Lignol commences construction of major new cellulosic ethanol pilot plant



    VANCOUVER, June 17 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol"), a leading technology company in the cellulosic ethanol and
biorefining sector, announced today that it has commenced construction of its
industrial-scale biorefinery pilot plant located at the company's new facility
on the campus of the British Columbia Institute of Technology ("BCIT") in
Burnaby, BC.
    "This plant is part of a multi-year $15 million project that is supported
with financial contributions from various governments and government funded
agencies. The facility also includes engineering facilities together with,
state-of-the-art bioconversion and lignin applications and characterization
laboratories," said Ross MacLachlan, President and Chief Executive Officer of
Lignol. "Once complete, with a production capacity of 100,000 litres of
ethanol per year, it will be one of only a few fully integrated cellulosic
ethanol biorefinery facilities operating in the world."
    "The facility will accelerate work underway with companies seeking to
evaluate their leading edge enzymes and novel organisms in an industrial
setting. Production trials on a range of non-food cellulosic feedstocks will
also produce industrial quantities of our high purity lignin (HP-L(TM)) and
other biochemical co-products, to support the development of applications and
markets with both new and existing partners."
    Fabrication and procurement of major components and equipment has been
underway over the last nine months with most to be assembled on a modular
basis as components are delivered. The plant is expected to be completed in
September 2008. Results from trials scheduled in the months following the
commissioning of the new plant will then be used to optimize current
engineering designs for commercial scale plants.

    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 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 a High Purity Lignin (HP-L(TM)). 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.

    Caution concerning forward-looking statements:

    Certain statements contained in this document may constitute
"forward-looking statements". When used in this document, 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. 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, 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. 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: 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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Lignol Energy Corporation

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