Next Fuel, Inc. announced that the company has entered into a license agreement with its the licensee, Future Fuel Ltd., in anticipation of the commercialization of biogenic coal-to-gas activities in the People's Republic of China (China) and the Republic of Mongolia (Mongolia). Next Fuel and its Licensee have successfully conducted a multi-well CTG pilot project in Inner Mongolia, China during the past several months. Next Fuel's patent-pending 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. The license agreement was entered into following completion of a pilot test on coal fields in Inner Mongolia, China, that showed positive results from use of the Company's CTG technology. Within six weeks after the field test began, all four wells included in the field test produced new biogenic methane gas at a measurable rate from a lignite deposit that had no prior gas production or known reserves. The licensee has a contractual commitment to develop at least fifty new Gas Generating Units (GGUs) in China during the first year of the Agreement, which would result in a minimum of $1,500,000 in license fees payable to the Company. Except for this commitment and a requirement to pay recurring annual license fees on gas-producing GGUs, the Licensee's only obligation in later years is to use reasonable efforts to commercialize the technology. The license has a one-year guaranteed term, which ends March 31, 2013. To extend the term of the license each year after that date, the Licensee must develop fifty (50) new GGUs (each encompassing an area of approximately 40,000 square meters) in China and twenty-five (25) new GGUs in Mongolia.