Linc Energy Limited (ASX:LNC) Quarterly Activities Report For June 2009

Brisbane, July 27, 2009 AEST (ABN Newswire) - Over the past quarter, Linc Energy Limited (ASX:LNC)(PINK:LNCGY) signed a purchase agreement with Wyoming-based GasTech Inc to acquire 92,059 acres of Powder River Basin coal tenements. Based on existing drilling data the tenements are expected to have a total coal deposit exploration target range of 7 to 8 billion metric tonnes (non-JORC Code standard). Entry into the Powder River Basin is an important step for Linc Energy's international expansion program. The Powder River Basin currently represents over 45 per cent of surface mine production in the United States.

The coal tenements acquired by Linc Energy contain multiple sub-bituminous seams, ranging from 6 to 15 metres thick and at depths in excess of 150 metres making them excellent targets for Underground Coal Gasification (UCG).

Linc Energy agreed to pay US$5 million for the purchase of the GasTech Inc coal tenements. This purchase agreement is the first stage of the GasTech Inc acquisition, following the Letter of Intent between GasTech and Linc Energy dated 3 December 2008. The remaining tenements to be purchased are subject to further transaction pending pre-emptive rights held by a major petroleum company.

A UCG pilot program to produce synthesis gas is scheduled for completion 24 months from the completed acquisition.

Appointment of UBS Investment Bank for the divestment of coal assets - Emerald, Galilee and Pentland On 24th June 2009, Linc Energy appointed global investment bank UBS to manage and advise on the strategic divestment of Linc Energy's non-core coal assets, known as high potential coal mining areas Emerald (Teresa), Galilee and Pentland, with a total area in excess of 650km2 and containing significant coking and thermal coal deposits.

Although negotiations with the Chinese coal group Yanzhou Coal had been ongoing, continued exclusive discussion were assessed as no longer in the best interests of Linc Energy.

With interest from potential bidders and increasing overall confidence in the coal sector improving significantly, Linc Energy entered into a competitive sales process to deliver shareholder value. The appointment of UBS to manage this divestment process will not delay or impact Linc Energy's UCG to GTL domestic or international commercialisation process.

Commencement of Stage 1 of the UCG Project in Vietnam

The company announced the successful completion of negotiations with its project partners, Marubeni Corporation, the Vietnam National Coal - Mineral Industries Group (VINACOMIN) and Song Hong Energy of the Civil Works Contract and Works Contract to undertake Stage 1 of the UCG Tonkin project in the Red River Delta region of Vietnam. The main aim of this project is to deliver power to over six million households in Vietnam using the Company's UCG technology. Stage 1 of the project will involve the development and operation of a trial UCG field in the Red River Delta region over the next 12 months.

The project is now underway with the main focus being on finalising investment licence applications and engineering.

Coal to Liquids Demonstration Plant Official Opening

Linc Energy officially opened its Chinchilla Demonstration Facility on Wednesday, 22nd April with strong support from international project partners and Government representatives. The official opening of the Company's Demonstration Facility followed the day after the signing of the agreements to commence Stage 1 of the Red River Delta UCG Project in Vietnam as outlined above.

Appointment of Chief Financial Officer

Mr Rob Stratford was appointed to the role of Chief Financial Officer on 20th April 2009. Prior to joining Linc Energy, Mr Stratford was Alinta/AGL's Chief Financial Officer where he was responsible for the financial operations of that business which had a current annual turnover of approximately A$1.5 billion.

Appointment of UCG General Manager

Mr Daryl Rattai was appointed to the role of General Manager, Underground Coal Gasification Division shortly after the end of the quarter on 14 July 2009. Mr Rattai commences with the Company on Monday 3 August 2009. Prior to joining Linc Energy, Mr Rattai was Vice President Operations at SunOcean Energy Limited. Mr Rattai holds a Bachelor of Science in Petroleum Engineering as well as a Petroleum Technology Diploma and is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. He has over 20 years experience across a range of companies in the oil and gas industries throughout Canada, USA, Australia and other locations. His experience includes the management of capital projects and production operations producing natural gas, light oil and associated liquids rich gas from wells ranging in depth from 400 to 3,500 metres.

For the complete Linc Energy Quarterly Activities Report for June 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61114-ASX-LNC-212194.pdf

Contact

Information for Media: Mr Peter Bond Chief Executive Officer Tel: +61-7-3229-0800 Email: pab@lincenergy.com.au ASX Contact: Mr Craig Ricato Company Secretary Tel: +61-7-3229-0800 Email: craig.ricato@lincenergy.com.au Information for investors: Ms Janelle van de Velde Manager, Investor Relations & Corporate Communications Tel: +61-7-3229-0800 Email: janelle.vandevelde@lincenergy.com.au