TSX : SXI

VANCOUVER, May 8, 2012 /CNW/ - Synex International Inc. (the "Company") announces that for the nine month period ended March 31, 2012, revenue from energy sales and consulting increased to $3,187,494 as compared to $2,292,454 in the corresponding period in fiscal 2011.  This increase in revenue is due to an increase in consulting revenue as well as increases in electricity sales from each of the Mears Plant, the Cypress Plant, the Barr Plant and the Kyuquot Utility.

Net income for the nine month period ended March 31, 2012, was $90,774 as compared to net income of $1,646 in the corresponding period in fiscal 2011.

On February 2, 2012, the 4.4MW Barr Creek Plant (the "Barr Plant") commenced commercial operations.  The Barr Plant is located near Zeballos on Vancouver Island, British Columbia and was developed by the Barr Creek Limited Partnership ("BCLP") and its general partner Barr Creek Hydro Ltd. ("BCHL").  The Company holds an 80% interest in BCLP and BCHL with the Ehattesaht Tribe holding the remaining 20%.  During the months of February 2012 and March 2012, the average generation of the Barr Plant was about 1.7MW which equaled the forecast generation.

During the spring of 2010, the Company was the highest bidder for the purchase of applications for water licences and land tenure of Hawkeye Energy Corporation (the "HEC assets") from the Receiver.  During the Court process to approve the sale of the HEC assets to the Company, Hawkeye Power Corporation ("HPC") opposed the sale on the basis of an unregistered prior right to the assets.  On November 21, 2011, a court decision declared that HPC did not have a prior right to the assets.   On December 20, 2011, HPC filed a Notice of Appeal and Notice of Stay in regards to the court decision.  The appeal process is advancing.

In March 2012, the Company received a payment of $625,872 from the Ka:'yu:'k't'h'/Che:k:tles7et'h' First Nation as a contribution in aid of construction with respect to the Kyuquot powerline.  The Company applied the proceeds to fully repay the revolving $500,000 credit line of the Power Division as well as for general corporate purposes.

The Company commenced reporting financial results under IFRS as of the first quarter of fiscal 2012.  The financial results under IFRS are not significantly different than the financial results would have been under GAAP, although there has been a minor reduction in assets of the Company due primarily to differences in amortization treatment between IFRS and GAAP.

Synex International Inc is an experienced run of river hydroelectric developer and consultant in British Columbia with over 15 professionals located in the Vancouver office.  The Company wholly owns or has interests in 12 MW (net) of operating facilities and has applications for water licences and land tenure on over 70 potential hydroelectric sites which are in various stages of development or for disposition.

"signed"

______________________________________

Greg Sunell, President

This press release contains forward-looking statements that involve risks and uncertainties. These statements reflect our current expectations and are subject to change. They are subject to a number of risks and uncertainties including, but not limited to, changes in economic conditions, risks associated with the construction and operation of hydroelectric facilities and changes in government policies.

SOURCE Synex International Inc.

Copyright 2012 Canada NewsWire

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