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DynaMotive Completes Construction and Begins Commissioning of Its New Fully Automated BioOil Production Plant

10 January 2001

DynaMotive Completes Construction and Begins Commissioning of Its New Fully Automated BioOil Production Plant

    A Major Milestone Towards Commercial Exploitation of Its BioOil
    Technology

    VANCOUVER, BC, Jan. 10 /PRNewswire/ - DynaMotive Technologies Corporation
(OTCBB: DYMTF) announced today that it completed construction of its new
BioOil pilot plant in December and has begun commissioning the new unit. With
a processing capacity of 10 tonnes of biomass feedstock per day, the new plant
was completed on budget and in record time. The fully automated plant has been
built to industrial standards in order to facilitate scale-up of the
technology to full scale commercial capacity. Photographs of the plant have
been posted on the Company's website: http://www.dynamotive.com.
    Commenting on this major milestone, DynaMotive President and CEO Andrew
Kingston said, "In 1999 we set out to establish DynaMotive as a world leader
in the renewable fuels arena. Delivering to the marketplace a technology that
is reliable, replicable and scalable is a cornerstone of our development
strategy. Completion of the new plant puts us very close to the attainment of
our objective, particularly at a time when energy users around the world are
facing higher energy costs and are demanding alternative fuel sources that are
cost-effective, abundant, renewable and friendly to the environment.
    "DynaMotive's three pronged strategy of concurrently developing BioOil
technology, fuel applications and markets has put the Company in an excellent
position to exploit its technology worldwide. Over the last two years we have
advanced technologically and validated the use of BioOil as a replacement for
fossil fuels in boilers and gas turbines. We have also developed extensive
interest in key markets such as Europe, North America, Latin America and Asia,
as well as in island economies that are heavily dependant on fossil fuel
imports. In 2001 we expect to turn these achievements into commercial
opportunities."
    The new BioOil plant was designed in-house by DynaMotive's Technology
Group and constructed at the BC Research complex in Vancouver BC. Commenting
on completion of construction, Chief Technology Officer Keith Morris said,
"During the past nine months we have delivered what we set out to do - we
designed and constructed a world-class industrial 'fast pyrolysis' plant at
our research facilities here in Vancouver. The plant conforms to all
applicable safety, electrical and mechanical design standards, utilizing state-
of-the-art 'smart' instrumentation and a high-powered industrial-grade
distributed control system (DCS). We adopted this design philosophy in order
to facilitate easy scale-up to commercial plant capacities. Once commissioned,
the fully automated plant will have a production capacity of 6,000 litres of
BioOil per day, providing much larger quantities of BioOil for engine and
combustion test programs."

    DynaMotive intends to become the world leader in the development of
technology to produce competitively priced liquid fuels from biomass. BioOil
is produced using patented technology that converts forest and agricultural
wastes such as bark, sawdust and sugar cane bagasse into a liquid fuel. Unlike
fossil fuels, BioOil is renewable, clean burning, low in emissions and
greenhouse gas neutral. As a clean fuel for power generation in gas turbines,
diesel engines and boilers, BioOil presents significant market opportunities
that DynaMotive intends to exploit commercially. The Company and its partners
are also engaged in research and development on a range of derivative products
that, if successful, could potentially further enhance the market and value of
BioOil as an alternative fuel and product source.

    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.