Exhibit 99.1

NXT ANNOUNCES GRANTING OF

INCENTIVE STOCK OPTIONS

CALGARY, ALBERTA, December 28, 2012 - NXT Energy Solutions Inc. (“NXT” or the “Company”) (TSX-V:SFD; OTC:NSFDF) advises that it has granted a total of 90,000 incentive stock options (“options”) to members of its Board of Directors.

These options are granted in accordance with the terms of NXT’s Stock Option Plan, and shall have an exercise price of $0.76 per share, a five year term to expiry on December 24, 2017, and entitlement to exercise the options shall vest one third at the end of each year over a three year period from the date of grant.  NXT will also pay an aggregate total of $60,000 in directors’ fees for the 2012 fiscal year, and will pay its corporate secretary on a per meeting basis and an hourly rate for legal consulting services.

NXT is a Calgary based company whose proprietary airborne Stress Field Detection ("SFD®") survey system provides a survey method that can be used both onshore and offshore to remotely identify areas with exploration potential for traps and reservoirs.  The SFD® survey system enables our clients to focus their hydrocarbon exploration decisions concerning land commitments, data acquisition expenditures and prospect prioritization on areas with the greatest potential.  SFD® is environmentally friendly and unaffected by ground security issues or difficult terrain, and is the registered trademark of NXT Energy Solutions Inc.  NXT provides its clients with an effective and reliable method to reduce time, costs, and risks related to exploration.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.

Forward-Looking Statements

This news release may include forward-looking statements. When used in this document, words such as “intends”, “plans”, “anticipates”, “expects” and “scheduled”, are forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized.  Any number of factors can cause actual results to differ materially from those in the forward-looking statements.  Risk factors facing NXT are described in its most recent MD&A for the year ended December 31, 2011 which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com.  Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For further information, please contact:

Investor Relations

kin communications inc.

(604) 684-6730 / 1-866-684-6730

sfd@kincommunications.com

www.kincommunications.com

Greg Leavens

NXT Energy Solutions Inc.

V-P Finance & CFO

(403) 206-0805

gleavens@nxtenergy.com

www.nxtenergy.com

George Liszicasz

NXT Energy Solutions Inc.

President & CEO

(403) 206-0800

george@nxtenergy.com

www.nxtenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTC Exchange accept responsibility for the adequacy or accuracy of this release.