LION ENERGY CORP. PROCEEDS WITH PROPOSED ARRANGEMENT WITH AFRICA OIL CORP.

VANCOUVER, May 16 /CNW/ - (TSXV: LEO) - Lion Energy Corp. ("Lion" or "the Company") is pleased to announce that, further to its April 4, 2011 press release, the Company is proceeding with its proposed business combination by way of arrangement with Africa Oil Corp. (TSXV: AOI) ("Africa Oil").

On May 10, 2011 the Company made application for, and obtained, an Interim Order from the Supreme Court of British Columbia (the "Interim Order") authorizing, among other things, the holding, on June 8, 2011, of a special meeting of Lion shareholders (the "Meeting") in respect of the proposed arrangement with Africa Oil (the "Arrangement"), the form of Notice, Information Circular and Proxy (the "Meeting Materials") to be mailed out to Lion shareholders in respect of the Meeting, the mail out of the Meeting Materials to Lion shareholders, and setting June 8, 2011 as the date for the hearing of the Final Order approving the Arrangement (the "Final Order").

Further to the granting of the Interim Order, the Company today mailed out the Meeting Materials to its shareholders.  All Lion shareholders are invited to attend the Meeting, however only Shareholders on record as of May 4, 2011 will be permitted to vote on the Arrangement.  The Arrangement is subject to the approval of not less than two thirds of the votes cast at the Meeting by Lion shareholders.  It has been determined that "majority of the minority approval" will not be required to approve the Arrangement at the Meeting.

The Company looks forward to the holding of its June 8, 2011 Meeting and, subject to (among other conditions) receiving shareholder approval and receipt of the Final Order, the closing of the Arrangement with Africa Oil.

On behalf of the Board,

LION ENERGY CORP.
John R. Nelson
President and Chief Executive Officer

NEITHER THE 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 NEWS RELEASE

Forward-Looking Statements: Certain information provided in this press release constitutes forward-looking statements.  The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the Transaction. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: the failure to obtain necessary Lion shareholder approval with respect to the Transaction, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Transaction, general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling; recompletions and related activities; timing and rig availability, the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of Lion. Except as may be required by applicable securities laws, Lion assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

SOURCE Lion Energy Corp.

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To find out more about the Company, please visit our website at www.lionenergycorp.com.

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Lion Energy Corp.

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