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LEC Subsidiary Lignol Innovations Ltd. Signs Letter of Intent for Cooperation in the China Biorefinery Market

December 5, 2013

VANCOUVER, Dec. 5, 2013 /CNW/ – Lignol Energy Corporation (TSXV: LEC)
(“LEC” or the “Company”), is pleased to announce that its wholly-owned
subsidiary, Lignol Innovations Ltd. (“LIL”), has signed a Letter of
Intent (“LOI”) with Sichuan Xilin IM/EX Co. Ltd. of Chengdu, China
(“Xilin”). The LOI was signed on December 3(rd), 2013 in Guangzhou in the presence of the Honourable Teresa Wat,
British Columbia’s Minister of International Trade and Minister
Responsible for the Asia Pacific Strategy and Multiculturalism. The LOI
provides for LIL and Xilin to explore options to cooperate in pursuing
opportunities to commercialize LIL’s proprietary biorefining technology
in China, and contemplates possible formation of a Joint Venture
company as well as various investment options.

“We are delighted to have signed this LOI with Xilin who are well placed
to help us develop the China market for our biorefining technology and
its products,” said Ross MacLachlan, CEO and Chairman of LEC. “We are
hopeful that we can leverage the market knowledge and access to
feedstock and financial resources of Xilin for our mutual benefit.”

“We are pleased to be working with Lignol to explore ways to bring their
technology to the China market,” said Zeng Ai Guo, Chairman and General
Manager of Xilin. “We believe that there is strong business potential
for manufacturing biofuels and biochemicals from wood and agricultural
residues in China and we look forward to reaching definitive agreements
with Lignol to deploy their technology.”

The LOI, which is non-binding on either party, was executed by LIL’s
Chief Operating Officer, Michael Rushton, at a signing ceremony in
Guangzhou, which also involved six other B.C. companies and their
Chinese counterparts. Minister Wat stressed the importance of bilateral
cooperation in business between B.C. and China in creating jobs and
prosperity on both sides of the Pacific.

“As British Columbia continues to diversify our trade and investment
partners, we are deepening our relationships with China and other
growing economies across the Asia Pacific,” Minister Wat said. “British
Columbia is a world leader in clean technology solutions, and we
congratulate Lignol Energy and Sichuan Xilin on this new agreement and
look forward to seeing the positive results of their collaboration in
the months and years to come.”

About Sichuan Xilin IM/EX Co. Ltd.

Sichuan Xilin IM/EX Co Ltd. is a privately owned forest products
production and import/export company based in Chengdu with sawmill
assets in Russia and China. Xilin is mainly focused on forest resource
development, timber processing and timber trade, and has millions of
acres of forest resources in Russia and China. Xilin is keen to promote
biorefinery projects in the China market. Further information on Xilin
is available at www.scxilin.com.cn.

About Lignol Energy Corporation (“LEC”) and Lignol Innovations Ltd.
(“LIL”)


Lignol Energy Corporation is an emerging producer of biofuels,
biochemicals and renewable materials from waste. LEC owns 100% of
Lignol Innovations Ltd., 55% of Territory Biofuels Limited, 21% of
Australian Renewable Fuels Limited, 51% of Neutral Fuels (Melbourne)
Pty Ltd and 20% of Neutral Fuels Parent Company Ltd. The Company
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. The Company’s wholly owned
subsidiary, 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. Further information is available on the Company’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 LIL and Xilin’s ability to
agree to and subsequently sign definitive agreements related to the
joint pursuit of opportunities to commercialize LIL’s proprietary
biorefining technology in China, including the ability to possibly
establish a Joint Venture company as well as to complete any investment
options which may be agreed to in the future between the parties, LIL’s
ability to successfully scale its technology, LIL’s ability to execute
its development plan through strategic partnerships to further develop
and integrate its core technologies on a commercial scale, and
LEC’s ability to invest in, or otherwise obtain, equity interests in
energy related projects which have potential synergies with the Company
and which have the potential to generate near term cash flow.

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, LEC’s ability to raise
additional capital to fund operations and to support the capital
requirements of its affiliates, LIL’s ability to establish a business
relationship with Xilin and to commercialize its technology in China,
the requirements of the potential effect of changes in government
policy relating to the environment and incentives for renewable fuels,
the potential impact of changes in the prices of feedstock and the
market price of liquid fuels including biodiesel, ethanol and renewable
chemicals, the ability of LEC’s subsidiaries, associated and investee
company to generate future near term profits and to pay dividends, and
to meet increasing regulatory requirements, and LEC’s ability to divest
the ARW ordinary shares due to modest trading volumes.

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, financial market conditions which will impact LEC’s ability to
finance its operations and to meet future capital and investment
requirements, the demand for the market price of liquid fuels including
gasoline, biodiesel, ethanol, the market price and demand for renewable
chemicals, risks relating to the protection of technology from
infringement and those risk factors which are discussed elsewhere in
documents that LEC files from time to time with securities and other
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