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DynaMotive Announces Successful Production of BioOil Made from 100% Softwood Bark, Opening Up Further Commercial Opportunities for Its BioOil Production Technology

3 October 2000

DynaMotive Announces Successful Production of BioOil Made from 100% Softwood Bark, Opening Up Further Commercial Opportunities for Its BioOil Production Technology

    VANCOUVER, Oct. 3 /PRNewswire/ - DynaMotive Technologies Corporation
(OTCBB: DYMTF) today announced completion of a series of production runs
converting 100% softwood bark derived from spruce, pine and fir into fuel
quality BioOil. The production runs were carried out at the Company's BioOil
pilot plant in Vancouver, BC. BioOil produced from bark will be shipped to
engine manufacturers for testing as a clean fuel for power generation and to
other potential users with a view to establishing a market for this emerging
greenhouse gas neutral fuel.
    "We are very pleased with the preliminary results from our bark
processing program," said Chief Technology Officer Keith Morris. "Our
feedstock testing program began two years ago when we started producing BioOil
from white wood feedstock, a combination of sawmill sawdust and shavings.
Earlier this year, we successfully processed sugar cane bagasse, then moved to
blends of sawdust and lower value wastes such as bark, and have now produced
BioOil using 100% bark. We will continue to optimize the process to ensure
consistent BioOil quality and to maximize product yields."
    Commenting on this development, DynaMotive Canada's Chief Operating
Officer Jonathan Rhone said, "Converting bark into BioOil is a significant
milestone for DynaMotive. From a commercial perspective, demonstrating that we
have the capability to produce a fuel quality BioOil from both bark and
bark/white wood blends is very important, opening up the entire wood residue
market to our BioOil production technology.
    "The forest industry has consistently told us that bark residues are a
major problem for the industry as bark has little or no value and is costly to
dispose of," Rhone said. "Canada produces approximately 18 million tonnes of
sawmill residues per year, of which 5 to 6 million tonnes are considered
wastes and are subsequently incinerated or landfilled. This wood waste could
potentially be converted to 15 million barrels of BioOil per year and
represents a significant commercial opportunity for DynaMotive."

    DynaMotive Technologies Corporation is a world leader in the development
of technology to produce BioOil clean fuels for power generation in gas
turbines, diesel engines and boilers. BioOil is produced using a patented
technology that converts forest and agricultural wastes into a liquid fuel.
Unlike fossil fuels, BioOil is clean burning, low in emissions, greenhouse gas
neutral and can be produced economically from renewable biomass waste
materials. The Company has been testing its BioOil with a number of engine
manufacturers including Orenda Turbines. DynaMotive produces BioOil at its
pilot plant in Vancouver BC and is currently constructing a 10 tpd BioOil
demonstration plant. The Company plans to build its first 25 tpd commercial
demonstration plant next year.

    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.