Syngas has advised that analyses of core samples from the Company’s JORC classified coal resources at Clinton, match the coal quality of previously successfully gasified coal using gasification technology that is now owned by Siemens Fuel Gasification Technology GmbH & Co KG (Siemens).

Highlights:

- Clinton Coal Measures have been successfully gasified using Siemens technology.
- Successful gasification test work provides the basis for the Clinton Project.
- Clinton coal sample dispatched to Siemens for next stage/Feasibility Study testing.
- Siemens Technology licensing discussions underway.

These past gasification test work results provide a solid basis for the Clinton Project, in terms of syngas quality, yield and coal behaviour on gasification. As the gasified coal quality matches the Clinton deposit coal quality.

The ‘matching up’ of a technically proven and commercially available gasification technology for use on the Clinton Project provides a positive step forward in Syngas’s development of a large scale, long life, Clean Premium Diesel project located at Clinton, 120km north west of Adelaide in South Australia.

A sample of Clinton coal (30 kg) has been dispatched by Syngas to Siemens’ testing facility located in Freiberg in Germany. This sample has been received and Feasibility Study design basis test work has commenced. The results are expected by August 2009.

Licensing discussions have commenced with Siemens and are progressing well. Licensing is will be further progressed post Pre-Feasibility Study (PFS) completion and release. Syngas remains on track to complete the Clinton Project PFS pre-Easter. SRK Consulting engineers are in the process of completing mine plans and schedules for input into the Company’s financial model. All other work is now complete.

The company said a number of opportunities are continuing to be pursued in parallel. These include (but are not limited to): a clean, premium diesel offtake agreement, waste biomass agreements, and a peaking power offtake agreement.

Syngas has a strong cash position to make further significant progress with the Clinton Project over the coming twelve months.

Syngas Limited, incorporating the Clinton Project following the acquisition of Syngas Energy Limited in January 2008, is an ASX listed oil and gas business with, as a core project, a premium diesel production project located in South Australia. Syngas also holds rights to earn interests in four oil and gas prospects located in the Gulf of Mexico.

One of Syngas’s granted mineral exploration licences covers an area of 288 km2 north-west of Adelaide, over known coal deposits within the Clinton Coal Measures, in the Northern St Vincent Basin Coalfield, north of the Gulf of Saint Vincent. Syngas also holds a granted mineral exploration licence over a 143 km2 area, south-east of Adelaide, covering the known coal deposit of Moorlands. Syngas holds a petroleum exploration licence over the Moorlands deposit and surrounding area.

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