Linc Energy Limited (ASX:LNC) Updates On Carmichael Coal Mine Asset

Perth, Dec 16, 2010 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (OTCQX:LNCGY) is pleased to announce the progress that Adani has made since they completed the acquisition in August 2010. In the last three months Adani has opened a Brisbane office, filed a Mining Lease application (MLa 70441), commenced extensive drilling on the site, filed an Initial Advice Statement and appointed consultants to conduct the Environmental Impact Statement (EIS). Late last month, the Carmichael coal mine and rail project was declared a significant project by the State Government.

Linc Energy will continue to update the market in respect of the progress on this asset and the increased activity by Adani of the now renamed Carmichael Coal tenement (formerly Galilee). It is self-evident that the royalty agreement Linc Energy has with Adani becomes increasingly more valuable the greater the progress Adani attains, continuing until production of the first tonne of coal from the Carmichael coal mine is delivered in 2014.

Mr Peter Bond, Chief Executive Officer said, "With confirmation recently that the Adani Group plans to commence production by 2014 and produce up to 60 million tonnes of coal per annum, I'd like to wish Mr Adani and the Adani Group all the success for the future with the Carmichael Coal tenement. The success of this mine will not just be a great achievement for Adani and Linc Energy, but will be a great asset for Queensland and indeed Australia. Life of mine revenues from the Carmichael coal operation could exceed A$90 billion and this wealth contributes significantly to Australian society whilst also delivering the required energy for the modernisation of a burgeoning India. All of this starts with the employment of hundreds of local employees and contractors involved with this project at ground level. We really are involved with something special here."

Contact

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