Linc Energy remains on track for Emerald Coal Tenements sale to Chinese November 18, 2008

Australian clean coal technology leader Linc Energy Ltd (ASX : LNC) announced today that recent verbal and written communications from the Xinwen Mining Group Ltd have confirmed their commitment to complete the $1.5 billion purchase of Linc Energy’s Emerald coal tenements (known as “Teresa”).

The Emerald (“Teresa”) coal tenements have now been developed to an inferred resource of 852 million tonnes of coal (in accordance with the JORC Code), a significant increase above the exploration target resource of 470 million tonnes when the original sale and purchase heads of agreement was completed. In addition, an “open cut” mine area of 200 million tonnes of coal has been identified.

Mr Chen Jie (Chairman of the Xinwen Mining Group Ltd subsidiary involved in the Emerald purchase) said “We are very happy with the data supplied by Linc Energy and the quality and quantity of the coal for the Emerald tenement. Despite the current financial problems with International Markets, China still needs good quality thermal and coking coal. We are working very closely with our regulators in order to complete the acquisition.”

Linc Energy is aiming to have the formal sale and purchase agreement for the Emerald (Teresa) Coal Tenements executed before Christmas 2008.

Linc Energy’s Chief Executive Officer, Mr Peter Bond, says “The Emerald Coking Coal sale is a fantastic opportunity. The more Linc Energy drills the site, the more the Emerald coal deposit has proven to be a very prudent purchase by the Xinwen group (…) which probably explains why Linc Energy has received so many additional queries from other groups which are looking to pursue a potential purchase of Emerald every month”.

Linc Energy is continuing to drill the Emerald tenements, with the current committed program expected to be completed over the coming weeks. The aim is drilling the open cut minable area to a measured resource status in accordance with the JORC Code.

Click here to read the full announcement.

For further information please contact:

Peter Bond
Chief Executive Officer
Linc Energy
Phone: +61 7 3229 0800
E-mail: pab@lincenergy.com.au

or

James Moses
Fortbridge Consulting
Ph: +61 420 991 574
E: james.moses@fortbridge.com