Linc Energy Limited (ASX:LNC) Completes A Successful A$77.4 Million Capital Raising

Brisbane, Aug 3, 2009 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC)(PINK:LNCGY) has successfully completed an institutional placement of 41,000,000 new ordinary shares at A$1.40 per share to raise A$57.4 million in capital. The placement was heavily oversubscribed, receiving strong support from a range of existing and significant new institutional investors. The placement and the underwriting of the SPP were managed by BBY Limited.

Settlement is scheduled to take place on 7th August 2009 and the placement shares are expected to be allotted and quoted on the Australian Securities Exchange (ASX) on or about 10 August 2009.

The capital raising has been undertaken by the Company to provide additional working capital in order to:

- accelerate and expand the Company's drilling and exploration programs within South Australia and upon its Queensland Galilee basin tenement;

- accelerate the design of the 20,000 barrels per day commercial Gas to Liquids (GTL) facility planned for development in South Australia;

- to complete the 4th Underground Coal Gasification (UCG) generator at the Company's Chinchilla demonstration site in Queensland;

- accelerate site selection, feasibility engineering and design for the first commercial UCG gas field operation within the Company's South Australian tenements;

- complete the previously announced acquisition of the coal tenements located in the Powder River Basin in Wyoming, USA and the establishment of the Company's USA operations;

- complete Stage 1 of the Vietnam project consisting of the UCG pilot operations;

- undertake additional seismic and traditional oil and gas exploration work within the Company's Arckaringa basin tenements in South Australia;

- substantially expand the Company's engineering, research and corporate work force; and

- redeem the majority of convertible notes issued by the Company and cancel the current convertible note facility.

The trading halt that was implemented in respect of Linc Energy securities on 30 July 2009 is expected to be lifted from the commencement of trading today, 3 August 2009.

In addition, following the completion of the placement, Linc Energy will offer eligible shareholders the opportunity to participate in an underwritten share purchase plan (SPP). The SPP will enable eligible ordinary shareholders (shareholders that are on the register at 5pm Sydney time on Wednesday 5th August 2009) to subscribe for up to A$15,000 worth of Linc Energy ordinary shares (subject to obtaining an ASX waiver). The price at which the shares are issued under the SPP will be equal to the institutional placement price of A$1.40. The SPP will be capped at a maximum amount of AU$20 million.

Full details of the SPP will be provided to eligible ordinary shareholders shortly.

Mr Peter Bond, the CEO of Linc Energy, said regarding the Company's placement, "The raising of the A$77.4 million allows Linc Energy to aggressively pursue its core business outcomes of building a world class UCG to GTL business, and take the key steps forward to the commercialisation of that business upon our Sapex tenements in South Australia; as well as expanding our coal tenement and resource footprint across Australia and the world, via acquisitions like the Wyoming Powder River Basin coal purchase. The raise allows Linc Energy to get on with the job and take control of its own destiny, whilst letting the process of the coal asset sales occur at the best time and pricing, which I'm confident in due course will result in an excellent outcome for our shareholders."

For further information please contact Mr Peter Bond.

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