BBY Limited
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This report may contain general securities advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. Before acting on any advice or recommendations, a person should contact a BBY adviser to determine whether or not the recommendations are appropriate; or should form his/her own view given the person’s investment objectives, financial situation and particular needs. Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by BBY, its associates, officers, directors, employees and agents. A full international disclaimer is contained on the final page of this report. Linc Energy Limited On Track to Convert Clean Coal into Diesel Fuel

LNC $0.18
BUY
24 November 2006 S&P/ASX 200 28 April 2006 XJO Jeremy Tobias
+612 9226 0086
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BBY maintains its BUY recommendation on Linc Energy (LNC) with a DCF valuation of A$1.52/s and 12-month price target of A$0.60/s. At its recent AGM, the company issued a progress report on its operations. We highlight that the company is now less than 7 months away from the commissioning of its pilot plant (May/June 2007 - significantly ahead of prospectus forecasts). BBY expects a re-rating of the stock as the company progresses towards this key milestone. We also note a considerable amount of media interest in clean-coal technology, driven by the worldwide focus on climate change.

The companyis well advanced in:
(i) its coal drilling explorationprogram,
(ii) the initial design of the Gas to Liquids (GTL) demonstration plant,
(iii) EIS and Approvals, and
(iv) theappointment of experienced personnel to drive the project.
Key areas of progress