USA Synthetic Fuel Corporation Receives Significant Equity And Debt Investments, Purchases BOE Energy Asset, And Continues Progress Toward Delivering “Low Cost Clean Energy” Synthetic Fuels

USA Synthetic Fuel Corporation (OTCQB:USFC) (“USASF” or “the Company”) announced today that it has received $35 million in debt financing from Third Eye Capital, a leading special situations investor based in Toronto, Canada with established expertise in resource lending and other complex assets. In addition, Global Energy, Inc. (“Global Energy”), having launched USASF in 2010, purchased 1.1 million shares of common stock of the Company for $11 million.

The Company used some of the proceeds of the equity and debt investments to purchase a BOE (barrel of oil equivalent) Energy asset consisting of approximately 50 million tons of Illinois Basin coal located in Indiana. Consideration for the transaction was $50 million, consisting of $25 million in cash and $25 million in common stock of the Company (2.5 million shares). The purchased energy asset has an estimated energy equivalent of 200 million barrels of oil, according to the Company, and represents a 50 year fuel supply for USASF’s subsidiary, Lima Energy Company (“Lima Energy”), which is developing and constructing an Ultra Clean Btu Converter in Lima, Ohio. This facility will be designed to enable solid hydrocarbon resources, such as coal, petroleum coke, and renewables, to be transformed into lower cost synthetic fuel products, such as ultra clean synthetic crude, diesel, jet, gasoline, and synthetic natural gas. The balance of the proceeds from the equity and debt investments will be used to purchase land for the Lima Energy project, continue site work, and for working capital and general corporate purposes.

USASF’s goal is to develop and construct Ultra Clean Btu Converters in several U.S. locations within the next ten years, utilizing solid hydrocarbon resources such as those acquired from Global Energy. The Company believes that its Lima Energy project is one of the most fully developed gasification projects in the United States.

USASF President and CEO Dr. Steven C. Vick commented, “It makes sense that capital for innovative environmentally sound energy technology development would come from Canada, where decades of success with alternative energy have built a national energy treasure. Now USA Synthetic Fuel Corporation is closer to bringing its energy technology innovation to America’s top natural energy resource with the deployment of Ultra Clean Btu Converters across the USA. Lima Energy, based in Lima, Ohio, will lead the charge with the production of low cost clean energy products.”