Nuenergy Gas : Muara Enim II PSC Exploration Period

ABN 50 009 126 238

ASX ANNOUNCEMENT

3 April 2017

Muara Enim II Production Sharing Contract Exploration Period

NuEnergy Gas Limited (ASX:NGY) ("NGY" or "the Company") wish to update on the status of the Exploration Period for the Muara Enim II Production Sharing Contract ("PSC") for a period of six years commencing from 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 current drilling campaign in the PSC from Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (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 expects to complete the drilling campaign before the end of May 2017.

Drilling Rig at Well Site ME2-003

ABN 50 009 126 238

The Muara Enim II PSC located among NGY South Sumatra PSC

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