LION ENERGY CLOSES FARMOUT AMENDING AGREEMENT WITH AFRICA OIL CORP

VANCOUVER, Jan. 28 /PRNewswire/ - Lion Energy Corp. (the "Company" or "Lion Energy") (TSX.V - LEO) is pleased to announce that, further to its news release dated September 2, 2010, it has now closed the transaction set out in July 29, 2010 amending agreement in respect of the original farmout agreement dated August 19, 2009 between the Company, Africa Oil Corp. ("AOC") and others.  Under the terms of the amending agreement, the Company's working interest in the Kenya Block 10A has been dropped, and its interest in Kenya Block 10BB has been reduced to 10% from 20%.  As consideration for the amendment, AOC will pay the Company the sum of US$2.5 million in cash and issue 2.5 million common shares of AOC to the Company.  Based on adjustments to the working interests, the Company will be partially reimbursed for cash call payments made for Blocks 10A and 10BB since July 1, 2010.  Lion is now also entitled to the return of $US 4 million, which have been held in escrow under the terms of the original farmout agreement.

With recent amendments to the Company's working interest in the Kenya Block 9 concession, announced by the Company in its news release dated January 24, 2011, the following table sets out the Company current property interests:

About the Company: Lion Energy Corp. is a well-financed, Canadian exploration company with a vision to develop a significant presence in the developing oil and gas industry. The Company holds oil and gas interests in four petroleum blocks located in the Republic of Kenya and in Puntland, Somalia. The Company further holds interests in both Encanto Potash Corp., a junior potash exploration company and Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer.

On behalf of the Board,

LION ENERGY CORP.
John R. Nelson
President and Chief Executive Officer

NEITHER THE 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 NEWS RELEASE

This release includes certain statements that may be deemed "forward-looking statements".  All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements.  Forward-looking statements in this news release include statements regarding the Company's intentions or plans, whether of a corporate or exploratory nature. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, political, market or business conditions. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner.   Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements.  The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulatory policies.

SOURCE Lion Energy Corp.

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