Lignol Awarded $3.4 Million in Funding from British Columbia's Liquid Fuels from Biomass Program

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 been awarded $3.4 million in funding to produce cellulosic ethanol and other biochemical products from under-utilized forest resources, including lodgepole pine killed by mountain pine beetle.

Premier Gordon Campbell announced the award from the Ministry of Small Business, Technology and Economic Development at Lignol's facilities in Burnaby, B.C. on Friday, April 3, 2009.

Lignol will use the funding to support production runs at its industrial scale biorefinery pilot plant utilizing forestry residues indigenous to British Columbia, including beetle-killed lodgepole pine. This will lead to the creation of an engineering design package for a commercial biorefinery within the province.

"We are pleased to have been selected by the B.C. government for this funding which launches the next phase in the development of our technology and brings us closer to commercializing our unique and proprietary cellulosic ethanol and biorefining technologies," said Ross MacLachlan, President and Chief Executive Officer of Lignol. "With the continued support from provincial and federal agencies together with our business partners, we look forward to playing a role in the revitalization of the forest sector here in B.C. and developing technology which both reduces emissions in Canada and provides strong potential for export."

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 HP-L(TM) Lignin. Lignol is executing on its development plan through strategic partnerships to further develop and integrate the 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.

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Caution concerning forward-looking statements

Certain statements contained in this document may constitute forward-looking information within the meaning of applicable securities laws. 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 finance 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 affect 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. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.

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SOURCE: Lignol Energy Corporation

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