Lignol Reports Continued Commitment of Development Work for High Purity Lignin Applications with Huntsman



    VANCOUVER, Sept. 4 /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 update on its Memorandum of
Understanding (the "MOU"), signed on August 30, 2007, with Huntsman
International LLC (NYSE:   HUN) ("Huntsman"), a leading global manufacturer and
marketer of differentiated chemicals.
    The MOU established a collaborative framework between the parties so as
to support Huntsman's potential development of one or more commercial
applications utilizing Lignol's proprietary High Purity Lignin ("HP-L(TM)").
HP-L(TM) is a unique form of a high-purity lignin that is produced by Lignol's
proprietary biorefining process used in converting non-food, cellulosic
feedstock into ethanol.
    Since August 30, 2007 Huntsman has been working with Lignol under the
terms of the MOU to incorporate HP-L(TM) into one or more of its polyurethane
applications. This program is consistent with Huntsman's continuing commitment
to evaluate the use of bio-renewable components for both feedstock and for
product applications.
    Huntsman has recently reported to Lignol that, based on initial results,
the development program will continue with high priority and with increased
resource allocation for the remainder of 2008, with a possibility of being
formalized into a potential product development agreement and subsequent
supply agreement with Lignol to meet Huntsman's future potential demand,
should Lignol succeed with its objective of building commercial scale
biorefineries and should Huntsman's tests prove economically and technically
beneficial.

    About Lignol HP-L(TM)

    HP-L(TM) provides Lignol with an important additional source of revenue
that could improve the overall economics of any potential future commercial
plants that incorporate Lignol's modified solvent based pre-treatment
technology. Lignol HP-L(TM) is a unique form of a high-purity lignin that is
produced as an output of Lignol's proprietary biorefining process. HP-L(TM)
has chemical and physical properties which differentiate it from other types
of lignins that are typically produced as by-products from a pulping process.
These differences include purity, absence of sulphur, low mineral content,
hydrophobicity, reactivity and melt characteristics. Lignol has developed
novel methods to produce different lignins from each of the non-food
cellulosic feedstocks it has processed.
    Materials with superior and novel properties can be developed from
HP-L(TM) and from combinations with industrial adhesives such as phenol
formaldehyde resins, isocyanates and epoxy resins and coatings, and
acrylonitrile for carbon fiber production, thereby reducing the use of and
dependency on petrochemicals.

    About Huntsman

    Huntsman is a global manufacturer and marketer of differentiated
chemicals. Its operating companies manufacture products for a variety of
global industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture, appliances and
packaging. Originally known for pioneering innovations in packaging and,
later, for rapid and integrated growth in petrochemicals, Huntsman today has
13,000 employees and operates from multiple locations worldwide. The Company
had 2007 revenues of approximately $10 billion. For more information about
Huntsman, please visit the company's website at www.huntsman.com.

    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 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 that 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",
"possibility", "potential", "should", "would", "could", "will", "intend",
"plan", "anticipate", "believe", "estimate", "expect", "investigate", "looking
at" as they relate to Lignol or its management or Huntsman and 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: Paul Hughes, Vice
President - Corporate Development and Communications, Tel: (604) 222-9800 ext.
110, 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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Lignol Energy Corporation

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