Chaparral Resources Inc. Announces Resumption of Its Drilling Program and Karakuduk Field Operational Update.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Feb. 12, 2003

Chaparral Resources Inc. (OTCBB:CHAR) announced today that its majority owned subsidiary, Karakuduk Munay, J.V. ("KKM"), commenced drilling Karakuduk Well No. 141. The well will test the sands of the mid-Jurassic formation at a target depth of approximately 10,500 feet (3,200 meters). The spudding of Well No. 141 is the first of 12 wells budgeted for completion in 2003, which will increase the total number of wells to 48 by year-end. KKM has signed a contract with Kazmunaygas Drilling (a subsidiary of the state owned company Kazmunaygaz, a 40% shareholder in KKM) to carry out drilling operations. Baker Hughes, Baker Atlas, BJ Services and a number of local companies will be providing associated ancillary services. Well No. 141 is located in the Karakuduk Field in the Republic of Kazakhstan, about 360 kilometers from the Caspian Sea port city of Aktau.

Chaparral also announced that KKM is pursuing other improvements to the Karakuduk Field which include the implementation of an artificial lift and pressure maintenance program. In addition, KKM will continue expansion of its oil processing systems, which includes the construction of a third processing facility. During the first quarter of 2003, Halliburton has been contracted to perform a pilot hydraulic fracturing program on three wells. KKM will introduce approximately 20 electrical submersible pumps during the year to support and increase production from existing wells in the Karakuduk Field. These improvements will be funded from cash flows generated by KKM oil sales revenues.

KKM anticipates that the net effect of these improvements will substantially increase production of oil from the field.

Nikolai Klinchev, CEO of Chaparral, said, "The resumption of the drilling program, as well as the other improvements we are making to the Karakuduk Field, is a testament to our commitment to the continued development of KKM. While we have many more milestones to reach, we are confident that our dedicated KKM team will execute our development strategy in an effective manner resulting in the improvement of the overall productivity of the Karakuduk Field."

The Company also announced the launch of its newly redesigned and significantly enhanced Web site: www.chaparralresources.com. The new site features comprehensive information about the Company and its management, the Karakuduk Field operations in the Republic of Kazakhstan, and a comprehensive Investor Relations section. In addition to offering practical news and financial information, the site also provides useful links about the country of Kazakhstan and the Caspian region. The Web site will be updated periodically with material information and SEC filings.

Chaparral Resources Inc. is an international oil and gas exploration and production company. The Company's only operating asset is its participation in the development of the Karakuduk Field through KKM, of which Chaparral is the operator. The Company owns a 60% ownership interest in KKM with the other 40% ownership interest being held by Joint Stock Company Kazmunaygaz, the government-owned oil company. Central Asia Industrial Holdings, a private investment holding company, holds a majority interest in Chaparral and is a significant investor in the Kazakh oil sector.

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, 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.