Kcell Receives Tax Claim For 2012 To 2015 Period

Kazakhstan's Kcell Q2 Net Income Drops 87 Pct On Tax Provision

Almaty, 5 July 2017 – Kcell Joint Stock Company (“Kcell” or the “Company”) (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces that the Kazakhstan tax authority has completed its comprehensive tax audit for the period between 2012 and 2015.

Following the audit, the tax authority has made a total claim of KZT 9.0 billion, of which KZT 5.8 billion is for unpaid taxes and KZT 3.2 billion represents fines and penalties for late payment. Kcell intends to dispute this claim through the available mechanisms, which includes court litigation.