---

DynaMotive Expands Partnership With Resource Transforms Intl Ltd

15 September 1998

DynaMotive Expands Exclusive Partnership With Resource Transforms International Ltd. (RTI) for New BioOil Products

    VANCOUVER, B.C., Sept. 15 -- DynaMotive Technologies
Corporation today announced that it has expanded its exclusive
partnership with Resource Transforms International, Ltd. (RTI), developer of
the renowned BioTherm(TM) technology that converts organic forest and
agricultural waste into crude BioOil.  BioOil is the key ingredient for
DynaMotive's pipeline of value added products from its BioMass Refinery
including clean fuels, air pollution control products, slow release fertilizer
and specialty chemicals.
    Under terms of the new agreement, DynaMotive gains exclusive rights to new
products derived from BioOil including blended fuels and slow release
fertilizers (with the exception of fertilizers made solely from a combination
of animal wastes and BioOil).  This is in addition to the exclusive right to
air emissions control additives like BioLime(R) covered under a previous
agreement signed in 1996.  The Company also has first rights of refusal under
similar terms for any other applications for the technology not covered in the
exclusive agreement, as well as on any new technology RTI develops.
    Commenting on the new agreement, DynaMotive's President and CFO Bayne
Boyes said, "DynaMotive's latest agreement with RTI gives us exclusive,
worldwide rights to virtually all products derived from BioOil produced from
RTI's proprietary BioTherm(TM) process.  This will now allow us to fast track
commercialization of the BioMass Refinery.  In addition, the agreement
provides flexibility for RTI to supply small BioTherm(TM) units to university
and corporate research institutions and a maximum of two full size systems for
production of food flavorings and aromas.  We believe that encouraging further
BioOil research will benefit both companies, potentially opening up
whole new commercial product lines."
    Dr. Desmond Radlein, President of RTI and a DynaMotive Board Member, said,
"RTI is very pleased with this expanded alliance with DynaMotive.  The
relationship combines RTI's BioTherm(TM) R&D expertise with DynaMotive's
demonstrated business and technology applications skills, creating an even
more powerful partnership.  We're excited about the progress DynaMotive is
making in commercializing its BioMass Refinery technologies and products, and
we are working closely with them to scale up the technology and bring products
to market as quickly as possible."
    The core of DynaMotive's BioMass Refinery is the BioTherm(TM) pyrolysis
system -- a fast and economical process to convert biomass waste into BioOil.
Feedstocks include common organic waste such as sawdust, bark, wheat straw,
sugar cane bagasse and rice hulls.  The process is very efficient, completely
utilizing the feedstock with a conversion rate to BioOil of up to 75% with no
harmful by-products.  BioTherm(TM) operates at a lower temperature than
conventional pyrolysis systems and has the benefit of higher energy efficiency
and a more effective retention of mineral matter in the char.
    DynaMotive has successfully operated a one half ton per day BioTherm(TM)
demonstration plant in Vancouver, BC since June, 1997.  Following due
diligence by Stone & Webster Engineering, the Company plans to design and
engineer a 50-100 ton per day BioTherm(TM) unit.  The Company is not aware of
any other BioOil system of this size in the world.
    DynaMotive is a Vancouver based environmental high technology company that
has developed three core technologies: the BioMass Refinery family of clean
energy products derived from BioOil; DynaPower(R) acid free metal cleaning
systems; and motion control actuator systems used for automotive stud welding.
DynaMotive's mission is to be the world leader in the development and
production of BioOil and high value derivative products through creation of
partnerships with industry leaders.
    Statements in this news release concerning the company's business outlook
or future economic performance; anticipated profitability, revenues, expenses,
or other financial items; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or other
matters, are "forward-looking statements" as that term is defined under the
Federal Securities Laws.
    Forward-looking statements are subject to risks, uncertainties and other
factors which could cause actual results to differ materially from those
stored in such statements.  Such risks, uncertainties and factors include, but
are not limited to, changes and delays in product development plans and
schedules, customer acceptance of new products, changes in pricing or other
actions by competitors, patents owned by the Company and its competitors, and
general economic conditions, as well as other risks detailed in the Company's
filings with the Securities and Exchange Commission.