USA Synthetic Fuel Corporation Receives Significant Equity and Debt Investments, Purchases BOE Energ

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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

WASHINGTON & TORONTO--(BUSINESS WIRE)-- 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."

Arif N. Bhalwani, Managing Director of Third Eye Capital reiterated his firm's support of the Company: "USA Synthetic Fuel Corporation has the critical assets and technical know-how necessary to develop low-cost clean energy products that can be commercially viable. Our innovative investment allows the Company the time and resources to raise adequate public and private finance for its current Lima Energy project, one of the most advanced projects of its kind."

About USA Synthetic Fuel Corporation

USA Synthetic Fuel Corporation (OTCQB:USFC) is an environmental energy technology company focused on building ultra clean btu converters designed to enable America's solid hydrocarbon resources to be transformed into low cost synthetic fuel products: transportation fuel (diesel, jet, gasoline), pipeline quality synthetic natural gas (SNG), hydrogen, and power. USA Synthetic Fuel's goal is to deliver top environmental, economic, and social performance. The Company's leading Btu Converters are in development and/or construction and are designed to produce 100,000 BOE (barrels of oil equivalent) per day of low cost synthetic fuel. The Company has established the long term business objective of manufacturing and delivering 2 million BOE/day of low cost synthetic fuel in the USA by 2030. The Company owns or controls 1.2 Billion BOE in solid hydrocarbon energy assets.

About Third Eye Capital

Third Eye Capital is a leading special situations investor that provides innovative financing to promising companies that are often misunderstood or in out-of-favor industries. Through extensive due diligence and rigorous analysis, the firm has a long track record of successfully identifying companies with compelling stories and valuable assets that other investors ignore or lack the expertise or willingness to analyze. Third Eye Capital has committed more than $500 Million to private financing transactions across a wide array of industries including energy, alternative energy, mining, technology, media, healthcare, construction services, and financials. The firm was founded in 2005 by renowned entrepreneurs and private investors Dr. David G. Alexander and Arif N. Bhalwani, who have led Third Eye Capital to consistent investment outperformance. For more information, contact Jonathan Norris, Vice President at 416-601-9940.

Forward-Looking Statements

Statements that are not descriptions of historical facts are forward-looking statements.Reference is made in particular to the descriptions of our plans and objectives and other forward-looking terminology such as "may", "expects", "believes", "anticipates", "intends", or similar terms, or variations.Forward-looking statements are based on management's current beliefs, opinions, and expectations.Actual results could differ materially from those currently anticipated due to a number of factors.Additional information on potential factors that could affect our results and other risks and uncertainties are detailed in the company's periodic reports.



ICR, LLC
Theodore Lowen, 646-277-1238
ted.lowen@icrinc.com

KEYWORDS:   United States  North America  Canada  District of Columbia

INDUSTRY KEYWORDS:

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