Lignol awarded USDA-funded contract to provide lignin for the development of carbon fiber



    VANCOUVER, March 13 /CNW/ - Lignol Energy Corporation (TSX-V: LEC) today
announced that its wholly owned subsidiary, Lignol Innovations Ltd., has been
awarded a contract by UT-Battelle, LLC, on behalf of Oak Ridge National
Laboratory ("ORNL") to supply lignin for which it will receive US$304,437 over
a three year period. This contract relates to a U.S. Department of Agriculture
("USDA") award to ORNL of US$1 million, to develop a proof-of-concept for the
production of industrial grade carbon fiber from lignin.
    "This agreement represents an important opportunity to work with Oak
Ridge National Laboratory in the development of what could become an important
market application for the unique forms of lignin that our biorefining
technology produces," said Ross MacLachlan, President and CEO of Lignol. "This
project is an extension of successful work performed several years ago by ORNL
using lignin produced with the technology subsequently acquired by Lignol."
    There is growing interest in using light-weight composite materials in
automobile and truck body panels and structural parts to reduce vehicle weight
and increase fuel efficiency. Carbon fibers are currently made from raw
materials obtained from crude oil, and are expensive. Carbon fiber is most
notably used to reinforce composite materials, particularly the class of
materials known as carbon fiber reinforced plastics. This class of materials
is used in aircraft parts, high-performance vehicles, tuner cars, sporting
equipment, wind generator blades and gears and other demanding mechanical
applications. Carbon fibers are essential components in most light-weight
composite materials where they serve to stiffen and strengthen the material.
Such composites are used extensively in the aerospace industry where strong
but light weight components are critical to performance and fuel efficiency.

    About Oak Ridge National Laboratory

    Based in Oak Ridge, Tennessee, Oak Ridge National Laboratory is the U.S.
Department of Energy's largest science and energy laboratory. ORNL has a staff
of more than 4,200 and annually hosts approximately 3,000 guest researchers
who spend two weeks or longer in Oak Ridge. ORNL is an international leader in
a range of scientific areas that support the Department of Energy's mission.
The laboratory's six major mission roles include neutron science, energy,
high-performance computing, systems biology, materials science, and national
security.

    About UT Battelle, LLC

    A not-for-profit company, UT-Battelle, has been established for the sole
purpose of managing and operating the Oak Ridge National Laboratory for the
U.S. Department of Energy. Formed as a 50-50 limited liability partnership
between the University of Tennessee and Battelle, UT-Battelle is the legal
entity responsible for leading ORNL as the Laboratory enters the 21st Century.

    About Lignol

    Lignol is a Canadian company undertaking the development of biorefineries
for the production of fuel-grade ethanol and other biochemical co-products
from cellulosic biomass feedstocks. Lignol's modified solvent based
pre-treatment technology, originally developed by a former affiliate of
General Electric (GE), and then further developed and commercialized for
wood-pulp applications by a subsidiary of Repap Enterprises Inc., facilitates
the rapid, high-yield conversion of cellulose to ethanol and the production of
value-added biochemical co-products, including lignin. Lignol is executing on
its development plan with several major Canadian companies in a strategic
partnership 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 inn statements contained in this news
release may constitute "forward-looking statements". When used in this news
release, the words "may", "would", "could", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect", "investigate", "looking at" as
they relate to Lignol or its management, are intended to identify
forward-looking statements or information. Such statements or information
reflect Lignol's current views with respect to future events and are subject
to certain risks, uncertainties and assumptions. 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, those which are discussed under the headings
"Risk Factors" and elsewhere in documents that Lignol files from time to time
with securities regulatory authorities. Should one or more of these risks or
uncertainties materialir 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. and does not assume any
obligation, to update such forward-looking statements or information.





For further information:

For further information: Lignol Energy Corporation: Ross MacLachlan,
Chief Executive Officer, Tel: (604) 222-9800 ext. 107, Email: info@lignol.ca;
The Equicom Group: Bruce Wigle, Investor Relations, Tel: (416) 815-0700 ext.
228, Email:bwigle@equicomgroup.com

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