Synthesis Energy Systems, Inc., technology, equipment and engineering services for converting low rank coals and biomass feedstocks into valued products, announced that in a decision which has been mutually arrived at, the closing period of their share purchase agreement with China Energy Industry Holding Group Co., and Zhongjixuan Investment Management Company Ltd. has been extended to March 31, 2012.

In a release, Robert Rigdon, president and CEO of SES, said that, “Although the transactions will not be submitted for governmental approval before December 31 of this year, good progress has been made in the past few weeks. We believe the interests of the parties are aligned and we remain confident in the short and long term value we believe can be realized by working together with them.”

He continued, “While the parties require additional time to complete the reviews, processes and governmental approvals necessary to make an investment into a foreign entity such as SES (News - Alert), we believe that each of the parties is taking this investment very seriously as evidenced by their diligence in working toward finalizing the deal.”

All parties involved are keen on this investment and the mutual decision for extending the share purchase closing date was essential to provide Yima Coal Industry Group Co., Ltd. and its advisors with sufficient time to assess and complete reviews of the proposed investment plan. It also gives them sufficient time to examine the most optimized structures for the proposed terms of the transaction.

All the companies involved are of the opinion that the extension and the subsequent steps which need to be taken by YAMA, are critical for ensuring that both structuring and capital funding at the project and regional stage will be effectively optimized. This will also provide a base for large scale investments by the parties involved in the near future in China.

Feng Feng, chairman and CEO of ZJX, said that, “We remain confident that the parties will proceed quickly to complete this important strategic investment into SES.”