SinoCoking Issues Update on Underground Coal Gasification Project

PINGDINGSHAN, China, Jan. 7, 2015 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. SCOK, a vertically integrated producer of clean energy products located in Henan Province, today issued an update for investors regarding the company's Underground Coal Gasification (UCG) project. According to the company's Chairman and CEO, Mr. Jianhua Lv, the project is on schedule and expected to start producing syngas in March 2015.

At a meeting with Dr. Wenjun Li of the coal-based Clean Energy Test Center in North China Institute of Science and Technology, Mr. Lv reported that the drilling of five out of six exploration wells for the first phase of the project has been completed. The construction process will begin shortly following the drilling of the sixth exploration well. When fully functioning, UCG phase one will have the capacity to produce 60,000 m3/h of syngas.

SCOK has posted an animated video explaining Underground Coal Gasification on its website, www.scokchina.com.   

The UCG project is being guided by Dr. Wenjun Li's R&D team. Dr. Li and SCOK co-own the patented technology rights and SCOK has exclusive rights to use the technology within Henan province.

With 10,000 m3/h gas output per unit, or 60,000 m3/h for the six planned units in phase one, SCOK's UCG project will require an investment of $3 million USD per unit, or a total of $18 million. The expected cost of production of syngas will be $0.02/m3, and the current sales price in the market is $0.10/m3. The syngas produced - a combination of carbon monoxide and hydrogen which will be used for power generation and for producing compressed natural gas (CNG), liquid natural gas (LNG) and various chemicals - is expected to add significantly to SCOK's gross profit and bottom line. The gas compressed through SCOK's proprietary Compression and Blending Technology (CBT) will allow for storage and shipping in containers by rail or truck.

As announced previously, CBT-related sales to customers throughout the region will be handled by a sales office to be opened in Linying, which is 120 km from Pingdingshan.

"It is truly exciting to see both the above and below ground syngas facilities moving forward, and now with the addition of the CBT feature to help expand our customer base," concluded Mr. Lv. "We remain focused on providing clean energy solutions to promote a healthier environment for China."

For additional information on SinoCoking, please go to http://www.scokchina.com or refer to the company's periodic reports filed with the Securities and Exchange Commission (http://www.scokchina.com/sec-filings.html). Investors wishing to receive SinoCoking's corporate communications as they become available may go to the company's Investor Relations site (http://www.scokchina.com/corporate-overview.html) and register under Email Alerts.

Also, investors may submit questions directly to Mr. Lv and his staff to receive non-confidential information about the company's operations and products at the company's "Ask Management" blog (http://www.scokchina.com/ask-management.html).

About SinoCoking

SinoCoking Coal and Coke Chemical Industries, Inc. (www.scokchina.com), a Florida corporation, is an emerging producer of clean energy products located in Pingdingshan, Henan Province, China. The company has historically been a vertically-integrated coal and coke processor of 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 Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd., Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., Baofeng Shuangri Coal Mining Co., Ltd., and Baofeng Xingsheng Coal Mining Co., Ltd.

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