Lignol Suspends Colorado Project Due to Market Uncertainty



    VANCOUVER, Feb. 9 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol" or "the Company"), a leading technology company in the cellulosic
ethanol and biorefining sector, today announced that Suncor Energy Products
Inc. and Suncor Energy (U.S.A.) Inc. (collectively, "Suncor"), both wholly
owned subsidiaries of Suncor Energy Inc. (TSX, NYSE:   SU), and Lignol have
determined it prudent not to enter into a joint venture to pursue the
development of a cellulosic ethanol commercial demonstration plant in Grand
Junction, Colorado given the instability of energy prices, the uncertainty in
the capital markets and the general market malaise.
    Lignol has worked closely with Suncor for the past three years, and
announced on October 23, 2008 an agreement to negotiate entering into a joint
venture, which would have included the construction of a proposed US$80
million cellulosic ethanol plant in Grand Junction, Colorado. The plant in
Colorado was previously announced in 2008 in connection with a grant of US$30
million from the U.S. Department of Energy ("DOE"). Current economic
conditions have led the parties to halt this process and end negotiations.
    "Suncor will continue to monitor the progress of Lignol's technology and
while it is disappointing for Lignol to be suspending the Grand Junction
project, this is a practical decision based on the current realities that many
companies are facing today. We are fortunate that this decision was reached at
an early stage in the development of the project and as such Lignol and Suncor
have not incurred significant costs," said Ross MacLachlan, President and
Chief Executive Officer of Lignol. "We are currently exploring various
alternatives for the US$30 million grant from the DOE including the
re-examination of project time-lines, site locations and the participation of
other industrial partners. We will report on the outcomes of these discussions
as they unfold."

    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 HP-L(TM) Lignin. 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.

    
     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.
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 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
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.





For further information:

For further information: Paul Hughes, Vice President Corporate
Development & Communications, Tel: (604) 222-9800 ext. 110, Email:
phughes@lignol.ca, Email: info@lignol.ca; Bruce Wigle, Investor Relations, The
Equicom Group, Tel: (416) 815-0700, 1-800-385-5451, ext. 228, Email:
bwigle@equicomgroup.com

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