Lignol Announces Appointment of Stephen Morris as Director and Grants of Stock Options

VANCOUVER, Sept. 11, 2012 /CNW/ – Lignol Energy Corporation (TSXV: LEC)
(“LEC” or “the Company”), today announced the appointment of Stephen
Morris to its Board of Directors. Mr. Morris will also join the
management team as Executive Director of LEC with responsibility for
corporate development and investor relations.

Mr. Morris is a majority shareholder of Jace Ltd which in August 2012
made a $500,000 investment in LEC. He is an investor and company
founder with more than 25 years’ experience in international
investment, management and technology commercialization in a wide range
of industries, including cleantech. From November 2006 until August 29,
2012 he was an Executive Director of Wasabi Energy Limited (ASX/AIM:
WAS), where he was engaged in corporate development and investor
relations.  LEC recently acquired Wasabi’s 11 percent stake in
Australian Renewable Fuels Ltd (ASX: ARW).

“Mr. Morris is a highly respected executive and we are delighted that he
will be joining our Board and become an integral member of our
management team,” said Ross MacLachlan, President and CEO of LEC. “The
timing of this appointment comes at a pivotal time for us on the heels
of our recent investment in ARW.”

LEC also announced that, pursuant to its stock option plan and subject
to regulatory approval, it has granted an aggregate of 3,175,000 stock
options to its independent directors and to members of its management
team. The stock options have an exercise price of $0.13 per share, will
vest quarterly over two years and are exercisable for a period of five
years.

About Lignol Energy Corp (“LEC”)

LEC (TSXV: LEC) owns an 11% stake in Australian Renewable Fuels Ltd
(ASX: ARW) and owns 100% of the issued and voting shares of Lignol
Innovations Ltd. (“Lignol”). LEC also intends to invest in, or
otherwise obtain, equity interests in energy related projects which
have synergies with its biorefining technology.

ARW is the largest biodiesel producer in Australia owning three plants
with a total nameplate capacity of 150 million litres per annum.  ARW’s
three plants were built at an aggregate cost of approximately A$150 million. ARW has
made significant changes in recent years to become a cost effective
producer of high quality biodiesel to address growing biofuel demand in
the Australian market. More information on ARW can be found at their
website; www.arfuels.com.au.

Lignol is a 100% owned subsidiary of LEC. Lignol is a leading technology
company in the advanced biofuels and renewable chemicals sector
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. For more information please visit Lignol’s 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 the
operations of LEC and Lignol, the development status of Lignol’s fully
integrated pilot-scale biorefinery in Burnaby, British Columbia, the
planning and development of a commercial plant, Lignol’s ability to
complete project deliverables which are funded in part by government
agencies, 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 LEC’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 Lignol’s
technology at the fully integrated biorefinery pilot plant scale,
Lignol’s 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, Lignol’s ability to work with Novozymes to produce
cellulosic ethanol at production costs competitive with gasoline and
corn ethanol, Lignol’s ability to develop products 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, the inability to influence the
strategy, operations and financial performance of Australian Renewable
Fuels (“ARW”), the reliance on publically available information of ARW
in the Company’s evaluation of its acquisition of shares in ARW, the
potential inability to divest the ARW ordinary shares due to modest
trading volumes, the cost of future ARW capital investment, the
fluctuation of biodiesel and feedstock on ARW, the effect on ARW of
changes in government policy relating to the environment, and
incentives for renewable fuels.  Many factors could cause LEC’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 Lignol’s 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 LEC 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