Lignol files annual statements and restated third-quarter financial statements

    VANCOUVER, Aug. 29 /CNW/ - Lignol Energy Corporation (the "Company")
(formerly Santa Cruz Ventures Inc.) (TSX-V: LEC) today announced that it has
issued its annual financial statements for the period ended April 30, 2007 and
has restated its unaudited interim financial statements for the quarter ended
January 31, 2007 to revise the accounting treatment of the January 17, 2007
Amalgamation (the "Transaction") between Lignol Innovations Corporation
("Lignol Innovations") and a wholly owned subsidiary of Santa Cruz Ventures
Inc. ("Santa Cruz").
    In the process of preparing the annual financial statements for the
period ended April 30, 2007, management of the Company has determined (in
consultation with its auditors) that reverse takeover (RTO) accounting better
reflects the Transaction in accordance with Canadian generally accepted
accounting principles. Previously, management of both Santa Cruz and Lignol
Innovations (after discussions with their respective auditors) had considered
Santa Cruz to be the acquirer of Lignol Innovations and had adopted purchase
accounting in accordance with CICA Handbook section 1581. Under RTO
accounting, the acquirer is now deemed to be Lignol Innovations, and the
financial statements of the Company will be a continuation of the financial
statements of Lignol Innovations. The Transaction has now been accounted for
as an issuance of shares and warrants by Lignol Innovations Corporation in
exchange for the acquisition of the net monetary assets of Santa Cruz,
accompanied by a recapitalization of the Company.
    For its first financial period following the Transaction the Company has
issued audited financial statements for the years ended November 30, 2005 and
2006 and for the five months ended April 30, 2007. In conjunction with its
annual filings, the Company has restated its unaudited interim financial
statements for the period ended January 31, 2007. The interim financial
statements for the period ended January 31, 2007 covers only the two months
then ended compared to the two months ended January 31, 2006. These financial
statements reflect the financial position, results of operations and cash
flows of Lignol Innovations to the date of the Transaction and the combined
financial position, results of operations and cash flows of the combined
companies after the date of the Transaction. The restated interim financial
statements eliminate the previously recorded intangible assets  and goodwill,
and reduce shareholders' equity. After discussions with its professional
advisors, the Company considers the restatement to represent a change in the
presentation of the Company's accounts together with the accounting treatment
of the Transaction and accordingly does not affect the business or operations
of the Company.
    The Company's annual financial statements and restated interim financial
statements and corresponding amended management discussion and analysis have
been filed on SEDAR at

    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 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

For further information:

For further information: Lignol Energy Corporation: David Turner, Chief
Financial Officer, Tel: (604) 222-9800 ext. 108, Email:; The
Equicom Group: Bruce Wigle, Investor Relations, Tel: (416) 815-0700 ext. 228,

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Lignol Energy Corporation

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