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Proposed part sale of shareholding in Cairn India Limited to Vedanta Resources plc

21 September, 2010

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

A circular in connection with the proposed part sale of Cairn’s shareholding in Cairn India to Vedanta (the “Circular”) will be posted to Cairn’s shareholders today.

The Circular contains a notice convening a General Meeting of Cairn shareholders. The General Meeting will be held at 50 Lothian Road, Edinburgh EH3 9BY on 7th October 2010 at 2:00 pm. Shareholders may appoint a proxy by completing the form of proxy enclosed with the Circular. Alternatively, shareholders may register their proxy appointment electronically. The procedures and timings for the appointment of a proxy are set out in the notes to the notice of the General Meeting on pages 62 to 64 of the Circular.

The Circular will shortly be available for viewing on the investors section of Cairn’s website at www.cairnenergy.com.  A copy of the Circular will also be submitted to the National Storage Mechanism and will shortly be available for inspection at: www.Hemscott.com/nsm.

In addition Cairn is providing an operational update today on its offshore exploration drilling campaign on the Sigguk block, west Greenland where operations continue with an absolute focus on safety.

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