Linc Energy Limited (ASX:LNC) Update on Teresa Coal Sale

Brisbane, Aug 8, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) wishes to announce that the sale process for its Teresa coal tenement, located in Queensland, Australia, is continuing with the Company having received a strong level of interest from a number of parties and now progressing to the final stage of negotiations with the top four bidding groups prior to binding offers.

At the completion of the current phase of discussions and negotiations Linc Energy aims to reach a binding agreement with one of the remaining parties, supported by a cash deposit.

Whilst recent State and Federal legislative and regulatory changes have had to be addressed during the sale process, impacting upon initial completion timeframe estimates, the Company has continued to observe a strong level interest from overseas investors in securing access to Australian coal resources. As such, the Company remains committed to achieving a positive outcome from the Teresa coal tenement sale process in the near term.

Mr Peter Bond, Linc Energy's CEO, said "The timing of the sale of any coal asset and indeed even who the final buyer will be is often difficult to predict during a sale process. The circumstances driving each potential buyer, even though similar in philosophy, have very different timetables and requirements. From my discussions with potential suitors for the Teresa coal asset, the recent stock market correction does not appear to have affected their long term view or their immediate requirements."

Separately to the discussions with potential buyers, Linc Energy has continued to develop the Teresa coal mine operation, having lodged a mining lease application and commenced the environmental impact study, whilst also addressing mine infrastructure, rail transportation and port access requirements. This ongoing development work continues to add value to the Teresa coal asset.

Negotiations regarding the Teresa coal tenement sale process remain confidential at this time, however Linc Energy will continue to update to the market as the pace of negotiations quickens.

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: Justyn Peters General Manager Investor Relations Phone: +61-7-3229-0800 E-mail: anton.rohner@lincenergy.com.au http://www.lincenergy.com.au