INTERVIEW WITH PETER BOND, CHIEF EXECUTIVE OFFICER OF LINC ENERGY LIMITED (LNC)

“Sapex Investors Overwhelmingly Vote Yes To Merger”

http://www.brr.com.au/event/51829

MONDAY, SEPTEMBER 29, 2008, 9:00 AM.

            BRR    Welcome to Boardroom Radio. Today we are joined by Mr. Peter Bond, Managing Director of Linc Energy. Thanks for joining us today, Peter.

10        LNC     Thanks, Eddie. Great to be here.

            BRR    Peter, Linc has had some developments today regarding its merger with SAPEX both with shareholders and option holders overwhelmingly voting yes to the merger. You must certainly be pleased with the response.

15        LNC     Absolutely. It was a fantastic result. I think it was something like 95% in the affirmative for shareholders and 99% for option holders, so an overwhelming vote of support on Linc’s merger with SAPEX. We could not be more delighted about it.

20        BRR    Peter, could you just give us some details of the merger including what has been agreed to for the shareholders and option holders?

            LNC     Absolutely. Linc was offered 72 cents per share and 50 cents per option. At the time of the original IPO of SAPEX, which was I think just over a year ago, about 15 months ago, a shareholder is given a free option every two shares.

25                    It is a great result for the shareholders of both SAPEX and they have the ability to either take cash or Linc’s script and we would be very happy to have them as shareholders or they can take the profit as their directors have managed to arrange for them over this last year or so. So it was a great result for both shareholder groups. Linc shareholder (inaudible) (0:01:25)

30                    considerable asset in South Australia that we are intending to develop fairly rapidly and across the SAPEX shareholders. They have a great result in terms of profit over a relatively short of period of time.

            BRR    Lastly, Peter, what is still required from Linc and SAPEX to complete the

35                    merger and what can we expect moving forward when the merger is finalised?

            LNC     This is probably the last of the major milestones. We have got a couple of more steps we need to do to formalise it. There is a legal process that takes a couple of days and then a calculation of whether people want script or cash,

40                    etc. and then just the normal formalising of the payment of that desired option to the SAPEX shareholders. So once that is completed, which is a fairly short process, over the coming couple of weeks, then that is the end of the process. So this is probably the finalisation of most of the work. The rest is really just a completion of formality and of course the actual sending out of

45                    the relevant payment in either shares or script. In terms of going forward, Linc is already drilling on the site which was started under the original MOU that we had with SAPEX. We will be aggressively moving forward on the drilling of coal in that area, and on top of that, we will be actively pursuing some of the petroleum assets that SAPEX has. There is extraordinary prospective acreage there and a great deal of potential. So we are very eager to start to unlock some of that value.

            BRR    Peter, we thank you for taking the time out today to update us on this

5                      milestone for Linc Energy and we look forward to speaking to you soon.

            LNC     Thanks very much to Boardroom Radio and I think it is a great day for both Linc Energy shareholders and SAPEX shareholders. It has been probably one of the smoothest mergers you could orchestrate and it has been extraordinarily well managed particularly for the SAPEX team management

10                    and certainly Linc as well. It has been an extraordinary outcome. Thanks again for asking me on.

            BRR    That was Mr. Peter Bond, Managing Director of Linc Energy. If you have any questions about this broadcast or any other broadcast, please feel free to

15                    contact us on brr@brr.com.au. I am Eddie Saade and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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