Last updated on April 24, 2014 at 1:21 EDT

Lignol provides addional funding to Territory Biofuels Limited to obtain fully diluted majority interest

May 6, 2013

VANCOUVER, May 6, 2013 /CNW/ – Lignol Energy Corporation (TSXV: LEC)
(“LEC” or “the Company”), a leading technology company in the advanced
biofuels and renewable chemicals sectors, today announced that it has
provided a A$500,000 loan to Territory Biofuels Limited (“TBF”), in
exchange for receiving 2.5 million stock options from TBF, making LEC
the majority shareholder of TBF, on a fully diluted basis with a 51.9%

LEC has provided an interest free, non-recourse loan to TBF in the
principal amount of A$500,000 which is repayable on January 15, 2014
(the “Loan”). In consideration for LEC providing the Loan, TBF will
issue common stock options to LEC exercisable up until June 15, 2015
(the “TBF Options”). The issuance of the TBF Options are subject to
certain undertakings by LEC, which are expected to be fulfilled on or
before May 15, 2013.

Further to the Company’s news release dated April 17, 2013, the
convertible notes with a principle value of A$1.18 million held by the
Company and issued by TBF were converted into common shares, which made
LEC the largest shareholder in TBF with a 40% fully diluted equity
stake at that time.  With the issuance of the additional TBF Options,
LEC is expected to have a projected 51.9% stake on a fully diluted

About Territory Biofuels Limited (“TBF”)

TBF owns a large scale biorefining facility located in Darwin, Northern
Territory, Australia, which includes a Lurgi designed biodiesel plant
and the only glycerine refinery in Australia.  The facility was
commissioned in 2008 at a cost of A$80 million, along with 38 million
litres of related tankage, now leased by TBF.  The biodiesel plant is
the largest in Australia with a maximum rated capacity of 150 million
litres per year.  Originally built to run on food-grade vegetable oil,
the plant was shut down in 2009 due to feedstock constraints.  TBF
intends to restart the existing facility utilizing feedstocks such as
tallow and used cooking oil and then plans to integrate new feedstock
pre-treatment technologies and catalysts to process a broader range of
feedstocks such as lower quality tallow and palm sludge oil; a waste
product from palm oil mill extraction. TBF has established trading
relationships with its shipping, off-take and feedstock partners which
it expects will allow it to profitably start up and operate the
facility.  Two LEC executive officers and directors, Mr. Ross
MacLachlan and Mr. Stephen Morris have been appointed directors of TBF
with Mr. MacLachlan also having assumed the role of Chairman of TBF.

About Lignol Energy Corporation (“LEC”)

LEC (TSXV: LEC) owns 100% of the issued and voting shares of Lignol
Innovations Ltd. (“LIL”) and has interests in both Australian Renewable
Fuels Ltd. (ASX: ARW) (“ARW”) and TBF.  LEC also intends to invest in,
or otherwise obtain, equity interests in energy related projects which
have synergies with the Company and have the potential to generate near
term cash flow.

LIL 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 non-food
cellulosic biomass feedstocks. LIL’s modified solvent based
pre-treatment technology facilitates the rapid, high-yield conversion
of cellulose to ethanol and the production of value-added biochemical
co-products, including high purity HP-L(TM) lignin. HP-L(TM) 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 by-products generated from other processes. LIL 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.

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 LEC’s ability to fulfill
certain undertakings related to a loan LEC to be provided to TBF and
TBF’s ability to repay the loan, LEC’s ability to meet the obligations
imposed with respect to the 2.5 million options received of TBF, LEC’s
ability to exercise its TBF stock options in order maintain and or
increase its equity stake in TBF, TBF’s ability to finance, restart and
profitably operate its 150 million litre per year biodiesel plant and
glycerine refinery, TBF’s ability to work with strong commercial
partnerships and to become a major regional player in the biodiesel
market in the Pacific Rim, TBF’s ability to integrate new pretreatment
technologies and catalysts to facilitate the processing of a broad
range of lower cost feedstocks, the successful outcome of projects
undertaken under the Technology Collaboration Agreement between LEC and
TBF, LEC’s ability to continue as a going concern and to raise
additional financing to fund the operations of LEC and LIL and to
support the financing requirements of TBF, LEC’s ability to invest in,
or otherwise obtain, equity interests in energy related projects which
have technical and commercial synergies with the Company and which have
the potential to generate future dividends and near term cash flow, the
development status of LIL’s fully integrated pilot scale biorefinery in
Burnaby, British Columbia, the planning and development of a commercial
plant, LIL’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, forward looking 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 LIL’s technology at the fully integrated biorefinery pilot
plant scale, LIL’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, LIL’s ability to work with
Novozymes to produce cellulosic ethanol at production costs competitive
with gasoline and corn ethanol, LIL’s ability to develop products and
to obtain off-take agreements, LIL’s ability to obtain requisite
regulatory approvals and its ability to enter into agreements with
strategic partners on terms acceptable to us, LEC’s ability to
influence the strategy, operations and financial performance of ARW or
TBF, 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 and the inability to divest the TBF ordinary shares, the cost
of any future ARW capital investment, the fluctuation of biodiesel and
feedstock prices on ARW and TBF, the effect on ARW and TBF of changes
in government policy relating to the environment, and incentives for
renewable fuels, the ability of ARW and TBF to generate cash flow and
pay dividends, and the ability of ARW and TBF to market their products
overseas and to meet relevant regulatory requirements. 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 LIL’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 LIL’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