British Columbia Bioenergy Network Grants $1.18 Million in Funding to Lignol for Lignin Research Collaboration Agreement

    VANCOUVER, Sept. 3 /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 a project led by its
wholly-owned subsidiary, Lignol Innovations Ltd., has been awarded up to $1.18
million in funding assistance from BC Bioenergy Network Association ("BCBN").
With this contribution, BCBN will provide funding to Lignol to work with
several British Columbia Universities to support mission-driven lignin
research for commercial applications.
    The goal of this project is to develop the foundation for a renewable
chemicals industry within the Province of British Columbia and to further
support the development of a biofuels industry. This project will further
develop expertise in the production and functional utilization of Lignol's
HP-LTM lignin, derived from locally available non-food, biomass feedstocks and
leverage the established world renowned centres of excellence at BC
Universities and other research institutions, such as FP Innovations.
    "BC companies like Lignol will help our province reach its potential as a
clean energy powerhouse," said Blair Lekstrom, Minister of Energy, Mines and
Petroleum Resources. "Research like this contributes to BC's leadership in the
commercialization of cellulosic ethanol and other biofuels, and in the
promotion of innovative clean and renewable energy and biorefining solutions."
    "This project is a great fit for our mandate of supporting relevant,
mission driven research and building a world class bioenergy capability here
in BC" stated Michael Weedon, Executive Director of the BC Bioenergy Network.
"Lignol has defined the research agenda needs by working with some of BC's
leading research universities and other research institutions to accelerate
the commercialization of their technology. This is the kind of collaborative
approach that we need more of in BC to really fast track the efforts of our
technology companies to get their products to market." Weedon added.
    "British Columbia is a province rich in resources as well as technical
and scientific expertise. This represents an exciting opportunity, through our
expanded partnership with BCBN and collaboration with BC's Universities and
Research Institutions, to establish BC as a world-leading centre for the
production and commercialization of renewable biochemicals from non-food,
ligno-cellulosic feedstocks," said Ross MacLachlan, President and CEO of
Lignol. "Lignol's team of 50 dedicated employees now includes a talented
technical development team, including seven PhD Scientists, many of whom are
graduates of BC Universities. This project, lead by Dr. Alex Berlin, Lignol's
Vice President of Research, represents an excellent opportunity to expand our
working relationships with the Universities and Institutions of BC, which
could serve as a model for future collaborations between Industry and
Academia," MacLachlan went on to say.

    About the BC Bioenergy Network

    Established in April 2008 with a $25 million grant from the BC
government, the BC Bioenergy Network is an industry-led association that acts
as a catalyst for deploying near-term bioenergy technologies and organizing
mission-driven research for the development and demonstration of new bioenergy
technologies that are environmentally appropriate for the province of BC.
Based on a recently-held focus group, BCBN identified the following technology
areas requiring funding support: solid wood residues, pulp and paper residues,
harvesting and pelletization, agriculture residues, municipal wastewater,
municipal landfill waste, municipal solid waste, and community
heating-electricity greenhouse systems. BC is well positioned to become a
major player in the global bioenergy sector. The province is steward to one of
the largest forested areas in the world, and a leader in biomass to
value-added wood products. The BC Bioenergy Network will provide the
leadership to make BC a world leader in developing and marketing
wood-to-bioenergy and other bioenergy technologies. For more information about
the BCBN, visit

    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 high purity HP-L(TM) lignins.
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

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    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. 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, amongst 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. 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 & Communications, Tel: (604) 222-9800 ext.
110, Email:, Email:; The Equicom Group, Bruce
Wigle, Investor Relations, Tel: (416) 815-0700 ext. 228, Email:

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