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DynaMotive Announces Stone & Webster Completes Due Diligence

5 October 1999

DynaMotive Technologies Corporation Announces Stone & Webster Completes Due Diligence on DynaMotive's BioOil Production Technology

    VANCOUVER, British Columbia, Oct. 5 -- DynaMotive
Technologies Corporation (OTC Bulletin Board: DYMTF) announced today that
Stone & Webster, Incorporated has completed a technical and
operational due diligence on the DynaMotive's proprietary BioOil production
technology.  Clean burning BioOil fuels will be used to generate "green" power
in stationary diesel engines, gas turbines and boilers.
    Commenting on its due diligence report, Stone & Webster spokesman Bruce
Welch, General Manager of the Industrial Business Sector, said, "Our due
diligence on this technology over the past year has demonstrated that the
process parameters are valid, and we believe this technology is reliable and
scalable.  From an engineering perspective, we recommend an initial scale-up
to 25 to 35 tons per day (tpd) as this represents a manageable increase.  The
technology has significant commercial potential as a source of clean fuels and
chemicals, and we look forward to working with DynaMotive and its partners to
build commercial BioOil facilities."
    DynaMotive's President and CEO Andrew Kingston said, "Obtaining third
party validation of our BioOil production process by an organization with the
experience and credibility that Stone & Webster has in the international power
industry is an important milestone for DynaMotive.  The results of this due
diligence reduce technical and financial risk on the next phase of BioOil
development as we scale-up to a commercial demonstration plant.
    "A 25 to 35 tpd plant will produce enough BioOil fuel to generate up to
1.5 MW (megawatts) of power from a stationery diesel engine or gas turbine.
From there we plan to build 200 tpd BioOil plants which will each generate
8 MW of power, enough to provide electricity for 10-15,000 homes.  We are
currently in the process of evaluating a number of potential sites in North
America, Europe and Latin America for these installations."
    Stone & Webster is one of the world's largest engineering firms with
expertise in engineering, construction and consulting for power,
environmental, infrastructure and other industrial facilities in 25 countries.
Listed on the New York Stock Exchange, Stone & Webster had US $1.2 billion in
sales in 1998 and approximately 6,000 employees.  Since signing the MOU with
DynaMotive in March 1998, Stone & Webster has conducted its due diligence at
the DynaMotive plant in Vancouver, BC; Resource Transforms International, Ltd.
(RTI) in Waterloo, Ontario; and Manufacturing & Technology Conversion
International (MTCI) in Baltimore, MD.  RTI is the developer and licensor of
the BioOil pyrolysis technology trade named BioTherm(TM).

    DynaMotive Technologies is a world leader in the development of BioOil
clean fuels for "green" power generation.  BioOil is produced using a unique
waste-to-energy technology that converts low-value forest and agricultural
waste into a petroleum-like liquid.  Unlike fossil fuels, BioOil is renewable,
clean burning, low in emissions, greenhouse gas neutral and can be produced
economically from waste products.  As previously announced, the Company has
recently increased production capacity at its pilot plant in Vancouver to meet
market demand for BioOil and has been shipping BioOil to engine manufacturers
for testing in Europe and North America.

    Forward Looking Statement
    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.