Chaparral Resources, Inc. Announces Spud of Karakuduk No. 101 Well.

HOUSTON--(BUSINESS WIRE)--Feb. 25, 1999--Chaparral Resources, Inc. (Nasdaq: CHAR) announced today that Karakuduk Munay, J.V. ("KKM") began drilling the Karakuduk No. 101 well on February 14, 1999. The well is located in the Karakuduk Field in the Republic of Kazakhstan, about 20 kilometers from the Caspian Sea. The target depth of well No. 101 will be approximately 10,660 feet (3250 meters) into the sands of the Lower Jurassic formation. The Karakuduk No. 101 well is expected to require four to six weeks to drill. A workover rig will perform completion and testing once the drilling rig is moved to the next drilling location, the Karakuduk No. 102 well. The Company announced previously that KKM will re-perforate wells No. 20 and No. 21 in order to enhance production.

KKM is pursuing discussions for sale of its approximately 17,000 tons (126,000 barrels) of crude oil. Further details will be announced once a sale transaction is completed.

John McMillian, Chairman and Chief Executive Officer, is pleased with the improved productivity of the joint venture. "As a result of Dr. Jack Krug's recent visit to the Karakuduk Field, costs have been reduced, including a reduction in personnel to a smaller, more efficient group. All of our engineering talents and staffing for our new drilling program are designed to increase oil production rates. We are all proud of the way operations are proceeding."

Chaparral Resources, Inc. is an international oil and gas exploration and production company. The Company participates in the development of the Karakuduk Field through KKM of which the Company is the operator. The Company owns a 50% beneficial ownership interest in KKM with the other 50% ownership interest being held by Kazakh investors, including KazakhOil, the government-owned oil company.

Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements in this Press 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, the ability of the Company to secure financing, volatility of oil prices, product demand, market competition, risks inherent in the Company's international operations, imprecision of reserve estimates and the Company'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.