Synthesis Energy Systems, Inc.

Synthesis Energy Systems Inc. ("SES") enables its customers to advance gasification projects through com. scale feedstock testing at its com. scale coal to syngas facility ("ZZ Plant") in Zao Zhuang City, Shandong Province, China.These tests help customers affirm individual project economic viability and reduce technol. risk.Included in these test campaigns have been one and two-week long continuous operations at varying loads and on widely-varying feedstock such as Chinese Inner Mongolian lignite, Chinese sub-bituminous high ash (and high friable) coal, and Australian Queensland high ash sub-bituminous coal.Through these campaigns, SES has progressed one project into the detailed engineering and construction phase and one project into the feasibility study phase.SES believes that the ability to perform these com. scale campaigns without interruption of operation is unique to SES.The ZZ Plant, which sells clean syngas to a neighboring methanol facility, has been in operation since early 2008 on a design coal of high ash middlings (washery wastes) from ROM bituminous coal (30-40%wt ash).SES has made significant improvements to the design, operation, and efficiency of the U-GAS technol. and the ZZ Plant.Included in these is the Fines Management System ("FMS"), which has demonstrated overall carbon conversion of greater than 98%.The ZZ Plant consistently demonstrates fuel flexibility and greater than 98% availability, 98% carbon conversion, and 80% cold gas efficiency.