BBY Limited
ABN 80 006 707 777 Participant of Australian Stock Exchange Group and regulated by the Financial Services Authority (FSA) in the UK
Melbourne Sydney London Internet
Tel: 61 3) 9226 0000 Tel: 61 2) 9226 0000 Tel: 44 207) 618 3730 http://www.bby.com.au/
Fax: 61 3) 9226 0244 Fax: 61 2) 9226 0066 Fax: 44 207) 618 3777

This report may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts.

Before making and investment or trading decision, the recipient must consider market developments subsequent to the date of this document, and whether the advice is appropriate in light of his or her financial circumstances or seek further advice on its appropriateness or should form his/her own independent view given the person’s investment objectives, financial situation and particular needs regarding any securities or Financial Products mentioned herein. 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
A$28.3M Capital Raising Funds Linc Until Early CY09
LNC A$0.92
BUY
31 October 2007
S&P/ASX 200 20 July 2007 XJO Jeremy Tobias
+612 9226 0086
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

BBY maintains its BUY recommendation on Linc Energy Limited (LNC) after the company announced that it had raised A$28.3M through the issue of 37.3M shares at A$0.76/sh.

The majority of the funds raised will be applied to:
(i) the 20,000 barrel per day GTL Bankable Feasibility Engineering Study (A$9M);
(ii) Working Capital (A$7.8M);
(iii) a 5mW gas turbine power unit (A$3.6M); and
(iv) Exploration Activities (A$2M).

The additional funds will also allow LNC to expand its other national project in South Australia, as well as international projects in Vietnam, India and China. We understand that LNC’s funding requirements are now satisfied through to early CY09. We have slightly lowered our DCF valuation to A$1.49/sh (prev A$1.51/sh) to take into account the dilution from the capital raising. However, our share price target has been increased to A$1.25/sh (prev A$1.00/sh). We believe that, post the capital raising, LNC’s share price should continue to appreciate in the lead up to completing construction of the pilot GTL plant expected by the end of CY07. Key take-outs from the equity placement