Next Fuel, Inc. Signs Definitive Agreement To Field Test Coal To Gas Technology In Indonesia

Sheridan, WYO – May 17, 2011– Next Fuel, Inc. (OTCQB: NXFT) announced that it has signed a definitive agreement with PT Enviro Energy to field test Next Fuel’s Coal to Gas technology (“GTC Technology”) to determine the commercial viability of utilizing it to produce natural gas at PT Enviro Energy’s coal deposits in Indonesia. The Company believes that this is the first ever field test utilizing Coal to Gas technology in situ on virgin lignite coal seams.

Next Fuel expects to commence pilot testing this month.

Robert Craig, Chairman and CEO of Next Fuel, Inc., stated, “Next Fuel has been conducting extensive testing of our technology in the lab for many years, obtaining favorable results and strategically preparing for our first field test as a final step towards commercialization. To our knowledge, this is the first field test of its kind in the world on virgin coal deposits; and a positive outcome will be a dramatic advancement not only for Next Fuel, but the entire energy industry. PT Enviro Energy owns significant coal assets in Indonesia and realizes the potential for this technology to transform unusable lignite, or “dirty coal‟, into the cleanest fossil fuel with a growing market demand.”

Mr. Craig continued, “It is estimated that 20-40% of the world’s natural gas is derived from “coal bed methane‟. Our technology is unique in that we inject environmentally friendly amendments into the coal bed, circulate it utilizing our patent pending process, and accelerate the naturally occurring production of natural gas from the coal. Our implementation team is working very closely on site with PT Enviro Energy team, and we look forward to commencing the first pilot this month.”

About Next Fuel

Next Fuel has developed and is commercializing Coal to Gas technology. Next Fuel‟s technology accelerates the creation of natural gas from coal, lignite and oil shale, thereby enabling owners of low grade coal fields the opportunity to monetize their asset by efficiently producing natural gas, and owners of higher grade coal beds the chance to enhance and resume commercial scale natural gas production from declining and/or depleted coal bed natural gas wells.

Forward-Looking Statements

This announcement contains forward-looking statements, including statements regarding future business to be conducted by the Company and future capital to be raised 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, results of the field tests and receptiveness of the market to the Company’s technology and services and other factors discussed in our filings with the Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements.

Contact Details:

Investor Relations Contact
John G. Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Tel: 1.203.972.9200
E-mail: jnesbett@institutionalms.com

Company Contact
Robin Kindle
Tel: 307.674.2145