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

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

Lignol Energy Corporation 
David Turner
Chief Financial Officer
Tel: [phone]
Email: [email protected]