Last updated on April 21, 2014 at 1:20 EDT

Lignol announces sale of HP-L lignin to global coatings manufacturer

April 24, 2012

VANCOUVER, April 24, 2012 /PRNewswire/ – Lignol Energy Corporation (TSXV: LEC)
a leading technology company in the advanced biofuels and renewable
chemicals sector, today announced that it has reached agreement with a
leading global coatings manufacturer for the sale of up to 10 tonnes of
Lignol’s proprietary HP-L(TM) lignin to be used for product trials, with the initial 2 tonnes of HP-L
lignin having now been delivered.

The sale comes as the culmination of a multi-year joint development
program during which Lignol provided test quantities of a variety of
lignin derivatives for various epoxy coating formulations.  Lignol drew
on its unique technology to tailor lignin properties for specific end
uses, a capability which Lignol aims to leverage into commercial
opportunities to sell HP-L Lignin into a wide range of industries and

“Our ability to demonstrate the commercial potential of the products
from our biorefinery process through lignin sales is a very important
precursor to deployment of our technology”, said Lignol’s President and
Chief Executive Officer, Ross MacLachlan. “This commercial order from a
global leader in coating technology, underlines the value offered by
HP-L Lignin as a renewable and functional ingredient in chemical
products with large scale markets.”

Lignol is engaged in a wide range of application development projects
with the products of its biorefinery technology at values that will
provide attractive returns for commercial projects.  As well as
incorporating HP-L Lignin into many core products of the chemical
industry, such as coatings, resins, binders and thermoplastics, Lignol
is also developing high value derivatives from the cellulose fraction
of biomass.

About Lignol

Lignol (TSXV: LEC) is a Canadian company undertaking the development of
biorefining technologies for the production of advanced biofuels,
including fuel-grade ethanol, and other 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 value-added biochemical
co-products, including high purity HP-L(TM) lignins. HP-L(TM) 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.

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 continue as
a going concern and to raise additional financing to fund operations,
our ability to work with CIBC and Capital West to consider a range of
sources of investment, including industry and financial investors who
have a strategic, long term interest in advanced biofuels, renewable
chemicals and forest industry transformation, the development status of
our fully integrated pilot-scale biorefinery in Burnaby, British
Columbia, the planning and development of a proposed commercial plant,
our ability to complete project deliverables which are funded in part
by government agencies, our ability to exploit commercial opportunities
and broaden our market opportunities for a range of cellulosic
derivatives and environmentally sustainable biochemicals including our
HP-L(TM) lignin and lignin derivatives, our ability to supply up to 10
tonnes of HP-L(TM) lignin to a leading global coatings manufacturer for
product trials and our ability to produce HP-L(TM) lignin that meets
agreed customer specifications at commercial scale, and our ability to
pursue these opportunities with strategic partners including
establishing off-take agreements for our products, our ability to
develop high value cellulose applications and obtaining strategic
partnership investments and government funding for initial commercial
projects. 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 continue to finance our operations and to
finance and complete the development of a commercial project, our
ability to develop commercial applications for our products including
HP-L(TM) lignin, and to obtain off-take agreements, our ability to obtain
requisite regulatory approvals and our ability to enter into agreements
with strategic partners on terms acceptable to us. 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 scale-up of the
technology, financial market conditions which will impact 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 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.

SOURCE Lignol Energy Corporation

Source: PR Newswire