Lignol, Weyerhaeuser to Collaborate

Lignol Energy Corporation (TSX-V: LEC), a technology company in the lignocellulosic biorefining sector, announced that it has signed a Memorandum of Understanding (MOU) with Weyerhaeuser Company (NYSE: WY) to explore the development of commercial applications of biochemical outputs from Lignol’s proprietary biorefining technology. The parties have also agreed to evaluate the development of a commercial-scale Lignol biorefinery plant at or near a Weyerhaeuser mill site. The MOU excludes applications for transportation fuel.

The initial scope of the MOU involves the testing of certain biomass feedstocks within Lignol’s facilities, including Lignol’s integrated industrial-scale biorefinery pilot plant located in Burnaby, British Columbia. As part of the MOU, the two companies will assess yields and qualities of the biorefinery process outputs, which include cellulose fibers and HP-L(TM) High Purity Lignin (HP-L(TM) Lignin), for commercial potential and evaluate the development of a commercial-scale Lignol biorefinery plant at or near a Weyerhaeuser mill site.

"Lignol and Weyerhaeuser share a vision of developing markets and manufacturing plants that utilize technology for converting abundant cellulose-based, non-food biomass into economical and environmentally sustainable cellulose fiber and biochemicals," said Ross MacLachlan, President and Chief Executive Officer of Lignol. "We are delighted to work with Weyerhaeuser on this exciting business initiative. Lignol’s technology and know-how coupled with Weyerhaeuser’s access to significant biomass feedstock reserves, infrastructure and markets for our products, makes for a compelling collaboration."

"While we continue to move forward with the planning and development of our cellulosic ethanol commercial demonstration plant in Colorado, recent developments have provided near-term commercial opportunities to exploit and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable biochemicals. We intend to aggressively pursue these opportunities with strategic partners," added Mr. MacLachlan.

Lignol Manufacturing Process and HP-L(TM) High Purity Lignin

Lignol’s specialized, solvent-based biorefinery process produces a unique cellulose fiber that has applications in certain specialty markets. Further, Lignol’s biorefinery process generates high-purity lignin, trademarked as HP-L(TM) Lignin, a unique organic compound that is differentiated from other types of lignins that are typically produced as by-products in the traditional Kraft pulp manufacturing process.

Materials with novel properties can be developed from HP-L(TM) Lignin. For example, HP-L(TM) Lignin can be blended with industrial adhesives such as phenol formaldehyde, isocyanates and epoxy resins that can be used in coatings, and as a precursor for carbon fiber production, thereby reducing the use of and dependency on petrochemicals.

About Lignol

Lignol 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 a HP-L(TM) High Purity Lignin. 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.

About Weyerhaeuser

Weyerhaeuser Company, one of the world’s largest integrated forest products companies, was incorporated in 1900. In 2007, sales were $16.3 billion. It has offices or operations in 13 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser’s businesses, products and practices is available at www.weyerhaeuser.com.

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