Synthesis Energy Systems and Zhangjiagang Chemical Machinery Company Join Forces to Become the China Market Leader in Clean Coal

Synthesis Energy Systems and Zhangjiagang Chemical Machinery Company Join
Forces to Become the China Market Leader in Clean Coal Gasification

ZCM-SES Joint Venture to Deliver Comprehensive Equipment, Engineering and
Gasification Technology Solutions for Multibillion-dollar Coal-Chemicals and
Energy Industries in China and Key Asian Markets

HOUSTON, Feb. 14, 2014 (GLOBE NEWSWIRE) -- Synthesis Energy Systems, Inc.
(SES) (Nasdaq:SYMX) today announced that its wholly owned subsidiary, SES Asia
Technologies, Ltd., has entered into definitive agreements to form a joint
venture: ZCM-SES Sino-U.S. Clean Energy Technologies Limited ("ZCM-SES" or the
"JV"), with Zhangjiagang Chemical Machinery Co., Ltd. ("ZCM") (Shenzhen
listing code: 002564). The JV combines SES' advanced proprietary gasification
technology with the market reach of one of China's leading coal-chemical
equipment manufacturers and is expected to provide a uniquely competitive and
high growth platform for both SES and ZCM in China and other major Asian
markets.

ZCM has agreed to contribute RMB 100 million (approximately US$16.5 million)
to the JV to fund its working capital needs for a 65% ownership interest. ZCM
will have exclusive manufacturing rights for all ZCM-SES customer projects in
China as well as the joint venture's additional markets of Indonesia,
Malaysia, Mongolia, the Philippines, and Vietnam. SES is contributing
exclusive usage of its advanced, proprietary gasification technology in these
Asian markets for a 35% interest in ZCM-SES. SES' two operating plants, Yima
and Zaozhuang (ZZ), both remain under SES' ownership unrelated to this joint
venture. SES believes its China business can deliver positive operating cash
flows from further improving revenues and lower overall expenses once the
ZCM-SES JV begins operation combined with results from its ZZ and Yima plants.
The ZCM-SES JV is subject to customary Chinese government approvals which are
expected to be completed within 60-90 days.

"This is a pivotal point in our company's history, and key to our global
growth strategy, as we build upon the foundation of our two commercially
operating plants. ZCM-SES will offer superior competitive advantages in the
market by combining our proven technology with ZCM's manufacturing, marketing
and implementation capabilities," said Robert Rigdon, SES President and CEO.
"Partnering with a strong, aggressive and respected Chinese company will
greatly enhance our technology's ability to penetrate the China market. ZCM is
a leader in China for good reason, and is one of its largest suppliers to the
coal-chemical industry and is expanding as an equipment supplier into global
markets. Because of ZCM's position in the market, and our technology, the
formation of this joint venture greatly expands SES' potential market
penetration in China, thereby affording the opportunity for much more value
creation for our shareholders than we could achieve on our own. In addition to
expanding our market reach, the business model of the JV will extend beyond
customary licensing and proprietary equipment sales to include an expanded
range of equipment, engineering and services, leading to turnkey
installations. This is a well-timed and potentially game-changing approach to
the large Chinese market which expands our opportunities for retrofitting
existing plants and constructing new facilities. SES also intends to utilize
this JV to help bring cost-competitive projects to its global business
initiatives, including small-scale power and DRI steel. We cannot overstate
our excitement about the business potential and promise this partnership
brings."

"We are very pleased to be launching this joint venture with SES. SES' leading
technology is best suited for China's development priorities and, when
combined with ZCM's leadership in China's coal chemical industry, we will
create a new business that creates real value for all of the parties," said
ZCM's Chairman, Mr. Chen Yuzhong.

ZCM is a public company with more than 3,000 employees headquartered in
Zhangjiagang City, Jiangsu Province with a market capitalization of
approximately RMB 5 billion. ZCM is one of the country's largest and most
respected manufacturers of a wide variety of equipment for the coal-chemical
and general chemical industries. Last year sales are estimated at RMB 1.8
billion. ZCM's extensive customer base, experience, manufacturing and sales
capabilities, combined with SES' superior, cleaner coal gasification
technology, give ZCM-SES a significant leadership position from the outset.

The region's demand for economic, yet cleaner, technology and equipment
solutions for its expanding chemicals, power, fertilizers, natural gas, fuels
and DRI steel industries is expected to continue to rise, paralleling China's
ascent as a global industrial power. Approximately half of China and the Asian
region's indigenous coal supply is lower quality coal which is critical to
economically fueling chemical and energy needs for many years to come.
Previous technologies deployed in China are generally unable to process these
lower quality coals economically and cleanly whereas SES' proprietary advanced
gasification technology is capable of unlocking the value of these lower cost
and abundant low-quality coals and coal wastes by efficiently converting them
to syngas to produce high-value end products.

About Synthesis Energy Systems, Inc.

Synthesis Energy Systems (SES) is a Houston-based technology company focused
on bringing cleaner high-value energy to developing countries from low-grade
coal and biomass natural resources through its proprietary gasification
technology. The technology, which is licensed from the Gas Technology
Institute, enables greater fuel flexibility and efficient small-scale
operations close to fuel sources. Fuel sources include low-rank, low-cost high
ash, high moisture coals, which are significantly cheaper than higher grade
coals, many coal waste products, and biomass feedstocks. For more information,
please visit: www.synthesisenergy.com.

About Zhangjiagang Chemical Machinery Co., Ltd.

Zhangjiagang Chemical Machinery Co., Ltd. is the leading manufacturer of
pressure vessels in China and a leading equipment supplier to the coal and
chemical sectors. It has served China's petro-chemical, coal-chemical,
refinery, metallurgy, green energy, nuclear and offshore industries for more
than four decades. ZCM has more than 3,000 employees across its four
manufacturing plants: Linjiang and Chengyang Plants located in Zhangjiagang,
Jiangsu Province; Urumchi and Ili Plants located in the Sinkiang Autonomous
Area. It also owns and operates port facilities on the Yangtze River, 100km
west of Shanghai. ZCM has received certifications from the H.S.E (Health,
Safety, & Environment) and ASME (American Society of Mechanical Engineers).
Their clients include Shell, GEA, CB&I, Lurgi, Halder Topsoe, KBR, BP,
Mitsubishi, SINOPEC, CNPC, and CNOOC. ZCM is a publicly listed company, listed
on the Shenzhen Exchange since 2011 (Shenzhen listing code: 002564). For more
information, please visit: www.zcmchina.com

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 Synthesis Energy Systems; the ability of the ZZ joint venture to
effectively operate XE's methanol plant and produce methanol; the ability of
the Yima project to produce earnings and pay dividends; the ability of SES to
secure a partner for its China business initiative; the ability of SES to
develop its power business unit and marketing arrangement with GE and its
other business verticals, steel and renewables; the ability of SES to
successfully develop its licensing business; 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 ability to
obtain the necessary approvals and permits for future projects; its ability to
raise additional capital and its estimate of the sufficiency of existing
capital sources; the sufficiency of internal controls and procedures; and its
results of operations in foreign countries where it is developing projects,
such as India. Although Synthesis Energy Systems 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.
Synthesis Energy Systems cannot assure you that the assumptions upon which
these statements are based will prove to have been correct.

Contact:

MDC Group

Investor Relations:
David Castaneda
Arsen Mugurdumov
414.351.9758
IR@synthesisenergy.com

Media Relations:
Susan Roush
747.222.7012
PR@synthesisenergy.com

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