of Kazakhstan. 

2.  Kazakhstan Shareholder Litigation.  

On July 16, 2009, the Supreme Court of the Republic of Kazakhstan, the highest court in Kazakhstan, effectively affirmed an earlier decision by the Almalinsk District Court #2, Almaty, Kazakhstan, ruling that the “Extraordinary General Meeting of the Shareholders of Turan Petroleum, Inc., scheduled for February 19, 2009, at 32a Manasa Street, Almaty, in the offices of Macleod Dixon Company is to be annulled”. 

This case was originally filed in the Almalinsk District Court by Ms. B.N. Kassymov, a Turan shareholder residing in Kazakhstan, seeking a determination that the February 2009 purported shareholders meeting in Kazakhstan was improperly called and was therefore void.  On March 2, 2009, the District Court ruled in favor of Ms. Kassymov, finding that the purported Kazakhstan shareholders meeting had not been called or noticed in accordance with the Articles of Incorporation of the Company and was therefore a nullity.  Upon hearing an appeal prosecuted by Mr. Bektayev, the Supreme Court declined to vacate the District Court’s decision, leaving intact its annulment of the February 2009 shareholders meeting in Kazakhstan. 

3.  Settlement of Other Litigation

Turan’s management recently entered into a settlement agreement with Anatoly “Tony” Vanetik, certain of his companies, and other individuals, which settles and resolves various claims asserted by Turan and Mr. Vanetik against each other in the California and Nevada courts.  As a result of this settlement, which was approved by a substantial majority of the shareholders of Turan in a written consent vote conducted in May 2009 under the Nevada Corporation Law, the civil actions in which these claims were brought have been or are being dismissed by the parties. 

The settlement of claims between the Company and members of the Company’s former management will eliminate much of the civil litigation involving the Company and allow the Company to avoid the substantial expense and diversion of the Company’s resources that otherwise would be required in continuing this litigation.   

We will continue to keep you apprised of additional developments.

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.