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Lignol Announces Completion of previously announced Acquisition of further equity stake in Australian Renewable Fuels Limited

November 12, 2012

VANCOUVER, Nov. 9, 2012 /CNW/ – Lignol Energy Corporation (TSXV: LEC)
(“LEC” or the “Company”), a leading technology company in the advanced
biofuels and renewable chemicals sector, is pleased to announce that,
further to its previous announcement on October 15, 2012, it has
completed the purchase of an additional 88,000,000 ordinary shares of
Australian Renewable Fuels Limited (ASX: ARW), the largest biodiesel
producer in Australia for an aggregate purchase price of CAD$1,100,000
(the “Share Acquisition”).

“We are pleased to have been able to increase our investment in
Australia’s largest biodiesel producer from 11.2% to 14.9% of the
issued and outstanding ordinary shares of ARW,” said Ross MacLachlan,
President and CEO of LEC.

Consideration for the Share Acquisition was comprised of CAD $225,000 in
cash and 7,000,000 in LEC common shares issued at $0.125 per share. 
The LEC common shares are subject to a four-month hold period under
applicable securities laws expiring on March 10, 2013. The securities
offered hereby have not and will not be registered under the United
States Securities Act of 1933 (the “1933 Act”) and may not be offered
or sold in the United States or to U.S. persons (as defined in
Regulation S under the 1933 Act) unless the securities have been
registered under the 1933 Act, or are otherwise exempt from such
registration. On the closing of the Share Acquisition, LEC’s ownership
in ARW increased from 11.2% to 14.9% of the issued and outstanding ordinary shares of ARW.

About Lignol Energy Corporation (“LEC”)

LEC (TSXV: LEC) currently owns a 14.9% stake in Australian Renewable
Fuels Ltd (ASX: ARW) and owns 100% of the issued and voting shares of
Lignol Innovations Ltd. (“Lignol”). LEC also intends to invest in, or
otherwise obtain, equity interests in energy related projects which
have synergies with its biorefining technology.

ARW is the largest biodiesel producer in Australia owning three plants
with a total nameplate capacity of 150 million litres per annum. ARW’s
three plants were built at an aggregate cost of approximately A$150
million. ARW has made significant changes in recent years to become a
cost effective producer of high quality biodiesel to address growing
biofuel demand in the Australian market.

More information on ARW can be found at their website: www.arfuels.com.au.

Lignol is a 100% owned subsidiary of LEC. Lignol is a leading technology
company in the advanced biofuels and renewable chemicals sector
undertaking the development of biorefining technologies for the
production of advanced biofuels, including fuel-grade ethanol, and
other renewable chemicals from nonfood cellulosic biomass feedstocks.
Lignol’s modified solvent based pretreatment technology facilitates the
rapid, high-yield conversion of cellulose to ethanol and the production
of value-added biochemical co-products, including high purity HP-LTM
lignins. HP-LTM lignin represents a new class of high purity lignin
extractives (and their subsequent derivatives) which can be engineered
to meet the chemical properties and functional requirements of a range
of industrial applications that until now has not been possible with
traditional lignin byproducts generated from other processes. Lignol is
executing on its development plan through strategic partnerships to
further develop and integrate its core technologies on a commercial
scale. For more information please visit Lignol’s website at www.lignol.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Caution concerning forward-looking statements:
Certain statements contained in this document may constitute
forward-looking information within the meaning of applicable securities
laws. Such forward-looking statements or information include, without
limitation, statements or information about our ability to continue as
a going concern and to raise additional financing to fund the
operations of LEC and Lignol, the development status of Lignol’s fully
integrated pilotscale biorefinery in Burnaby, British Columbia, the
planning and development of a commercial plant, Lignol’s ability to
complete project deliverables which are funded in part by government
agencies, obtaining strategic partnership investments and government
funding for initial commercial projects. Often, but not always,
forwardlooking statements or information can be identified by the use
of words such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes” or variations of
such words and phrases or words and phrases that state or indicate that
certain actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved.

Such statements or information reflect LEC’s current views with respect
to future events and are subject to certain risks, uncertainties and
assumptions including, without limitation, our ability to establish the
validity of Lignol’s technology at the fully integrated biorefinery
pilot plant scale, Lignol’s ability to satisfy the conditions of
existing government grants and to obtain new additional grants, our
ability to continue to finance our operations and to finance and
complete the development of a commercial project, Lignol’s ability to
work with Novozymes to produce cellulosic ethanol at production costs
competitive with gasoline and corn ethanol, Lignol’s ability to develop
products and to obtain off-take agreements, our ability to obtain
requisite regulatory approvals and our ability to enter into agreements
with strategic partners on terms acceptable to us, the inability to
influence the strategy, operations and financial performance of
Australian Renewable Fuels Limited (“ARW”), the reliance on publically
available information of ARW in the Company’s evaluation of its
acquisition of shares in ARW, the potential inability to divest the ARW
ordinary shares due to modest trading volumes, the cost of future ARW
capital investment, the fluctuation of biodiesel and feedstock on ARW,
the effect on ARW of changes in government policy relating to the
environment, and incentives for renewable fuels. Many factors could
cause LEC’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking
statements or information, including among other things, the
technological challenges that remain to be surpassed in obtaining the
necessary operating data from Lignol’s fully integrated biorefinery
pilot plant that is required prior to completing the next scale-up of
the technology, financial market conditions which will impact our
ability to finance our operations and to finance the construction and
operation of a commercial plant, the price of gasoline and demand for
ethanol, the market pricing and demand for renewable chemicals, risks
relating to the protection of Lignol’s core technology from
infringement and those risk factors which are discussed elsewhere in
documents that LEC files from time to time with securities regulatory
authorities. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
statements or information prove incorrect, actual results may vary
materially from those described herein as intended planned,
anticipated, believed, estimated or expected. Except as required by
law, the Company expressly disclaims any intention or obligation to
update or revise any forward looking statements and information whether
as a result of new information, future events or otherwise. All written
and oral forward-looking statements and information attributable to us
or persons acting on our behalf are expressly qualified in their
entirety by the foregoing cautionary statements.

SOURCE Lignol Energy Corporation

Source: PR Newswire