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Synthesis Energy Systems Initiates Engineering Study Using its Coal Gasification Technology

     Synthesis Energy Systems Initiates Engineering Study Using its Coal
                           Gasification Technology

PR Newswire

HOUSTON, Dec. 21, 2012

HOUSTON, Dec. 21, 2012 /PRNewswire/ --Synthesis Energy Systems, Inc. (NASDAQ:
SYMX) announced today that it has entered into an agreement with an
undisclosed leading global technology provider to define a product that
integrates the SES gasification technology with the provider's globally
deployed process. The integration of SES technology with this process would
allow the provider to use low cost, low quality coal as a feedstock in an
environmentally favorable way.

This effort could lead to a joint venture business that would be a first of
its kind in this industry. SES has targeted this industry as a key growth
platform for its gasification technology.

The agreement calls for SES to lead an engineering study that will first
define the optimal integration of these two advanced technologies, leading to
improved efficiency, cost effectiveness, and an ability to utilize low quality
coal as a feedstock. This will be followed by the completion of a basic
engineering package and budgetary cost estimate for the integrated plant.
These cost and performance estimates for the optimized, integrated product
design will be the basis for confirming its attractiveness in target markets
and regions, especially growing economies with indigenous low quality coal and
high natural gas prices.

SES will be assisted in this effort by Fluor Enterprises, a leading global
engineering, procurement, maintenance and construction company.

"Working with strategically important industrial enterprises to integrate
complementary technologies is a key component of our vertical growth strategy
that will include our supply of technology, equipment and services," stated
Robert Rigdon, president and CEO. "We will utilize our in-house gasification
expertise, intellectual property, and our unique operations and maintenance
experience to support the study, which we hope will form the basis of a joint
venture business that will transform this growing industry."

Due to the confidentiality agreements in place, SES is not able to divulge
further details regarding the agreement. The study is expected to last eight
months. Following its successful completion, SES will advance the next steps
with this important potential partner.

About Synthesis Energy Systems, Inc.

SES provides technology, equipment and engineering services for the conversion
of low rank, low cost coal and biomass feedstocks into energy and chemical
products. Its strategy is to create value through providing technology and
equipment in regions where low rank coals and biomass feedstocks can be
profitably converted into high value products through its proprietary U-GAS®
fluidized bed gasification technology, which SES licenses from the Gas
Technology Institute. U-GAS® gasifies coal cost effectively, without many of
the harmful emissions normally associated with coal combustion plants. The
primary advantages of U-GAS® relative to other gasification technologies are
(a) greater fuel flexibility provided by the ability of SES to use all ranks
of coal (including low rank, high ash and high moisture coals, which are
significantly cheaper than higher grade coals), many coal waste products and
biomass feed stocks; and (b) the ability of SES to operate efficiently on a
smaller scale, which enables the construction of plants more quickly, at a
lower capital cost, and, in many cases, in closer proximity to coal sources.
SES currently has offices in Houston, Texas, and Shanghai, China. For more
information on SES and SRS, please visit www.synthesisenergy.com or call (713)
579-0600.

SES Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical fact are forward-looking statements. Forward-looking
statements are subject to certain risks, trends and uncertainties that could
cause actual results to differ materially from those projected. Among those
risks, trends and uncertainties are the early stage of development of SES, its
estimate of the sufficiency of existing capital sources, its ability to
successfully develop its licensing business, its ability to raise additional
capital to fund cash requirements for future investments and operations
including its China platform initiative, its ability to reduce operating
costs, the limited history and viability of its technology, commodity prices
and the availability and terms of financing opportunities, its results of
operations in foreign countries, its ability to diversify, its ability to
complete the restructuring of the ZZ Joint Venture, its ability to obtain the
necessary approvals and permits for its future projects, the estimated
timetables for achieving mechanical completion and commencing commercial
operations for the Yima project as well as the ability of the Yima project to
produce revenues and earnings, the sufficiency of internal controls and
procedures and the ability of SES to grow its business and generate revenues
and earnings as a result of its proposed China and India platform initiatives
and its relationship with Crystal Vision Energy, as well as its joint venture
with Midas Resource Partners. Although SES believes that in making such
forward-looking statements its expectations are based upon reasonable
assumptions, such statements may be influenced by factors that could cause
actual outcomes and results to be materially different from those projected.
SES cannot assure you that the assumptions upon which these statements are
based will prove to have been correct.

Important Notice from SES

In connection with the proposed ZJX/China Energy transaction, SES has filed a
preliminary proxy statement, and intends to file a definitive proxy statement,
with the SEC and intends to mail the definitive proxy statement to the
stockholders of SES. SES and its directors and officers may be deemed to be
participants in the solicitation of proxies from the stockholders of SES in
connection with the transaction. Information about the transaction is set
forth in the preliminary proxy statement filed, and will be set forth in the
definitive proxy statement to be filed by SES with the SEC.

You may obtain the preliminary statement and, when available, the definitive
proxy statement, for free by visiting EDGAR on the SEC website at www.sec.gov.
Investors should read the definitive proxy statement carefully before making
any voting or investment decision because that document will contain important
information.

SOURCE Synthesis Energy Systems, Inc.

Website: http://www.synthesisenergy.com
Contact: Synthesis Energy Systems, Inc., Kevin Kelly, Chief Accounting
Officer, +1-713-579-0600, Kevin.Kelly@synthesisenergy.com; or MBS Value
Partners, LLC (Investors), Matthew D. Haines, Managing Director,
+1-212-710-9686, Matt.Haines@mbsvalue.com; or Feintuch Communications (Media),
Emily Simmons, Account Executive, +1-212-808-4903, SES@feintuchpr.com
 
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