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Extended adjacency matrix of a graph with $n$ vertices is a real symmetricmarix of order $n\times n$ whose $(i,j)$-th entry is the average of the ratioof the degree of the vertex $i$ to that of the vertex $j$ and its reciprocalwhen $i,j$ are adjacent, and zero otherwise. Aggregate of absolute eigenvaluesof the extended adjacency matrix is termed as the extended energy.  In this paper, the concept of extended vertex energy is introduced and somebounds of extended vertex energy are obtained. From there, we obtain some newupper bounds of the extended energy of a graph. Next, we obtain twoinequalities which relate the extended energy with the ordinary graph energy.One of those inequalities resolves a conjecture which states that for everygraph, ordinary energy can never exceed the extended energy. Using therelationships of extended energy and ordinary energy, we obtain new bounds ofextended energy involving the order, size, largest and smallest degree of thegraph. We show that these new bounds are improvements of some existing bounds.Finally, some improved bounds of Nordhaus-Gaddum-type are also found.

New bounds of extended energy of a graph