Next Fuel, Inc. Provides Update On Coal-to-Gas Projects

Next Fuel, Inc. (NXFI), which develops and commercializes "clean" energy and related environmental technologies, provided an update today on its Coal-to-Gas projects in Indonesia and China.

INDONESIA

Next Fuel and its Indonesian licensee have completed the drilling and initial nutrient injections at their commercial site in Sumatra.

"We are very encouraged by the progress we are making in both Indonesia and China," said Next Fuel CEO Robert Craig. "I recently returned from our project site in Indonesia, where 13 of our 16 wells displayed detectible natural gas after only four weeks of injections. These early results serve as a testament to the viability of our technology."

CHINA

Next Fuel and its Chinese licensee have completed drilling at the first gas generating units at a site in Inner Mongolia. Nutrient injections are expected to begin shortly. In addition, Next Fuel's licensee has started drilling four units at a second site in Inner Mongolia. Furthermore, the licensee has identified an additional site in Southern China, where the company expects to begin drilling in the next four weeks.

Next Fuel's patent-pending coal-to-gas ("CTG") technology converts low-grade coal (such as lignite) into clean-burning natural gas through the introduction of nutrients, via a low-pressure pumping system, to the wide range of microorganisms that naturally exist in coal deposits. The proprietary nutrients stimulate the microorganisms, which in turn consume certain carbon-containing compounds in the coal and "exhale" biogenic natural gas as a byproduct.

About Next Fuel, Inc.

Next Fuel, Inc. develops and commercializes innovative energy technologies, including unconventional natural gas production from lower-grade coal, lignite, oil shale and other carbonaceous deposits. The Company is currently in the process of commercializing its Coal-to-Gas (CTG) technology with strategic international partners.

Although the Company's CTG technology is the only product with near-term revenue potential, the Company has also acquired, or is developing, advanced technologies associated with (1) environmental challenges associated with the treatment of energy-related waste water, (2) processes for carbon dioxide conversion and carbon loop closure, and (3) biological fuel cells. In collaboration with leading research institutes, Next Fuel, Inc. is focused upon the identification, development and/or acquisition of a portfolio of growth opportunities with compelling market potential that are consistent with clean energy and environmental stewardship.

Forward-Looking Statements

This announcement contains forward-looking statements, including statements regarding the timing of future products, future contracts and future business to be conducted by the Company, all of which involve risks and uncertainties. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the ability of the Company and its collaborating partners to successfully develop and commercialize new technologies, the results of CTG field tests, receptiveness of the market to the Company's technologies and services, negotiations between the Company and its international partners, the ability of the Company's international partners to enter into and implement agreements with the owners of coal, lignite and other similar deposits and other factors discussed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements are based on information available to the Company as of the date of this news release, and the Company assumes no obligation to update such statements.

For additional information, please contact:

Rob Kindle
Next Fuel, Inc.
(307) 674-2145 
Email: rkindle@next-fuel.com

or

KCSA Strategic Communications
Phil Carlson / Brad Nelson 
Phone (212) 896-1233 / 1217 
Email: pcarlson@kcsa.com / bnelson@kcsa.com