Synthesis Energy Systems and China Energy Announce Extension of Agreement for $83.8 Million Equity Investment

Synthesis Energy Systems, Inc. SYMX announced today that it has agreed with Zhongjixuan Investment Management Company Ltd. ("ZJX") and China Energy Industry Holding Group Co., Limited to extend the closing period of their March 31, 2011 share purchase agreement through December 31, 2011. ZJX/China Energy recently notified SES of its intent to complete the investment into SES in partnership with Yima Coal Industry Group Co., Ltd. and requested the extension in order to allow China Energy and YIMA sufficient time to complete the required Chinese governmental approvals. Yima is a Chinese state-owned enterprise with operating revenue in 2010 of approximately US$3.0 billion. Yima has recently taken part of its coal business public on the Shanghai Stock Exchange via the listing of Da You Energy (600403:Shanghai), which is 85% owned by Yima. Da You has a market capitalization of approximately US$4.5 billion. SES is currently partnered with Yima on a coal chemical project in Henan Province, China, which is in the advanced stages of construction. This project is the first phase of a planned multi-project industrial park with total investment of approximately US$4.0 billion.