Lignol Energy Corp. on Thursday provided an update on its Memorandum of Understanding (the "MOU"), signed on August 30, 2007, with Huntsman International LLC (NYSE: HUN) ("Huntsman"), a leading global manufacturer and marketer of differentiated chemicals.

The MOU established a collaborative framework between the parties so as to support Huntsman's potential development of one or more commercial applications utilizing Lignol's proprietary High Purity Lignin ("HP-L(TM)"). HP-L(TM) is a unique form of a high-purity lignin that is produced by Lignol's proprietary biorefining process used in converting non-food, cellulosic feedstock into ethanol.

Since August 30, 2007 Huntsman has been working with Lignol under the terms of the MOU to incorporate HP-L(TM) into one or more of its polyurethane applications. This program is consistent with Huntsman's continuing commitment to evaluate the use of bio-renewable components for both feedstock and for product applications.

Huntsman has recently reported to Lignol that, based on initial results, the development program will continue with high priority and with increased resource allocation for the remainder of 2008, with a possibility of being formalized into a potential product development agreement and subsequent supply agreement with Lignol to meet Huntsman's future potential demand, should Lignol succeed with its objective of building commercial scale biorefineries and should Huntsman's tests prove economically and technically beneficial.

HP-L(TM) provides Lignol with an important additional source of revenue that could improve the overall economics of any potential future commercial plants that incorporate Lignol's modified solvent based pre-treatment technology. Lignol HP-L(TM) is a unique form of a high-purity lignin that is produced as an output of Lignol's proprietary biorefining process. HP-L(TM) has chemical and physical properties which differentiate it from other types of lignins that are typically produced as by-products from a pulping process. These differences include purity, absence of sulfur, low mineral content, hydrophobicity, reactivity and melt characteristics. Lignol has developed novel methods to produce different lignins from each of the non-food cellulosic feedstocks it has processed.

Materials with superior and novel properties can be developed from HP-L(TM) and from combinations with industrial adhesives such as phenol formaldehyde resins, isocyanates and epoxy resins and coatings, and acrylonitrile for carbon fiber production, thereby reducing the use of and dependency on petrochemicals.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 13,000 employees and operates from multiple locations worldwide. The Company had 2007 revenues of approximately $10 billion.

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 High Purity Lignin (HP-L(TM)). 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 that have synergies with its biorefining technology.