Third and Final Gasifier Operation Begins at Synthesis Energy Systems' Yima Joint Venture Plant

 Third and Final Gasifier Operation Begins at Synthesis Energy Systems' Yima
                             Joint Venture Plant

Commissioning Progress on Plan with Early Summer Target for Methanol

PR Newswire

HOUSTON, March 21, 2013

HOUSTON, March 21, 2013 /PRNewswire/ -- Synthesis Energy Systems, Inc.
(Nasdaq: SYMX) ("SES") has completed another important milestone leading
toward the final commissioning of its Yima Joint Venture project in Henan
Province, China – the beginning of operation of the third and final
gasification train.

The first gasification system was placed into operation and produced initial
methanol from the plant in December 2012. It was followed by the successful
simultaneous operation of two gasification trains in February 2013 and the
continuing production of raw methanol. The Yima JV continues to complete all
of the remaining required commissioning steps and is increasing the production
of methanol, as planned, in order for the plant to become fully operational at
commercial scale.

"The Yima JV plant is progressing as expected with the third gasifier now
beginning operations. The third gasification system is designed to allow the
plant to operate with high reliability in order to meet our annual production
of methanol," said Robert Rigdon, president and CEO of SES. "Our Yima JV plant
is designed to produce 300,000 tonnes of methanol per year from two operating
gasification systems. This joint venture is an important validation of our
technology and design and we expect it to provide meaningful cash flows for
the Company. The plant is moving to full scale, steady-state operation with
methanol production, which is expected around early summer."

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., (713) 579-0600,; or Matthew D. Haines
(Investors), Managing Director, MBS Value Partners, LLC, (212) 710-9686,; or Richard Anderson, Senior Managing Director,
Feintuch Communications (Media), (718) 986-1596,
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