Synthesis Energy Systems, Jiangsu Tianwo-SES Clean Energy Technologies, and Midrex Technologies Sign Exclusive Marketing

Synthesis Energy Systems, Jiangsu Tianwo-SES Clean Energy Technologies, and
Midrex Technologies Sign Exclusive Marketing Agreement for Clean Coal
Gasification-Based Direct Reduced Iron Facilities

Economic, Efficient and Eco-Friendly Joint Technologies Will Have Widespread
Application in Steel Industry

HOUSTON, May 28, 2014 (GLOBE NEWSWIRE) -- Synthesis Energy Systems, Inc. (SES)
(Nasdaq:SYMX) today announced that its wholly owned subsidiary, SES
Technologies, LLC, Shanghai-based Jiangsu Tianwo-SES Clean Energy Technologies
Ltd. (TSEC), and Midrex Technologies, Inc. (Midrex), a subsidiary of Kobe
Steel Limited (ADR-OTC:KBSTY), have entered into an exclusive agreement for
the joint marketing of coal gasification-based direct reduced iron (DRI)
facilities in China. These facilities will combine the premiere SES
Gasification Technology with the industry-leading MIDREX^® Direct Reduction
Process to create syngas from low quality coals in order to convert iron ore
into high-purity DRI.

Midrex and SES will work together to develop and implement the marketing and
commercialization strategy, with the intention of securing the product
offering's first customers, initially in China. The partners have engaged
TSEC, to aid in the marketing of these powerful gasification-based DRI
facilities in China. Additionally, TSEC will supply the gasification equipment
and licensing of the SES Gasification Technology to any of SES-Midrex DRI
projects in its region, which includes all of China, as well as Indonesia,
Malaysia, Mongolia, the Philippines and Vietnam.

SES and Midrex executed the agreement after conducting an early engineering
co-development effort of the joint technologies, which provided results
leading the partners to believe that this clean, efficient and economic
product will have widespread application even outside of China, especially in
regions with low quality, low cost coal, which comprise more than 50% of the
world's coal resources.

The new coal gasification-based DRI plants are intended to support China's
growth in an eco-friendly way as China moves away from high polluting and
inefficient blast furnaces to new, cleaner technologies for the fabrication of
iron product for steel manufacturing. China is the largest producer of steel
in the world, and currently has no DRI-based plants. The Chinese central
government is encouraging the replacement of outdated facilities that generate
higher emissions with lower efficiencies with new clean, efficient ironmaking
technology.

"The SES-Midrex partnership is good for both companies—and it's good for the
environment and will greatly benefit the marketplace. Midrex is our top choice
to partner with in this important market vertical, since Midrex technology is
not only cleaner but can also use lower quality inputs, just as our technology
can run on abundant, low quality coal. We share this double
economic-environmental advantage," said Robert Rigdon, SES president and CEO.
"It's a win-win for China and other growing industrial markets around the
world. They require steel to build cities and infrastructure and SES and
Midrex can help them do it cleanly and efficiently, using local lower cost
resources."

"New DRI production technologies such as MXCOL^® represent the future of
cleaner high quality ironmaking especially in areas such as China," said James
D. McClaskey, President and CEO of Midrex Technologies, Inc. "Jointly with
SES, we look forward to providing new technology that will meet evolving
environmental needs to make top-grade DRI products for regional steelmakers by
best utilizing local energy resources and raw materials."

About Synthesis Energy Systems, Inc.

Synthesis Energy Systems (SES) is a Houston-based technology company focused
on bringing clean high-value energy to developing countries from low-cost and
low-grade coal and biomass through its proprietary gasification technology
based upon U-Gas^®, licensed from the Gas Technology Institute. The SES
Gasification Technology enables greater fuel flexibility for both large-scale
and efficient small- to medium-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 Midrex Technologies, Inc.

Midrex Technologies, Inc., a wholly owned subsidiary of Kobe Steel, is an
international process engineering and technology company providing steelmakers
with commercially proven solutions for greater profitability and has been the
leading innovator and technology supplier for the direct reduction of iron ore
for more than 40 years. The company offers eco-friendly technologies for
ironmaking that provide high productivity, outstanding product quality, and
cost competitiveness. Midrex has built its foundation upon the MIDREX® Direct
Reduction Process that converts iron ore into high-purity direct reduced iron
(DRI) for use in steelmaking, ironmaking, and foundry applications. Each year,
MIDREX® Plants produce about 60 percent of the world's DRI. For more
information, visit: www.midrex.com.

About Jiangsu Tianwo-SES Clean Energy Technologies Ltd.

About Jiangsu Tianwo-SES Clean Energy Technologies Ltd. (TSEC) is a joint
venture between Synthesis Energy System's wholly owned subsidiary, SES Asia
Technologies, Ltd. and Zhangjiagang Chemical Machinery Co., Ltd. (ZCM)
(Shenzhen listing code: 002564). The joint venture was formed to bring clean
energy technologies and turnkey SES gasification systems to China and select
Asian markets, combining SES' advanced proprietary gasification technology
with the market reach of one of China's leading coal-chemical equipment
manufacturers. For more information on ZCM, 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 SES operating
assets; the ability of our ZZ joint venture to effectively operate XE's
methanol plant and produce methanol; the ability of our product with Yima to
produce earnings and pay dividends; our ability to develop and expand business
of the ZCM joint venture in the joint venture territory; our ability to
develop the SES power business unit and marketing arrangement with GE and its
other business verticals, steel and renewables; our ability to successfully
develop the SES licensing business; to reduce operating costs; our limited
history, and viability of our technology; commodity prices, and the
availability and terms of financing; our ability to obtain the necessary
approvals and permits for future products; our ability to raise additional
capital, if any, and our ability to estimate the sufficiency of existing
capital resources; the sufficiency of internal controls and procedures; and
our results of operations in countries outside of the U.S., where we are
continuing to pursue and develop products. Although SES believes that in
making such forward-looking statements our 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 by us. SES 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

Midrex Technologies, Inc.

General Press/Media Inquiries:
Christopher M. Ravenscroft
704.378.3380
cravenscroft@midrex.com

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