SinoCoking Projects $10 Million to $15 Million Gross Profit From Syngas Sales in 2015

PINGDINGSHAN, China, Aug. 28, 2014 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. SCOK ("the Company" or "SinoCoking"), a vertically-integrated coal and coke processor, today said that its gross profit from sales of synthetic gas (syngas) produced at the Company's new clean coal facility in Pingdingshan will be from $10 to $15 million in 2015.

This estimate, said the company, is based upon sales of syngas at an average price of about $0.12 per cubic meter, with 24x7 production and gross margins of approximately 40 percent.

Syngas is a clean-burning fuel that can also be used to produce fertilizers, solvents and assorted synthetic materials. At full capacity, SinoCoking's new facility is expected to produce 25,000 cubic meters of syngas per hour, among the highest outputs in China.

The facility, due to open next month, is also one of the few in China that will capture the considerable volume of carbon dioxide gas (CO2) emitted during the production of syngas. This CO2 will be converted to ammonium bicarbonate, a common farm fertilizer, and sold to various outlets in China, said the company.

"We are proud and excited to be so close to completing this new clean energy facility," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "With its opening, we will make the leap from being a producer of coal and coke products to one of China's top producers of clean-burning fuel.

"This transition, we expect, will both assist our nation in battling its widespread and crippling pollution problems, as well as bring considerably greater value to our shares."

Pending shareholder approval, SinoCoking will be renamed Clean Synthetic Technologies Corp., a name chosen to reflect the Company's new emphasis on the production of clean energy products.

About SinoCoking

SinoCoking and Coke Chemical Industries, Inc. (www.scokchina.com), a Florida corporation, is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and PingdingshanHongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province PingdingshanHongli Coal & Coke Co., Ltd., Baofeng Coking Factory, BaofengHongchang Coal Co., Ltd., BaofengHongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., BaofengShuangri Coal Mining Co., Ltd., and BaofengXingsheng Coal Mining Co., Ltd.

For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.

Forward Looking Statements

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