Chaparral Resources Inc. Announces Year End Results and Operational Update.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--April 1, 2003

Chaparral Resources Inc. (OTCBB:CHAR) today reported net income of $4.12 million, or 14 cents per share, for the fiscal year ended Dec. 31, 2002 compared to a loss of $16.22 million, or $1.16 per share, for the year ended Dec. 31, 2001. The $20.34 million increase in the Company's net income is attributable to the recognition of a $5.34 million extraordinary gain resulting from the May 2002 restructuring of the Company's loan with Shell Capital, decreased interest charges associated with the refinancing of its debt obligations and improved operational results from the Karakuduk Field.

As previously reported, in May 2002, Chaparral increased its ownership in KKM from 50% to 60% through the acquisition of 100% of the outstanding stock of Korporatsiya Mangistau Terra International Limited ("MTI"), a Kazakhstan company. As a result of the acquisition, Chaparral obtained a controlling interest in Closed Joint Stock Company Karakudukmunai ("KKM"). Consequently, its financial statements have been consolidated with KKM on a retroactive basis to Jan. 1, 2002. The Company previously accounted for its 50% investment in KKM using the equity method of accounting, which is reflected in the Company's financial results for periods prior to 2002.

During 2002, the Company sold approximately 2.47 million barrels of crude oil, recognizing $45.13 million, or $18.29 per barrel, in revenue. Transportation costs were $9.43 million, or $3.82 per barrel and operating costs associated with sales were $7.68 million, or $3.11 per barrel. Comparatively, Chaparral recognized $4.62 million in equity income from investment for the year ended Dec. 31, 2001, which represents Chaparral's 50% share of KKM's results during the period. During the year ended Dec. 31, 2001, KKM sold approximately 2.18 million barrels of crude oil, recognizing $36.58 million in revenue, or $16.75 per barrel. Associated operating costs were $5.25 million, or $2.40 per barrel, and associated transportation costs were $8.30 million, or $3.80 per barrel.

Interest expense decreased from $14.45 million for the year ended Dec. 31, 2001 to $5.61 million for the year ended Dec. 31, 2002, due to the lower financing costs of the Company's restructured indebtedness.

"I am pleased to report our first full-year profit since we began the development of the Karakuduk Field," said Mr. Nikolai Klinchev, the Company's chief executive officer. "While there are many uncertainties in the world today, we are optimistic about our future progress as we continue to develop the Karakuduk Field to its full potential, placing us among the few successful independent oil and gas producers in Kazakhstan. We believe that our unwavering commitment to the Caspian region will present many opportunities for Chaparral in the future."

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 Chaparral's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, the ability of Chaparral to secure financing, 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 Chaparral's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

                         FINANCIAL HIGHLIGHTS
                 (in thousands, except per share data)

                                               Years Ended December 31
                                               -----------------------
                                                   2002        2001
                                               ----------- -----------

Revenue                                           $45,133         $--
Equity in income from investment                        -       4,616
Costs and Expenses                                 37,685       5,320
Other Expense                                      (5,984)     (8,376)
Income tax expense                                 (2,685)          -
Extraordinary gain on debt restructuring            5,338           -
Cumulative effect of change in
   accounting principal                                 -      (2,519)
                                               ----------- -----------
Net income/(loss)                                   4,117     (16,215)
Cumulative annual dividend accrued on
   Series A Preferred Stock                             -        (250)
Discount accretion on
   Series A Preferred Stock                             -        (100)
                                               ----------- -----------
Net income/(loss) available to common
   stockholders                                    $4,117    $(16,565)
                                               =========== ===========
Basic and diluted earnings per share:
Net income/(loss) per share                         $0.14      $(1.16)
Weighted average number of shares
   outstanding (basic and diluted)             29,753,569  14,283,788
                                               =========== ===========