ABN: 60 076 157 045
ACN: 076 157 045
Level 7, 10 Eagle St
(GPO Box 1315)
BRISBANE QLD 4001
Telephone: (07) 3229 0800
Facsimile: (07) 3229 6800

ASX ANNOUNCEMENT / MEDIA RELEASE
16 October 2008

XINWEN RECONFIRMS PROGRESS ON PURCHASE OF EMERALD “TERESA” COAL TENEMENTS

Following meetings this week with the Xinwen Mining Group Ltd of China (“Xinwen”) in Beijing, Linc Energy (ASX : LNC) confirms that the Xinwen Board has approved the purchase of Linc Energy’s Emerald “Teresa” coal tenements. This approval follows successful completion of the due diligence process.

Further, the companies have agreed to an extension of the Heads of Agreement prior to the completion of AU$1.5 billion transaction whilst Xinwen obtain Chinese regulatory approval to enter into the formal contract. Linc Energy also confirms that throughout the due diligence period and during this extension period, the Company’s drilling program on the Emerald “Teresa” tenements is continuing so as to further define and expand the coal deposit. (Please refer to the attached photographs of drilling activities at Emerald).

For further information about the sale of the Emerald “Teresa” coal tenements, please contact Peter Bond.

Peter Bond
Chief Executive Officer

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ASX ANNOUNCEMENT / MEDIA RELEASE

Information for Media:

Mr Peter Bond
Chief Executive Officer
Phone: +61 7 3229 0800
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
ASX Contact:
Mr Craig Ricato
Company Secretary
Phone: +61 7 3229 0800
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Information for investors:

Ms Janelle Van de Velde
Manager, Corporate Services &
Investor Relations
Phone: +61 7 3229 0800
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Company Profile

Linc Energy is an innovative, forward thinking energy company and Australia’s leader in clean coal technology. The company’s vision is to become a dominant player in the supply of more environmentally friendly power, diesel and jet fuel. Linc Energy aims to achieve this vision by bringing together, for the first time anywhere in the world, two proven production processes known as Underground Coal Gasification (UCG) clean coal technology and Gas to Liquids (GTL). These processes will economically convert vast “stranded” coal deposits into ultra clean liquid fuels.

Linc Energy will also use the Syngas produced from UCG clean coal technology as feedstock for gas turbines to generate much needed environmentally friendly electricity.

The company has a unique leading edge capacity to provide a viable, more sustainable and smart alternative source of liquid fuels and power generation well into the foreseeable future. Linc Energy represents a new future for liquid fuels production and power generation.

ASX ANNOUNCEMENT / MEDIA RELEASE
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