Tuesday, October 25, 2011

There is a large global market for thermoplastics, which include materials such as polyethylene and polypropylene. Industry sources estimate that these two plastics alone have a combined global demand exceeding 100 million tonnes per year.

Thermoplastics are very versatile and are used in a wide variety of industrial items, consumer goods and products such as food packaging, containers, structural plastics and automobiles. They can also be used as precursors for advanced materials such as carbon fibre.

“Many lignin-based materials are challenging to incorporate into chemical systems, so we are very pleased to demonstrate the value of High Performance Lignin as a functional ingredient in thermoplastics,” said Ross MacLachlan, President and CEO. “This promising breakthrough can be attributed to the unique combination of physical and chemical properties of our High Performance Lignin.”

The research and trials demonstrated that HP-L is compatible with several commonly used thermoplastics. Tests showed that HP-L enhanced certain key properties of thermoplastic materials and provided a significant level of renewable content in their applications. It was found that, due to the unique purity and physico-chemical properties of HP-L, it was possible to incorporate significant amounts of HP-L into blends with thermoplastics, such as polypropylene, without negatively impacting the blends’ mechanical properties. Similar promising results were obtained with other thermoplastics.

"Thermoplastics are the largest and most valuable market opportunity that Lignol has identified to date. They represent a billion dollar opportunity for our business,” said MacLachlan. “These results will support our efforts to develop larger scale trials involving a broad range of conventional and bio-based plastics with our strategic partners, and help lead to our foremost objective of developing off-take agreements for a commercial biorefinery."

About Lignol

Lignol (TSXV: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of advanced biofuels and renewable chemicals 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 valueadded biochemical co-products, including High Performance Lignin (HP-L™ lignin). HP-L 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.

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 produce thermoplastics which incorporate HP-LTM lignin and to commercialize these products in collaboration with industry partners, our ability to develop and commercialize high-value applications for Lignol’s cellulose in collaboration with FPInnovations, our ability to continue as a going concern and the need to raise additional financing 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 and year ended April 30, 2011), the development status of our integrated pilot-scale biorefinery in Burnaby, British Columbia, our ability to realize the benefits of our improved process, AlcellPlusTM, our ability to drive down capital and operating costs, our ability to complete investment grade design and cost estimates and to attract funding from markets, partners and governments to enable the construction of first-of kind commercial scale plants, our ability to successfully defend our patent applications and to receive approval for the claims submitted, the planning and development of our proposed commercial project, our ability to exploit commercial opportunities and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable renewable chemicals including our HP-LTM lignin and lignin derivatives and our ability to pursue these opportunities with strategic partners, our ability to produce HP-LTM lignin that meets agreed customer specifications at commercial scale, the ability of Lignol and Novozymes to successfully complete our joint development program, and the retention and receipt of future funding by way of new and existing government awards and corporate contributions, and our ability to obtain additional project support in the form of loan guarantees. 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, the technological challenges that remain to be surpassed in obtaining the necessary operating data from our pilot-scale biorefinery that is required prior to completing the next scale-up of the technology, our ability to successfully scale our technology, our ability to successfully defend our current patent applications and to secure issued patents in respect of those claims, our ability to satisfy the conditions of existing government grants and to obtain new grants and corporate contributions, the timely receipt of funding under various government awards and corporate contribution agreements, our ability to continue to finance our Baseline Operations and to finance and complete the development of a commercial project, our ability to develop commercial products in collaboration with industry partners, our ability to obtain requisite regulatory approvals and our ability to enter into agreements with strategic partners on terms acceptable to us. Forwardlooking 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 a commercial project, financial market conditions which will affect our ability to finance our operations and to finance the construction and operation of a commercial plant, the price of gasoline and demand for ethanol, the market pricing and demand for cellulose and renewable chemicals, 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.

For further information, contact:

Lignol Energy Corporation
David Turner
Chief Financial Officer
604-453-1241
dturner@lignol.ca