Lignol Confirms Site for its Proposed Cellulosic Ethanol Plant in Colorado

VANCOUVER, Aug. 27 /PRNewswire-FirstCall/ - 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 www.lignol.ca.

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.

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

SOURCE Lignol Energy Corporation

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