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Lignol provides financial and commercial update
Date:8/5/2014

ity funding or other forms of investment in the project, LEC's ability to monetize some or all of its interests in each of Lignol Innovations Limited, Australian Renewable Fuels Limited, and the Neutral Fuels businesses, LEC's ability to complete its transition from a technology developer to an owner and operator of commercial biorefining assets, LEC's ability to restart the Darwin biodiesel plant and to subsequently integrate the plant with M Energy's pretreatment facility and with feedstock supply chains, LEC's ability to invest in, or otherwise obtain, equity interests in energy related projects which have potential synergies and the potential to generate near term cash flow, LEC's ability to continue as a going concern and to raise additional financing to fund the restart of the Darwin plant and to fund the operations of LEC and its affiliates, and LEC's ability to repay amounts owing to DCF under the secured revolving credit facility, LIL's ability to satisfy certain project deliverables and related funding conditions from existing and potential future government grants so as to enable LIL to receive future grant hold-backs, obtaining strategic partnership investments and government funding for initial commercial projects. LEC and its affiliates need an immediate injection of new funds in order to continue to meet payroll and other obligations, and in the current economic environment there is no certainty that this will be accomplished. 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
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