BioFuels Journal

Vancouver—Lignol Energy Corporation (TSXV: LEC) ("Lignol" or "the Company"), a leading technology company in the advanced biofuels and renewable chemical sector, announced Feb. 7 that a project led by its wholly-owned subsidiary, Lignol Innovations Ltd., has been awarded up to $2.06 million in additional funding contributions from Sustainable Development Technology Canada ("SDTC").

"Our Government is committed to supporting clean technology in Canada as an effective measure to reduce greenhouse gas emissions and create high-quality jobs for Canadians," said the Honourable Joe Oliver, Minister of Natural Resources.

"This project demonstrates our leadership in driving clean technology innovation to help create viable new industries for Canada's economy."

"Lignol has a proven track record of innovation, a trend that will be made stronger with this new investment," said SDTC President and CEO Vicky J. Sharpe.

"It is innovation like this that brings Canada ever closer to using key resources sustainably and creating the next generation of biofuels."

This award is in addition to the $4.72 million awarded to date from SDTC's SD Tech Fund™, representing an aggregate contribution to Lignol from SDTC of up to $6.78 million.

The duration of the current work plan, that commenced September, 2009 with the support from SDTC, will be extended until Q3 2013 with an overall total project cost estimated to be $20.4 million.

The original project resulted in the establishment of a world-class integrated industrial scale facility for the production of cellulosic ethanol and unique renewable biochemicals.

The additional scope of the project will result in further enhancement to Lignol's biorefinery technologies, focusing on greater utilization of hemicellulose-derived sugars and demonstration of industrial, value added applications for Lignol's high performance lignin ("HP-L™ Lignin") in the plastics and materials industries.

"The additional funding from SDTC is an important contribution that will enable us to enhance the economic viability of our biorefinery technologies, while maintaining significant GHG reduction benefits," said Ross MacLachlan, President and CEO of Lignol.

"These enhancements will allow smaller, higher-yield biorefineries to be built with strong regional demand for Lignol's bioproducts, resulting in a more rapid and more diverse deployment of this transformative technology."

For more information, call 613-234-6313 ext. 295.

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• Lignol

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