Tanzania here we come

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LINC ENERGY SIGNS MOU TO COMMENCE COMMERCIAL
UNDERGROUND COAL GASIFICATION (UCG) OPERATIONS IN TANZANIA BY 2017 •

Linc Energy signs MOU with National Development Corporation of Tanzania and Olympic Exploration Limited to develop commercial UCG to provide power to the Tanzanian electricity grid • MOU outlines timeline for commercial 400MW power generation from UCG syngas by late 2017 Linc Energy (SGX:TI6) is pleased to announce it has entered into a Memorandum of Understanding (MOU) with the National Development Corporation (NDC) of Tanzania and Olympic Exploration Limited for the development of a 400MW UCG to power operation in Tanzania. The project, as envisaged by the parties, will provide a much needed and timely delivery of power into the Tanzanian electricity grid to support the growing demands on the Tanzanian Electricity Supply Company Limited (TANESCO) to meet the requirements of the economy. The MOU specifies a programme of coal exploration and power plant development, which subject to project permitting and commercial term development, would see the commercialisation of a 400MW power plant in the South West of Tanzania in late 2017. Under the MOU, the NDC has agreed to work with Linc Energy and Olympic Exploration to obtain all necessary permits and approvals for the project, while also assisting with the securing of land access, utilities and the development of a long-term Power Purchase Agreement (PPA). Olympic Exploration Limited has access to vast coal resources in Tanzania and will be working with Linc Energy on all of the necessary exploration, feasibility studies, finance raising, project engineering, delivery and operation on behalf of a future joint venture between the parties. The details of the Joint Venture Arrangement will be negotiated over the coming months in accordance with the project delivery timeline outlined in the MOU. The investment and operational experience gained from this first UCG project in Tanzania will cement the country as a regional leader in the adoption of clean coal technologies and power generation. Mr. Peter Bond, Chief Executive Officer and Managing Director of Linc Energy said, “This MOU reconfirms the potential for underground coal gasification to play an increasingly important role in the energy mix of southern Africa. We are delighted to be partnering with the Tanzanian Government and Olympic Exploration in this exciting project which not only acts as a further catalyst for the commercialisation of UCG in Africa, but also affords significant economic and regional benefits to the people of Tanzania, as well as again demonstrating that Linc Energy’s ‘G5’ UCG technology is the world’s best.”