DynaMotive Technologies Reports First Fiscal Quarter Results

    VANCOUVER, May 17 - DynaMotive Technologies Corporation
(OTCBB: DYMTF) announced that it has filed its financial results for the first
quarter of 2001. President & CEO Andrew Kingston outlined highlights during
the quarter.

    In the 1st Quarter of 2001, DynaMotive made demonstrably significant
progress in a three-pronged strategy of concurrently developing BioOil
technology, fuel applications and commercial markets.

    Mr. Kingston said, "We have completed and commissioned our new 10 tpd
plant, we have entered into new strategic alliances that leverage our
strengths and further, we have identified and captured valuable commercial
opportunities with the acquisition of Border Biofuels Limited."

    The Company's revenue for the first quarter of 2001 reflects a
continuation of the consolidation process undertaken last year. Total revenues
for the quarter represent a decline of $169,824 from the first quarter of
2000. The Company recorded a net loss for the quarter of $1,242,958, which
increased slightly from $1,149,055 for the same quarter in 2000 and reflects
the Company's policy of expensing all of its research and development costs.

    During the first quarter of 2001, the Company closed through equity
funding ($518,274), grants and contingently repayable investment from
Technology Partnership Canada and other government entities ($234,587). The
main use of funds were: $278,412 in operating activities, and $174,496 in
investing activities. Total liability at the end of the first quarter of 2001
decreased to $751,915 from $898,374 at the end of 2000.

    Highlights for the 1st Quarter 2001:

    DTI Renewable Energy Grant For BioOil Consortium: One of the UK
    Government's largest ever grants to support the development of energy
    from biomass in the UK. The pounds sterling 1.16 million/US $1.7 million
    grant from the Department of Trade & Industry (DTI) is expected to enable
    commercial production testing of an integrated BioOil and electricity
    generating plant to take place in the UK.

    Memorandum of Understanding with CANFOR: MOU with Canadian Forest
    Products Ltd. to develop commercial applications for BioOil in the forest
    industry.

    Memorandum of Understanding with TECNA S.A. of Argentina: TECNA would
    provide engineering, procurement and construction (EPC) services for
    commercial BioOil energy projects in Latin America and other markets on a
    non-exclusive basis. TECNA would also collaborate with DynaMotive to
    provide technical design and optimization input on DynaMotive's BioOil
    production technology.

    Successful BioOil Combustion Tests: Successfully completed BioOil
    combustion testing at Natural Resources Canada's (NRCan) CANMET Energy
    Technology Centre (CETC) in Ottawa, Ontario. The success of this test
    program creates opportunities for early commercial applications for
    BioOil as a clean burning fuel to replace natural gas, diesel and other
    fossil fuels in the multi-billion dollar industrial fuels market.

    10 TPD Plant Completed: Construction was completed in early January and
    commissioning commenced immediately thereafter.

    Recent Events:
    -------------
    Acquisition of Border Biofuels Ltd. Through the acquisition of BBL,
    DynaMotive accessed 15 year power purchase contracts in the UK for the
    production of 69 MW of electricity. Projects are to be fuelled by BioOil.
    Provides access to commercial power generation contracts under the UK Non
    Fossil Fuel Obligation, subject to the Company's ability to provide the
    power, revenues guaranteed under the UK's NFFO contracts could
    potentially exceed US$800,000,000 over 15 years.

    Intention to Divest Metal Cleaning Subsidiary. In an effort to focus
    exclusively in the bioenergy field and in the development of BioOil
    derivative products, the Company plans to divest its Metal Cleaning
    Subsidiary, DynaPower, Inc. (DynaPower). Furthermore, it announced that
    it has entered into a Letter of Intent with DynaPower Management for a
    potential Management Buyout (MBO). The Company intends to complete the
    divestiture by the third quarter this year. The Company would retain
    intellectual property ownership (Patents) and would continue to receive
    on-going royalties from its patents.

    10 TPD Plant Achieves Target Production Capacity: BioOil plant met design
    production parameters. Fuel quality BioOil has been produced from BC wood
    residue at the 10 tonne per day rated capacity.