Lignol Announces Exchange and Grant of Stock Options



    VANCOUVER, Oct. 29 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol" or "the Company"), a leading technology company in the cellulosic
ethanol and biorefining sector, today announced that certain non-executive
employees have agreed to exchange their previously granted stock options for a
reduced number of new stock options. In addition, the Company announced stock
option grants to certain insiders of the Company and a recently hired
non-executive employee.
    During the 2007 calendar year the Company granted stock options (the "Old
Stock Options") to certain non-executive employees to acquire an aggregate of
811,050 common shares of the Company. The Old Stock Options, none of which had
been exercised, had exercise prices ranging from $1.14 to $1.59 per common
share and expired within five years of the grant. In order to greater ensure
the retention of key non-executive employees, Lignol has granted to these
employees the right to exchange their Old Stock Options for new stock options
(the "New Stock Options") to acquire an aggregate of 414,150 common shares of
the Company at an exercise price of $0.215 per common share. The Company is
pleased to announce that each of these employees have agreed to exercise their
right to exchange their Old Stock Options for the New Stock Options. The grant
of the New Stock Options is subject to the approval of the TSX Venture
Exchange. If approved, the New Stock Options will be granted under Lignol's
Stock Option Plan, shall vest over the next two years and are exercisable for
a period of five years. Executives of Lignol were not granted the right to
exchange similar stock options granted to them in calendar 2007 for new
options with an exercise price set at the current trading price level of
Lignol's common shares.
    In addition, Lignol has granted stock options to acquire 486,295 common
shares of the Company to certain insiders of Lignol and also has granted stock
options to acquire 100,000 common shares of the Company to a recently hired
non-insider employee, all pursuant to its Stock Option Plan. These stock
options were granted at an exercise price of $0.215 per share, vest over the
next two years and are exercisable for a period of five years.

    About Lignol

    Lignol (TSX-V: LEC) is a Canadian company undertaking the development of
biorefining technologies for the production of fuel-grade ethanol and other
biochemical co-products 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 HP-L(TM) Lignin. Lignol is
executing on its development plan through strategic partnerships to further
develop and integrate the 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 about Lignol, please visit our website at www.lignol.ca.

    
         The TSX Venture Exchange Inc. has not reviewed and does not
     accept 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.
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,
our ability to finance the development of the commercial demonstration plant,
our ability to develop our products, 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 the
commercial demonstration plant, market conditions which will effect our
ability to finance our operations, 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.

    %SEDAR: 00004360E




For further information:

For further information: Paul Hughes, Vice President Corporate
Development & Communications, Tel: (604) 222-9800 ext. 110, Email:
phughes@lignol.ca, Email: info@lignol.ca; Bruce Wigle, Investor Relations, The
Equicom Group, Tel: (416) 815-0700, 1-800-385-5451 ext. 228,
Email:bwigle@equicomgroup.com

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Lignol Energy Corporation

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