LEC Closes first tranche to fund Neutral Fuels roll out of closed loop biorefineries with McDonald's used cooking oil biodiesel program in Asia Pacific/Middle East/Africa Region

VANCOUVER, Nov. 13, 2013 /CNW/ - Lignol Energy Corporation (TSXV: LEC) ("LEC" or the "Company"), is pleased to announce that, further to its news release of  September 5, 2013, LEC has completed the first A$2 million tranche of a A$4.07 million loan to Neutral Fuels Parent Company ("Neutral Fuels") to fund the initial rollout of closed loop biorefineries in the Asia Pacific/Middle East/Africa region ("APMEA") in an agreement with the McDonald's used cooking oil biodiesel program. Under the arrangement with McDonald's, Neutral Fuels currently operates two closed loop biorefineries located in Dubai, United Arab Emirates and Melbourne, Australia.

Today's funding is structured as a 5 year, unsecured, non-interest bearing loan to Neutral Fuels.  In connection with the loan, LEC acquired a 20% interest in Neutral Fuels and a 51% interest in Neutral Fuels (Melbourne) Pty Ltd. ("Neutral Fuels Melbourne"), which has the exclusive rights to Neutral Fuels business in Australia and New Zealand. LEC plans to fund the remaining A$2.07 million to acquire an additional 20% interest in Neutral Fuels by the end of February 2014, thereby increasing its ownership to 40%.

"We are delighted to have completed the first tranche of our loan and the acquisition of an interest in Neutral Fuels, an emerging leader in the production of biodiesel from used cooking oil", said Ross MacLachlan, CEO and Chairman of LEC. "This investment is keeping with our strategy of acquiring interests in businesses which offer sustainable solutions for the production of environmentally preferred fuels and have the ability to produce near term revenues and cash flows."

"This is a significant step for Neutral Fuels and provides an excellent financial, technical, and geographic platform for our future expansion. We are looking forward to working with Lignol in a number of exciting areas" said Karl W. Feilder, CEO and Chairman of The Neutral Group.

This investment was funded by LEC accessing an additional $2,035,000 from the Company's secured revolving credit facility of up to $12,500,000 with Difference Capital Financial Inc. This increased the amount drawn under the facility to $11,785,000.

About Neutral Fuels
Neutral Fuels owns and manages biorefineries that convert used cooking oil into biodiesel, the modern, sustainable replacement for fossil diesel. On a lifecycle basis, biodiesel accounts for over 80% reduction in carbon dioxide and its equivalents, the major contributors to climate change. Neutral Fuels pioneered the closed loop business model which was developed specifically for McDonald's use, where used cooking oil is collected from McDonald's restaurants by the same vehicles that deliver the fresh oil. The used oil is then backhauled to the Neutral Fuels biorefinery where it is converted, litre for litre, into biodiesel.  This biodiesel is then pumped back into the delivery fleet in an ongoing recycling process.

In Dubai, used cooking oil is collected from more than 100 McDonald's UAE restaurants each month and their fleet of supply trucks in the UAE has to date driven more than 2 million kilometres on Neutral Fuels B100 biodiesel. In Victoria Australia, the Neutral Fuels Melbourne biorefinery currently recycles the used cooking oil from more than 150 McDonald's restaurants.

Neutral Fuels, headquartered in Dubai, UAE, is a member of The Neutral Group, the international clean-tech organization founded in 2006 to build sustainability strategies for the logistics, energy and hospitality industries and to execute significant reductions in energy spent and CO2 emissions. CEO and founder, Karl W Feilder, won the Asian Sustainability Leadership Award in September 2012 and was awarded Innovator of the Year in 2011 by LOG Magazine for his work in carbon savings in the Middle East.

Neutral Fuels' closed loop business model, which was developed specifically for McDonald's, takes used cooking oil from its local restaurants and in return provides B100 biodiesel to fuel its suppliers' delivery fleets. The company has been featured in print and television media including;

CNN: http://tinyurl.com/Neutral-Fuels-CNN
BBC : http://tinyurl.com/Neutral-Fuels-BBC
Australian TV : http://tinyurl.com/Neutral-Fuels-Australia

For more information, please visit www.biodiesel.ae

About Lignol Energy Corporation ("LEC")
Lignol Energy Corporation is an emerging producer of biofuels, biochemicals and renewable materials from waste. LEC owns 100% of Lignol Innovations Ltd., 56% of Territory Biofuels Limited, 21% of Australian Renewable Fuels Limited, 51% of Neutral Fuels Melbourne and 20% of Neutral Fuels.  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.  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 LEC's ability to complete the funding of the second tranche of A$2,070,000 of a A$4,070,000 loan to Neutral Fuels within the agreed timeframes and to increase its stake to 40%, the ability of Neutral Fuels to complete the rollout of closed loop biorefineries in accordance with its agreed timetable with MacDonald's, 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, 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

For further information:

Lignol Energy Corporation 
David Turner
Chief Financial Officer
Tel: 604-453-1241
Email: dturner@lignol.ca

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