Linc Energy Limited (ASX:LNC) Upgrades Coal Mineralisation Target to 5.0-5.5 Billion Tonnes

Brisbane, Aug 24, 2009 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC)(PINK:LNCGY) is very pleased to report that initial results from its Galilee Basin tenement area have exceed expectations and provided the basis for a significant increase in the Company’s coal mineralization exploration target from 3.0 - 3.4 billion tones to 5.0 - 5.5 billion tonnes in accordance with the JORC Code. MDLa 372 covers an area of some 261 km2.

The initial drilling program for MDLa 372 commenced in early June and is now approximately two-thirds complete with over 6,500 metres drilled to date. Drilling has confirmed that the Permian age coal seams in the tenement area are attaining cumulative thicknesses in excess of 35 metres within the central part of the tenement. Only slight thinning is in evidence to the north of this central area. Coal has been intersected at approximately 65 to 70 metres depth at the sub-crop implying a strip ratio of around 4 to 1 in the area targeted for open cut mine development.

Linc Energy has also received preliminary coal quality laboratory results for five of the core holes with raw ash results in the range 15-30 percent confirming that potentially high product coal yields at ash levels consistent with high quality thermal coal can be realised. Further washability studies are now underway to increase confidence in the expected product coal quality.

Xenith Consulting Pty Ltd was engaged to review the previously reported (June 12th 2009) coal mineralisation exploration target and have confirmed the significant increase to 5.0 - 5.5 billion tonnes1 in accordance with the JORC Code. This revision includes an extension of the seams to the western boundary of the tenement with a series of wide spaced holes.

Xenith's work has allowed the nature of the increased exploration target to be clearly quantified and is assisting with revised planning for the extended and accelerated Galilee program. Acceleration is by way of a second drill rig that will be mobilised this week. Linc Energy remains committed to completing an initial resource statement in accordance with the JORC Code by November.

22 holes (of which 14 are cored holes) in the initial exploration program have been completed to date. All coal seam samples have been logged and ply samples sent to a coal quality laboratory in Emerald. The logging has shown that the coal seams (identified as the AB, C, D, E and F) are easily correlated and identified and can be shown to be contiguous across areas where the new exploration holes have been completed. This work is providing greater confidence in the lateral distribution of the seams. The two thickest coal seams (AB and D) are shown to each range from 10-15 metres thick. The total area covered by the initial exploration program is of the order of 180 km2.

In announcing the preliminary results of the exploration program, Linc Energy's Chief Executive Officer Mr Peter Bond remarked that "we have known for some time that our tenement in the Galilee Basin represent a fantastic opportunity with significant potential to host a large, long-life, low cost open cut thermal coal mine. These results are very exciting and confirm the value of this tenement. That value will continue to increase as Linc accelerates its exploration work so that we can fully comprehend the enormous potential of this resource in the shortest possible time."

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