Synthesis Energy Systems Announces $5.0 Million Strategic Equity
Investment from Zuari Industries Limited of India
Collaboration Investigating Opportunities for SES U-GAS® Coal
Gasification Projects in India
June 10, 2011 Synthesis Energy Systems, Inc. (Nasdaq: SYMX) (SES), a global energy and
gasification technology company that provides products and solutions to the energy and chemicals
industries, announced today a $5.0 million strategic investment from Zuari Industries Limited
(Zuari) of India in exchange for approximately 2.2 million shares of SES common stock. Zuari is
one of Indias leading industrial companies in the fertilizer sector.
SES and Zuari have been investigating business development opportunities where SES
U-GAS® technology for coal gasification can be integrated into industrial projects in
India, including the potential for application of the U-GAS® technology in Zuaris own
industrial plants and potential plant expansions. SES and Zuari have also been working together to
use Zuaris wholly-owned engineering company, Simon India Limited (Simon), for technical services
related to SES projects in India.
Establishing this relationship with Zuari to help drive our opportunities in India is another
important validation of our technology and a further execution of our business strategy, stated
Robert Rigdon, President and CEO of SES. We and Zuari believe the U-GAS® gasification
technology of SES could have widespread applications across the Indian economy. India is among the
worlds fastest-growing economies and the countrys need for fertilizers for its agricultural
industry, other basic chemicals, clean energy products such as synthetic natural gas for
residential and industrial uses, transportation fuels, and clean electric power, is rapidly
increasing. We appreciate this recognition of our technologys potential for application in India.
Coal is an abundant natural resource that is becoming even more critical in helping India achieve
its ambitious growth objectives over the coming years. With potential shortfalls and price
increases for natural gas, higher oil prices due to unrest in the Middle East and fresh concerns
over the safety of nuclear energy, clean-coal technology is becoming even more attractive,
commented H.S Bawa, Vice Chairman of Zuari. We have worked with SES to assess the potential for
SES technology in India and are now convinced of the unique opportunity this technology presents.
We look forward to continuing to work with our colleagues at SES to drive project development and
accelerate adoption of SES leading gasification technology for the benefit of the people of
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, visit
www.synthesisenergy.com or call (713) 579-0600.
About Zuari Industries Limited
Zuari Industries Limited is the flagship company of one of Indias oldest and most respected
industrial houses, promoted by Dr. KK Birla recently re-branded as Adventz under the leadership
of Mr. Saroj Poddar, Group Chairman of Adventz Group. Advents Group includes Zuari Industries and
Texmaco, and as many as 21 group entities, straddling fertilizer, heavy industry, engineering
services (Simon India, Ltd), real estate and furniture retail. The Group is primarily focused in
India, but also operates internationally. As a major producer of fertilizers for India, it is also
the countrys largest importer of fertilizers in the private sector, and has joint ventures with
OCP of Morocco and ICL of Israel.
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, its
ability to reduce operating costs, the limited history and viability of its technology, the effect
of the current international financial crisis on its business, commodity prices and the
availability and terms of financing opportunities, its results of operations in foreign countries
and its ability to diversify, its ability to maintain production from its first plant in the ZZ
joint venture, its ability to complete the expansion of the ZZ project, its ability to obtain the
necessary approvals and permits for its Yima project and other future projects, the estimated
timetables for achieving mechanical completion and commencing commercial operations for the Yima
project, its ability to negotiate the terms of the conversion of the Yima project from methanol to
glycol, the sufficiency of internal controls and procedures and the ability of SES to grow its
business as a result of the ZJX and Zuari transactions. 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.
Synthesis Energy Systems, Inc.
||MBS Value Partners, LLC
||Matthew D. Haines
Chief Accounting Officer