Lignol Receives Additional Funding from Ethanol BC and Announces Successful Trial Results for Mountain Pine Beetle Damaged Softwood and Other Wood Species



    VANCOUVER, June 14 /CNW/ - Lignol Innovations Ltd., a wholly owned
subsidiary of Lignol Energy Corporation (TSX-V: LEC) ("Lignol"), today
announced successful trial results in the conversion of various wood species
to cellulosic ethanol. Lignol also announced that it has received a
contribution agreement for up to $150,000 in additional funding from Ethanol
BC, an organization funded by various forest products companies in British
Columbia to encourage innovative utilization of wood residues within the
province.
    Lignol has now established preliminary commercial operating conditions
for a number of abundant North American hardwood and softwood species,
including softwoods damaged by the Mountain Pine Beetle infestation. The
proprietary process conditions under which these results were achieved have
met, or are on track to meet, the company's preliminary commercial targets for
yields and conversion efficiency. The trial results have also either met or
exceeded several of the benchmarks for cellulosic ethanol commercial viability
established by the United States Department of Energy, to be achieved by 2012.
    "While we continue to refine our processes to obtain optimum yields and
efficiencies, our conversion results to date are encouraging and we believe
they have brought us one step closer to our goal of producing ethanol from
cellulosic feedstocks at economic levels comparable to that of grain-based
ethanol," said Alex Berlin, Lignol's VP Research.
    "These results in converting Mountain Pine Beetle damaged softwoods to
cellulosic ethanol confirm our view that this abundant feedstock currently
found in British Columbia, Alberta and the Pacific Northwest of the United
States represents a significant untapped potential for transportation fuels,"
said Ross MacLachlan, President and CEO of Lignol.

    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 and CEO, 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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