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Manas Petroleum Corp. Operational and Financial Highlights 2nd Quarter 2012

BAAR, Switzerland, Aug. 21, 2012

Manas Petroleum Corp. ("Manas") (TSX-V: MNP; OTCBB: MNAP) has filed its quarterly report on Form 10-Q for the six months ended June 30, 2012 on EDGAR and on SEDAR. (www.sedar.com orwww.sec.gov). The following provides you with a review of some of the highlights:

Highlights Q2 2012

-PSA ratified by Tajik government

-Mongolia: Prospects ranked and drilling scheduled for second half of August

-Entered option agreement to purchase producing assets in Central Asia

Operations Review

Mongolia

During the second quarter of 2012, our Mongolian subsidiary, Gobi Energy Partners LLC, concluded a passive seismic campaign. The integration and interpretation of the 2D seismic data acquired in 2011 was finalized, which, along with the results of the passive seismic, allowed us to complete the ranking of the prospects. Three prospects were selected as potential drilling locations for 2012; we plan to drill two of these in 2012. We plan to spud the first well, Ger Chuluu A1, during the week starting August 20, 2012, after completion of the 2D seismic campaign. We expect this well to be approximately 1,200 meters deep.

Tajikistan

During the second quarter of 2012, our Tajik subsidiary, Somon Oil Closed Joint Venture Stock Company ("Somon Oil"), finalized the acquisition of a total of 871km 2D seismic. Seismic processing and interpretation, as well as preparation for the drilling of the first two wells, is ongoing.

On May 7, 2012, the Government of the Republic of Tajikistan ratified the Production Sharing Agreement with Somon Oil and, pursuant to a deed dated August 6, 2012, Santos International Ventures Pty Ltd exercised its option to acquire 70% of the equity of Somon Oil.

Kyrgyzstan

During the second quarter of 2012, South Petroleum Company, in which we own a 25% minority equity interest, continued to provide support for drilling planning and seismic operations in Tajikistan. Finalization of the reports in Kyrgyzstan is ongoing.

Albania (15.8% equity investment in Petromanas Energy Inc.)

Beginning of 2012, Petromanas farmed out 50% of its interest in Block 2-3 in Albania to a wholly owned subsidiary of Shell. The first well, Shpirag-2, was spudded on June 30, 2012 and is currently on track.

More details on www.petromanas.com.

Business Development

During the second quarter of 2012, DWM Petroleum AG, our wholly-owned subsidiary, entered into an option agreement with an unrelated third party pursuant to which the third party has granted DWM Petroleum AG an option to purchase 80% of the equity of a company that owns producing oilfield assets in Central Asia.

Financial Status as of June 30, 2012

Consolidated Statement of Operations (in USD)

6M 2012

6M 2011

General & Administration

2,218,450

1,553,149

of which Personnel

1,333,957

702,572

Consulting

1,025,054

194,351

Exploration

1,237,690

626,567

Total Operating Expense

4,481,194

2,374,067




31.7% Shareholding in Petromanas

06/30/12

12/31/11

Fair Value

42,343,343

29,366,063

Change in Fair Value

12,977,280


Total operating expense increased in all segments. Increased exploration activity, especially in Mongolia, resulted in higher exploration and personnel costs. Consulting expenses increased due to increased exploration activity at our projects in Mongoliaand Tajikistan, increased investor relations activities, and also due to negative expenses related to the re-measurement of equity-based awards to non-employees in 2011 (non-cash).

The increase in fair value of Petromanas (TSX-V: PMI) of USD 12,977,280 was due to the share price appreciation from CAD 0.155 at the beginning of the year to CAD 0.215at June 30, 2012.

Since June 30, 2012, we sold 100,000,000 PMI shares for gross proceeds of approximately USD 12.13 million. We intend to use these proceeds to fund our proposed acquisition of producing assets in Central Asia and for working capital.

Net income for the six-month period ended June 30, 2012 was USD 8,499,505 as compared to net loss of USD (18,673,829) for the same period in 2011.

Liquidity and Capital Resources (in USD)

6/30/2012

12/31/2011

Cash and Cash Equivalents

3,208,621

13,629,370

31.7% Shareholding in Petromanas

42,343,343

29,366,063

Eligible for Resale

30,046,016

16,678,651

Total Shareholders' Equity

50,735,676

41,621,337

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