Linc Energy Limited (ASX:LNC) Escapes Queensland Flood Damage

Brisbane, Jan 11, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) advises that despite recent widespread flooding across Queensland, including the lower lying areas of Chinchilla (Queensland), Linc Energy and its staff in Chinchilla have managed to escape flood damage to the site and staff homes.

The Chief Executive Officer, Mr Peter Bond, said that despite what has been some of the worst flooding the district had seen in many decades, Linc Energy's Underground Coal Gasification (UCG) and Gas to Liquids (GTL) demonstration facility also managed to escape serious flood damage. Much of this was due to Linc Energy constructing its major equipment upon a built-up pad of roadbase, which lifted the majority of Linc Energy's Chinchilla operations up over 900mm (3 feet) above the low lying grasslands.

"Due to road closures initiated on 23 December following flooding in the area, we implemented manning the site with minimum staffing levels. As such, we have been running skeleton crews with a maximum of six personnel on site across two shifts," Mr Bond said.

"We have been ferrying crews in and out by helicopter every three or four days along with food and other essential supplies."

"These skeleton crews have pulled together with a common focus and through their actions we were able to avert any undesirable outcomes for the site during this challenging time."

"I am proud to say that through the actions of these teams we have managed to operate gasifier 4, the wastewater treatment plant and the GTL facility without incident and these crew members have my sincere thanks for an excellent job under extremely adverse circumstances."

"The water across site has now subsided and the teams have been busily pumping water from low lying areas and repairing roadways to create safe access around the site. The outlying areas are still water logged."

"Linc Energy has been offering those members of its workforce who can't get to work, to volunteer to help the local Chinchilla Community in the clean-up. In addition, Linc Energy has donated A$50,000 to the flood appeal to assist those affected by what is the worst flooding in decades, with Linc Energy's staff taking up the challenge to donate individually as well."

"I would like to personally thank all of those who have called and emailed over the past two weeks offering their support - it has been very much appreciated," Mr Bond 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