Next Fuel, Inc. Signs Agreement To Conduct Coal-to-Gas Operations In India

Next Fuel, Inc. (NXFI), which develops and commercializes "clean" energy and related environmental technologies, announced today it has signed an agreement to conduct a pilot-scale project for enhanced production of coalbed methane (CBM) for Visat Oil-tech Private Ltd. (Visat).

Under the agreement, Next Fuel will conduct a pilot project at Visat's site in Gujarat, India to produce CBM (natural gas) using the Company's proprietary biogenic coal-to-gas (CTG) technology.  Visat will conduct the testing in an area where it has completed CBM wells but has not documented any methane production. Upon achieving certain goals, Next Fuel and Visat have agreed to discuss a long-term partnership to expand the commercialization of the CTG technology throughout India.

"Today's announcement marks another major milestone for Next Fuel," said Dr. Song Jin, President and CTO of Next Fuel. "India is one of the few countries with abundant deposits of coal that can't be mined due to technical and economic limitations.  Our CTG technology offers a unique opportunity for coal resource owners in India and the region to produce natural gas from those reserves. Based on recently completed laboratory tests utilizing coal samples provided by Visat, we believe that we will be successful in producing fresh natural gas at the site."

"We are pleased to secure this opportunity in a country that is actively striving to maximize its natural resource and energy capabilities," said Robert Craig, CEO of Next Fuel. "We are particularly excited to work with a company like Visat that has extensive experience in CBM operations. With India's vast coal reserves, we believe this project offers an excellent platform that will dramatically increase Next Fuel's visibility in India."

Next Fuel's patent-pending CTG technology converts low-grade coal 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, production units 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