Linc Energy Limited (ASX:LNC) Continues Memorandum Of Understanding With BP Australia

Brisbane, Jan 25, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) is pleased to announce it will continue its Memorandum of Understanding (MoU) with BP Australia Pty Ltd.

The MoU entitles BP Australia to take at least 70 per cent per day of produced synthetic diesel fuel from Linc Energy's Underground Coal Gasification (UCG) to Gas to Liquids (GTL) facility proposed for South Australia. This is the equivalent of about 14,000 barrels each day.

"I look forward to continuing our strong relationship with one of the world's most recognised energy companies," said Bond.

Linc Energy owns and operates the world's only UCG to GTL facility and has proven the in-situ conversion of solid coal to gas for cleaner synthetic fuel production. The facility is based near Chinchilla in Queensland.

"Linc Energy is leading the way in UCG for cleaner energy products. Our Chinchilla Demonstration Facility places the company in an ideal position to commercialise UCG to fuel the future for generations to come. And with Linc Energy's push into the USA expanding each quarter, I expect UCG to GTL (fuel) to play a big part in North America's and Australia's energy mix in the very near future," he said.

Contact

Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Brook Burke Company Secretary Phone: +61-7-3229-0800 E-mail: brook.burke@lincenergy.com.au Information for Investors: Anton Rohner Chief Financial Officer Phone: +61-7-3229-0800 E-mail: anton.rohner@lincenergy.com.au http://www.lincenergy.com.au