LNC (ASX) media release

ASX ANNOUNCEMENT/ MEDIA RELEASE
18 July 2010
Linc Energy confirms that it remains unaffected by Cougar
Energy shutdown
Following inaccurate and misleading reports in local and national media over the
weekend, Linc Energy (ASX:LNC) (OTCQX:LNCGY) again confirms that it is
continuing to operate its UCG demonstration plant at Chinchilla and is not affected
by the Queensland Department of Environment and Resource Management
(DERM") shut down of the Cougar Energy Kingaroy operation.
Linc Energy acknowledges the encouraging results stated in the additional media
releases by DERM on 17 and 18 July and notes that the ongoing investigation of the
environmental concerns regarding benzene and toluene are specifically related to
the Cougar Energy Kingaroy site and the operations directed by its underground
coal gasification (UCG) technology provider, Ergo Exergy Technology Inc.
Linc Energy confirms that the UCG operations which it conducts utilise proprietary
techniques significantly different from those employed by Ergo Exergy and Cougar
Energy.
Linc Energy notes that the groundwater monitoring data which it has collected at
Chinchilla and supplied to DERM over the past 11 years evidences the fact that
there has been no impact on the quality of the groundwater of adjacent property
holders.
Linc Energy continues to confirm that it remains in compliance with all groundwater
monitoring and reporting requirements set out in the Environmental Authority for
UCG at its Chinchilla demonstration facility.
The investigation being undertaken by DERM in Kingaroy is specific to Cougar
Energy and the manner in which it conducts its UCG operations with Ergo Exergy.
Whilst we have communicated our concerns to DERM about their decision to include
reference to operations conducted in a different manner by unrelated companies in
their initial media release about this matter, we will continue to work proactively with
the Queensland government regulators in all respects, said Linc Energys CEO
Peter Bond.
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