Autumn 2008 - Linc Energy

SHAREHOLDER NEWSLETTER
Issue 6 Autumn 2008
here is the
future for fuel
Actual photo taken at Linc Energy’s Chinchilla site.
WORLD-FIRST PLANT
BEGINS COMMISSIONING
RESOURCES INCREASE
TO 401 MILLION TONNES
AND COUNTING
The plant has been erected
and now Linc Energy has
commenced the commissioning
phase of its Gas to Liquids (GTL)
demonstration facility based in
Chinchilla (Queensland, Australia).
The commissioning and finalisation
of the GTL plant will be an ongoing
process up until around May this
year, which will include completion
in parallel with numerous ongoing
piping and cabling runs as part of
this process.
Mr Peter Bond, Linc Energy’s
Chief Executive said the plant’s
commissioning is the start of
something very significant for Linc
Energy’s team and shareholders.
“The beginning of commissioning
of Australia’s first Gas to Liquids
(GTL) plant and indeed the
world’s first Underground Coal
Gasification (UCG) to diesel facility
is something we can all be very
proud of.
“These steps we are taking here
at Chinchilla will soon reverberate
in the energy markets of the world.
As more and more people begin
to realise that Linc Energy has the
potential to produce a very high
quality diesel and jet fuel from coal
at a low cost point with a low CO ²
footprint, the potential of such a
company and what it offers will
become obvious to all.”
The commissioning program
essentially runs in stages
with each unit of the GTL
demonstration plant being
commissioned in sequence.
The Chairman of Linc Energy,
Mr Brian Johnson, said, “This
GTL demonstration facility at
Chinchilla is a credit to the entire
team at Linc Energy and shows
the incredible dedication and
capability of all of those involved.
One cannot but be impressed
by what our team have
achieved here.”
Linc Energy has a very busy
schedule over the coming weeks
with not only the continual
commissioning of the GTL
demonstration plant but the
ongoing drilling program at and
around its Chinchilla tenements
now being significantly expanded
with three drill rigs working on the
Chinchilla site.
In addition to this, the continual
expansion and improvement of
the UCG field is ongoing. Linc
Energy has been continuing to
add to its impressive team of
personnel with a serious push
on the acquisition of more GTL
engineers and associated coal
gasification professionals.
Mr Peter Bond said, “We at
Linc Energy have a lot to do in
a very short time frame but over
the past eighteen months we
have built a very good base to
springboard from.
“This coming period is going to
be a very exciting time for the Linc
Energy team and its shareholders.”
Linc Energy has reported an increase in its
resources at Chinchilla with 401 million tonnes of
coal announced in accordance with the JORC code.
The JORC report is based on 106 drill holes completed
by Linc Energy and its contractors over twelve months.
The total JORC resource currently for Chinchilla is 401
million tonnes and is based on an indicated resource of
228.1 million tonnes and an inferred resource of 172.9
million tonnes.
Linc Energy’s Chief Executive, Peter Bond, said “It’s
great to see Linc Energy exceed the 300 million tonne
benchmark as that was the tonnage forecast as being
necessary to justify the construction of Linc Energy’s
UCG to GTL facility.
“Not only does 401 million tonnes of coal give Linc
Energy over 60 years of Syngas feed stock at a
production level of 20,000 barrels per day but 400
million tonnes potentially offers approximately 600
million barrels of liquids (diesel and jet fuel etc)
production from the Chinchilla site.”
Linc Energy continues to drill aggressively with the aim
of further expanding the Chinchillla coal deposit and
expects to release JORC announcements every 6 to
8 weeks.
www.lincenergy.com.au

Feature Interview
with BRUNO BERTOLO,
ChiEf Financial Officer
The world-class talent of Linc Energy’s personnel
is multiplying. Bruno Bertolo, who has 24 years
experience including management roles in
high profile and successful companies such as
BHP and Energex, has been recruited as Chief
Financial Officer at Linc Energy.
When it comes to managing the company’s
finances, the buck now stops with Bruno Bertolo.
Investor Linc spoke with Bruno to learn more
about his wealth of experience, his role and
financial goals for Linc Energy.
Bruno Bertolo,
Chief Financial Officer
Age: 45
Degree:
Chartered Accountant,
Graduate Institute of
Company of Directors,
Bachelor of Business,
Majoring in Accounting
and IT
Previous Experience:
24 years experience
including 8 years
experience in the
energy industry.
Former senior
appointments with
KPMG, BHP
and Energex.
You have previously held management
roles within some very large and
prominent groups including BHP and
Energex. What attracted you to join
Linc Energy – a much younger firm
At Linc Energy, we’re creating a new
industry. No one in the world is doing
what we’re doing.
This is a unique opportunity to shape
the future of the company and the
industry. Getting in at the “ground level”
gives me an excellent opportunity to
put my many years of experience to
good use. The challenge for me will be
building capability that enhances good
governance without detracting from the
speed and innovation that the company
needs to remain the leader in the field.
I have watched Linc Energy with great
interest since its listing. The company
has already achieved a number of
substantial milestones and is extremely
well positioned to capitalise on its
resources and technology.
I am delighted to be involved in
helping to shape this future.
How does your work experience
benefit your role with Linc Energy
I’ve held a number of corporate and
operational roles in heavy industries.
The operational experience will be
particularly useful as Linc Energy
expands its capital programs and
commences operations. Understanding
the specific systems and accounting
requirements of organisations that
build and operate major plant will be
an important part of ensuring that Linc
Energy is well managed and delivers
against its targets. Areas such as
planning, procurement, maintenance
management, asset management and
operational budgeting will become
increasingly important.
The corporate challenges will include
ensuring the company’s financing
is well managed, raising capital to
build capacity, meeting shareholders
expectations and ensuring that the
overall governance framework for the
company is robust and meets our
statutory and ethical requirements.
What is your role as part of
the Linc Energy team
As part of the executive team, a key
element of my role is to shape the
strategic direction of the company
and to ensure that we position well for
the future. Linc Energy has numerous
avenues for growth. Planning and
prioritising our options and ensuring that
we deliver on our promises, is essential
to maintaining shareholder confidence
and ensuring that all staff in Linc Energy
remains focussed on the right things.
At an operational level, my role includes
ensuring the company’s finances are
properly managed.
This has many components and ranges
from high level activities such as the
business planning process; commercial
issues such as ensuring that contracts
provide cost effective outcomes; to the
more operational such as ensuring that
our suppliers and employees get paid
on time.
Running a first class finance function is
a team effort requiring high calibre staff,
robust processes and procedures and
excellent working relationships with our
key stakeholders. I’ll be working hard to
ensure that we deliver on that promise.
Linc Energy has been successful
in attracting highly experienced
personnel into its management
team. Along with your appointment,
Linc Energy has made significant
management appointments over
the past couple of months including
Stephen Dumble as Chief Operating
Officer, Don Schofield as General
Manager of Underground Coal
Gasification and Tim Jones as
Exploration Manager. How significant
is the new talent for Linc Energy
The company’s ability to attract
management talent is testimony to
its potential and the charisma of its
Managing Director!
The addition of these resources
comes at the right time and will be a
key element of the company’s “growth
engine” as it moves from development
into production. I’m really looking
forward to being part of this
executive team.
The Australian stockmarket
benchmark S&P/ASX200 index
suffered its biggest one day drop
in January for the past ten years.
How do you think this has affected
Linc Energy
The Linc Energy story remains
unchanged, as does the future value
proposition for our investors.
Whilst short term market fluctuations
can be disappointing, it is important to
remain focussed on the big picture.
For Linc Energy, that is about converting
substantial coal reserves into clean
liquid fuels, and in doing so, providing
a future for global coal resources and
a real solution to rapidly depleting
global oil reserves.
What are the key financial objectives
of the company for the next two years
and the next five years
The priority for the next two years is to
achieve successful funding for the first
commercial plant. Beyond that, it is to
build on the success of the first plant to
drive investment in future developments
and to provide excellent returns to
our shareholders.
Linc Energy has to date successfully
attracted good support from
institutional investors. How significant
is this when it comes to capital
raising for the commercial plant
Linc Energy has been successful
in raising capital from a number of
sources. This includes two general
capital raisings, private placements
and an equity line of credit.
Despite its relatively small market
capital, Linc Energy boasts a large
and diverse share register of which
it is rightly proud. Investors range
from private individuals, through to
institutional and corporate investors.
It’s my expectation that existing
shareholders and potential investors
will continue to show strong support
for the company when the time comes
to raise further funds to complete
development plans.
Where do you see Linc Energy
in ten years time
Linc Energy will be the global leader
in coal to liquids.
IMAGES TAKEN AT Linc Energy’s CHINCHILLA SITE
Boiler commissioning
First steam from boiler The GTL plant The GTL plant from FT reactor end
02

SHAREHOLDER NEWSLETTER
Issue 6 Autumn 2008
U.S. MARKET WELCOMES
LINC ENERGY
TRADING COMMENCES
ON OTCQX
Linc Energy is making its mark in the
United States and is now listed on
the American securities market, the
International OTCQX.
DEBUT ON
WALLST.NET
Reinforcing the United States appetite
for Linc Energy, Chief Executive,
Peter Bond was invited to share the
Linc Energy story with United States
based financial media group, WallSt.net.
With increased international interest for
Linc Energy following its listing on the
American securities market, OTCQX,
Peter Bond’s interview covered an overview
of the business, recent press, the market
opportunity and upcoming milestones
investors should note.
To hear the interview, go to
www.lincenergy.com.au/mediacoverage.php
and click on
“WallSt.net updates investment community
with all-new interview with Linc Energy”.
This is another feather in Linc
Energy’s cap providing the company
greater access to the United States
capital markets as it continues to grow
its Underground Coal Gasification
(UCG) clean coal technology and Gas
to Liquids (GTL) business.
Linc Energy’s American Depository
Receipts (ADRs) commenced trading
in the second half of December 2007
on International PrimeQX, under the
ticker LNCGY.
Ten of Linc Energy’s ASX shares
represent one ADR on the OTCQX.
United States investment bank,
Merriman Curhan Ford & Co
(AMEX:MEM), is serving as Linc
Energy’s Investment Bank Principal
American Liaison (PAL).
As part of its PAL sponsorship, MCF
provides a comprehensive suite of
United States capital markets services
and is responsible for providing
guidance on the company’s international
OTCQX listing requirements.
Investors can find real-time quotes,
disclosure and financial information
about Linc Energy on the OTCQX
website at www.otcqx.com
Linc Energy’s United States market makers,
following its OTCQX listing, include:
1. Natixis Bleichroeder Inc, New York
2. Automated Trading Desk Financial Services
3. Domestic Securities Inc, New Jersey
4. Hudson Securities Inc, Jersey City
5. Hill Thompson Magid & Co, Jersey City
6. International Trading Inc, Florida
7. Jane Street Markets LLC, New York
8. Merriman Curhan Ford & Co, San Francisco
9. Knight Equity Markets, LP, Jersey City
10. Collins Stewart Inc, New York
11. UBS Securities LLC, Connecticut
NOW EVEN GREENER
Everyone is talking about climate change and reducing greenhouse
gas emissions, but Linc Energy is not just talking, it is acting.
In yet another sign Linc Energy is
serious about mixing business with
clean ‘green’ solutions, it has signed a
joint venture to develop a bioreactor,
which will allow greenhouse gas
emitters to safely convert their CO ²
into oxygen and biomass.
The proposal is not only exciting news
for Linc Energy, but presents huge
commercial opportunities particularly
with existing power stations and
industrial facilities.
The joint venture with Queenslandbased
BioCleanCoal will see it develop
a bioreactor, which will convert CO ²
through a photosynthesis process
into oxygen and solid biomass,
permanently and safely removing
CO ² from the atmosphere.
The joint venture will be owned on a
60/40 basis with Linc Energy owning
60% and having the day to day
management and BioCleanCoal
owning the remaining 40%.
Linc Energy will spend $1million
over a twelve month period to develop
a prototype unit, which it aims to
have operating at the company’s
Chinchilla site.
Peter Bond CEO of Linc Energy Ltd said
the joint venture with BioCleanCoal and
the bioreactor technology they are jointly
developing are important parts of Linc
Energy’s business plan.
“With this joint venture, Linc Energy has
fulfilled one of its final aims of ensuring
that whatever Linc Energy does, it now
does so with as small a greenhouse gas
footprint as possible, effectively putting
Linc Energy at the forefront of clean coal
and in particular coal to liquids,”
Mr Bond said.
“By utilising UCG for power and
diesel production, Linc Energy already
has significant environmental and
commercial advantages over
other technologies.
“The development of this new bioreactor
that converts CO ² into oxygen and
biomass provides Linc Energy with a
solution to the CO ² and climate change
problem that affects not only every
energy company around the globe but
indeed, everybody.
“In addition to being extremely excited
about the environmental benefits of
this technology, the commercial
outlook for this joint venture should
not be underestimated.
“Not only do we believe it will allow Linc
Energy to produce clean ‘green’ power
and oil (diesel) from coal, but we are
also confident that this technology can
be retrofitted to existing power stations
and industrial facilities. The commercial
opportunities of doing this are obvious.”
Not only do we believe it will allow Linc Energy to produce clean
‘green’ power and oil (diesel) from coal, but we are also confident that
this technology can be retrofitted to existing power stations and industrial
facilities. The commercial opportunities of doing this are obvious.
BioCleanCoal is a Queensland
based Biotechnology company that
is specialising in the breeding and
propagation of useful algae and plant
species for the conversion of CO ² to
oxygen and biomass.
Its sister companies have already
established a track record in this field
(www. bioadaptint.com and
www.bfgen.com/).
Professor Andrew Lowe, Professor
of Plant Conservation Biology, and
Biodiversity Research Director at the
Research Institute for Climate Change
and Sustainability at the University of
Adelaide, supports the technology.
“Fossil fuelled power stations are the
predominant generators of greenhouse
gases that are causing climate change.
The primary gas produced is CO ² .
“BiocleanCoal reactors are safe, purely
organic, and an environmentally sound
solution to the CO ² problem.”
Linc Energy’s Mariano Minotti has been
appointed Project Manager, Linc Carbon
Solutions to manage this joint venture
with BioCleanCoal and the development
of the prototype unit.
“The bioreactor technology makes
smart scientific sense, and has the
support of independent scientific
experts,” Mr Minotti said.
“With my engineering background, I can
see and understand the potential.
“I am thrilled to be part of something,
which presents so much opportunity
both from a business and environmental
perspective.”
www.lincenergy.com.au 03

SHAREHOLDER NEWSLETTER
Issue 6 Autumn 2008
OIL GIANT WARNS OF LOOMING OIL SHORTAGE
HON FERGUSON PROMPTS NEED FOR NEW FUEL PRODUCER
Oil giant, Shell, has been quoted in the Australian press recently saying exactly what most experts are saying around the
world... that the world may face an energy crisis in the not too distant future due to rapidly depleting global reserves of oil.
Shell Chief Executive, Jeroen van der
Veer, was quoted in the Australian
newspaper on 25-26 January 2008
predicting world demand for oil and
gas will outstrip supply within just seven
years.
“Shell estimates that after 2015, supplies
of easy-to-access oil and gas will no
longer keep up with demand.”
And Shell is not the only one alluding to
an energy crisis.
The Hon Martin Ferguson, Australian
Minister for Resources and Energy,
indicated on an ABC 7:30 Report on
Thursday, 21 February that Australia is
running out of fuel and needs a new fuel
producer.
“We’ve got to find another Bass Strait,
because if we don’t by 2015 we will go
from importing about 20 per cent of our
needs in the 1990s to actually importing
80 per cent of our oil related product
needs, effectively contributing $27 billion
per year trade deficit,”
Hon Martin Ferguson said.
We’ve got to find another Bass Strait, because if we don’t by 2015
we will go from importing about 20 per cent of our needs in the 1990s to
actually importing 80 per cent of our oil related product needs, effectively
contributing $27 billion per year trade deficit.
The widely predicted energy crisis
reinforces the need for the world to
develop alternative energy sources.
As seen on the 7:30 Report on
21 February, Linc Energy has a
new fuel solution.
Linc Energy has a unique leading
edge capacity to provide a viable,
more sustainable and smart
alternative source of liquid fuels
and power generation by using
two proven production processes
of Underground Coal Gasification
(UCG) and Gas to Liquids (GTL).
Interview with
Amanda Peters,
Linc Energy
shareholder
With her family experience in the managed funds industry and
understanding of the Australian stockmarket, investing in
Linc Energy made good sense to Amanda Peters.
Amanda (36) is now a proud holder of Linc Energy shares
and says she is in it for the long-term.
Investor Linc spoke to Amanda to find out why Linc Energy
appealed to her, and her views on the company’s future.
How did you hear about Linc Energy
and what attracted you to investing
My husband is in the managed funds
industry and knows his stocks. He
alerted me to Linc Energy months ago.
A lot of fund managers know about Linc
Energy. Thankfully for small investors like
me (about $20,000), the market cap and
volumes traded has not been sufficient
to enable them to buy positions…yet.
This has meant smaller players like me
have been able to get in before the large
price moves happen.
As well as that, I was happy to know
that at the end of the day, the concept
is based on coal and the company
has plenty of resources of coal in the
ground. I wasn’t just investing in a bluesky
concept. Lets face it. With India and
China growing as they are, the demand
and supply of energy will define the early
part of this century. By investing in
Linc Energy, I can participate in
this growth, while satisfying my
environmental concerns.
Since listing in May 2006 at an
issue price of 25cents, Linc Energy’s
share price climbed to over $1.
On January 22 this year, the Australian
stockmarket’s benchmark
S&P/ASX200 index suffered its biggest
one day drop for the past
ten years, and Linc Energy’s share
price retreated to 50cents. Linc Energy
made an impressive recovery and on
29 January, its share price closed at
70cents (a 40% increase in just a week).
Does Linc Energy’s ability to bounce
back so quickly give you confidence
Absolutely. Linc Energy’s quick recovery
confirmed my belief that even with the
massive volatility we had in January,
traders had a floor beyond which they
wouldn’t sell their shares, and that sell
offs will likely be short term and
quickly recovered.
Having said this, I’m not so much
interested in short term share price
movements. There’s so much volatility
generated by the day traders happy to
make 5cents that I see price retractions
such as this as a great buying
opportunity.
I’m in Linc Energy for the long haul, as
are most of the people I have alerted to
the stock.
What do you believe is Linc
Energy’s potential for even higher
return, given Linc Energy’s position
now as the world’s largest UCG
company, following its acquisition of
Yerostigaz
I see Yerostigaz as another link in
the chain, along with the likes of its
partnerships with Marubeni, Sapex,
VINACOMIN, the algae company and
capital investors.
I can join the dots and see good things
ahead. The next few months will see the
first strong tangible signs of Linc Energy’s
technology at work at its Chinchilla
facility in south-east Queensland.
How important is this milestone
for you and do you expect this to
further boost investor interest
in Linc Energy
I’m comfortable that Linc Energy has
met its milestones, so I’m not really
looking for them any more. At the end
of the day, I’m watching for the barrel
of diesel. I assume others are also
watching developments closely.
This is why I was extremely pleased
with the ASX announcement (22/2)
indicating the GTL plant is on track
for early commissioning.
Did you see the ABC’s 7:30 Report
(21/2) where Linc Energy was
prominently mentioned (can be
viewed on Linc Energy’s website
under ‘Media Coverage’)
Yes! I almost fell out of my chair when I
heard the Minister for Resources Martin
Ferguson on the 7:30 Report discussing
the importance of creating synthetic
alternative fuels by encouraging
investment in downstream processing in
Australia on gas liquids and coal liquids.
Since Linc Energy first listed,
Australia and the rest of the
world have been overtaken by the
imperative for clean coal technology,
which of course is a cornerstone of
Linc Energy’s UCG process.
Linc Energy Ltd
Level 7, 10 Eagle St
GPO Box 1315
Brisbane QLD 4001
P 07 3229 0800
F 07 3229 6800
E jcv@lincenergy.com.au
www.lincenergy.com.au
Do you think the market will continue
to embrace this sort of innovation
As a concerned environmentalist I’d
like to think yes. As an investor in Linc
Energy I’d hope so too.
As a realist, I don’t believe the market
is as concerned with “the triple bottom
line” and it invests where it can make
best returns quickest. For this reason
I am encouraged that in regards to
developing both cleaner and sustainable
energy sources, the actions appear
to match the words from the new
(Australian) government.
What interests me is Linc Energy’s
ability to utilise coals that are otherwise
deemed unviable to mine. I’m very alert
to the arguments for Peak Oil. At the
very least it is clear that energy demand
exceeds energy supply.
Linc Energy and its technologies can
play a significant part in satisfying
global energy, without the detrimental
environmental impact that other
extraction methods will have.
www.lincenergy.com.au 04
Disclaimer: Whilst all care has been taken to ensure the accuracy of particulars in this document, no warranty can be given and interested parties must rely on their own enquiries