The drilling program is an important element in Linc Energy’s plans to enable economic access to vast stranded coal deposits and has Linc Energy well on its way to proving its projected target of 300 million tonnes of coal.This original core coal estimation, as reported in the Linc Energy prospectus, correlates to a program life of UCG to GTL of approximately 60 years.

By bringing together two proven production processes – Underground Coal Gasification (UCG) clean coal technology and Gas to Liquids (GTL), Linc Energy plans to turn a number of stranded coal deposits into ultra clean diesel.This plan is not just for Chinchilla, but this process would be duplicated around Australia and the world. Due to the extent of the drilling program, an upgraded coal resource estimation is expected in early April.

Investment Highlights

Increased Demand for Oil :

* World oil demand is increasing and it is expected that demand for diesel and aviation fuels will grow at a significant rate in the future.

Strategic Technology :

* Linc Energy will bring together a world first combination of the two industrial processes of UCG and GTL. The successful combination of these technologies will enable stranded underground coal deposits to produce Syngas which can be converted into fuels.

Low Cost Gas :

* The UCG process is designed to have lower capital and operating costs than natural gas or Coal Bed Methane producers, resulting in cheap Syngas.

One of a Handful of GTL Companies :

* Linc Energy will seek to purchase, install and commission a demonstration GTL plant. The plant will be designed to demonstrate the feasibility of using Linc Energy’s UCG Syngas for conversion into ultra-clean diesel through the GTL process. By using UCG, Linc Energy plans to become one of only a handful of GTL companies with its own abundant gas source.

Extensive Coal Prospects :

* Linc Energy has extensive mining tenements across Queensland, Australia with potentially large coal deposits. These tenements provide Linc Energy with the potential to produce substantial quantities of Syngas that can be used in the GTL process.

Environmentally Friendly Fuels :

* The diesel and jet fuels produced by GTL are sulphur free, virtually odourless and, on combustion, have emissions low in NOx and particulates.

Expansion Potential :

* The potential exists to duplicate the production process in other areas of Australia and overseas. This will depend on the suitability of the relevant coal deposits and related geological structures.

Power Generation :

* Linc Energy will have the potential to install gas turbines fed on UCG Syngas.

Linc Energy’s Board believes that by effectively combining the UCG and GTL processes and drawing on the capabilities of a dedicated, committed and experienced Board and management team, the Company will be in a position to capitalise on its significant coal deposits and the growing world demand for cleaner petroleum products.