FOR IMMEDIATE RELEASE                                                                                                   7 April 2017

CAIRN ENERGY PLC ("Cairn" or "the Company")

Interests of Directors / Persons Discharging Managerial Responsibility ("PDMRs")

in the Company's Shares

1.         Exercise of balance of 2013 Awards under the Company's Long Term Incentive Plan 2009 ("the 2009 LTIP")

Cairn announces that, on 6 April 2017, it received notices of exercise from the Executive Director and PDMRs detailed below in relation to Awards over ordinary shares of ²³¹/₁₆₉ pence each ("Shares") that had originally been granted under the rules of the 2009 LTIP on 20 March 2013.

These exercises relate to the proportions of the above Awards that originally vested on 22 March 2016 but which were subject to a further holding period of one year.

A summary of the above events / transactions is as follows:

The above Awards (which are in the form of "nil-cost" options) vested, in part, on 22 March 2016 following the expiry of the applicable three-year performance period.  The extent of such vesting reflected the fact that the Company's total shareholder return over that period was above the median ranking in the specified comparator group. 

Under the 2009 LTIP's rules, 50% of these vested Awards were immediately exercisable, with the balance becoming exercisable after a further holding period of one year (subject to any dealing restrictions in place at that time). The exercise of the immediately exercisable portion of these Awards by the above individuals was previously announced by the Company on 23 March 2016.

2.         Vesting and Exercise of 2014 Awards under the Company's 2009 LTIP

Cairn also announces that, on 6 April 2017, it received notices of exercise from the Executive Directors and PDMRs detailed below in relation to Awards over Shares that had originally been granted under the rules of the 2009 LTIP on 19 March 2014.

The above Awards (which are in the form of "nil-cost" options) vested, in part, on 6 April 2017 following the expiry of the applicable three-year performance period.  The extent of such vesting reflected the fact that the Company's total shareholder return over that period was above the median ranking in the specified comparator group. 

Under the 2009 LTIP's rules, 50% of these vested Awards became immediately exercisable on such vesting, with the balance normally becoming exercisable after a further holding period of one year.

A summary of the above events / transactions is as follows:

* Ms. Holstad has chosen not to exercise her Award at this time.

3.         Subsequent sale of Shares

Following the exercises summarised in sections 1 and 2 above, a total of 888,042 Shares that had been acquired by the individuals below were sold on their behalf at a price of £2.0122 per Share on 6 April 2017, substantially in order to fund the tax and national insurance liabilities arising on exercise.

Details of these sales are as follows:

4.         Summary of current holdings of Executive Directors / PDMRs

Following the above exercises and sales, the Executive Directors' and PDMRs' beneficial interests in the Shares of the Company are as follows:

* This column includes all outstanding Awards that have vested following the expiry of the applicable performance period, regardless of whether or not they are currently capable of being exercised under the rules of the 2009 LTIP.

**The Awards included within this column for other individuals were originally made prior to the commencement of employment of Richard Ember and Miles Warner.

The following notifications are intended to satisfy the Company's obligations under Article 19(3) of EU Regulation No 596/2014 (the Market Abuse Regulation).