SynCoal Partners LLC (the "Company") is a Delaware Limited Liability Company formed in December 2005 as a "clean coal"" company to commercialize the second generation of Western SynCoal LLC’s patented advanced coal upgrading technology (the "SynCoal Gen2 System"). It is the successor to a $105 million joint development venture between Montana Power, Northern States Power and the U.S. Department of Energy and has retained the key personnel from the earlier development that successfully operated a first generation commercial demonstration (SynCoal Gen1) from 1993 into 2001, known as Western SynCoal LLC’s Advanced Coal Conversion Process (the "ACCP"). SynCoal Gen1 was located near Colstrip, Montana at the coal mine. This operation produced and sold nearly 2 million tons of SynCoal^®, a synthetic high volatile bituminous coal product with reduced levels of ash, sulfur and mercury content to a variety of industrial and utility users.

SynCoal Partners LLC has developed a next generation, lowest cost system for upgrading low rank, high moisture coals (the SynCoal Gen2 System) directly at the end-user site. The SynCoal Gen2 Process produces cleaner burning, higher Btu fuel for existing and newly constructed coal burning power plants. The process is based on and is a novel extension of Western SynCoal’s ACCP.

Integrating a SynCoal facility into a coal fired site makes it possible for coal burning power plant operators to use more than one type of coal to fire their plants and or to find new sources of supply where coals that were not suitable for their plants can be blended and made suitable. With a SynCoal plant integrated into their plant, these operators could reduce their emissions while increasing their net generation and reducing their unit production costs per MWh. Additionally they could create a fuel arbitrage opportunity to reduce the total cost they now pay for coal by purchasing lower cost coals from various sources and negotiating lower transportation rates for these lower rank coals that can be converted into the fuel they prefer.

SynCoal is the only economically viable coal upgrading solution that:

• can both significantly increase heat value of coal and reduce major pollutants such as mercury, SOx, NOx, and CO;
• mitigates critical issues of fugitive dust, moisture reabsorbtion, and spontaneous combustion; and
• provides for compelling coal grade and rail freight arbitrage opportunities.

We have the technology, experience, financial resources, and marketing plan to succeed.

The factors that support SynCoal’s future success in the market include:

• most experienced and knowledgeable team in the industry;
• successful commercial history of delivering an effective product to industrial customers – 2 million tons of upgraded coal;
• SynCoal has been historically qualified as a synthetic fuel;
• existing coal-fired power infrastructure requires an effective and economical source of clean, high-energy fuel;
• regulatory and economic imperatives are driving the utility industry to seek "clean coal" solutions; and
• "Clean Coal Technology" remains a central priority for the U.S. energy independence.