ABN: 60 076 157 045 ACN: 076 157 045 Smellie & Co Building, 32 Edward Street (GPO Box 1315) BRISBANE QLD 4001 Telephone: (07) 3229 0800 Facsimile: (07) 3229 6800 ASX ANNOUNCEMENT 5 October 2010 LINC ENERGY ENTERS INTO MOU WITH GFZ (GERMANY) FOR CARBON CAPTURE AND STORAGE (CCS) IN UCG CAVITIES • Linc Energy signs MOU with leading European research centre, GFZ, to develop carbon capture & storage technology for UCG projects Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to announce it has entered into a Memorandum of Understanding (MOU) with a leading German carbon capture and storage (CCS) research centre to develop and apply CCS technology to Company’s Underground Coal Gasification (UCG) operations. Signed with Helmholtz Centre Potsdam GFZ German Research Centre for Geosciences (GFZ) based in Potsdam, Germany, the MOU establishes a framework for an exclusive working relationship for potential UCG and CCS projects. Under the terms of the agreement, GFZ will work on combined UCG and CCS exclusively for Linc Energy over the next 3 years and will conduct research to confirm the extent of CO2 storage available in remaining UCG cavities once the UCG process is complete. Linc Energy has agreed to contribute €24,000 per quarter towards the UCG-CCS research and will retain ownership of all intellectual property developed. Academic evidence exists which indicates that UCG cavities are capable of absorbing significant quantities of CO2. This research also suggests that UCG cavities could absorb up to 400 times more carbon than traditional CCS methods due to the effect of the UCG process on the surrounding coal seam. Peter Bond, CEO of Linc Energy, said, “This agreement indicates just how committed Linc Energy is to utilising stranded coal for the cleanest possible energy products, such as power and fuels, and demonstrates our intentions to create a carbon neutral commercial operating environment.” “It is well known that UCG cavities provide one of the best opportunities to store CO2 on a commercial scale. Work resulting from our agreement with GFZ will confirm the exact quantity of CO2 to be stored, including modelling the process and its applications.” Page 1 of 2 ASX ANNOUNCEMENT CONTINUED… “Combined UCG and CCS technologies will make Linc Energy’s UCG process carbon neutral, and we look forward to working in close collaboration with GFZ over the next three years. With a potential efficiency of 400 times that of other CCS methods when storing CO2 in UCG cavities, UCG operations could end up providing the CO2 sinks required in many parts of the world whilst also producing cleaner energy. Ironically, depending on the price that the world ultimately places on carbon, the UCG cavities themselves may have a comparable assets value to that of the energy produced from them” he said. Peter Bond Chief Executive Officer Information for Media: ASX Contact: Information for Investors: Greg Meyer Craig Ricato Anton Rohner Media Manager Director, Legal & Corporate Affairs Chief Financial Officer Phone: +61 7 3229 0800 Phone: +61 7 3229 0800 Phone: +61 7 3229 0800 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Company Profile Linc Energy is an innovative, forward-thinking company developing a significant energy business based on the production of cleaner energy solutions. Linc Energy has successfully combined two known technologies, Underground Coal Gasification (UCG) and Gas to Liquids (GTL) and has demonstrated its vision of being a leading supplier of a new source of cleaner liquid transport fuels for the future. UCG technology provides access to coal, deep underground and by in-situ gasification produces a high quality synthesis gas (syngas) containing carbon monoxide and hydrogen. Aboveground, in the GTL process, syngas is processed via Fischer-Tropsch technology to produce high quality, sulphur free synthetic hydrocarbons. Linc Energy plans to combine its UCG and GTL technologies commercially at sites in Australia and around the globe as it realises its vision of becoming the world’s leader in providing cleaner synthetic diesel and jet fuels from stranded coal resources. UCG produced syngas can also be used as a feedstock to generate gas turbine combined cycle power, resulting in reduced greenhouse gas emissions. With significant coal deposits suitable for UCG technology, Linc Energy can provide alternative sources of liquid fuels and power generation well into the foreseeable future. Linc Energy represents a new future for liquid fuels production and high efficiency energy generation. Page 2 of 2 .