Lignol Provides Operational Update on Integrated Biorefinery Pilot Plant

VANCOUVER , Jan. 27 /CNW/ - Lignol Energy Corporation (TSX-V: LEC) ("Lignol" or "the Company"), a leading technology company in the cellulosic ethanol and biorefining sector, today announced it has recently completed important enhancements to its fully integrated industrial-scale biorefinery pilot plant in Burnaby, British Columbia.

Following the successful construction of Lignol's biorefinery pilot plant and the completion of initial production runs in June 2009 , Lignol has developed innovative process improvements and evaluated various equipment configurations that will enhance mechanical operability, process efficiency and increase the value of the related high purity lignin derivatives. Design and procurement of these enhancements commenced in the summer of 2009, installation was completed in late fall 2009 and successful commissioning took place in December 2009 .

Over the past month, each of the major unit operations of the pilot plant has been independently operated at the facility under a prescribed number of operating conditions utilizing wood chips. Integrated production runs are expected to commence in February.

Through planned production campaigns, Lignol intends to operate the pilot plant under a wide range of operating parameters to process various non-food feedstocks as the Company undertakes final designs for commercial-scale projects.

"Our pilot plant continues to provide a showcase for our advanced technology and technical prowess to both existing and new corporate partners from around the globe," said Lignol President and CEO, Ross MacLachlan. "These enhancements will assist us in our path to commercialization and further reinforce our capabilities as a commercially focused technology developer."

The Lignol facility represents one of only a handful of fully integrated cellulosic ethanol pilot plants operating in the world today and is uniquely capable to produce high purity lignin derivatives engineered for specific industrial applications. The technology provides a valuable platform to the chemical industry as it looks for alternatives to petroleum based feedstocks.

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(TM) lignins. 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.

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, our fully integrated biorefinery pilot plant in Burnaby, British Columbia, the planning and development of our previously 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 and our ability to pursue these opportunities with strategic partners. 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 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, our ability to finance and complete the development of the 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 complexity of the development of the commercial demonstration plant, market conditions which will effect our ability to finance our operations, 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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For further information: Lignol Energy Corporation, Paul Hughes, Vice President - Corporate Development and Communications, Tel: [phone], Email: [email protected], Email: [email protected]; The Equicom Group, Alice Dunning or Adriana Braczek, Investor Relations, Tel: [phone] ext. 255 or 240, Email: [email protected], [email protected]