Linc Energy Limited (ASX:LNC) Receives Positive Report For Chinchilla Underground Coal Gasification Project

Brisbane, Jan 31, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) confirm that it is business as usual for the Company's Chinchilla Underground Coal Gasification (UCG) to Gas to Liquids (GTL) demonstration facility in south west Queensland.

This follows the announcement last Friday by Queensland Minister for Climate Change and Sustainability, The Honourable Kate Jones, to end Cougar Energy's (ASX:CXY) Kingaroy UCG trial on the basis that Cougar Energy could not demonstrate to the Department of Environment and Resource Management and the Independent Scientific Panel that it could recommence its operations without an unacceptable risk of causing environmental harm.

The Company is pleased to note that the same Independent Scientific Panel in its report on Linc Energy acknowledged Linc Energy's database containing a considerable quantity of information, its significant technical capacity, the fact that the Chinchilla demonstration facility is regarded as world's leading practice and its willingness and openness in discussing its operations.

The Queensland Government has accepted the Independent Expert Panel's recommendation that Linc Energy's demonstration facility continue as planned. The Company remains on track to complete its demonstration facility trials in accordance with its previously announced timelines.

Mr Peter Bond, Chief Executive Officer, said, "Linc Energy's superior technological capacity together with its dedication and commitment to professional environmental management has resulted in this pleasing outcome as we approach commercialisation of this valuable technology."

"This is an endorsement of our operations and of our unwavering commitment to environmental management and the wellbeing of the community around which we operate."

Mr Bond confirmed that Linc Energy is not currently subject to any environmental evaluation notices and that all reports provided to the Queensland Government have been accepted.

"The decision by the Queensland Government to shut down Cougar Energy's Kingaroy UCG operation is a matter between an operator and the Queensland Government regulator and is not a comment upon UCG as an industry. The fact that Linc Energy's technical capabilities are acknowledged as world's leading practice reinforces this."

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 http://www.lincenergy.com.au