Linc Energy Limited (ASX:LNC) Update Galilee Basin Exploration Program

Brisbane, June 12, 2009 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) is pleased to announce that it has commenced exploration and appraisal drilling of its Galilee Basin tenement area.
Prior to the commencement of drilling, Linc Energy commissioned Xenith Consulting Pty Ltd to review historical data within its Galilee Basin tenement area to confirm the exploration targets. That review has confirmed a significant exploration target coal resource in accordance with the JORC Code of 3.0 - 3.4 billion tonnes. Of this total resource, an open cut exploration target coal resource1 of 1.6 to 1.9 billion tonnes has been identified using an initial cut off depth of 120 metres.

As at today, Linc Energy has completed the first 4 exploration holes of the proposed 39 hole exploration program (24 core holes, 15 chip holes). The program in total will require approximately 12,860 metres of drilling.

Information from the initial 4 holes from Linc Energy's program has confirmed historical geological information in the areas where drilling has been completed. The preliminary geological model is based on 23 exploration drill holes along strike of the deposit completed by the Department of Mines and Energy drilling branch in the late 1970's. These drilling programs were reported in 2 reports which include detailed coal seam logs and coal quality information. This drilling has identified that the 5 main coal seams contain a total cumulative coal thickness of up to 35 metres in the centre of the deposit, thinning slightly towards the north.

The target coal seams are contained within the Galilee Basin late Permian coal measures in the area near Moray Downs, approximately 160 km NW of Clermont in Central Queensland.

Linc Energy's tenement covers an area of 260 square km and is approximately 35 km long along the strike of the coal seams and approximately 5 km wide. The late Permian coal measures are characterised by five thick coal seams, with the two thickest seams shown to each range from 10-15 metres thick. The Galilee Basin coals are characterised as high volatile, low sulphur, low-rank thermal coals.

In response to these initial results, Mr Peter Bond, Linc Energy’s Chief Executive Officer said "Our Galilee area contains one of the most exciting open cut thermal coal resources that I have seen. Given the anticipated quantities and depth of the coal, it has the potential to provide the resource base for a very large, long life, open cut thermal coal mining operation. Our initial drilling results are confirming my view about the significant value of these tenements. Once this initial program is completed, it is our intention to continue our exploration work to further delineate the resource and maximise shareholder value until such time as the tenement is sold and this value realised. The value once realised will be yet another factor which will allow the Company to continue to move quickly to commercialisation of UCG to produce GTL fuels like ultra clean diesel and Jet A1."
"The quality of Linc Energy's Galilee coal tenements and recent announcements by competing coal interests regarding mine and infrastructure development in this area, reinforce my view that the Galilee basin will in the near term become Queensland's next major thermal coal export province".

Contact

Mr Peter Bond Chief Executive Officer Phone: +61 7 3229 0800 E-mail: pab@lincenergy.com.au ASX Contact: Mr Craig Ricato Company Secretary Phone: +61 7 3229 0800 E-mail: cr@lincenergy.com.au Information for investors: Ms Janelle van de Velde Manager, Investor Relations & Corporate Communications Phone: +61 7 3229 0800 E-mail: jcv@lincenergy.com.au