Lignol Files Letter of Intent with U.S. Department of Energy to Apply for Funding for the Development of Small Scale Cellulosic Ethanol Biorefineries



    VANCOUVER, June 6 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol") today announced that its U.S. subsidiary, Lignol Innovations Inc.,
has filed a letter of intent ("LOI") with the U.S. Department of Energy
("DOE") regarding a funding application for US$30 million under the DOE's
cellulosic ethanol and biofuels funding program. Under the program, the DOE
intends to make up to US$200 million in funding available over the next five
years to support the development of small-scale cellulosic biorefineries in
the United States. Successful applicants are expected to have their projects
operational within three to four years of DOE funding approval.
    "Through this funding program, the DOE is seeking to identify companies
that can successfully develop biorefineries at approximately ten percent of
commercial scale that can produce liquid transportation fuels such as ethanol,
as well as bio-based chemicals and bioproducts used in industrial
applications," said Ross MacLachlan, President and CEO of Lignol. "In the
coming months, we will carefully evaluate this opportunity and other funding
opportunities as they arise".
    The filing of the LOI under the DOE funding program is the first step in
the funding application process. If Lignol proceeds with its application, a
formal application must be submitted to the DOE by August 14, 2007. The DOE
expects to announce the successful funding applicants by February 2008.
    For more information on the DOE's cellulosic ethanol and biofuels funding
program, please refer to the news release titled "DOE Announces up to
$200 million in Funding for Biorefineries" via the DOE's web site at:
http://www.energy.gov.

    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, 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 High Purity Lignin (HPL).
Lignol is executing on its development plan with several major 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 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,
President, 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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