The following statement has been published by Linc Energy on the SGX (Singapore) on 16 January 2014. Please also refer to a previous statement regarding the agreement between Linc Energy and Exxaro as published on this website on 30 May 2013.

  • Linc Energy confirms it has received the A$20million second tranche payment from Exxaro Resources.
    • All conditions precedent in the agreements between Linc Energy and Exxaro Resources for the joint development of Underground Coal Gasification (UCG)in Sub- Saharan Africa have now been satisfied.
  • Linc Energy has also now completed and presented Exxaro with the concept UCG study for the proposed site.

Linc Energy Ltd (SGX:TI6) (OTCQX:LNCGY)("LincEnergy") is pleased to confirm receipt of A$20million from Exxaro as the second tranche payment under the IP Licence Agreement.  This payment is in recognition that all conditions precedent contained within the Intellectual Property Licence  Agreement,  Services  Agreement  and  Master  Agreement  executed  with  Exxaro Resources(JSE: EXX) ("Exxaro")in May 2013,have now been satisfied.

Satisfaction of all conditions precedent within the suite of agreement snow provides the green light for both parties to continue development of the first joint UCG project following completion of the joint Concept Study which was completed in December 2013.

Linc Energy is entitled to a further payment of A$7million up on the successful completion of the first gasifierpassing agreed performance tests as well as on going royalties for the synthesis gas produced and equity participate on in future projects.

Peter  Bond,  Managing  Director  and  Chief  Executive  Officer  of  Linc  Energy,  said,  "We  are delighted to receive the A$20millionpayment from Exxaro but even more delighted to be moving this exciting project forward to first production. It is an exciting time for Linc Energy shareholders as we begin to commercialise our world leading position in UCG."

"We look forward to further announcements in 2014 that further add value to the UCG commercialisation path and value chain of our technology and know-how as we drive UCG to become the next energy platform, which is so urgently needed in regions like South Africa, Central Europe and Asia."

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