THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Transmeridian Exploration Incorporated (TMY)

4/28/2006 Proxy Information

During 2005, the Company, through one of its wholly-owned subsidiaries, entered into a purchase agreement with Kornerstone Investment Group, Ltd. (Kornerstone) to acquire the 10% carried working interest in the South Alibek Field previously granted by the Company to Kornerstone in 2000 in connection with the Company’s acquisition in 2000 of the South Alibek Field in Kazakhstan. For a part of 2005, Kornerstone was the beneficial owner of more than 5% of the Company’s outstanding Common Stock. Pursuant to the purchase agreement, the Company, through its wholly-owned subsidiary, acquired the 10% carried working interest in the South Alibek Field for a purchase price consisting of $15.25 million in cash and one million shares of the Company’s Common Stock. The purchase price, which was approved by the Company’s Board of Directors, was determined by executive management of the Company based on its evaluation of the then-fair market value of the carried working interest.

During 2005, the remaining $50,000 principal amount of, and related accrued interest of $25,919 with respect to, certain loans made to the Company by Mr. Olivier, entities under his control and two of our stockholders (neither of whom beneficially owns more than 5% of our outstanding Common Stock) in 2002 was repaid.