Lignol Engages CIBC and Capital West

VANCOUVER, Sept. 20, 2011 /CNW/ - Lignol Energy Corporation (TSXV: LEC), a leading technology company in the advanced biofuels and renewable chemicals sector, announced today that it has engaged CIBC World Markets Inc. (CIBC) and Capital West Partners (Capital West) in respect of arranging strategic partner investments on a best-efforts basis to provide Lignol with the required medium-term financing to begin development of its initial commercial projects.

In preparation for developing its initial commercial projects Lignol intends to complete planned pilot plant production runs with partners and establish off-take agreements for its primary products. The CIBC and Capital West engagement will consider a range of sources of investment, including industry and financial investors who have a strategic, long-term interest in advanced biofuels, renewable chemicals and forest industry transformation. The specific form and structure of the financing will be determined in due course, taking into account discussions with financing sources and market conditions.

About Lignol

Lignol (TSXV: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of advanced biofuels and renewable chemicals from non-food cellulosic biomass feedstocks. Lignol's modified solvent based pre-treatment technology facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including High Performance Lignin (HP-L™). HP-L™ lignin represents a new class of high purity lignin extractives (and their subsequent derivatives) which can be engineered to meet the chemical properties and functional requirements of a range of industrial applications that until now has not been possible with traditional lignin by-products generated from other processes. Lignol is executing on its development plan through strategic partnerships to further develop and integrate its core technologies on a commercial scale. Lignol also intends to invest in, or otherwise obtain, equity interests in energy related projects which have synergies with its biorefining technology. For more information please visit Lignol's website at www.lignol.ca.

Neither 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 release.

Caution concerning forward-looking statements:

Certain statements contained in this document may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include, without limitation, statements or information about our ability together with CIBC and Capital West to secure strategic partner investments to provide medium term financing to begin development of initial commercial projects, our ability to complete planned pilot plant production runs with partners and establish off-take agreements for our primary products, the planning and development of a commercial project, our ability to exploit commercial opportunities and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable renewable chemicals including our HP-L lignin and lignin derivatives and our ability to pursue these opportunities with strategic partners and our ability to produce HP-L™ lignin that meets agreed customer specifications at commercial scale. 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 Lignol's current views with respect to future events and are subject to certain risks, uncertainties and assumptions including, without limitation, the technological challenges that remain to be surpassed in obtaining the necessary operating data from our pilot-scale biorefinery that is required prior to completing the next scale-up of the technology, our ability to successfully scale our technology, our ability to successfully defend our current patent applications and to secure issued patents in respect of those claims, our ability to satisfy the conditions of existing government grants and to obtain new grants and corporate contributions, the timely receipt of funding under various government awards and corporate contribution agreements, our ability to continue to finance our Baseline Operations and to finance and complete the development of a commercial project, our ability to secure strategic partner investments to provide medium term financing, our ability to complete planned production runs with partners and to establish off-take agreements for our primary products, our ability to develop commercial products in collaboration with industry partners, our ability to obtain requisite regulatory approvals and our ability to enter into agreements with strategic partners on terms acceptable to us. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors could cause Lignol's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or information, including among other things, the complexity of the development of a commercial project, financial market conditions which will affect our ability to finance our operations and to finance the construction and operation of a commercial plant, the price of gasoline and demand for ethanol, the market pricing and demand for renewable chemicals, risks relating to the protection of Lignol's core technology from infringement and those risk factors which are discussed elsewhere in documents that Lignol files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.

SOURCE Lignol Energy Corporation

For further information:

Lignol Energy Corporation
David Turner
Chief Financial Officer
Tel: 604-453-1241
Email: dturner@lignol.ca

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Lignol Energy Corporation

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