Lignol Provides Operational Update on New Biorefinery Pilot Plant



    VANCOUVER, Feb. 26 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol" or "the Company"), a leading technology company in the cellulosic
ethanol and biorefining sector, today provided an operational update on its
fully integrated industrial-scale biorefinery pilot plant in Burnaby, British
Columbia.
    Construction of the pilot plant commenced in June, 2008 and was largely
complete by the end of October with extensive unit mechanical commissioning
completed by mid January 2009. Start-up is now underway for each of the
various unit operations and integrated production campaigns are scheduled to
begin at the end of April 2009. These production campaigns will provide
important data to establish process conditions, product characteristics and
equipment configurations as a basis for optimizing the Lignol biorefinery
process. Ultimately, the information generated will be utilized to complete
the engineering design package for commercial scale plants. In addition, the
production campaigns will also facilitate the evaluation of certain industry
leading enzymes and novel organisms used in the biorefinery process, so as to
optimize the yields of products, including fuel grade ethanol, from various
non-food feedstocks such as hardwood, softwood and agricultural residues.
    "While construction and commissioning had its challenges, we are pleased
that this project has come in under the $10 million budget. The start-up phase
for such a complex technical process is expected to take longer than we had
originally anticipated. However, addressing many of the technical challenges
is expected to significantly strengthen our intellectual property position,"
said Ross MacLachlan, President and Chief Executive Officer of Lignol. "Our
new facility is already generating significant interest from companies around
the world and we look forward to showcasing our technology with new partners
once it becomes fully operational in the coming months."
    The plant has a rated production capacity of 100,000 litres per year of
cellulosic ethanol together with industrial testing quantities of High Purity
Lignin ("HP-L(TM) Lignin") and other biochemical co-products. Lignol's
facility also includes state-of-the-art bioconversion and lignin application
and characterization laboratories, which will support the development of
biochemical applications and markets.

    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 a HP-L(TM) High Purity Lignin.
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 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.
Such forward-looking statements or information include, without limitation,
statements or information about the development of our fully integrated
industrial scale biorefinery pilot plant, the planning and development of our
cellulosic ethanol commercial demonstration plant in Colorado, our ability to
exploit commercial opportunities and broaden our market opportunities for a
range of cellulosic derivatives and environmentally sustainable biochemicals
and our ability to pursue these opportunities with strategic partners. 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
establish the validity of our technology at the fully integrated biorefinery
pilot plant scale, our ability to satisfy the conditions of existing
government grants and to obtain new additional grants, our ability to close
the second tranche of the private placement announced on February 12, 2009,
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 fully
integrated industrial scale biorefinery pilot plant and 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: Lignol Energy Corporation: Paul Hughes, Vice
President - Corporate Development and Communications, Tel: (604) 453-1246,
Email: phughes@lignol.ca, 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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