Lignol to Collaborate with Weyerhaeuser to Explore Commercial Development of Cellulose-based Products and Biochemicals



    VANCOUVER, Sept. 30 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol" or "the Company"), a leading technology company in the
lignocellulosic biorefining sector, today announced that it has signed a
Memorandum of Understanding (the "MOU") with Weyerhaeuser Company
("Weyerhaeuser") (NYSE:   WY) to explore the development of commercial
applications of biochemical outputs from Lignol's proprietary biorefining
technology. The parties have also agreed to evaluate the development of a
commercial-scale Lignol biorefinery plant at or near a Weyerhaeuser mill site.
The MOU excludes applications for transportation fuel.
    The initial scope of the MOU involves the testing of certain biomass
feedstocks within Lignol's facilities, including Lignol's integrated
industrial-scale biorefinery pilot plant located in Burnaby, British Columbia.
As part of the MOU, the two companies will assess yields and qualities of the
biorefinery process outputs, which include cellulose fibers and HP-L(TM) High
Purity Lignin ("HP-L(TM) Lignin"), for commercial potential and evaluate the
development of a commercial-scale Lignol biorefinery plant at or near a
Weyerhaeuser mill site.
    "Lignol and Weyerhaeuser share a vision of developing markets and
manufacturing plants that utilize technology for converting abundant
cellulose-based, non-food biomass into economical and environmentally
sustainable cellulose fiber and biochemicals," said Ross MacLachlan, President
and Chief Executive Officer of Lignol. "We are delighted to work with
Weyerhaeuser on this exciting business initiative. Lignol's technology and
know-how coupled with Weyerhaeuser's access to significant biomass feedstock
reserves, infrastructure and markets for our products, makes for a compelling
collaboration."
    "While we continue to move forward with the planning and development of
our cellulosic ethanol commercial demonstration plant in Colorado, recent
developments have provided near-term commercial opportunities to exploit and
broaden our market opportunities for a range of cellulosic derivatives and
environmentally sustainable biochemicals. We intend to aggressively pursue
these opportunities with strategic partners," added Mr. MacLachlan.

    Lignol Manufacturing Process and HP-L(TM) High Purity Lignin

    Lignol's specialized, solvent-based biorefinery process produces a unique
high-quality cellulose fiber that has applications in certain specialty
markets. Further, Lignol's biorefinery process generates high-purity lignin,
trademarked as HP-L(TM) Lignin, a unique organic compound that is
differentiated from other types of lignins that are typically produced as
by-products in the traditional Kraft pulp manufacturing process.
    The unique chemical and physical properties of HP-L(TM) Lignin include:
greater purity, an absence of sulphur, low mineral content, hydrophobic
properties and higher reactivity. Lignol has developed novel methods to
produce different lignins from each of the non-food cellulosic feedstocks it
has processed.
    Materials with novel properties can be developed from HP-L(TM) Lignin.
For example, HP-L(TM) Lignin can be blended with industrial adhesives such as
phenol formaldehyde, isocyanates and epoxy resins that can be used in
coatings, and as a precursor for carbon fiber production, thereby reducing the
use of and dependency on petrochemicals.

    About Weyerhaeuser

    Weyerhaeuser Company, one of the world's largest integrated forest
products companies, was incorporated in 1900. In 2007, sales were 
$16.3 billion. It has offices or operations in 13 countries, with customers
worldwide. Weyerhaeuser is principally engaged in the growing and harvesting
of timber; the manufacture, distribution and sale of forest products; and real
estate construction, development and related activities. Additional
information about Weyerhaeuser's businesses, products and practices is
available at www.weyerhaeuser.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 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 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 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.

    %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; Weyerhaeuser Company:
Greg French, Public Affairs, Tel: (253) 924-2806, Email:
Greg.French@weyerhaeuser.com; The Equicom Group: Bruce Wigle, Investor
Relations, Tel: (416) 815-0700 ext. 228, Email:bwigle@equicomgroup.com

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