Canfor and DynaMotive Establish Alliance To Develop Commercial BioOil Applications for the Forest Industry

    VANCOUVER, March 8 - DynaMotive Technologies Corporation
(OTCBB: DYMTF) and Canadian Forest Products Ltd. (CFP:TSE) have signed a
Memorandum of Understanding to develop commercial applications for BioOil in
the forest industry. The announcement was made at the official opening of
DynaMotive's new 10 tonne per day BioOil pilot plant in Vancouver, BC, Canada.
    "This partnership is a significant milestone in our commercialization
program," said Andrew Kingston, DynaMotive President & CEO. "Canfor is one of
the largest and most respected forest product companies in North America and
we are delighted to be taking this first step to formalize the relationship.
This MOU is the culmination of many months of work between DynaMotive and
Canfor management to understand the value proposition that our BioOil
technology provides within the forest industry. We believe that there is the
potential to create value for both companies."
    Canfor's President and CEO David Emerson said, "Canfor is very pleased to
announce this alliance with DynaMotive, whose BioOil technology has the
potential to convert our sawmill wood residue into clean burning fuel. This
technology also has the potential to provide Canfor with positive
environmental benefits by helping to eliminate beehive burners currently being
used to incinerate the material. In addition, should it prove feasible to use
BioOil to replace natural gas in our pulp mill lime kilns and sawmill lumber
dry kilns, Canfor could increase its energy self-sufficiency and further
reduce its greenhouse gas emissions."
    "The MOU establishes a framework for collaboration through several stages
of development," said Jonathan Rhone, DynaMotive's Chief Operating Officer
(Canada). "Initially, Canfor will provide prepared feedstock for the operation
of DynaMotive's 10 tonne per day pilot plant and work with DynaMotive to
validate BioOil fuel applications in sawmills and pulp mills. The companies
have also established the principles for developing a 25 - 50 tonne per day
BioOil demonstration project and for commercial BioOil projects including
feedstock supply and fuel purchase agreements."
    Canada's forest industry produces approximately 18 million tonnes of
sawmill residues per year, of which approximately 6 million tonnes is
currently incinerated or landfilled at a cost to the industry. Converting
surplus wood residue into BioOil could help the industry create value and
provide a non-depleting, renewable source of energy for use in forest
operations.

    Canfor is an integrated forest company based in Vancouver, Canada. With
sales of over $2.2 billion in 2000, Canfor is the largest producer of softwood
lumber and market pulp in Canada and one of the largest in North America.
Canfor employs over 5,700 people in 13 sawmills, 2 pulp mills, one specialty
paper mill and other operations in BC, Alberta and Washington State.

    DynaMotive is an energy systems company based in Vancouver, Canada. It is
developing a proprietary "fast pyrolysis" technology that converts renewable,
forest and agricultural wastes such as bark, sawdust and sugar cane bagasse
into a liquid BioOil fuel. BioOil is clean burning, low in emissions and
greenhouse gas neutral. BioOil can be used to replace natural gas, diesel and
other fossil fuels to produce power and heat in industrial boilers, kilns, gas
turbines and diesel engines.

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