Lignol signs MOU with Huntsman to develop novel applications for Lignol's high purity lignin HP-L(TM)

    VANCOUVER, Aug. 30 /CNW/ - Lignol Energy Corporation (TSX-V: LEC), today
announced that it's wholly owned subsidiary, Lignol Innovations Ltd. ("Lignol"
or "the Company"), has signed a Memorandum of Understanding ("MOU") with
Huntsman International LLC. ("Huntsman""), which establishes a framework
within which the parties will work together to develop one or more
applications utilizing Lignol's proprietary lignin HP-L(TM).
    Under the terms of the MOU, the parties expect that this arrangement will
comprise several stages and be covered by separate definitive agreements. If
the development project is successful and Huntsman decides to commercialize
the application then it is anticipated that the parties will enter into a
supply agreement on terms to be mutually agreed.
    "This MOU demonstrates Huntsman's continuing commitment to investigate
the use of bio-renewable components both for feedstock and for product
applications. Huntsman strongly believes that lignin, a by-product from
agriculture, has significant potential in the chemical industry" said Niek van
Wiechen, Huntsman Polyurethanes' Global Director for Core Science.
    "The MOU with Huntsman represents an important step in the development of
a number of large commercial applications for the company's proprietary lignin
HP-L(TM), as we advance our strategy to become a key player in the development
of commercial scale cellulosic ethanol plants," said Ross MacLachlan,
President and CEO of Lignol. "Lignin HP-L(TM) is an important co-product
produced from our proprietary biorefinery process. The lignin plays an
important economic role for future industrial process plants and has a
substantial hydrocarbon-derived fuels and oils replacement feature. By
incorporating the lignin into products or replacing products which are today
produced from hydrocarbon-derived fuels and oils, the lignin provides an
alternative to bioethanols produced from agricultural crops."
    Materials with superior and novel properties can be developed from HP-L 
(TM) and from combinations with industrial adhesives such as phenol
formaldehyde and urea formaldehyde resins, isocyanates and epoxy resins and
coatings, acrylonitrile for carbon fiber production, thereby reducing the use
and dependancy of crude oil and natural gas based petrochemicals.

    About Huntsman

    Huntsman is a global manufacturer and marketer of differentiated
chemicals. Its operating companies manufacture products for a variety of
global industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture, appliances and
packaging. Originally known for pioneering innovations in packaging and,
later, for rapid and integrated growth in petrochemicals, Huntsman today has
13,000 employees and over 70 operations in 24 countries. Huntsman had 2006
revenues from all operations of over $13 billion.

    About Lignol

    Lignol is a Canadian company undertaking the development of biorefineries
for the production of fuel-grade ethanol and other biochemical co-products
from 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 Lignin HP-L(TM). Lignol is
executing on its development plan with several major Canadian companies in a
strategic partnership 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 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
statements.
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For further information:

For further information: Lignol Energy Corporation, Ross MacLachlan,
President and CEO, Tel: (604) 222-9800 ext. 107, Email: info@lignol.ca; The
Equicom Group, Bruce Wigle, Investor Relations, Tel: (416) 815-0700 ext. 228,
Email: bwigle@equicomgroup.com