Lion Energy exercises potash option

	    TSX.V - LEO

	    VANCOUVER, Jan. 26 /CNW/ - The Company is pleased to announce that,
effective December 31, 2009, the Company exercised its rights under a July 24,
2009 option agreement with Encanto Potash Corp. ("Encanto"), a junior potash
exploration company, and acquired a 51% interest in and to all properties held
by Encanto. To earn this interest, the Company incurred $6.5 million in
property expenditures advancing Encanto's potash properties through both
seismic and drilling programs. Assay results from two drill holes are expected
sometime in February 2010.
	    Under the terms of the option agreement, Encanto has the right to
repurchase the 51% interest from the Company in exchange for the issuance of
26 million Encanto shares to the Company. Notice of its intention to
repurchase the 51% interest must be received by the Company from Encanto by
not later than March 14, 2010, failing which the Company and Encanto will
proceed to enter into a joint venture arrangement with respect to the
properties.

	    About the Company:

	    The Company is a well-financed, Canadian exploration company with a
vision to develop a significant presence in the developing oil and gas
industry. The Company signed an agreement with Africa Oil Corp. that grants
the Company the right to earn an interest in five petroleum blocks located in
the Republic of Kenya and in Puntland, Somalia. The Company further holds
14.76% interest in Encanto Potash Corp., a junior potash exploration company
and a 20% interest in 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.

	    "Brian Thurston"
	    President and CEO
	    >>

	    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.






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	    /For further information: To find out more about the Company, please
visit our website at www.lionenergycorp.com/