---

DynaMotive Signs Agreement with Orenda Aerospace to Test

19 October 1999

DynaMotive Technologies Signs Agreement with Orenda Aerospace to Test; BioOil as a Clean Fuel to Generate Power in Orenda's Gas Turbines

    VANCOUVER, British Columbia, Oct. 19 -- DynaMotive
Technologies Corporation (OTC Bulletin Board: DYMTF) announced that it
has signed an agreement with Magellan Aerospace Corporation business unit
Orenda Aerospace to test DynaMotive BioOil as a clean fuel to generate "green"
power in their gas turbines.
    The test program between DynaMotive and Orenda involves a series of
combustion and turbine tests in Canada and Europe to determine the emissions
profile, key aspects of engine performance and the economics for a packaged
power system.
    Orenda is the first company in the world to successfully demonstrate the
feasibility of a turbine power generation system for industry which is capable
of operating on liquid BioOil, a renewable fuel produced from forest and
agricultural waste.
    "We are very pleased to be collaborating with Orenda Aerospace on this
program to test BioOil in gas turbines," said DynaMotive President and CEO
Andrew Kingston.  "Orenda is recognized as an industry leader in adapting
their turbine technology to BioOil fuels.  This Agreement with Orenda will
enable us to demonstrate the commercial value of this new clean fuel in their
gas turbines and accelerate our commercialization program in conjunction with
a highly respected industry leader."
    Magellan Aerospace President & COO Richard Neill said, "DynaMotive has
proven the capability to produce a very high quality BioOil and we look
forward to working with them to develop and market an integrated gas turbine
generation package using BioOil fuel.  Through the adoption of BioOil, we are
converting our gas turbine technology from fossil fuel to a clean fuel which
is greenhouse gas neutral, renewable and made from organic waste.  This will
allow us to uniquely position ourselves in a large and growing renewable
energy market worldwide."
    Orenda has applied its leading edge technologies to efficiently combust
liquid BioOil fuels in a range of turbine engines.  Utilizing Ukrainian gas
turbine manufacturer SPE Mashproekt's industrial designed GT2500 engine as its
heart, Orenda has developed a compact, dependable industrial gas turbine power
generation package that is an ideal choice for efficient, small-scale power
requirements.  The GT2500 delivers an ISO rating of 2.85 MW at the output
shaft with 28.5% efficiency to suit the requirements of utilities, industrial
power generation, and oil and gas applications, including paper mills,
hospitals, petrochemical facilities and other cogeneration applications.
    Orenda Aerospace Corporation of Mississauga, Ontario is a recognized
leader in the aerospace industry.  Orenda has an established reputation in
power and propulsion technologies, with core competencies in gas turbine
engine repair and overhaul, component manufacturing for turbine OEMs,
reciprocating power plants, industrial power packages and advanced energy
systems.
    Magellan Aerospace Corporation is a diversified supplier of products and
services to commercial and defence aircraft manufacturers world-wide.
Manufactured products include high performance composite and metal structures,
rotating and non-rotating engine components, and space and defence rocket
systems.  Magellan applies its engineering expertise to the design and
development of aerostructure and aeroengine components, advanced materials,
and energy and space systems.  Services include repair and overhaul of jet and
industrial engines, aeroengine components and aircraft structures.  Magellan
(Toronto: MAL) is listed on the Toronto Stock Exchange and has operating
divisions throughout Canada and the United States.
    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 trade named BioTherm(TM) that converts low-value
forest and agricultural waste into a liquid biofuel.  BioOil is renewable,
clean burning, greenhouse gas neutral and can be produced economically from
waste products.  The Company currently produces BioOil at its pilot plant in
Vancouver to meet demand for testing programs by engine manufacturers 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.