Lignol Announces Biorefining Technology Breakthrough with AlcellPlus(TM)

VANCOUVER, Oct. 19 /CNW/ - Lignol Energy Corporation (TSX-V: LEC) ("Lignol" or "the Company"), a leading technology company in the cellulosic ethanol and biorefining sector, today announced that its wholly owned subsidiary, Lignol Innovations Ltd., has developed process innovations that represent a breakthrough in organosolv pre-treatment performance resulting in improved efficiencies and enhanced economics of Lignol's biorefinery technology platform.

Since acquiring the original Alcell^TM pre-treatment process, the Company has been working on enhancements to improve efficiency and economics. This work has culminated in the development of a significant process modification, which has recently undergone operating campaigns in Lignol's  pilot plant in Burnaby, BC. The patent pending process, named AlcellPlus^TM, builds on the proven attributes of Lignol's core process designs while providing the potential for lower capital cost, and reduced operating costs. Lignol also expects that AlcellPlus^TM will provide greater flexibility in processing a wider range of cellulosic feedstocks that may be suitable candidates for biorefining.

"This technological breakthrough is a tremendous accomplishment by our scientific and engineering teams", said Ross MacLachlan, President and CEO of Lignol. "AlcellPlus^TM represents a significant improvement in the performance and economics of organosolv biorefining. This is expected to not only enhance the economics of producing cellulosic ethanol but also provide benefits in the yield and quality of our HP-L^TM lignin co-products," added Mr. MacLachlan.

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 facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including high purity HP-L™ lignins. HP-L™ lignin represents a new class of high purity lignin extractives (and their subsequent derivatives) which can be engineered to meet the chemical properties and functional requirements of a range of industrial applications that until now has not been possible with traditional lignin by-products generated from other processes. Lignol is executing on its development plan through strategic partnerships to further develop and integrate its 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.

Alcell^TM, AlcellPlus^TM and HP-L^TM are trademarks of Lignol.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution concerning forward-looking statements:

Certain statements contained in this document may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include, without limitation, statements or information about our ability to fund our Baseline Operations, (using the definition of "Baseline Operations" as set out in Lignol's Management's Discussion & Analysis of Financial Condition and Results of Operations for the quarter ended July 31, 2010), the ability to scale the AlcellPlus^TM process and to adapt it to a wide range of feedstocks, the development status of our fully integrated biorefinery pilot plant in Burnaby, British Columbia, the planning and development of our proposed cellulosic ethanol commercial demonstration plant, our ability to exploit commercial opportunities and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable biochemicals including HP-L^TM lignin and lignin derivatives, and our ability to pursue these opportunities with the financial and operational support of strategic partners, and the receipt of future funding by way of government awards and corporate contributions. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements or information reflect Lignol's current views with respect to future events and are subject to certain risks, uncertainties and assumptions including, without limitation, our ability to scale our technology, establish the validity of our technology at the fully integrated biorefinery pilot plant scale, our ability to satisfy the conditions of existing government grants and to obtain new additional grants, the timely receipt of funding under various government and corporate contribution agreements, our ability to finance and complete the development of a commercial demonstration plant, our ability to develop our products, our ability to obtain requisite regulatory approvals and our ability to enter into agreements with strategic partners on terms acceptable to us. 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, the technological challenges that remain to be surpassed in obtaining the necessary operating data from our fully integrated biorefinery pilot plant that is required prior to completing the next design and scale-up of the technology, the complexity of the development of a commercial demonstration plant, changes in government policy, legislation or regulation, changes in financial market conditions which will effect our ability to finance our operations, the price of gasoline and the demand for ethanol, risks relating to the protection of Lignol's core technology from infringement and 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. Except as required by law, 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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