Synthesis Energy Systems to Focus on Maximizing Positive Financial Results in China Through Revised and Extended Agreement with

Synthesis Energy Systems to Focus on Maximizing Positive Financial Results in
   China Through Revised and Extended Agreement with Crystal Vision Energy

Scope of Collaboration to Include Existing and New China Assets, Capital
Raising Services, Potential Acquisitions for SES China and Management Services

PR Newswire

HOUSTON, Dec. 26, 2012

HOUSTON, Dec. 26, 2012 /PRNewswire/ --Synthesis Energy Systems, Inc. (NASDAQ:
SYMX) ("SES") today announced that it has entered into a revised services
agreement with Crystal Vision Energy Limited ("CVE") focused on growth of SES
China, the Company's China business platform, via capital raising, M&A, and
management services.

Under terms of the agreement, CVE will provide important executive leadership
and management services focused on delivering key objectives for SES China
over the next 12 months. These include the restructuring of the Zaozhuang
Joint Venture plant, or ZZ, to achieve profitable operations, the successful
ramp up of methanol sales from the Yima Joint Venture plant with the goal of
full commercial production during the first half of calendar 2013, and
delivering SES China platform level funding and financing required for
acquisition initiatives currently under development by SES China intended to
provide near term earnings. In addition, CVE has assigned an acting full time
Managing Director for SES China at its China headquarters in Shanghai with
significant experience in running infrastructure businesses in China and in
successfully executing and integrating mergers and acquisitions.

To effectively lead delivery of results from the key objectives and to develop
new strategic business opportunities in China, SES has established a senior
level executive steering committee for its SES China business led by Colin Tam
of CVE who reports to SES' CEO. As part of the services provided by CVE,
Stephen Chow, a representative of CVE, will act as the Managing Director of
SES China. Mr. Chow has a long and distinguished career in China with
executive experience from Mobil Oil and later with BP where he led BP's LPG
business in China. Mr. Chow also served as President of Titan Petrochemicals
Group, a Hong Kong listed petrochemical company providing oil supply, trading,
storage and downstream distribution services in the Asia-Pacific region. More
recently, Mr. Chow was the CEO of Huatong Energy Group, a division of AEI
China Gas, where together with Colin Tam he led the acquisition and
integration of three Chinese downstream gas conglomerates in Shanghai, Beijing
and Hubei to form Huatong Energy. 

"I am pleased to continue our collaboration with Colin Tam and his CVE team.
We are all committed to achieving the key objectives for ZZ, Yima and the
China acquisition activities currently underway, with a goal of delivering
important operating cash flows from our SES China business across 2013, as
intended," stated Robert Rigdon, president and CEO. "With assistance from CVE,
over the past six months SES China has strengthened its focus on business
operations and SES successfully completed the $15.5 million strategic equity
investment from Hongye (Inner Mongolia) and Shanghai Zhongmo (Shanghai). Our
strategic direction for SES China is to create a China centric operation that
will leverage our technology to participate in China's ever growing coal
resources, fuels, gas, fertilizers, chemicals and renewable resources
businesses with a long term goal of listing our SES China business in Hong
Kong or other regional exchanges."

Colin Tam, Executive Chairman of Crystal Vision Energy Ltd., stated, "I am
very pleased to see CVE and SES continue to work together to grow the SES
China business. With our Yima project very close to producing its first
methanol and with the planned ramp up to full capacity from this large
project, I believe the value of SES' technology applying to the low quality
coal in China is now ready to be fully realized."

Mr. Tam added, "Our initial work with potential partners and investors in SES
China is very encouraging and we believe 2013 will be an important year of
progress for SES in China. Together we intend to fund and complete near term
strategic M&A transactions for SES China with a goal to deliver near term
financial results." 

About Crystal Vision Energy Limited

Founded by Colin S. Tam and Samson Ng, CVE provides advisory, business
development and asset management services to foreign companies that are
interested in doing business in China or selected Asian countries. CVE, based
in Hong Kong and Beijing, also provides similar services to Chinese companies
and investors who are entering the international market. The CVE team brings
extensive experience, expertise and a proven track record in project
development, financing, operations and management of the government approvals
process in China.

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, its ability to effect the proposed ZJX/China Energy transaction
based on its ongoing discussions with ZJX and China Energy, its ability 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, +1-212-808-4904, SES@feintuchpr.com
 
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