Synthesis Energy Systems' Yima Joint Venture Plant Advances Toward Full-scale Operation and Methanol Production

Synthesis Energy Systems' Yima Joint Venture Plant Advances Toward Full-scale
                      Operation and Methanol Production

Yima Plant Achieves First Simultaneous Gasification System Operation and
Increased Syngas Production

PR Newswire

HOUSTON, Feb. 5, 2013

HOUSTON, Feb. 5, 2013 /PRNewswire/ -- Synthesis Energy Systems, Inc. (Nasdaq:
SYMX) ("SES") today announced the achievement of important steps toward
finalizing the commissioning of the remaining equipment systems at the Yima
Joint Venture project in Henan Province, China. As previously reported, the
Yima JV plant contains three SES gasification systems installed, and the first
gasification system in operation was used to produce the initial methanol from
the plant in December.

The latest accomplishments include operating a SES gasification system for an
extended run, operating a second SES gasification system for the first time,
and operating the two gasification systems simultaneously. Additionally,
during 23 days of operation, the SES gasification system was operated at
higher pressures, achieving 80 percent of design pressure and with the
production of syngas increased to 60 percent of design capacity. During this
operating period, raw methanol product was generated at the plant. The Yima JV
continues to complete all of the remaining required commissioning steps and
increasing the production of methanol as planned for the plant to become fully

"The Yima JV plant is progressing as expected. We are pleased to see the plant
operating at higher pressures and throughput, and to see the first
simultaneous operation of two of the three gasification systems, since our JV
project is designed to produce 300,000 tonnes per year of methanol from two
operating gasifiers. This project is an important validation of our technology
design and scale-up capability. Successful operating achievements such as
these are moving the Yima JV much closer to full scale, steady-state operation
and methanol production, which is expected to be between now and early
summer," said Robert Rigdon, president and CEO of SES.

Mr. Rigdon continued, "Our technology is unique with its low cost feedstock
capability, lower capital and operating cost, lower water usage and cleaner,
more efficient operation. We believe that the continued successes we are
achieving at Yima could be a catalyst for some of our prospective customers to
move forward with their projects based on our technology."

History of Yima Joint Venture Project

In August 2009, SES and Yima entered into amended joint venture contracts for
the gasification, methanol/methanol protein production and utility island
components of the plant, collectively referred to as the Yima Joint Ventures.
Government approvals were received and detailed design engineering and
construction of the plant began in 2009. SES has a 25 percent interest in the
Yima Joint Venture and Yima Coal Industry (Group) Co., Ltd. has a 75 percent

The project is phase one of the Maozhuang Industrial Park - a planned US$4
billion industrial park in Henan Province, China. This phase one project is a
US$250 million integrated coal-to-methanol plant, with facilities to develop
production of methanol protein. When phase one is completed, the plant is
expected to produce a minimum of 300,000 tonnes of refined methanol annually.

Two additional phases of coal gasification projects are planned to start at
this location upon successful completion of the phase one plant. Phase two is
expected to add additional capacity of 300,000 tonnes per annum of refined
methanol or methanol equivalent products, and phase three is expected to add
additional capacity of 600,000 tonnes per annum of refined methanol or
methanol equivalent products. These three phases together make up
approximately 50 percent of the planned investment at the Maozhuang Industrial

Photographs and an artist's rendering of the Yima Joint Venture Project in
China are available upon request or by clicking here.

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, please visit or call (713)

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

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
Investors should read the definitive proxy statement carefully before making
any voting or investment decision because that document will contain important

SOURCE Synthesis Energy Systems, Inc.

Contact: Kevin Kelly, Chief Accounting Officer, Synthesis Energy Systems,
Inc., +1-713-579-0600,; Matthew D. Haines,
Managing Director, MBS Value Partners, LLC (Investors), +1-212-710-9686,; Richard Anderson, Senior Managing Director, Feintuch
Communications (Media), +1-718-986-1596,
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