American International Petroleum Awarded Extension for License 953 in Kazakhstan; License Extended Two Years To November 15, 2004.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 30, 2002

American International Petroleum Corporation (OTCBB: AIPN) today announced its wholly-owned subsidiary, American International Petroleum Kazakhstan (AIPK), has received a two year extension for its License 953 from the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan.

AIPK owns two licenses in Kazakhstan; exploration License 953, in which it has a 70% working interest, and production License 1551, the Shagyrly-Shomyshty gas field, in which it has 100% interest.

Based upon data developed on License 953, further exploration efforts should be focused on the eastern portion of the block. Therefore, under this new contractual arrangement with the Kazakhstan government, AIPK will retain the eastern section of the block to concentrate on deep gas exploration activities, relinquishing certain western acreage. Further details regarding the agreement and the work program during the extension period is to be finalized with the government within the next few weeks. The eastern acreage of License 953 is in close proximity to License 1551. Consequently, any gas that may be discovered at License 953 could be developed incrementally utilizing the production and transportation infrastructure created by the development of the Shagyrly-Shomyshty gas field. The Company is continuing its efforts to obtain a gas contract for License 1551 and is actively seeking industry partners to participate in the development of this gas field.

The Company is currently having discussions with industry participants that could result in utilization of its Lake Charles refinery and is concurrently in negotiations to raise additional working capital. However, there are no assurances that all, or any, of these initiatives can be consummated.

American International Petroleum Corporation is a diversified petroleum company which, through various wholly owned subsidiaries, is involved in oil and gas exploration and development in Kazakhstan, and in refining, marketing and transportation of petroleum products in the United States.

Statements herein may be identified as forward-looking for purposes of safe harbor provisions under Section 21E of the Securities and Exchange Commission Act of 1934. Such statements relating to the Company's business, including those specific to this press release: ability to successfully conclude all issues for the extension and work program, and ability to discover gas, for License 953; ability to utilize License's infrastructures; conclude a gas contract and/or partner License 1551; the Lake Charles refinery will be utilized; or, the Company can raise additional working capital; and all future business of the Company, are subject to risks and uncertainties that could cause actual results to differ materially from those statements, and other risks and factors, identified in the Company's SEC filings.