BBY Limited
ABN 80 006 707 777 Participant of Australian Stock Exchange Group and regulated by the Financial Services Authority (FSA) in the UK
Melbourne Sydney London Internet
Tel: 61 3) 9226 0000 Tel: 61 2) 9226 0000 Tel: 44 207) 618 3730 http://www.bby.com.au/
Fax: 61 3) 9226 0244 Fax: 61 2) 9226 0066 Fax: 44 207) 618 3777

This report may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts.

Before making and investment or trading decision, the recipient must consider market developments subsequent to the date of this document, and whether the advice is appropriate in light of his or her financial circumstances or seek further advice on its appropriateness or should form his/her own independent view given the person’s investment objectives, financial situation and particular needs regarding any securities or Financial Products mentioned herein. Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by BBY, its associates, officers, directors, employees and agents. A full international disclaimer is contained on the final page of this report.

Linc Energy Limited
Strategic Acquisition Enhances LNC’s UCG Knowledge and
Experience
LNC A$0.71
BUY
11 October 2007 S&P/ASX 200 20 July 2007 XJO Jeremy Tobias
+612 9226 0086
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

BBY maintains its BUY recommendation on Linc Energy Limited (LNC), following an announcement that LNC has acquired a 60% controlling interest in the company Yerostigaz, located in Angren, Uzbekistan. Yerostigaz is currently the only commercial Underground Coal Gasification (UCG) operation in the world, having run continuously for over 40 years. The UCG gas produced from the site is currently fed into a power station adjacent to the operation in Angren. This is a positive strategic acquisition for LNC and will position the company as the world’s largest UCG company. We maintain our 12 month price target of A$1.00/sh and DCF valuation (Chinchilla only) of A$1.51/sh. Key benefits to LNC from the acquisition