ASX ANNOUNCEMENT

25 November 2011

EXXARO RESOURCES AND EXPLORE UCG OPPORTUNITIES IN

 Exxaro Resources and Linc Energy sign a Memorandum of Understanding (MOU) to study joint Underground Gasification (UCG) opportunities on certain of Exxaro’s coal tenements in and Botswana Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) (Linc Energy), an Australian diversified energy company and Exxaro Resources Limited (JSE: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

For personal use only use personal For 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. For more information please contact Exxaro on +27 12 307 5000 or Linc Energy on +6 17 3229 0800 or visit www.lincenergy.com.

Peter Bond Ernst Venter Chief Executive Officer. Executive General Manager, Business Growth

Information for Media: JSE/ASX Contact: Information for Investors:

Exxaro Resources: Exxaro Resources (JSE:EXX): Exxaro Resources: Ernst Venter Carina Wessels Wim de Klerk Executive GM, Business Growth Company Secretary Finance Director Phone: + 27 12 307 4322 Phone: + 27 12 307 4384 Phone: +27 12 307 4848 Mobile: + 27 83 609 1313 [email protected] [email protected] mailto:[email protected]

Linc Energy Linc Energy (ASX:LNC) Linc Energy Heather Stewart Brook Burke Justyn Peters Media Manager Company Secretary General Manager Investor Phone: +61 7 3229 0800 Phone: +61 7 3229 0800 Relations [email protected] [email protected] Phone: +61 7 3229 0800 [email protected]

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About Linc Energy

Linc Energy is a globally focused, diversified energy company with a strong portfolio of coal, oil and gas deposits. It is Linc Energy’s purpose to unlock the value of its resources to produce energy to fuel the future. A publicly listed company, Linc Energy is the global leader in Underground Coal Gasification (UCG), which delivers a synthesis gas feedstock to supply commercially viable energy solutions – such as electricity, transport fuels and oil production – through gas turbine combined cycle power generation, Gas to Liquids (GTL) Fischer-Tropsch processing and Enhanced Oil Recovery. Linc Energy has constructed and commissioned the world’s only UCG to GTL demonstration facility located in Queensland, . This facility produces the world’s only UCG to GTL synthetic diesel fuel. Linc Energy also owns the world’s only commercial UCG operation, Yerostigaz, located in Uzbekistan. Yerostigaz has produced commercial UCG synthesis for power generation for 50 years. Linc Energy is on a rapid global expansion path to commercialise its portfolio of resources, with established offices across three continents in the United States, the United Kingdom and Australia. Linc Energy is listed on the Australian Securities Exchange (LNC) and can also be traded in the United States via the OTCQX (LNCGY).

About Exxaro Resources Limited Exxaro is one of the largest South African-based diversified resources companies, with coal, mineral sands, base metals and ferroalloy assets. The company’s market capitalisation is about US$10 billion, with a turnover of US$2.5 billion. It is a top 40 company listed on the Johannesburg Stock Exchange in terms of market capitalisation, with approximately 10 000 employees and a geographic spread spanning South Africa, Namibia, Australia and China, and potential growth projects in other countries. Exxaro is the second largest coal producer in South Africa. In 2010, Exxaro made coal sales totalling 47 million tonnes, 4 million of which was exported. The group supplies more than 30 per cent of the nation’s power station coal demand. Exxaro’s mineral sands operations include KZN Sands and Namakwa Sands in South Africa, and Australia Sands whose principal asset is a 50% share in the Tiwest joint venture with Tronox Inc. Exxaro is one of the world's top three producers of zircon and chlorinatable TiO2 slag.

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Contact us

Linc Energy Exxaro Resources Limited ABN: 60 076 157 045 Tel + 27 12 307 5000 ACN: 076 157 045 Fax + 27 12 307 4760 Smellie & Co Building, Roger Dyason Road, Pretoria West, 0183, South Africa 32 Edward Street PO Box 9229, Pretoria, 0001, South Africa (GPO Box 1315) www.exxaro.com BRISBANE QLD 4001

Telephone: (07) 3229 0800

Facsimile: (07) 3229 6800

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