Lake Charles Clean Energy Announces Contracts with BP, Air Products and Denbury; Advances First-in-the-Nation Project with State

   Lake Charles Clean Energy Announces Contracts with BP, Air Products and
     Denbury; Advances First-in-the-Nation Project with State-of-the-Art
                         Gasification for Clean Fuels

$2.5 Billion Investment in Louisiana's Economy Would Create up to 1,500
Construction Jobs, Provide Clean Fuels for State's Petrochemical Industry and
Use Carbon Dioxide to Boost Domestic Oil Production

PR Newswire

LAKE CHARLES, La., Oct. 29, 2012

LAKE CHARLES, La., Oct. 29, 2012 /PRNewswire/ -- Lake Charles Clean Energy
(LCCE), LLC announced today that it has secured major long-term commercial
offtake contracts with BP Products North America Inc., Air Products and
Chemicals, Inc. and Denbury Onshore LLC, a subsidiary of Denbury Resources
Inc., for the Lake Charles Clean Energy project located at the Port of Lake
Charles, Louisiana. LCCE is a subsidiary of Leucadia Energy, LLC.

Securing long-term commercial offtake contracts is a major milestone, as it
enhances Leucadia Energy's ability to seek and obtain necessary third-party
financing for the project prior to commencing construction. This project,
employing commercially proven gasification technologies to cleanly manufacture
industrial products from petroleum coke, would be the first of its kind in the
U.S. LCCE is expected to be one of the world's lowest-cost producers of
methanol and hydrogen and a low-cost producer of other products used in the
chemical and refining industries. In addition to extraordinary limitations on
emissions of Criteria Pollutants, the plant is designed to capture, compress
and sell 90 percent of its carbon dioxide ("CO2") production for use in
Enhanced Oil Recovery ("EOR") in the US Gulf Coast.

BP Products North America Inc. will purchase the majority of the methanol
production and Air Products will purchase all of LCCE's hydrogen and argon and
also provide the air separation units to supply the required oxygen for the
project. Denbury Onshore LLC will purchase all of the captured CO2.

Thomas E. Mara, President of Leucadia Energy (an indirect wholly owned
subsidiary of Leucadia National Corporation) (NYSE: LUK), said: "The
commercial offtake contracts with BP and Air Products, together with the
existing long-term CO2 contract with Denbury Onshore LLC, aremajor commercial
milestones required to facilitate financing for the project. Having these
companies as our customers validates our business model and our vision of
bringing a clean fuels facility to Lake Charles. These offtake contracts,
along with our success at obtaining all required federal, state, and local
permits and approvals, mean the ongoing site work will continue and should
facilitate project construction next year. Our current success is a direct
result of the ongoing strong support of the Port of Lake Charles, Calcasieu
Parish, the Cities of Sulphur and Lake Charles as well as the many local
businesses working with LCCE to turn this project into a reality."

A final investment decision in the project remains subject to third party
financing and board approval by Leucadia National Corporation. As part of its
financing efforts, Lake Charles Clean Energy has retained Credit Suisse AG and
its affiliates, Citigroup and its affiliates, and Jefferies & Company, Inc.
and its affiliates to provide advisory services related to potential placement
of project equity.

The project represents a capital investment of more than $2.5 billion and is
expected to provide up to 1,500 construction jobs during the 3-4 year
construction period, beginning in 2013. Leucadia Energy will be managing
construction of the project. Turner Industries Group, LLC of Baton Rouge, La.,
will construct the project, and Kellogg, Brown and Root, ("KBR"), will provide
design, engineering and procurement services.

Located on property leased from the Port of Lake Charles ("the Port"), the
project site will be adjacent to ship, barge and rail facilities, and the Port
will provide logistical services such as storage and loading and unloading of
cargoes. LCCE will acquire petcoke from Koch Carbon, LLC, under a long-term
feedstock supply and logistics service agreement, which will amount to 7,000
metric tons of petcoke a day from Gulf Coast refiners. Through this process,
LCCE would extract the beneficial energy in petcoke while avoiding harmful
emissions and producing no waste product.

After completion, there will be approximately 165 full-time skilled employees
(including contract employees) at the clean fuels plant, with competitive
wages and benefits for the technical jobs needed to operate and maintain this
first-of-its-kind U.S. clean energy plant. Operations and management at the
plant will cost approximately $2 billion during its 30-year life. The majority
of costs will go to pay local workforces and purchase locally procured
materials and services. The project would have a tremendous economic
multiplier effect in the surrounding area, through housing demand and services
needed for the facility and its employees.

Former United States Senator Bennett Johnston (D-La.), whose Johnston
Development Company is a joint venture partner of Lake Charles Clean Energy,
said: "Commercial offtake agreements with BP and Air Products demonstrate the
strength of the project and the viability of clean energy technologies and
investment. Our project is a great demonstration of how government incentives
and private enterprise can work together to implement clean energy
technologies."

Jeff Byrne, vice president and general manager, Tonnage Gases for Air
Products, said: "We are pleased to be part of this project on both the supply
side, as well as receiving product that we can use to serve to our customers.
The hydrogen we receive from LCCE will again demonstrate the value of our Gulf
Coast Connection Pipeline. We can take this hydrogen and supply the vast
number of refinery and petrochemical customers on our Texas to Louisiana
pipeline. On the Merchant side of our business, the argon will be a valuable
source to our existing and new customers in North America."

William Rase, Executive Director of the Port of Lake Charles, said: "We are
very pleased that Lake Charles Clean Energy has reached this important
commercial milestone. We fully support the Lake Charles Clean Energy project,
which will be an important part of the future of the Port of Lake Charles. We
look forward to working with Leucadia Energy to fully implement this clean
energy project."

LCCE was awarded $1.56 billion of Gulf Opportunity Zone ("GO Zone") and
Hurricane Ike tax-exempt bonds by the Louisiana State Bond Commission. The
issuance of these bonds demonstrates the state of Louisiana's strong financial
support for the project. The low-cost GO Zone financing provided by the state
was a large incentive to develop the project in Lake Charles.

In addition to the state bond financing, the LCCE project is one of three
large-scale industrial carbon capture projects that were awarded a Department
of Energy ("DOE") grant as part of an effort to capture carbon dioxide from
industrial sources for storage or beneficial use. The DOE grant is for
approximately $261 million.

As part of the clean fuels aspect of the project, all of the captured CO2,
which is expected to equal approximately 4.5 million tons annually, will be
sold to Denbury Onshore, LLC for use in its Gulf Coast EOR operations.
Denbury currently produces over 35,000 barrels of oil per day from its Gulf
Coast CO2 EOR operations and will use the captured CO2 to further increase
this production. When used in EOR, CO2 is stored in underground oil producing
formations.

Phil Rykhoek, President and CEO of Denbury Resources Inc., commented, "Denbury
Onshore and its affiliated companies are pleased to see Lake Charles Clean
Energy reach another key milestone in the development of this
first-of-its-kind domestic project. The CO2 from the plant would supplement
our other Gulf Coast CO2 sources and be used to drive additional growth in our
Gulf Coast EOR operations. The captured CO2 would be transported through the
320-mile Green Pipeline, which was built to move CO2 to Gulf Coast oil fields
ideally suited for CO2 EOR from natural sources near Jackson, Mississippi and
projects like this one. From an environmental standpoint, EOR using man-made
CO2 results in a net reduction in carbon emissions as the amount of CO2
captured and stored exceeds the amount of CO2 contained in the oil produced.
Also, CO2 EOR allows us to recover oil that would otherwise be stranded in
existing domestic oil fields, reducing our country's dependence on foreign oil
imports. As a result, when coupled with our EOR operations, this project is a
positive for the environment and for domestic energy supply, a true win-win."

In addition, the project has been awarded a $128 million federal investment
tax credit under IRS Section 48B, which was a further indication of the
support of the federal government for this clean fuels project.

For more information about the Lake Charles Clean Energy project, please
visit: www.LakeCharlesCleanEnergy.com

About Leucadia

Leucadia Energy is an indirect wholly owned subsidiary of Leucadia National
Corporation (NYSE: LUK), which is a diversified holding company engaged
through its consolidated subsidiaries in a variety of businesses, including
beef processing, manufacturing, gaming entertainment, real estate activities,
medical product development and winery operations. Leucadia Energy is
investigating the development of other domestic projects that would utilize
commercially proven gasification technology. For more information about
Leucadia National Corporation, please visit www.leucadia.com.

About BP

BP (NYSE: BP) ranks as one of the top five refiners in the U.S., with capacity
to process up to 1.5 million barrels of crude oil every day. The company is
the nation's second largest producer of oil and gas, a major oil refiner and a
leader in alternative energy sources including wind power and biofuels. BP
provides enough energy each year to light the entire country. With 23,000 U.S.
employees, BP supports nearly a quarter of a million domestic jobs through its
business activities. For more information about BP, please visit www.bp.com.

About Air Products

Air Products (NYSE:APD) provides atmospheric, process and specialty gases;
performance materials; equipment; and technology. For over 70 years, the
company has enabled customers to become more productive, energy efficient and
sustainable. More than 20,000 employees in over 50 countries supply innovative
solutions to the energy, environment and emerging markets. These include
semiconductor materials, refinery hydrogen, coal gasification, natural gas
liquefaction, and advanced coatings and adhesives. In fiscal 2012, Air
Products had sales approaching $10 billion. For more information, visit
www.airproducts.com.

About Denbury

Denbury Resources Inc. (NYSE: DNR) is a growing independent oil and natural
gas company. The Company is the largest combined oil and natural gas operator
in both Mississippi and Montana, owns the largest reserves of CO2 used for
tertiary oil recovery east of the Mississippi River, and holds significant
operating acreage in the Rocky Mountain and Gulf Coast regions. The Company's
goal is to increase the value of acquired properties through a combination of
exploitation, drilling and proven engineering extraction practices, with its
most significant emphasis relating to tertiary oil recovery operations. For
more information about Denbury, please visit www.denbury.com.

This press release may contain "forward-looking statements" within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Although Leucadia believes any such statement is based on
reasonable assumptions, there is no assurance that actual outcomes will not be
materially different. These forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ materially. For a
discussion of factors that may cause results to differ, see Leucadia's reports
filed with the Securities and Exchange Commission, including its Quarterly
Report on Form 10-Q for the quarter ended June 30, 2012 and its Annual Report
on Form 10-K, as amended, for the year ended December 31, 2011. These
forward-looking statements speak only as of the date hereof. Leucadia
disclaims any intent or obligation to update these forward-looking statements.

Lake Charles Clean Energy LLC

FACT SHEET: LAKE CHARLES CLEAN ENERGY LLC
Project Highlights
October 29, 2012

Feedstock

  oAt design, annual usage of approximately 2.4 million tons of petroleum
    coke or petcoke.
  oPetcoke is an energy-rich waste byproduct produced from refining heavy
    crude oil, high in sulfur content.
  o25 percent of world's petcoke is produced within 300 miles of the LCCE
    site.

Gasification Technology

  oLCCE will use advanced gasification technology to avoid harmful emissions
    while extracting energy from petcoke. LCCE will cleanly convert the
    feedstock chemically under high temperature and pressure to create clean
    synthesis gas with very low emissions.

Methanol, Hydrogen and Byproduct Production

  oLCCE is expected to be one of the world's lowest-cost producers of
    methanol. Over 1 million metric tons of methanol will be produced each
    year, with the majority already committed under long-term off-take
    contracts.
  oAll of the hydrogen and argon produced annually will be sold under
    long-term off-take agreements.
  oApproximately 400 thousand tons of sulfuric acid will be produced annually
    from the sulfur in the feedstock and is expected to be sold into the
    industrial market under long-term off-take agreements.

Annual Liquefied Carbon Dioxide (CO2) Production

  oFacility to employ state-of-the-art technology to capture and sell
    approximately 90 percent of its CO2 for enhanced oil recovery.
  oApproximately 4.5 million tons annually will be sold to Denbury Onshore
    LLC for use in enhanced oil recovery operations in the Gulf Coast Region
    (estimated to result in additional domestic oil recovery of 6 million to 9
    million barrels.)[1] 

Emissions Performance Highlights

  oAs a result of using gasification technology and state-of-the-art
    controls, permitted emissions will create zero liquid discharge of
    gasification process water and limited Sulfur Dioxide or Nitrogen Oxides
    emissions. In addition, 90 percent of the Carbon Dioxide will be captured
    and used for enhanced oil recovery operations.

Schedule

  oFinancial close is expected in 2013 and achieve commercial operations in
    the second half of 2016.

Clean Air Act Permit Status

The Louisiana Department of Environmental Quality (LDEQ) issued the PSD
construction permit and Title V operating permit on June 29, 2012. For more
information, please visit: http://www.deq.louisiana.gov

[1] Assumes a range of 0.5 to 0.64 tons of CO2 per incremental barrel of oil
produced which is based on Denbury Resources' estimates for its Gulf Coast CO2
EOR operations.

SOURCE Lake Charles Clean Energy, LLC

Contact: Doug Barba, Project Manager, dbarba@leucadiaenergy.com,
+1-713-963-4635; Hunter Johnston, Development Partner,
nhunterjohnston@gmail.com, +1-202-429-6404
 
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