Linc Energy Limited (ASX:LNC) Exxaro Resources and LNC explore UCG Opportunities in Africa

Brisbane, Nov 25, 2011 AEST (ABN Newswire) - Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY), an Australian diversified energy company and Exxaro Resources Limited (JNB:EXX) (Exxaro), South Africa's second largest coal producer, are pleased to announce the execution of a MOU to jointly evaluate opportunities for UCG on Exxaro's coal tenements in South Africa and Botswana.

Africa has a wealth of unmineable (too deep, low grade) coal resources, which can be exploited by UCG to increase coal resource availability. UCG is known to reduce the safety issues, surface damage and mine collapse issues associated with conventional coal mining. As a result, Exxaro has decided to explore this opportunity, which will enhance the African economy by monetizing previously unmineable coal resources.

Linc Energy has been actively seeking UCG opportunities in Southern Africa and signalled its intent to enter the region during the first half of this year. Linc Energy and Exxaro will jointly evaluate certain of Exxaro's coal tenements for UCG suitability.

"This opportunity aligns with Exxaro's strategy to enter the cleaner energy market," said Exxaro Executive General Manager for business growth, Ernst Venter.

"The execution of this MOU supports Linc Energy's global energy production strategy. By jointly evaluating Exxaro's coal tenements we can identify coal suitable for UCG to supply much needed energy in this region," said Linc Energy Chief Executive Officer Peter Bond.

"Southern Africa is struggling to meet the power and gas demands of its population. This opportunity gives us the potential to identify potentially suitable coal within the region to produce synthesis gas for cleaner power generation or methanated gas (from UCG) for use in the Southern African gas market," said Mr Bond.

"Simply put, this opportunity aligns with Linc Energy's plans of developing commercial UCG around the globe to energy-hungry regions. It dovetails on the back of our recent UCG MOU with UK Coal to pursue similar commercial options in the United Kingdom and Europe. What you're witnessing are the first clear steps of Linc Energy rolling out its 5th generation UCG technology on a commercial path which I'm personally very excited about," Mr Bond said.

Contact

Peter Bond Chief Executive Officer Linc Energy Limited Ernst Venter Executive General Manager, Business Growth Information for Investors: Justyn Peters General Manger Investor Relations Linc Energy Limited Phone: +617-3229-0800 Email: justyn.peters@lincenergy.com Wim de Klerk Finance Director Exxaro Resources Phone: +27-12-307-4848 Email: Wim.DeKlerk@exxaro.com