Linc Energy is pleased to announce their “Interim Drilling Results” up until the 31st December 2006.

The attached interim drilling report by Triassic Geological Services Pty Ltd is a significant step towards Linc Energy achieving the Board’s “target” of proving approximately 300 million tonnes of coal resource at Chinchilla. This report indicates that Linc Energy is progressing extremely well towards that goal.

The Board is very pleased with these early indications as 300 million tonnes was originally chosen as the company’s initial drilling target, as that coal resource size would potentially supply approximately 60 years of coal to Linc Energy’s proposed Underground Coal Gasification (UCG) project and associated 20,000 barrels per day gas to liquids (GTL) facility.

Linc Energy will recommence its drill program in approximately ten days using its own drill crew and rig. As a result of this encouraging data, the drill program will now be expanded, stepping out at approximately 1km settings to the north, north-west and west of MDL305.

One of the drivers of the drill program is to detail and prove the Chinchilla coal resource in size and scope with Linc Energy intending to in-fill drill the Chinchilla coal deposit so as to meet relevant JORC Measured Resource requirements over the coming six months. It is worth noting that Linc Energy holds EPC’s (835) above and adjoining (to the north and north-west) EPC635 allowing some flexibility and expansion in its drilling program.

As is mentioned in the attached geological report (Attachment A) by Linc Energy’s Geological Consultants, Linc Energy is awaiting the drilling of approximately ten more core holes in order to finalise the JORC measurement of the coal already identified.

However as noted in the report, there have already been over eighty (80) exploration drill holes in that Chinchilla resource, completing some 12,198 metres of drilling in total. This number of drill holes will, in all probability, be doubled as Linc Energy moves forward in its continued and expanded drilling program not only in its quest to confirm its existing resources to JORC standards, but additionally so as to expand the Chinchilla resource beyond this original 300 million tonne target.

If you require further information, please contact Peter Bond on (07)
3229 0800.
Level 7, 10 Eagle St.,
(GPO Box 1315),
Brisbane, QLD 4001
Telephone: (07) 3229 0800
Facsimile: (07) 3229 6800
ABN: 60 076 157 045
ACN: 076 157 045
22 February 2007

Australia’s leader in clean coal technology www.lincenergy.com.au