Synthesis Energy Systems, Inc.
SYNTHESIS ENERGY SYSTEMS INC (Form: 8-K, Received: 08/21/2017 17:02:01)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

Form 8-K

 

 

Current Report Pursuant to Section 13 or 15(d) of
the Securities Act of 1934

 

Date of Report (Date of earliest event reported): August 21, 2017

 

 

Synthesis Energy Systems, Inc.
(Exact name of registrant as specified in its charter)

 

Delaware 001-33522 20-2110031

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

Three Riverway, Suite 300

Houston, Texas

77056

(Zip Code)

(Address of principal executive offices)  

 

(713) 579-0600
(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[ ]       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ]       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ]       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14-2(b))

 

[ ]       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CRF 240.133-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [ ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

 

 

 

 

 

 

In accordance with General Instruction B.2. of Form 8-K, the information presented under Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

 

Item 7.01 Regulation FD Disclosure

 

On August 20, 2017, Synthesis Energy Systems, Inc. (the “Company”) issued a press release announcing the closing a coal resource acquisition by its affiliate, Australian Future Energy. A copy of the press release is furnished herewith as Exhibit 99.1.

 

In addition, the Company has prepared an updated investor presentation, a copy of which is furnished as Exhibit 99.2 to this Current Report on Form 8-K. A copy of the presentation is also available on the Company’s website as www.synthesisenergy.com.

 

Item 9.01 Financial Statements and Exhibits

 

  Exhibits  
     
  *99.1 Press release regarding Australia Future Energy.
     
  *99.2 Corporate presentation – August 2017.
     
    * Furnished herewith.

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  Synthesis Energy Systems, Inc.
   
Dated: August 21, 2017 /s/ DeLome Fair
  DeLome Fair
  President and Chief Executive Officer

 

 

 

 

 

 

Exhibit Index

 

  *99.1 Press release regarding Australia Future Energy.
     
  *99.2 Corporate presentation – August 2017.
     
    * Furnished herewith.

 

 

 

 

 

 

EXHIBIT 99.1

Synthesis Energy Systems, Inc. Announces Successful Closing of 270 Million Metric Ton Pentland Coal Resource Acquisition by its Affiliate, Australian Future Energy

HOUSTON, Aug. 21, 2017 (GLOBE NEWSWIRE) -- Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), a global leader in the clean and efficient production of low-cost synthesis gas for high value energy and chemical products, today announced that its Australian platform company, Australian Future Energy Pty Ltd (AFE), has successfully closed the acquisition of the 270MM metric ton (MT) JORC compliant thermal coal resource, near Pentland, Queensland. The acquisition was completed on August 18, 2017, through AFE’s wholly owned subsidiary, Great Northern Energy Pty Ltd (GNE). SES is a 40% owner of AFE.

This coal resource is AFE’s second successful foray into securing long-term coal supply for its projects, following the successful formation and spin-off of Batchfire Resources, which acquired the Queensland-based Callide Mine operations in 2016. AFE’s business plan is to secure access to low-cost coal, coal waste and biomass resources, required to produce the energy and chemical products for its clean energy projects under development.

SES Gasification Technology (SGT) affords AFE the capability to utilize low-cost, unmarketable coals generated in the coal mining process, together with biomass, to build projects that are both environmentally responsible and economically advantaged over utilizing expensive natural gas.

“Together with SES we intend to be an industry leader in delivering clean, low-cost energy.  The acquisition of the coal resource at Pentland is an important step in our comprehensive plan to develop, finance and construct economically attractive projects that uniquely meet the needs of Australia on all fronts, by providing a lower cost alternative to natural gas, creating numerous attractive job opportunities, and demonstrating leading environmental responsibility,” said AFE Executive Director, Edek Choros.

Mr. Choros further added, “AFE is currently in the process of filing for the Queensland government approval of a start-up mine for the Pentland resource. Within the next 24 months we intend to start export coal sales and later utilize coal waste, together with renewable biomass, for an SGT energy project in the Townsville area.”

SES President and CEO, Ms. DeLome Fair, commented: “AFE is pursuing its strategy of connecting important feedstock resources to its portfolio of project developments underway, which are intended to manufacture a variety of products, such as fertilizers, power, and fuel gas, in a very clean and low carbon manner, while simultaneously delivering positive financial performance. This includes a combination of undertakings to generate near-term earnings, alongside its large-scale clean energy project developments now underway. 

“We believe our 40% ownership in the AFE business will benefit from this approach, and we are actively supporting AFE with its developments, and preparing to support the significant expected SGT technology delivery work to come, related to AFE’s first project and the SGT license signed this past May,” added Ms. Fair.

For more information on AFE, please see the Australian Future Energy Overview presentation, at the SES Investor Center at: http://ir.synthesisenergy.com/index.cfm.

About Synthesis Energy Systems, Inc.

Synthesis Energy Systems (SES) is a Houston-based technology company focused on generating clean, high-value energy from low-cost and low-grade coal, biomass and municipal solid waste through its proprietary technology for conversion of these resources into a clean synthesis gas (syngas) and methane. SES’s proprietary technology enables the production of clean, low-cost power, industrial fuel gas, chemicals, fertilizers, transportation fuels, and substitute natural gas, replacing expensive natural gas-based energy. SES’s technology can also produce high-purity hydrogen for cleaner transportation fuels. SES 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, waste coals, biomass, and municipal solid waste feedstocks. SES: Growth With Blue Skies. For more information, please visit: www.synthesisenergy.com.

About Australian Future Energy Pty Ltd
Australian Future Energy (AFE), Pty Ltd is a privately owned Australian company founded in 2014 by its primary shareholders, coal industry veteran Edek Choros and Synthesis Energy Systems, Inc. AFE was established to secure an ownership position in local resources, such as coal and biomass, for production of agricultural chemicals and energy using SES gasification technology that will reduce carbon dioxide emissions, and support Australian industry and regional growth.  

As part of the formation of AFE, SES and AFE entered into a Master Technology Agreement whereby SES will share a portion of its earned license fee with AFE, and AFE will exclusively use SES technology, while SES will exclusively use AFE as its channel to the Australian market. Since formation, AFE successfully created Batchfire Resources, Pty Ltd in Australia, which completed the acquisition of the large 1 billion MT Callide operating coal mine in Queensland. AFE has also recently acquired ownership of the mine development lease for a 270 million MT JORC resource near Pentland, QLD. Coal resources, along with local renewable resources, will be used in combination to fuel the AFE projects. AFE continues to actively develop its first projects that will utilize SES’s efficient and low-cost clean syngas production technology. 

About GNE and the Pentland Resource

GNE, a wholly owned subsidiary of AFE, was formed to own and manage the MDL361 coal resource near Pentland, QLD. The 270MM MT Pentland JORC resource is located in the northern part of the Galilee Basin, which contains large quantities of Permian thermal coal. The Pentland resource has been well proven through significant bore hole evaluation work, completed initially by Shell Oil Company in the 1970s and several subsequent analyses. The coal quality is that of a JORC compliant thermal coal. The JORC Code is the Australasian Code, overseen by the global Committee for Mineral Reserves International Reporting Standards (CRIRSCO), for reporting results, mineral resources and ore reserves. It is a professional code of practice that sets minimum standards and a mandatory system for public reporting of marketable minerals and other natural resources.

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 ability of our project with Yima to produce earnings and pay dividends; our ability to develop and expand business of the TSEC joint venture in the joint venture territory; our ability to develop our power business unit and our other business verticals, including DRI steel, through our marketing arrangement with Midrex Technologies, and renewables; our ability to successfully develop the SES licensing business; the ability of the ZZ Joint Venture to retire existing facilities and equipment and build another SGT facility; the ability of Batchfire and AFE management to successfully grow and develop their Australian assets and operations, including Callide and Pentland; the economic conditions of countries where we are operating; events or circumstances which result in an impairment of our assets; our ability to reduce operating costs; our ability to make distributions and repatriate earnings from our Chinese operations; our ability to successfully commercialize our technology at a larger scale and higher pressures; commodity prices, including in particular natural gas, crude oil, methanol and power, the availability and terms of financing; our customers’ and/or our ability to obtain the necessary approvals and permits for future projects, our ability to raise additional capital, if any, 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 projects. 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
805.624.7624
PR@synthesisenergy.com

 

EXHIBIT 99.2

 

 

 

Synthesis Energy Systems, Inc. Corporate Presentation August 2017 Clean | Economic | Sustainable Global Energy Growth With Blue Skies

 
 

Disclaimers This presentation includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E 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 our ability to successfully raise additional capital to continue as a going concern ; the ability of Batchfire and AFE management to successfully grow and develop their Australian assets and operations, including Callide and Pentland ; the ability of our project with Yima to produce earnings and pay dividends ; our ability to develop and expand business of the TSEC joint venture in the joint venture territory ; our ability to develop our power business unit and our other business verticals, including DRI steel, through our marketing arrangement with Midrex Technologies, and renewables ; our ability to successfully develop the SES licensing business ; the ability of the ZZ Joint Venture to retire existing facilities and equipment and build another SGT facility ; the economic conditions of countries where we are operating ; events or circumstances which result in an impairment of our assets ; our ability to reduce operating costs ; our ability to make distributions and repatriate earnings from our Chinese operations ; our ability to successfully commercialize our technology at a larger scale and higher pressures ; commodity prices, including in particular natural gas, crude oil, methanol and power ; the availability and terms of financing ; our customers’ and/or our ability to obtain the necessary approvals and permits for future projects ; 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 projects . 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 . The financial projections presented in this presentation represent the subjective views of the management of the Company and management's current estimates of future performance based on various assumptions which management believes are reasonable, but which may or may not prove to be correct . There can be no assurance that management's views are accurate or that management's projections will be realized . Industry experts may disagree with these assumptions and with management's view of the market and the prospects for the Company . 2

 
 

Overview 3 • SES is a clean energy company, founded in 2004 and publicly traded on NASDAQ since 2007 • We own proprietary technology for low cost, environmentally responsible generation of synthesis gas • Our synthesis gas is used for production of a wide variety of high - value clean energy and chemical products, such as synthetic natural gas, power, methanol, and fertilizer • We serve the global marketplace and our first 12 systems were built in China • SES is headquartered in Houston, Texas, with offices and operations in Shanghai, China and Brisbane, Australia ©2017 Synthesis Energy Systems, Inc., All Rights Reserved SES’s Second Operating Project, Commissioned in 2012, Henan Province, China Presentation Cover <img src="exh992_: Close - up of one of three SES Gasification Technology ( SGT) systems at the facility

 
 

Business Model Value growth through generation of earnings from SES technology licensing and proprietary equipment sales combined with income from equity ownership in clean energy and chemical production facilities. Our target markets are regions of the world, such as Australia and Eastern Europe, with high energy prices due to limited access to affordable natural gas, combined with abundant low - quality, low - cost coal resources, renewable biomass and municipal solid wastes. Our core competencies include deployment of our unique synthesis gas generation technology, plus commercial development and financial structuring of regional business platforms and projects which utilize this proprietary technology. 4 SES’s First Operating Project, Commissioned in 2007 , Shandong Province, China ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Strategy 5 • Provide a financially attractive, lower - cost synthesis gas for the production of clean energy and chemicals • Leverage our technology to establish partnerships as business growth platforms in key global regions, where markets have limited access to affordable natural gas and abundant access to low - cost resources, including low quality coal, coal wastes, biomass, municipal solid waste (MSW), and refuse derived fuels (RDF) • Identify strong, local partners to drive our business platforms, with expertise required for project development, project financing and fundraising • Link local, low - cost resources to our projects via resource ownership and/or long - term priced contracts ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Key Accomplishments 6 • Successfully commercialized technology from pilot - scale to current commercial scale • Completed 5 projects over 10 years utilizing 12 SES Gasification Technology (SGT) systems • Developed, owned & operated first commercial plant, proving robust commercial performance of SGT, start - up 2007 • 25% equity ownership in 330,000 TPY methanol operation in Henan Province, China, start - up 2012 • 40% ownership in Australian Future Energy (AFE), our Australian business platform, founded 2014 • Established China Joint Venture for SGT Technology and Equipment Sales, Tianwo - SES, 35% ownership, established 2014 • 11.4% ownership in Batchfire Resources/Callide Coal mine operation in Queensland, Australia, established 2016 • Expanded Intellectual Property rights with over 10 years of design and operations know - how and patents • Secured exclusive global partnership with Midrex Technologies, Inc., a subsidiary of Kobe Steel Limited, for Direct Reduced Iron (DRI) facilities for steel production which will combine SGT with MXCOL™ DRI technology • Developed a robust global pipeline of potential projects >$20B in total installed cost • Today, SES is recognized as the global leader in flexible - fuel clean synthesis gas production with high efficiency and low cost ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Aluminum Corporation of China, 4 - SGT system industrial fuel gas facility, completed performance testing 2017 , Henan Province, China

 
 

Batchfire Resources Australian Future Energy Yima Joint Venture Tianwo - SES Clean Energy Technologies Assets 7 • Founded 2014 • Located in Shanghai, China • SES 35% and Suzhou THVOW Technology Company 65% • Granted regional sub - licensing rights to SES technology • Partner is major equipment manufacturer with international capabilities • Completed 3 projects in 2015/16 for Aluminum Corporation of China • Founded 2009 • Located in Henan Province, China • SES 25% and Yima Coal Industry Group 75% • 3 SGT Systems with ~1200 TPD coal capacity each • 330,000 MTPY methanol production capability • Project is first of planned three phases • Founded 2014 • SES ~40% and Ambre Investments ~45% (privately held company) • Completed Batchfire spin - off 2016 • Acquired Pentland coal resource April 2017 • Industrial fuel gas, power and fertilizer projects under review • Signed first SGT License Agreement with SES May 2017 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Note: (1) Information provided by Batchfire Resources • Founded 2016, as spinoff from AFE, SES owns 11.4% • Acquired Callide Thermal Coal Mine operations in 2016 • ~230MM tons reserves; ~850MM tons resource (1) • Robust plan to increase production and lower costs to near bottom of global cost curve • Batchfire’s plan is expected to generate compelling value for shareholders With Technology Leverage, SES Has Established a Valuable Foundation of Assets, Positioned for Future Growth

 
 

0 2 4 6 8 10 12 14 16 18 SES Coal NewCastle Benchmark Coal SES Low-Cost Syngas(1)(5) Competitor Syngas(2)(5) NG from LNG(3) Crude Oil(4) Energy Cost ($/MMBTU) Energy Cost Comparison Value Proposition 8 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved • Synthesis gas generated with SES technology provides a low cost, environmentally responsible solution to higher priced, more volatile traditional energy resources • SES’s unique advantage is the combination of industry - leading lower capital cost with the ability to efficiently and cost effectively convert low cost, often unmarketable, coal into high - value clean energy and chemicals Cost Advantage of SES Technology Notes and Assumptions: 1) SES Synthesis Gas (Syngas) assumes SGT Technology with SES Coal; 2) Competitor Syngas assumes Benchmark Coal and SGT Competitor Technology; 3) NG from LNG range includes variation in landed LNG prices, and variation in post - landed costs, including regasification and pipeline delivery costs; 4) Crude Oil variation assumes a range of $50 to $100 per barrel; 5) Variation in syngas pricing includes variation in coal price and location based variation in construction costs. SES’s Low - Cost Syngas Offers Compelling Cost Advantage Over Alternatives

 
 

Positioned for Growth 9 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Objective: Grow SES to a $500MM - $700MM business over next 3 to 5 years (1) Key Aspects of the Plan: Leverage our low - cost syngas capability in high - priced energy markets Secure long - term, low - price coal and biomass feedstock contracts Execute 4+ projects for Australia, E. Europe & Americas (2) Generate financial results from existing operating assets including: • 11.4% interest: Batchfire Resources – Callide coal operation • 25% interest: Yima - SES Joint Venture Methanol Plant in China • 35% interest: Tianwo - SES Technology and Licensing JV in China Notes: (1) Estimate of market cap based on multiple of EBITDA and other income , assumes successful implementation of business plan, (2) Number of projects needed for success depends on the specific value of the successful projects. Distribution of Projected Planned Value Creation 5+ years

 
 

Our AFE Platform Company In More Detail 10

 
 

Focus: The Australian Opportunity for SES Australia is at a tipping point with pressing domestic energy demand vs. export revenues • Increasing natural gas combined cycle (NGCC) power generation and liquefied natural gas (LNG) export commitments create gas shortages and increased prices on domestic supply • Decommissioning of old - gen coal - fired power plants shift more demand to NG Australian government is encouraging clean energy solutions • Environmentally focused country with abundant coal, as well as biomass resources • SGT delivers superior economics, and is an environmentally responsible and proven proprietary technology that can use blended coal - biomass feedstock, with low carbon dioxide syngas production SES is an owner in two Australian companies: • Batchfire Resources – operating company with Callide Mine • Australian Future Energy (AFE) – clean energy platform with projects in development and coal resource ownership 11 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved July 11, 2017 Page One feature story on Australia’s rising gas exports and increased reliance on gas for power combining to create a local power shortage: “The Energy Shortage No One Saw Coming,” by Rachel Pannett

 
 

Success Story: Australian Future Energy Resource Ownership & Clean Energy Project Platform Company $10 billion (1) pipeline of projects under evaluation (2) • Projects to be environmentally “class leading” with low carbon dioxide syngas production • Multiple locations, multiple energy & agrichemical end products • Low - cost production from low - cost coals from AFE resources and biomass Project licensee, first AFE project license agreement May 2017 • Currently down - selecting initial 2 projects AFE owned resources for SGT feedstock • Great Northern Energy Pty Ltd – AFE’s wholly owned subsidiary, acquired April 2017 » 270 million ton JORC (3) compliant coal resource lease » Near Pentland , Queensland • Batchfire Resources’ Owned & Operated Callide Coal Mine – detailed on <img src="exh992_ 14 • In development: biomass processing business for bagasse, a byproduct of sugarcane production, which SGT will process to convert into fuel Management is deeply experienced group of Australian energy, finance, project development and mining professionals AFE Strategy & Development Goals: AFE is building a large - scale vertically integrated business in Australia based on developing, building and owning equity interests in financially attractive and environmentally responsible projects that produce agrichemicals and energy products from local coal and renewable resources and acquiring ownership positions in local coal and biomass resources for its projects and for direct local and Asian export market sales . 12 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Notes: (1) Total Installed Cost of projects in AFE pipeline, (2) Identified projects vary somewhat in project capacity and in end products, ( 3) The JORC Code is the Australasian Code, overseen by the global Committee for Mineral Reserves International Reporting Standards (CRIRSCO)

 
 

13 Great Northern Energy Project Companies - Special Project Vehicles Project Level SPV AFE Operating Structure Key Facts • AFE has exclusive rights to, and will exclusively use, SGT in Australia • SES receives technology, licensing and equipment orders – SES • AFE receives 50% of licensed fee from SES • Signed first SGT License Agreement with SES May 2017 • Established team of energy, finance, project development and mining professionals • Headquartered in Brisbane, Queensland Pentland Coal Resource Project Level SPV SES Technology License, Equipment Supply and Services Project Level Equity and Debt ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Batchfire Resources: An AFE Success Story Australian company created by AFE and spun - out in 2016 Acquired Callide Coal Mine, from Anglo American, October 2016 • Open cut thermal coal mine and associated infrastructure • Mature and significantly sized coal producer, in Central Queensland • Supplies CS Energy power stations for Australia’s national grid • Local rail transport of coal to domestic customers in Gladstone • Export coal market sales from port of Gladstone • Adjusting mine operation for lower strip ratio coal • Lowering production costs and increasing profitability • Potential for expansion 14 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Note: (1) Information provided by Batchfire Resources/Anglo Coal CALLIDE COAL MINE: BY THE NUMBERS (1) • 180 km 2 containing a coal resource of up to 1.7 Billion metric tons (MT) • ~230 million MT of recoverable reserves • ~850 MT of resources • Two large draglines, haul trucks and excavators fleets • 2011 - 15 saleable production at Callide averaged 7.5Mtpa

 
 

Why SES Now 15 Superior and proven clean energy technology » 5 projects built, with 12 SGT Systems; >$700MM total invested over 40 years (1) » Commercialized, economical & environmentally responsible clean energy solution Three - tier value growth business model » SGT licensing revenues » Proprietary equipment sales » Equity ownership in SGT projects Global markets with key energy needs » Local demand, economics & energy independence » High energy prices due to limited access to affordable natural gas » Abundant low - quality, low - cost local coal resources, renewable biomass and MSW Australian platform company – SES’s 1 st regional success story » AFE, SES’s successful resource ownership and clean energy multi - project platform company is a strong and repeatable model » SES’s business development strategy has opened up into commercially viable international markets: Eastern Europe, Americas Guided by industry leaders » Fortune 100 engineering & business backgrounds – management and BOD ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Notes: (1) ~$200MM SES; ~$200MM GTI R&D; >$300MM Chinese partner and customer investments NASDAQ: SYMX As of July 31, 2017 Market Cap $43.7 MM Shares Outstanding 87.4 MM Public Float 34.6 MM % Officers and Directors 4.3% % Held by Institutions 23.7%

 
 

Our Leadership Team 16

 
 

Leadership: Management DeLome Fair, President and Chief Executive Officer • Appointed SES’s chief executive in February 2016. Joined the SES executive team as SVP, Gasification Technology in December 2014. 25 years’ gasification and IGCC technology expertise in energy and petrochemical industries Francis Lau, Senior Vice President and Chief Technology Officer • 36 - year tenure at the Gas Technology Institute, with six years serving as GTI’s Executive Director of Gasification and Gas Processing Center Chris Raczkowski, President – Asia • 25 - year clean energy technology executive experience, managing investment, deployment, commercialization and operations in China and Southeast Asia David Hiscocks, Corporate Controller • 23 - year accounting and finance experience, including extensive worldwide tenure with Transocean and its prior merged companies. Texas CPA Wade A. Taber, Vice President of Engineering • 19 - year gasification engineering career, with most recent 9 - year tenure as GE’s Senior Engineering Manager – Components/Technology Innovation Dr. John Winter, Chief Engineer • 30+ year career in petrochemical industry career includes 15+ gasification technology research, engineering design, technical services, and plant operations Donald Huang, SES China Managing Director • One of the original SES team members in China, with extensive GM and project development experience including gov’t approvals and financing Khee Yoong Lee, Director of Commercial Development for China • 10+ year career in project development related to the power, energy, and chemical industries 17 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Leadership: Board of Directors Lorenzo Lamadrid , Chairman • Ten - year tenure as Chairman of SES. Since 2001, Managing Director of Globe Development Group Robert W. Rigdon , Vice Chairman • Served as President and CEO from 2009 until February 2016, with an eight - year tenure with SES Harry Rubin, Director • Broad executive and financial management background, with a particular focus on acquisitions and divestitures Denis Slavich, Director • 35+ year career in large scale power generation development, with cross border transaction expertise Ziwang Xu, Director • Financial and investment banking executive, manages CXC China Sustainable Growth Fund Charles M. Brown, Director • Led 20 different operating businesses and more than two dozen factories around the world DeLome Fair, Director • SES’s President and CEO. One of the world’s leading experts in clean energy gasification technology commercialization and IGCC power generation technology 18 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

AFE Directors Edek Choros, Executive Director • Geologist with over 25 years of professional experience in coal exploration, mine design, mine planning and management, with a focus on turnaround operations for numerous coal mines in Australia and the USA • Founder, CEO and MD of Millennium Coal Pty Ltd – company founded in 1999, and which developed a very successful hard coking coal mine in Bowen Basin in Queensland, which in 2004 was sold to Excel Coal Ltd • Founder, CEO and MD of Ambre Energy Ltd – company founded in 2005 and currently owns and operates two large coal mines in the U.S. and is developing the Millennium Bulk Terminal at Longview on the USA west coast to export coal to Asia • Co - founder of AFE – company formed in 2014 to develop large scale coal gasification projects converting waste coal to urea and SNG • Co - founder of Batchfire Resources Pty Ltd (spin - out of AFE) company formed in 2015 to acquire the Callide Mine from Anglo American Stephen Lonie , Chairman • Chartered Accountant having over 30 years with KPMG in Australia where he served as Queensland Managing Partner and was responsible for Queensland management consulting and corporate finance practices • Currently on several boards of public and private companies in Queensland, was the former chairman of an ASX listed company, former Chairman of CS Energy and formerly Deputy Chairman of Ambre Fuels (a CTL company) 19 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

AFE Directors 20 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Our Technology In More Detail 21

 
 

CO 2 Low Grade Coal Biomass Syngas Processing Synthesis Gas (Syngas) (CO+ H 2 ) SULFUR Ash iGAS Power Low Value Feedstock SES Gasification Processing $3 - 6 per MMBTU Cost of Syngas (1) High Value End Products MSW Industrial Fuels Chemicals & Fertilizers SNG DRI for Steel Production Diesel & Naphtha 22 H2 for Cleaner Fuels SES Gasification Technology (SGT) ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Notes: (1) SES economics based on internal data • High efficiency conversion to synthesis gas (CO + H2) • Synthesis gas can be converted to multiple useful products alternatively made from natural gas • Economic alternative to expensive natural gas • Clean use of coal – greener solution SES’s First Operating Project, Commissioned in 2007, Shandong Province, China

 
 

• Proven commercial technology » ~$200MM R&D: Gas Technology Institute (GTI) » ~$200MM Commercialization & Investment: SES » >$300MM Investment and Debt: Chinese Partners & Customers • Twelve commercial - scale gasification systems built over the past 10 years • Technology license for first AFE project signed May 2017 • Over 50 coals, biomass, and wastes successfully converted to syngas, including feedstocks from US, Europe, China and Australia • Technology performance validated at commercial scale Tons/day Low Pressure Coal (<5 bar) Mid Pressure Coal (5 - 15 bar) High Pressure Coal (15 - 55 bar) Biomass SGT: The Road to Commercialization U - GAS® SGT 23 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved R&D Early Commercialization Final Commercialization 2015 - 16 SES - Tianwo Chalco Seven SGT systems for fuel gas (China)

 
 

Best Performance Moderate Performance Worst Performance SGT is the Superior Gasification Technology Slag Non-slag Dry Feed Slurry Feed Cost Factors Capital Cost Low Capital Cost Operating Cost Lowest Operating Cost Performance Factors Carbon Conversion Best in class Cold Gas Efficiency Best in class Feedstock Properties Low Quality, Fine Coal & Lignite Unmatched range for Biomass, MSW, Other Wastes 2 coal and renewable feeds Environmental Factors Relative Environmental Impact Low water usage, no tars / oils Commercialized Gasification Technology Comparison 1 SES Gasification Technology (SGT) Fluid Bed Moving & Fixed Bed Entrained Flow Notes: 1) Analyses based on SES internal results and publicly available information for other technologies 2) For Biomass & Waste contents > 50% of total feed 24 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

SGT: Greener Solution A New Paradigm for Responsible Coal Minimal air pollutants (coal reaction vs burning) • SO x , No x and Particulate Matter near natural gas levels • Lower cost of electricity than natural gas in many parts of the world Reduced water consumption • 30% less water consumption than coal burning technologies • Lower water consumption than competing gasification technologies Transition technology – simple modifications • Add in Biomass or MSW to reduce carbon footprint • Modify to capture carbon when carbon utilization technologies are ready 25 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Affordable Power Generation with Minimal Air Pollutants Reduced Water Consumption Transition Technology – easily modified to reduce and capture carbon in the future

 
 

26 Project Year Gasifier Systems Product Syngas Capacity (nm3/hr) Pressure Cost SES Role Zao Zhuang (ZZ) 2007 - 2014 2 Methanol 20,000 3 Bar $40MM (1) 100% Equity, Technology & Equipment Yima 2012 - present 3 Methanol 90,000 10 Bar $250MM (1) 25% Equity, Technology & Equipment CHALCO Shandong 2015 - present 2 Fuel 80,000 3 Bar $30MM (2) Technology & Equipment (3) CHALCO Shanxi 2016 - present 1 Fuel 28,000 3 Bar $15MM (2) Technology & Equipment (3) CHALCO Henan 2016 - present 4 Fuel 120,000 3 Bar $60MM (2) Technology & Equipment (3) SES Project History (1) Total plant cost – including syngas processing (2) Estimated cost based on turnkey contract value – actual costs unknown (3) Technology and equipment provided through SES’s Tianwo - SES Joint Venture ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Licensed SGT Projects • Aluminum Corporation of China (CHALCO): • China’s largest alumina and primary aluminum producer and the world’s second largest alumina producer • SGT economically advantaged clean coal NG replacement projects • 3 industrial fuel supply plants • Secured by China JV Tianwo - SES partner, Suzhou THVOW Technology Co., Ltd. 27 Chalco Shandong – 2 SGT Systems Chalco Shanxi – 1 SGT System Chalco Henan – 4 SGT Systems ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

Appendix • Operating Structure • Global Pipeline Projects • World Coal Reserves 28

 
 

Operating Structure Licensing Proprietary Equipment Sales Technology Engineering & Services O&M for SES Projects SES Technologies SES Capital Development Packaged Products SES Asset Management Financing & Capital Management Project Investment Holdings Project Development & EPCM • SGT Licensing & Equipment Sales • SGT Process Design • SGT Equipment Design • Packaging Design & Manufacturing • Facilities Operations • Acquisition Due Diligence • Project Development • Project Management • Acquisition Funding • Project Development & Equity Funding • Equity Management • Debt Financing Management Existing Emerging Future Capital - Lite, High Margin Business Royalties, Engineering Fees, Equipment & Product Sales Specialized Services Operating, & Management Fees Capital Intensive, High Cash Flow Potential Energy Project Income, IPO, MLP/ Distribution, Levered Equity, and project disposition 29 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved

 
 

30 Global Pipeline Projects Notes: (1) List of active projects in current SES pipeline, it is not expected that all projects will follow through to compl eti on, but it is also anticipated that new projects will be identified that are not known at this time. Project names are not included to protect confidential information, (2) Capital costs are prelimi nar y estimates by either SES or by the customers, (3) SES equity participation is shown in areas where it is highly likely (platforms), SES equity participation is possible on nearly all pro jec ts if desired, (4) Technology and Equipment for projects in China will be provided through SES’S JV (Tianwo - SES) of which SES owns 35%, (5) >20 small opportunities ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Location (1) Product Estimated Capex (2) SES Expected Scope (3) Total Plant (MMUSD) South America SNG 1,500$ Technology & Equipment Australia Urea, SNG 2,000$ Technology & Equipment + Equity Participation Australia Urea, SNG 2,000$ Technology & Equipment + Equity Participation Australia Urea, SNG 2,000$ Technology & Equipment + Equity Participation Asia SNG 2,500$ Technology & Equipment + Equity Participation Australia Fuel Gas 2,000$ Technology & Equipment + Equity Participation Australia Urea, Power 2,000$ Technology & Equipment + Equity Participation Australia Power 500$ Technology & Equipment + Equity Participation Caribbean SNG 500$ Technology & Equipment + EPCM Caribbean Fuel Gas 500$ Technology & Equipment + EPCM Caribbean Power 200$ Technology & Equipment + EPCM India Fuel Gas 310$ Technology & Equipment India Methanol 900$ Technology & Equipment India DRI Steel 1,000$ Technology & Equipment Southeast Asia Fuel Gas 100$ Technology & Equipment Poland Chemicals 500$ Technology & Equipment + Equity Participation Poland Chemicals 500$ Technology & Equipment + Equity Participation Poland (5) Fuel Gas 2,000$ Technology & Equipment Poland Fertilizer 200$ Technology & Equipment + Equity Participation North America Power 200$ Technology & Equipment South Africa SNG 1,900$ Technology & Equipment South America Methanol 500$ Technology & Equipment + Equity Participation South America Methanol 100$ Technology & Equipment + Equity Participation South America Power 400$ Technology & Equipment China (4) Multiple Projects TBD Technology & Equipment

 
 

AFE Project Pipeline ~US$10B (1) Under Evaluation • P1 Agrichemicals Urea and By - Product SNG • P2 Agrichemicals Urea and By - Product SNG • P3 Agrichemicals Urea and By - Product SNG • P1 Synthesis Gas for Aluminum Manufacturing • P2 Synthesis Gas for Aluminum Manufacturing • Great Northern Energy - Pentland Resource • Biomass Pelletizing/Briquetting • Syngas Based Power Generation Locations: Queensland East Coast, South Australia and Victoria 31 3 Main Focus Regions ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Note: (1) Total Installed Cost of Projects

 
 

USA Total: 251.6 Bituminous & Anthracite: 221.4 Sub - bituminous & Lignite: 30.2 Africa Total: 13.2 Bit & Anthracite: 13.2 Sub - bituminous & Lignite: 0.07 India Total: 94.8 Bit & Anthracite (high ash): 89.8 Sub - bituminous & Lignite: 5.0 Australia Total: 144.8 Bit & Anthracite: 68.3 Sub - bituminous & Lignite: 76.5 Russia Total: 160.4 Bituminous & Anthracite: 69.6 Sub - bituminous & Lignite: 90.7 China Total: 244.0 Bit & Anthracite: 230.0 Sub - bit & Lignite: 14.0 Vietnam Total: 3.4 Bit & Anthracite: 3.1 Sub - bit & Lignite: 0.2 Turkey Total: 11.4 Bit & Anthracite: 0.4 Sub - bit & Lignite: 11.0 Pakistan Total: 3.1 Bit & Anthracite: 0.2 Sub - bit & Lignite: 2.9 Indonesia Total: 25.6 Bit & Anthracite: 17.3 Sub - bit & Lignite: 8.2 Brazil Total: 6.6 Bituminous & Anthracite: 1.5 Sub - bituminous & Lignite: 5.0 World Coal Reserves Total: 1139.3 Billion Tonnes Bituminous & Anthracite: 816.2 Sub - bituminous & Lignite: 323.1 World Coal Reserves Billion Tonnes • Nearly 30% of recoverable global coal resources are untapped sub - bituminous and close - to - surface lignite (brown) coal • Renewable biomass and municipal wastes are alternative SGT feedstocks Note: Total proved reserves at end 2016, Source: BP Statistical Review of World Energy June 2017 32 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Poland Total: 24.2 Bit & Anthracite: 18.7 Sub - bit & Lignite: 5.5

 
 

Nasdaq: SYMX synthesisenergy.com Growth With Blue Skies Investor Relations: MDC GROUP Contact: David Castaneda, (414) 351 - 9758 IR@synthesisenergy.com