31 May 2007

Brisbane-based clean coal technology leader and energy company,
Linc Energy Ltd (ASX: LNC) has today announced that it has signed
an international Memorandum of Understanding (MOU) with one of
India’s largest oil and gas drilling and exploration companies.
Linc Energy Ltd has entered into a significant MOU with Shiv-Vani,
based in New Delhi, but also working in the Middle East and the
United States.

The MOU will provide for the establishment of potential joint
ventures between Linc Energy Ltd and Shiv-Vani in the field of UCG
(underground coal gasification) with the aim of utilising the UCG gas
production for power production, and in the medium term, coal to
liquids diesel fuel production.

The agreement is a coup for Linc Energy, which plans to turn
stranded coal deposits in various locations around the world starting
in Chinchilla (Queensland) into clean power and ultra clean diesel by
bringing together two proven production processes of UCG clean
coal technology and Gas to Liquids (GTL).

“We are very excited about the opportunities in India and the Sub
Continent that this MOU has the potential to create,” Linc Energy’s
Managing Director, Mt Peter Bond, said today.

“India is one of the new economic powerhouses in the world and
we see great application for our clean coal technology and for the
generation of electricity linked to our UCG process.”

Shiv-Vani is India’s largest non-government oil, gas, drilling and
exploration company and one of the fastest growing companies in
India. Linc Energy’s Managing Director, Mr Peter Bond, said it is their
growth, knowledge of the industry and vision that initially attracted
Linc Energy to commence negotiations with them.

Mr Roy Chowdhury, General Manager (Exploration) of Shiv-Vani
stated, “I have found that Linc Energy Ltd of Brisbane, Australia are
excellent communicators, helpful and sensitive to the needs of
customers – a bouquet of quality that I aspire to give to Shiv-Vani as
a service provider,” Mr Chowdhury said.

The immediate focus of the MOU is to ensure the joint venture,
between Shiv-Vani and Linc Energy Ltd, gain and develop coal
blocks (resources) that the Indian Government is releasing for the
specific purpose of UCG development. In coming years India, via its
keen eye for developing energy projects to meet its growing needs
like UCG, will be one of the largest producers and consumers of cost
effective UCG gas operations in the world.

At the conclusion of negotiations Padam Singhee, Director of Shiv-
Vani stated:
“The signing of an MOU is an important step for us both, but it is the
successful partnership through the generation of energy and wealth
that is paramount,” Mr Singhee Said.

A sentiment wholeheartedly echoed by Linc Energy Ltd.

In addition to the Shiv-Vani MOU, Linc Energy is currently undertaking
pre-feasibility studies and negotiations on possible UCG fields in
a number of other energy-hungry locations around the world, in
conjunction with a number of potential Joint Venture partners.

Linc Energy’s UCG to GTL (Diesel) demonstration plant at Chinchilla
is scheduled to open in the third quarter of 2007, which will be the
only UCG to CTL (Liquid fuels) facility in the world.

“The world-first demonstration plant is arguably one of the key drivers
that will take Linc Energy, as a potential major energy supplier to the
world, to the next level of acceptance.” Mr Bond said.

The Shiv-Vani MOU follows a recent announcement the Queensland
Government has declared Linc Energy’s Chinchilla clean coal project
a “Significant Project”.

Yours faithfully
Karl Schlobohm
Company Secretary
Linc Energy Ltd
Level 7, 10 Eagle St.,
(GPO Box 1315),
Brisbane, QLD 4001
Telephone: (07) 3229 0800
Facsimile: (07) 3229 6800
ABN: 60 076 157 045
ACN: 076 157 045

Australia’s leader in clean coal technology www.lincenergy.com.au
ASX ANNOUNCEMENT
LINC ENERGY ANNOUNCES INTERNATIONAL M.O.U WITH
LEADING INDIAN OIL AND GAS EXPLORATION COMPANY