VANCOUVER, March 18, 2013 /CNW/ – Lignol Energy Corporation (TSXV: LEC) (“LEC” or “the Company”), a
leading technology company in the advanced biofuels and renewable
chemicals sector, today announced that it has invested approximately
A$2.5 million to acquire approximately 356 million shares of Australian
Renewable Fuels Limited (ASX: ARW) (“ARW”) as a part of ARW’s
underwritten rights issue of approximately A$8 million. This investment
was funded, in part, from LEC’s recently announced line of credit with
one of the Company’s major shareholders, Difference Capital Funding
Inc. This investment together with the approximately 179 million
shares acquired by LEC as a part of ARW’s share placement, announced on
February 12, 2013, and shares previously acquired by LEC has resulted
in a total ownership of approximately 898 million shares, representing
21.4% of ARW.

“We are pleased to have participated in the private placement, the
shareholder entitlement offer, and to have supported ARW through the
related underwriting to become one of ARW’s largest shareholders.” said
Ross MacLachlan, Chairman and CEO. “As a result of our recent
investments, LEC is now well positioned in the Australian biodiesel
industry. These investments are further evidence of our strategy of
acquiring interests in companies which have synergy with our company
and have the potential to generate near term cash flow.”

About Lignol Energy Corporation (“LEC”)

LEC (TSXV: LEC) owns 100% of the issued and voting shares of Lignol
Innovations Ltd. (“LIL”) and has interests in Australian Renewable
Fuels Limited (ASX: ARW) (“ARW”) as well as Territory Biofuels Limited
(“TBF”). LEC also 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.

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. For more information please visit LEC’s website at www.lignol.ca.

ARW is the largest biodiesel producer in Australia owning three plants
with a total nameplate capacity of 150 million litres per annum. ARW’s
three plants were built at an aggregate cost of over A$100 million.
More information on ARW can be found on their website at www.arfuels.com.au.

TBF owns a large scale biorefining facility located in Darwin, Northern
Territory, Australia, which includes a Lurgi designed biodiesel plant
and the only glycerine refinery in Australia. The facility was
commissioned in 2008 at a cost of A$80 million, along with 38 million
litres of related tankage, now leased by TBF. The biodiesel plant is
the largest in Australia with a maximum capacity of 150 million litres
per year. The plant was shut down in 2009 and TBF is currently in the
process of planning the restart of the facility.

Neither 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 release.

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 invest in,
or otherwise obtain, equity interests in energy related projects which
have synergies with the Company and which have the potential to
generate near term cash flow, the outcome of factors influencing the
future conversion of LEC’s Notes into an equity position for LEC of
between 20% to 40% in TBF depending on a range of criteria related to
the Darwin facility, TBF’s ability to restart and profitably operate
its 150 million litres per year biodiesel plant and glycerine refinery,
TBF’s ability to work with strong commercial partnerships and to become
a major regional player in the biodiesel market in the Pacific Rim,
TBF’s ability to integrate new pretreatment technologies and catalysts
to facilitate the processing of a broad range of low cost feedstocks,
the successful outcome of projects undertaken under the Technology
Collaboration between LEC and TBF, the future exercise of Difference
Capital Funding Inc.’s warrants, LEC’s ability to continue as a going
concern and to raise additional financing to fund the operations of LEC
and LIL, the development status of LIL’s fully integrated pilot scale
biorefinery in Burnaby, British Columbia, the planning and development
of a commercial plant, LIL’s ability to complete project deliverables
which are funded in part by government agencies, obtaining strategic
partnership investments and government funding for initial commercial
projects. 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, our ability to establish the
validity of Lignol’s technology at the fully integrated biorefinery
pilot plant scale, LIL’s ability to satisfy the conditions of existing
government grants and to obtain new additional grants, our ability to
continue to finance our operations and to finance and complete the
development of a commercial project, LIL’s ability to work with
Novozymes to produce cellulosic ethanol at production costs competitive
with gasoline and corn ethanol, LIL’s ability to develop products and
to obtain off-take agreements, LIL’s ability to obtain requisite
regulatory approvals and its ability to enter into agreements with
strategic partners on terms acceptable to us, the inability of LEC to
influence the strategy, operations and financial performance of ARW,
the reliance on publically available information of ARW in the
Company’s evaluation of its acquisition of shares in ARW, the potential
inability to divest the ARW ordinary shares due to modest trading
volumes, the cost of any future ARW capital investment, the fluctuation
of biodiesel and feedstock prices on ARW, the effect on ARW of changes
in government policy relating to the environment, and incentives for
renewable fuels, and the ability of ARW to generate short term cash
flow and pay dividends. 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, the technological challenges that remain to be surpassed
in obtaining the necessary operating data from LIL’s fully integrated
biorefinery pilot plant that is required prior to completing the next
scale-up of the technology, financial market conditions which will
impact our ability to finance our operations and to finance the
construction and operation of a commercial plant, the price of gasoline
and demand for ethanol, the market pricing and demand for renewable
chemicals, risks relating to the protection of LIL’s core technology
from infringement and those risk factors which are discussed elsewhere
in documents that LEC files from time to time with securities
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