Synthesis Energy Systems Announces Financing to Restart ZZ Joint Venture Plant in China

Synthesis Energy Systems Announces Financing to Restart ZZ Joint Venture Plant
                                   in China

PR Newswire

HOUSTON, Sept. 11, 2013

HOUSTON, Sept. 11, 2013 /PRNewswire/ -- Synthesis Energy Systems, Inc.
(NASDAQ: SYMX) ("SES") announced today that its ZZ Joint Venture has obtained
the bank financing required to restart the plant for the previously announced
cooperation agreement with Xuecheng Energy. The ZZ Joint Venture will expand
its operating scope into producing and selling methanol. The annual methanol
production capacity is expected to be approximately 90,000 metric tons per
year, which SES believes can generate approximately $30 million in annual
revenues from the ZZ Joint Venture starting in late 2013 assuming recent
average methanol prices in China.


"The ZZ Joint Venture has completed this important step to restart the plant
with this new bank loan of approximately $3.2 million," said Robert Rigdon,
president and CEO, SES. "We are moving forward aggressively with the necessary
retrofit and upgrades to both the ZZ plant and Xuecheng Energy's methanol unit
so that we can start our planned production and sale of methanol later this

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 development stage of the operations 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 and production
of methanol, its ability to obtain the necessary approvals and permits for
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 grow its business and
generate revenues and earnings as a result of its proposed China and India
platform initiatives, and its ability to develop its power business unit and
marketing arrangement with GE and its other business verticals, steel and
renewables. 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.

SOURCE Synthesis Energy Systems, Inc.

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