Linc Energy (ASX:LNC) Teresa Coal Asset Update

Brisbane, Nov 22, 2010 AEST (ABN Newswire) - Linc Energy (ASX:LNC) (OTCQX:LNCGY) is pleased to announce that it is currently working with potential buyers of the Teresa coal resource whilst continuing to develop and de-risk the asset even further with four more core holes drilled in the resource and more detailed work around port and rail access.

The Teresa coal resource is located approximately 17 kilometres north of the major regional town of Emerald in the prolific Bowen Basin and comprises of three adjoining coal tenements, EPC's 980, 1267 and 1226. Linc Energy has completed four new holes on the coal resource to better define the coal quality. Coal quality has been re-confirmed as a semi-soft coking coal, with some PCI potential. Further drilling is planned for later this year, with particular emphasis on the areas to the north-east of the block (adjacent to the BHP's (NYSE:BHP) (ASX:BHP) Crinum mine and Rio-Tinto's (NYSE:RIO) (ASX:RIO) Kestrel extended coal areas) with the aim of developing more coal at depth and focusing on the German Creek seam and other coking coal zones of interest.

Teresa is approximately 400km by rail to the Gladstone coal export terminal and is currently connected to this route via the rail line that crosses the tenement area.

Linc Energy is pleased to confirm that it will participate in the feasibility process for Stage 2 of the expansion of the Wiggins Island Coal Export Terminal at Gladstone whilst continuing to explore all other viable options for both rail and port logistics.
Linc Energy is also planning to conduct an Environmental Impact Statement (EIS). The work on the EIS will begin in early 2011 and will enable this asset to progress to a full coal mine lease and be ready to commence mine construction, thus increasing the value of the asset.

Earlier this year, Linc Energy commissioned Minecraft Consulting to conduct a conceptual study and they concluded that the Teresa coal resource offers the potential to support an underground long-wall operation. Linc Energy believes that the Teresa coal resource is capable of producing in the order of 5.5 Mt per annum.

In announcing this ongoing work, Linc Energy's Chief Executive Officer, Mr Peter Bond commented that; "It is important that we continue to develop this world class asset irrespective of how close we believe we are to a coal sale."

"Without diminishing our ongoing coal sales activities, we are very confident that by completing a number of these improvements to the Teresa resource, we are adding value to this coal asset which will contribute significantly to shareholder wealth. In addition we know by experience, that by adding value and pursuing all available options, we will deliver the best sales outcome. As always I look forward to providing an update in the near future on the progress of the Teresa coal asset sale." 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