Release: NuEnergy: Update regarding Indon CBM Ltd.

(23 September 2008)--Further to the previous announcements made by NuEnergy Capital Limited (NuEnergy or Company) regarding the Company?s acquisition of all of the issued capital of Indon CBM Limited (Indon CBM) (Acquisition), the Company provides the following update regarding the Acquisition.

Indon CBM, through its 95% owned Indonesian domestic entity PT Trisula CBM Energi (Trisula), is party to a Heads of Agreement with PT Pertamina EP, the Indonesian State owned oil and gas enterprise (Pertamina), in respect to the establishment of a consortium to evaluate and develop a coal bed methane (CBM) project in South Sumatra (HOA). The HOA made between the parties on 20 September 2007 provides for a term of 12 months from the date of execution. Indon CBM has negotiated an extension of the term of the HOA for a further period of 6 months and the documentation evidencing that extension has now been executed by the parties.

It is a term of the HOA that Trisula be required to satisfy Pertamina as to its financial and technical capabilities in CBM development. The documentation evidencing the extension of the HOA incorporates a re-statement of the capabilities which are required to be satisfied. Trisula is well advanced in the process of a final independent business review by PriceWaterhouseCoopers (Indonesia) on behalf of Pertamina to assess this capability condition.

Also as previously announced, NuEnergy is required to obtain shareholder approval for the Acquisition, to satisfy various regulatory and statutory requirements, including item 7 of section 611 of the Corporations Act 2001 (Cth) (Corporations Act) due to the relevant interest in NuEnergy to be acquired by the vendors of Indon CBM. The shareholder meeting materials for the purposes of the approval under item 7 of section 611 of the Corporations Act will include an independent expert?s report which will be accompanied by technical specialist reports regarding the assets of Indon CBM and NuEnergy. Due to delays experienced in connection with the Acquisition, dispatch of the shareholder meeting materials has been delayed. The Company now anticipates that the shareholder meeting materials will be despatched to shareholders in October 2008. (end of release)