[Translation]
October 12, 2004
To whom it may concern:
INPEX CORPORATION
Kunihiko Matsuo
Representative Director and President(Code Number: 1604)
Inquiries to: Yutaka Inoue
Director, Public Affairs Department(Tel: 03-5448-1201)

Notification of Issue of the Special Class Share
We hereby notify you that the Meeting of the Board of Directors of the Company heldon October 12, 2004 passed a resolution to issue a Special Class Share to be subscribedfor by Japan National Oil Corporation (JNOC). Details of issuance of the Special
Class Share and a description of the Special Class Share are as follows:

1. Reason for issuing the Special Class ShareAs proposed in the “Policies regarding the Disposal of Development-Related Assets
Held by Japan National Oil Corporation (JNOC)” (the “Report”) compiled by theAdvisory Committee on Natural Resources and Energy in March 2003, the Company is
expected to comprise part of the core enterprise and to be involved as a national flag
company in effectively achieving a stable supply of energy to Japan. From thisperspective and based on the Report, the Special Class Share will be issued as a highly
transparent measure with the minimum required veto rights, so as to not unreasonably
impede the efficiency and flexibility of management of the core enterprise, to eliminate
the possibility of the core enterprise being subject to short-term measures for collectionof funds or its management being controlled by foreign capital.
As the Company believes that, based on the proposals set out in the Report, the Special
Class Share will be effective, even for the Company, in preventing risks such as hostile
takeovers, and as it expects positive results in terms of negotiations and standing outsideof Japan because it will clearly have the position of a national flag company, theCompany has agreed with JNOC on the issuance of the Special Class Share, which wasa condition to the Company being listed, and, based on this agreement, has decided toissue the Special Class Share.

This document is a press release for public information only. It has not been prepared for the purpose of soliciting investment inshares of INPEX Corporation (the “Company”), nor does it constitute an offer of any securities for sale in Japan. If you intend toinvest in shares of the Company, you are required to read the Company’s Japanese prospectus (including any amendments to it) andto make your own decision, at your responsibility, on whether to invest or not. This is not an offer of securities for sales in theUnited States. Securities may not be offered or sold in the United States unless they are registered or exempt from registration.
Any public offering of securities in the United States will be made by means of a prospectus that may be obtained from theCompany or the selling shareholder and will contain detailed information about the Company and its management, as well as
financial statements of the Company. No public offering of securities will be made in the United States in connection with theabove-mentioned transactions.

2. Details of Issuance of the Special Class Share(1) Class of Share
Special Class Share of the Company(2) Number of shares to be issued
1 share(3) Issue price
The issue price per share shall be
determined on November 8, 2004
(Monday), shall be at least one (1) yen,and shall be the same price as the offer
price of the offering of the Company’scommon stock to be listed on the Tokyo
Stock Exchange.
(4) Issuing Method
The Special Class Share will be allotted
to JNOC by way of a third-partyallotment.
(5) Issue DateNovember 17, 2004 (Wednesday)
The Special Class Share is not scheduled to be listed.
3. Description of the Special Class Share(1) Matters to be resolved at meetings of the Special Class Shareholder
The Articles of Incorporation of the Company provides that decisions on thefollowing material matters concerning the management of the Company requirea resolution of a meeting of the Special Class Shareholder in addition to aresolution of a meeting of common shareholders of the Company or a meeting ofthe Board of Directors.
(i) Election or removal of Directors
A resolution of a meeting of the Special Class Shareholder is required forthe election or removal of a Director of the Company if, at the time of aresolution of a meeting of the common shareholders of the Company for theelection or removal of such Director, 20% or more of the voting rights ofsuch shareholders of common shares is held by a single shareholder otherthan the Government of Japan, JNOC or an independent administrative bodythat is fully funded by the Government of Japan (“Public Entity”) or jointly
held by such single shareholder and a “Joint Shareholder” as defined in theArticles of Incorporation of the Company (such independent shareholderand Joint Shareholder shall be referred to as a “Non-Public Entity”)(provided, however, that, in accordance with (iv) below, this does not apply
to any election or removal of a Director stipulated in a contract concerning amerger, share exchange or share transfer set out in (iv) below).
The Articles of Incorporation of the Company contains provisions that
stipulate whether, in a given instance, a Non-Public Entity is deemed to holdor not hold 20% or more of the voting rights of the shareholders of commonshares of the Company.
This document is a press release for public information only. It has not been prepared for the purpose of soliciting investment inshares of INPEX Corporation (the “Company”), nor does it constitute an offer of any securities for sale in Japan. If you intend toinvest in shares of the Company, you are required to read the Company’s Japanese prospectus (including any amendments to it) andto make your own decision, at your responsibility, on whether to invest or not. This is not an offer of securities for sales in theUnited States. Securities may not be offered or sold in the United States unless they are registered or exempt from registration.
Any public offering of securities in the United States will be made by means of a prospectus that may be obtained from theCompany or the selling shareholder and will contain detailed information about the Company and its management, as well as
financial statements of the Company. No public offering of securities will be made in the United States in connection with theabove-mentioned transactions.

(ii) Disposition of material assets
A resolution of a meeting of the Special Class Shareholder is required forthe disposition of any material assets of the Company or the Company’s
subsidiaries (“disposition of material assets” means any disposition whose
consideration is 20% or more of the total assets set out in the most recent
audited consolidated financial statements of the Company or where a sale ofsuch assets is 20% or more of the total consolidated sales set out in the mostrecent consolidated financial statements of the Company).
(iii) Amendments to the Articles of Incorporation
A resolution of a meeting of the Special Class Shareholder is required forany amendment to the Articles of Incorporation concerning (a) theobjectives of the Company or (b) granting voting rights to any shares otherthan the common shares of the Company (except for the voting rights atmeetings of the Special Class Shareholder already granted to the SpecialClass Share).
(iv) Integration
A resolution of a meeting of the Special Class Shareholder is required for(a) any merger where the Company becomes the dissolved company, or anymerger where the Company becomes the surviving company and 20% ormore of the voting rights of all the shareholders of common shares of theCompany are held by a Non-Public Entity at the time such merger iscomplete, (b) any share exchange where the Company becomes awholly-owned subsidiary, or any share exchange where the Company
becomes a parent company owning 100% of the shares of and 20% or moreof the voting rights of all the shareholders of common shares of theCompany are held by a Non-Public Entity at the time such share exchange iscomplete, or (c) any share transfer where special class shares of the newholding company with the same rights as those held by the Special Class
Shareholder of the Company under the Articles of Incorporation of theCompany are not granted to the Special Class Shareholder of the Company,or any share transfer approved and resolved by a meeting of the commonshareholders of the Company where special class shares of the new holding
company with the same rights as those held by the Special Class
Shareholder of the Company under the Articles of Incorporation of theCompany are granted to the Special Class Shareholder of the Company but
20% or more of the voting rights of all the shareholders of common sharesof such new holding company are held by a Non-Public Entity at the timesuch share transfer is complete.
With respect to (a) through (c) above, the Articles of Incorporation of theCompany contains provisions that stipulate whether, in a given instance, aNon-Public Entity is deemed to hold or not hold 20% or more of the votingThis document is a press release for public information only. It has not been prepared for the purpose of soliciting investment inshares of INPEX Corporation (the “Company”), nor does it constitute an offer of any securities for sale in Japan. If you intend toinvest in shares of the Company, you are required to read the Company’s Japanese prospectus (including any amendments to it) andto make your own decision, at your responsibility, on whether to invest or not. This is not an offer of securities for sales in theUnited States. Securities may not be offered or sold in the United States unless they are registered or exempt from registration.
Any public offering of securities in the United States will be made by means of a prospectus that may be obtained from theCompany or the selling shareholder and will contain detailed information about the Company and its management, as well as
financial statements of the Company. No public offering of securities will be made in the United States in connection with theabove-mentioned transactions.

rights of all the shareholders of common shares of the Company or the newholding company.
(v) Capital Reduction
A resolution of a meeting of the Special Class Shareholder is required forany reduction of the Company’s capital in order to repay funds toshareholders of the Company.
(vi) Dissolution
A resolution of a meeting of the Special Class Shareholder is required for
dissolution of the Company by resolution of a meeting of the commonshareholders.
(2) Voting rights of meetings of common shareholders, dividends, distribution ofresidual assets, redemption
Unless otherwise provided by laws or ordinances, the Special Class Share does
not have any voting rights at meetings of common shareholders of the Company.
The Special Class Share will receive the same amount of dividends, interim
dividends and distributions of residual assets as common shares. The Special
Class Share will be redeemed by resolution of the Board of Directors of theCompany if (a) the Special Class Shareholder requests redemption, or (b) theSpecial Class Share is transferred to a party other than the Government of Japanor an independent administrative body that is fully funded by the Government ofJapan.
4. Guidelines regarding exercising voting rights at meetings of the Special Class
Shareholder by the Allottee
Guidelines have been established in (a) the Statement of Business Operations (thestatement which has been authorized by the Minister of Economy, Trade and Industry
pursuant to Article 20 of the Japan National Oil Corporation Law) of JNOC, which willsubscribe for the Special Class Share and (b) the “Criteria for Exercising Voting Rightsof the Special Class Share of INPEX” formulated with the approval of the Minister ofEconomy, Trade and Industry pursuant to the Statement of Business Operations, andthese guidelines stipulate that matters may be rejected at meeting of the Special Class
Shareholder in only certain cases, and that the prior approval of the Minister ofEconomy, Trade and Finance must be obtained if any action is to be taken at a meetingof the Special Class Shareholder.
5. Handling of the Special Class Share and Guidelines after dissolution of JNOC
JNOC, which will subscribe for the Special Class Share, is scheduled to be dissolved onor before July 25, 2005, after which the Special Class Share is scheduled to be assumed
by the Government of Japan or another Public Entity. JNOC has stipulated a policy,
with respect to the handling of the Guidelines if the Special Class Share is assumed by aPublic Entity, that the Special Class Share will be assumed under the same terms as
This document is a press release for public information only. It has not been prepared for the purpose of soliciting investment inshares of INPEX Corporation (the “Company”), nor does it constitute an offer of any securities for sale in Japan. If you intend toinvest in shares of the Company, you are required to read the Company’s Japanese prospectus (including any amendments to it) andto make your own decision, at your responsibility, on whether to invest or not. This is not an offer of securities for sales in theUnited States. Securities may not be offered or sold in the United States unless they are registered or exempt from registration.
Any public offering of securities in the United States will be made by means of a prospectus that may be obtained from theCompany or the selling shareholder and will contain detailed information about the Company and its management, as well as
financial statements of the Company. No public offering of securities will be made in the United States in connection with theabove-mentioned transactions.

those set out in the Guidelines of JNOC at the time of its dissolution, provided there is
no change in the energy policy of Japan. This policy has also been acknowledged bythe Agency for Natural Resources and Energy.
6. Description of the Allottee
as of September 30, 2004
Name of Scheduled Allottee
Japan National Oil Corporation
Number of shares to be allotted
1 sharePurchase price
To be determined on November 8, 2004 (Monday)
Details ofAddress
2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo
Allottee
Representative
Makoto Saito, Chairman
Law on which
Japan National Oil Corporation Law (Law No.99,
establishment was based
July 29, 1967)
Business Activities
Management and disposition of assets held by
JNOC
Relation- Invest- Number of shares
Noneship with ment of the Allottee
INPEX
held by INPEX
Number of shares 1,036,032.75 shares of common stock of INPEXof INPEX held by
the Allottee
Business Relationship
Acquisition of securities(April 1, 2003 to March31, 2004)
Personnel Relationship
NoneEndThis document is a press release for public information only. It has not been prepared for the purpose of soliciting investment inshares of INPEX Corporation (the “Company”), nor does it constitute an offer of any securities for sale in Japan. If you intend toinvest in shares of the Company, you are required to read the Company’s Japanese prospectus (including any amendments to it) andto make your own decision, at your responsibility, on whether to invest or not. This is not an offer of securities for sales in theUnited States. Securities may not be offered or sold in the United States unless they are registered or exempt from registration.
Any public offering of securities in the United States will be made by means of a prospectus that may be obtained from theCompany or the selling shareholder and will contain detailed information about the Company and its management, as well as
financial statements of the Company. No public offering of securities will be made in the United States in connection with theabove-mentioned transactions.