Nuenergy Gas : Muara Enim II PSC Exploration Period - Update

ABN 50 009 126 238

ASX ANNOUNCEMENT

6 June 2017

Muara Enim II Production Sharing Contract Exploration Period - Update

NuEnergy Gas Limited (ASX:NGY) ("NGY" or "the Company") is pleased to provide an update on the status of the extension of the Exploration Period for the Muara Enim II Production Sharing Contract ("PSC") which was initially granted for a period of six years commencing 1 April 2011 to 31 March 2017.

With the expiry of the Exploration Period on 31 March 2017, NGY has received endorsement to continue with the drilling campaign in the PSC from Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi ("SKK Migas" or "The Indonesian Oil & Gas Regulator") beyond the expiry of the Exploration Period. The completion of the drilling campaign will enable NGY to make application for and to secure extension of the Exploration Period.

NGY has now completed the required work program and has submitted the work completion report to SKK Migas to finalise the process for the extension of the Exploration Period.

The Muara Enim II PSC located among NGY South Sumatra PSC

NuEnergy's PSCs in South Sumatra cover a total area of 2,280 km2 (after full relinquishment under the terms of the PSC) and are situated in the most prolific CBM basin in Indonesia with existing gas pipeline infrastructure nearby. NuEnergy has the potential to develop and operate a large scale CBM operation in South Sumatra with the Tanjung Enim PSC, Muara Enim PSC, Muara Enim II PSC and Muralim PSC located in close proximity to one another.

ABN 50 009 126 238

ABOUT NUENERGY GAS

NuEnergy is an emerging ASX listed gas and ancillary power generation development company with an immediate focus on establishing unconventional gas production in Indonesia.

NuEnergy has a strategy to acquire, explore, appraise and develop Coal Bed Methane ("CBM") acreage in this region. It is listed on the Australian Securities Exchange (ASX: NGY) with offices in Sydney (Australia) and Jakarta (Indonesia).

The Company's overall strategy is to explore and establish commercial resources/reserves over its

CBM projects, construct production facilities and commence production as soon as possible.

The Company is led by a team of experienced executives with a track record of successfully identifying and developing projects around the world. This team is complemented by the skills of our Indonesian partners to maximise the value of the company's coal bed methane opportunities.

Shareholder Enquiries NuEnergy Gas Limited Tel: [phone]

www.nuenergygas.com