Linc Energy Limited (ASX:LNC) Secures A$81 Million In Additional Funding

Brisbane, Mar 30, 2010 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) is pleased to announce that it has today entered into a Convertible Loan Agreement (Agreement) with the New York institutional investor SpringTree Special Opportunities Fund, LP (SpringTree), managed by SpringTree Global Investors, LLC, for the provision of additional funding which will replace the undrawn AU$20 million Yorkville Advisors (formerly Cornell Capital Partners LP) facility.

Under the Agreement, SpringTree will provide funding of up to AU$81,500,000 with a minimum available commitment of AU$54,000,000.

The facility may be drawn monthly in a minimum amount of AU$4,500,000 or following agreement between the parties up to AU$7,000,000 less administration fees of 5% of the amount advanced in that month.

A summary of the material terms of the Agreement follows:

Available Commitment:
Up to AU$81,500,000 with a minimum available commitment of AU$54,000,000.

Interest:
1% per annum accruing on each Tranche Amount that remains outstanding from the date a Tranche Amount is drawn until it is repaid.

Drawings:
The Company may draw a Tranche Amount each month during the term of the Agreement.

Repayment:
The Company must repay a Tranche Amount on the day that is 31 days after the drawing of that Tranche Amount (Repayment Date).

A Tranche Amount is repaid by an issue of a number of ordinary shares equal to the Tranche Amount divided by the average of 5 daily VWAPS per ordinary share during a specified period prior to the Repayment Date.

Security:
The facility is secured by 3,000,000 ordinary shares in the Company. The security will be applied to the repayment of the final Tranche Amount.

Quotation:
The Company will apply for quotation of the ordinary shares issued upon repayment of each Tranche Amount.

Peter Bond, CEO of Linc Energy, said today, "The SpringTree Agreement increases our available funds and will replace the Yorkville convertible note facility which has remained undrawn for about 3 years. The SpringTree facility is on good terms and very user friendly. Whilst it is not Linc Energy's only available funding option, this facility is certainly a very good alternative which provides the Company with the flexibility to continue to execute its business plan for the foreseeable future and prior to the conclusion of a coal asset sale. The facility has the added benefit of being able to be cancelled by the Company at any time if it is no longer required."

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