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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;

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