Chaparral Resources, Inc. Announces Second Quarter Results and Operational Update.

WHITE PLAINS, N.Y. -- Chaparral Resources, Inc. (OTCBB:CHAR) (the "Company") today announced its financial results for the second quarter 2005. The Company reported net income of $6.60 million, or 17 cents per share, for the quarter ended June 30, 2005, compared to $1.30 million, or 3 cents per share, for the quarter ended June 30, 2004. The $5.30 million increase in net income primarily relates to higher revenues as a result of higher prices and higher sales volumes achieved during the second quarter of 2005.

Revenues were $33.16 million for the second quarter of 2005 compared with $17.47 million for the second quarter of 2004. The $15.69 million increase is the result of higher crude prices and sales volumes. During the second quarter of 2005 we sold approximately 793,500 barrels of crude oil for an average $41.79 per barrel. Comparably, we sold approximately 666,000 barrels of crude oil for an average $26.24 per barrel during the second quarter of 2004. The result is a positive price variance of $12.34 million and a positive volume variance of $3.35 million.

For the six months ended June 30, 2005, the Company recorded net income of $10.44 million compared to net income of $1.93 million for the six months ended June 30, 2004. The $8.51 million increase in first half net income is primarily a result of higher crude prices and higher sales volumes.

Revenues for the first half of 2005 were $57.49 million compared with $33.08 million for the first half of 2004. The $24.41 million increase is the result of higher crude prices and sales volumes. During the first half of 2005, we sold approximately 1,472,500 barrels of crude oil for an average $39.04 per barrel. Comparably, we sold approximately 1,354,000 barrels of crude oil for an average $24.42 per barrel for the first half of 2004. The result is a positive price variance of $21.52 million and a positive volume variance of $2.89 million. The Company exported 93% of total sales with 7% sold to the domestic market during the first half of 2005, compared with 88% export sales and 12% domestic sales in the first half of 2004.

Transportation costs for the first half of 2005 were $7.54 million, or $5.12 per barrel, and operating costs associated with sales were $7.39 million, or $5.02 per barrel. Comparatively, transportation costs for the first half of 2004 were $6.22 million, or $4.59 per barrel, and operating costs associated with sales were $3.90 million, or $2.88 per barrel. The increase in transportation cost per barrel during the first half of 2005 is the result of higher tariffs imposed on the Company. The main reason for the increase in operating cost per barrel is changes in cost allocation procedures resulting in a lower percentage of field expenditures being capitalized.

Production for the first half of 2005 was 1.73 million barrels, equivalent to 9,555 barrels of oil per day ("bopd"), compared to 1.43 million barrels, or 7,867 bopd, in the first half of 2004, an increase of 21%. Current daily oil production is in excess of 11,500 barrels per day.

Drilling activity continued in the second quarter. The Company drilled 3.6 wells (11,409m) in the second quarter of 2005 compared to 2.8 wells (8,624m) in the first quarter of the year. As of June 30, 2005 the total field well count had risen to 72 compared to 66 on December 31, 2004. The producing well count at the field as of June 30, 2005 was 52 wells compared to 45 at the end of 2004. One producing well was converted to a water injection well.

During the second half of 2005, further increases in production are expected from new wells, converting more wells to artificial lift, converting existing producers and adding new wells to the injection fund and by continuing with hydraulic fracturing work in selected wells. Work on the utilization of associated gas produced from the field will continue throughout the year. Also, in the second half of 2005, construction of a rail loading facility is expected to commence near the field so that by the end of the second half of 2006, crude oil will be able to be transported by rail to Aktau. This is expected to result in significantly higher netbacks.

Simon Gill, Chief Executive Officer of Chaparral, commented, "The steady increase in production at a time of high oil prices is strengthening the company's financial position. This increase in production is a direct result of focused management leadership in KKM which has resulted in improved geological understanding, resulting in better production from new wells and good production engineering, which is optimizing production by installing artificial lift and fast-tracking waterflood. With all these activities continuing and additional hydraulic fracs planned in the third quarter, I am optimistic that results will continue to improve."

Chaparral Resources, Inc. is an oil and gas development and production company. The Company's only operating asset is its participation in the development of the Karakuduk Field, in the Republic of Kazakhstan, through KKM, which is the operating company. The Company has directly and indirectly a 60% ownership interest in KKM with the other 40% ownership interest being held by Nelson. Nelson, an independent oil company listed on the Toronto Stock Exchange and the Alternative Investment Market of the London Stock Exchange, holds a majority interest in Chaparral and operates several other producing oil fields in Kazakhstan. More information is available on the Company's web site, www.chaparralresources.com.

Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements in this News Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of oil prices, product demand, market competition, risks inherent in the Company's international operations, imprecision of reserve estimates and Chaparral's ability to replace and expand oil and gas reserves. These and other risks are described in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

FINANCIAL HIGHLIGHTS
                         --------------------
                       ($000, except share data)

                                                    Quarter Ended
                                                       June 30
                                               -----------------------
                                                  2005        2004
                                               ----------- -----------

Revenue                                            33,160      17,471

Cost and expenses                                 (15,452)    (11,200)
Other income/(expense)                             (6,031)     (3,089)
Income tax expense                                 (5,075)     (1,882)
                                               ----------- -----------
Net income available to common stockholders         6,602       1,300
                                               =========== ===========

Basic earnings per share:
Net income per share                                $0.17       $0.03
Weighted average number of shares outstanding
 (basic)                                       38,209,502  38,209,502


Diluted earnings per share:
Net income per share                                $0.17       $0.03
Weighted average number of shares outstanding
 (diluted)                                     39,500,312  38,209,502