US Oil Production Update

Well hope we can some better news leading into next weeks AGM or serious questions to be asked

22 October 2015 Oil & Gas Production Update  Production maintained at steady average rate of 4,210 BOEPD for the fiscal first quarter as compared to 3,598 BOEPD for the fiscal year ended 30 June 2015  Current production of 4,217 BOEPD (last 30 days as at 14 October)  All-in cash operating expenses of USD$26.40/BOE (includes Lease Operating Expenses, workover, severance and ad valorem taxes and G&A per net BOE) in the Gulf Coast for the first quarter of FY2016  3 new wells in the USA Gulf Coast region successfully completed in Q1 of FY2016, with identification of hydrocarbons in all targeted zones (oil, gas and condensate) Linc Energy Ltd (SGX:TI6) (OTCQX:LNCGY) is pleased to provide an update on its Oil and Gas operational results for the first fiscal quarter of FY2016. “In the first quarter, the Company continued its focus on reducing costs while maintaining stable production from its USA oil & gas operations. This program has delivered excellent results for the Company, allowing us to produce oil at an average cost of USD$26.40 per barrel over the quarter. In addition, preliminary results from the recent drilling program, based on the application of reprocessed 3D seismic data, has delivered more than 15 additional drilling prospects in the Company’s High Island field in Texas,” said Linc Energy’s CEO & Managing Director, Mr. Craig Ricato. Oil & Gas Production Daily gross production for the first quarter was 4,210 BOEPD, with the last 30 days' production being maintained at a steady rate of 4,217 BOEPD. Linc Energy has been successful in executing its plan to maintain economic production in the Gulf Coast through its continued focus on reducing well downtime and preventative maintenance, coupled with its highly economic well recompletion program. This stable base of production will now be supplemented with the commencement of the Company’s recent 3 new well drilling campaign. SGX Code: TI6 OTCQX Code: LNCGY Media contact: FCR James Strong 0423 338 005 - 2 - SGX Announcement continued… Daily Production Profile (Gross BOEPD) Drilling Operations Following a detailed review of our USA oil & gas assets over the past twelve months, utilising reprocessed 3D seismic, the Company has identified 55 new drilling prospects. From those 55 new prospects, the highest ranked prospects were at our High Island field. High Island field The Company spudded the first well in the High Island field in late August. This first well met with certain challenges due to encountering over-pressured reservoirs in its targeted zones. The well ultimately reached its targeted depth in late September. Logging operations identified ~115 net feet of pay across the three targeted zones. A flow test indicated that the bottom two zones contained high pressure and high volume gas and condensate. We are currently commencing completion operations in the upper sand, which contains an oil leg. In the coming months we will complete a full field evaluation on the take-away and marketing options to economically produce the gas and condensate reservoirs identified in this drilling program. Atkinson Island field In the Atkinson Island field the Company is currently in the process of completing two new wells drilled in September. This drilling program achieved significant time and cost savings due to efficient planning and implementation processes introduced by Linc Energy’s drilling department over the last twelve months. 2,500 3,000 3,500 4,000 4,500 5,000 1‐Jul 14‐Jul 27‐Jul 9‐Aug 22‐Aug 4‐Sep 17‐Sep 30‐Sep SGX Code: TI6 OTCQX Code: LNCGY Media contact: FCR James Strong 0423 338 005 - 3 - SGX Announcement continued… Production Costs As seen by the trend in the charts below, we have continued to realise significant cost savings over the last twelve months through optimisation of the oil & gas assets as a result of new systems and processes being implemented. In the Gulf Coast, the Company has achieved savings of ~55% in Lease Operating Expenses (LOE) and Workover costs over the last four quarters on a unit rate basis. Lease Operating and Workover Expense Trends for the Last Twelve Months (Gulf Coast) We expect future operating costs to be maintained at current levels with improvement in LOE unit rates now largely driven by production changes as we continue to look for economic ways to increase production and leverage our fixed cost base. 5.2 3.6 3.2 2.9 1.8 1.8 1.2 0.6 $26.50 $22.98 $20.82 $12.01 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00  ‐ 1.0 2.0 3.0 4.0 5.0 6.0 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Unit Rate ($/BOE) Cost ($MM) LOE Workover Unit Rate SGX Code: TI6 OTCQX Code: LNCGY Media contact: FCR James Strong 0423 338 005 - 4 - SGX Announcement continued… McNeil A10 Well –

http://lincenergy.listedcompany.com/newsroom/20151022_053746_TI6_FDI7XQ2FY7QDIKRJ.1.pdf