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The Elixir Of Life was added in update 48.
In the Show Edit
In the short 'The Night of the Doctor', the 8th Doctor drinks the Elixr of Life to regenerate into the War Doctor on Karn.
In the Mod Edit
In the Update 48 video, Didgeridoomen drinks the Elixr of life because some Zygon poison has gotten into him. He then walks into a Cactus and ends up in real life where he and John program the game to get back onto the server where the Zygon duplicates of the programmers were defeated.
Once you drink the Elixr of Life, you pick the color of your regeneration energy and then you regenerate. This allows you to get extra lives ingame.