American International Petroleum Corporation Issued License to Develop Kazakhstan Gas Field.

NEW YORK--(BUSINESS WIRE)--May 4, 1999--

Company Obtains 100% Interest In 1.1 Trillion Cubic Feet Of Gas

American International Petroleum Corporation (NASDAQ- NMS: AIPN) announced today it has received License AL-1551 from the Kazakhstan government dated April 30, 1999 to develop the Shagyrly-Shomyshty gas field. The 30 year license gives a 100% working interest in the 174,000 acre field to American International Petroleum Kazakhstan, a wholly-owned subsidiary of the Company.

The gas field is estimated by the Kazakhstan government to contain approximately 1.14 trillion cubic feet (TCF) of proven recoverable sweet dry gas reserves. This is equal to 190 million barrels of oil equivalent using a conversion of six thousand cubic feet of gas per barrel of oil. At full production the field is expected to produce about 200 million cubic feet of gas per day.

Chairman and CEO Dr. George Faris said, "Through the diligent efforts of our management team we have been awarded the right to exploit this significant gas field. The Company is looking forward to developing the field and reaping the substantial potential revenues. The benefits to our shareholders could be huge when considering the value of these proven reserves."

The Shagyryl-Shomyshty field, discovered by drilling in the area from 1966 to 1969, is located in the North Usturt Basin adjacent to the northeastern portion of the Company's License No. 953, and approximately 40 miles north of the Altai No. 1 gas well recently drilled by the Company in the Chikuduk area.

The Srednyaya Azia-Center pipeline system, about 65 miles west of the Shagyryl-Shomyshty field, with a capacity of about 6.5 billion cubic feet per day, should be the most cost effective route for export and local sales.

Front-end engineering design for the gas pipeline and field facilities have been recently completed for the Company by a Houston based international engineering firm. The plan for the project calls for the construction of a 65 mile 30 inch gas transmission line to the Beineu pump station on the Srednyaya Azia-Center gas transmission line along with four satellite field gathering stations for the initial development of the field. The pipeline size has been designed to facilitate the introduction of gas from the Company's nearby Altai gas field in the Chikuduk area.

The Company is discussing project financing options and other financial alternatives with several international lending and construction firms. The Company is also in discussions with several potential buyers of its gas and anticipates concluding a gas purchase agreement during this summer.

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 the Republic of Kazakhstan, and in refining, marketing and transportation of its refined products in the United States.

The matters discussed herein are forward-looking statements. These statements involve risks and uncertainties, such as timely availability of products and services, as set forth in the Company's filing with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein.