LION ENERGY ENTERS INTO ADDITIONAL EXPLORATION PHASE IN KENYA BLOCK 9

TSX.V - LEO

VANCOUVER, Jan. 24 /CNW/ - Lion Energy Corp. (the "Company" or "Lion Energy") (TSX.V - LEO) is pleased to announce that it has entered the First Additional Exploration Phase under the Block 9 Production Sharing Contract Agreement ("PSC") along with Joint Venture partner Africa Oil Corp.  As a result of the withdrawal of the two previous partners, Africa Oil Corp will now hold a 66.7% working interest in the PSC, while Lion Energy will hold the remaining 33.3%.  Government approval has been received.  This additional period commenced on December 31, 2010 and expires on December 31, 2013.  The only work commitment obligation during this period is the drilling of one exploration well to a minimum depth of at least 1500 meters.

The northeastern portion of Block 9 contains the Kaisut Basin, which is an extension of the Anza Basin oil play currently being pursued by Africa Oil and its joint venture partners in Block 10A. Several large leads have been identified in this area of Block 9 on existing 2D seismic data. A 500 - 700 kilometer survey is planned for later this year to upgrade these leads into drillable prospects.

About the Company: Lion Energy Corp. is a well-financed, Canadian exploration company with a vision to develop a significant presence in the developing oil and gas industry. The Company holds oil and gas interests in four petroleum blocks located in the Republic of Kenya and in Puntland, Somalia. The Company further holds interests in both Encanto Potash Corp., a junior potash exploration company and Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer.

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

This release includes certain statements that may be deemed "forward-looking statements".  All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements.  Forward-looking statements in this news release include statements regarding the Company's intentions or plans, whether of a corporate or exploratory nature. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, political, market or business conditions. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner.   Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements.  The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulatory policies.

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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