Lignol Confirms Site for its Proposed Cellulosic Ethanol Plant in Colorado

    VANCOUVER, Aug. 27 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol" or "the Company"), a leading technology company in the cellulosic
ethanol and biorefining sector, announced today that its U.S. subsidiary,
Lignol Innovations Inc., is moving forward with its previously announced plan
to construct a commercial demonstration cellulosic ethanol plant in Colorado.
Lignol has recently received approval from the U.S. Department of Energy
("DOE") to locate the facility in Grand Junction, on the western slope of
Colorado. The approved location is a change from the originally proposed site
adjacent to Suncor Energy (U.S.A.) Inc.'s ("Suncor") refinery in Commerce
City, Colorado.
    Lignol is expecting that Suncor will operate the facility, to be built
next to Suncor's products distribution terminal in Grand Junction. The Grand
Junction location offers logistical advantages including access to feedstock
and ethanol distribution efficiencies. Site specification decisions are
subject to regulatory approval.
    In January 2008, the DOE approved Lignol's funding application for a
proposed cellulosic ethanol plant, including up to US$30 million in funding to
construct the facility. Lignol continues to negotiate the final details of the
DOE funding agreement and related party agreements.
    The proposed facility will be designed to process hard and soft woods and
agricultural residues such as straw and corn stover. Lignol expects the
facility, once operational, will process about 100 tonnes of feedstock per day
and produce approximately 10 million litres of ethanol per year.

    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, 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 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 which have synergies with its biorefining technology.
For more information about Lignol, please visit our website at

    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

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00004360E

For further information:

For further information: Lignol Energy Corporation: Ross MacLachlan,
President & CEO, Tel: (604) 222-9800 ext. 107, Email:; Bruce
Wigle, Investor Relations, The Equicom Group, Tel: (416) 815-0700 ext. 228,

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