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Lignol Energy Corporation Announces Completion Of A $5 Million Credit Facility

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, Feb. 27, 2013 /CNW/ - Lignol Energy Corporation (TSXV: LEC) ("LEC" or the "Company"), a leading technology company in the advanced biofuels and renewable chemicals sector, is pleased to announce that further to its previous announcement, the Company has entered into a secured credit facility for up to $5 million with Difference Capital Funding Inc. ("DCF"), a major shareholder of LEC.  Amounts drawn under this facility will bear interest at 8% per annum and the facility will mature on the earlier of February 27, 2014 or upon the completion of an equity financing raising gross proceeds of at least $5 million. These funds will initially be secured by a general security agreement providing for a security interest in all of LEC's present and future personal property until such time as DCF has a perfected security interest in all of the shares of Australian Renewable Fuels Limited ("ARW") owned by LEC pursuant to a share pledge agreement. Once DCF's security interest in the ARW shares has been perfected, the general security agreement will be terminated.

"This credit facility from DCF provides the flexibility in our financial planning to take advantage of strategic opportunities, such as participating in the recently announced private placement and rights offering of Australian Renewable Fuels, which is expected to result in LEC becoming one of ARW's largest shareholders", said Ross MacLachlan, President & CEO. "The support from DCF as one of our major shareholders is very encouraging and reinforces LEC's commitment to its strategy of taking significant equity stakes in companies such as ARW which have the potential of generating 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 is one of the largest shareholders of Australian Renewable Fuels Ltd (ASX: ARW). LEC also intends to invest in, or otherwise obtain, equity interests in energy related projects which have synergies with its biorefining technology.

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