Company Name
Dynamotive (DYMTF)

Company Web Site
http://www.dynamotive.com/

Headquarters
Vancouver, BC

Latest News
December 2, 2007 -First Commercial Plant in U.S. to Produce Liquid Biofuel from Wood Residues to be Built by Dynamotive in Missouri

Dynamotive Energy Systems Corporation (OTCBB: DYMTF), and its subsidiary, Dynamotive USA, Inc., announced its plans to invest US$24 million to build the first fully commercial industrial biofuel plant in the U.S. The facility will be located on a site in Willow Springs, approximately 180 miles southwest of St. Louis. The site secured was chosen for its ready access to rail transport, proximity to biomass and the potential to host up to four additional facilities.

The modular, second-generation biomass-to-biofuel plant is designed to use Dynamotive' s proprietary "fast pyrolysis"process to convert 200 tons per day of wood by-products and residues from nearby sawmills into 34,000 gallons per day of BioOil(R). Commercial terms have been agreed and signed with local feedstock providers to supply the plant.

Development and construction of the plant will be implemented by Dynamotive' s U.S. management, supported by Dynamotive' s engineering team and its partners. Opportunities exist for a significant expansion of Dynamotive' s operations, with more than 1.1 million dry long tons of biomass per year in Missouri alone. As a result, other, similar projects in the state are currently under review. The BioOil produced at the Willow Springs complex is expected to be sold to commercial and industrial users in the region through a major local distributor of renewable fuels.

An initial burn of BioOil from Dynamotive' s commercial plant at Guelph, Ontario, is being scheduled at a major industrial facility with this distributor.

The initial burn would be preparatory to its adoption of BioOil as a primary fuel, and the opening of the Midwest market for the product. It is expected that up to 5,000 tons of BioOil will be made available to Midwest consumers over the next year from Dynamotive' s and Evolution Biofuels' plant while the Willow Springs facility is under construction. The fuel provided is expected to be priced competitively to #2 heating oil, a light industrial fuel.

Lt. Col. (Ret.) William C. Holmberg, Chairman of the Washington-based Biomass Coordinating Council and a pioneer of the renewable fuels industry, hailed the plant announcement as "an important step towards releasing America from the bonds of foreign oil, and achieving a sustainable energy future."Holmberg pointed out that "the commercialization of BioOil adds another element to our arsenal of renewable fuels that can help address a previously neglected segment of our oil use: industrial boiler fuels. As such it complements, rather than competes with, fuel ethanol and biodiesel."

Dynamotive' s President and Chief Executive Officer Andrew Kingston noted: "This first U.S. project will demonstrate the viability of our technology in the U.S. market and the enormous potential of BioOil to help America make the transition to clean, renewable fuels that do not depend on food crops for their production. We are pleased to announce this project and would like to take this opportunity to thank all stakeholders involved for their magnificent support this year. Missouri has provided a unique platform to showcase our technology and its capabilities. We are committed to this project and look forward to developing further plants in the near future."

All of the above transactions currently remain subject to negotiation and execution of definitive agreements and to securing sufficient project capital. Accordingly, there can be no certainty in respect of the Company's ultimate participation rights in the project, nor of actual completion of them at this time.

Funding
Dynamotive Energy Systems Corporation (OTCBB: DYMTF), a leader in biomass-to-biofuel technology, announced today that it has completed a $10.5 million equity financing with Quercus Trust, an environmentally-oriented fund, and several other private investors. Ardour Capital Inc. of New York served as financial advisor in the transaction.

Under terms of the transaction, Quercus Trust invested $10 million and other private investors $500,000 to acquire 11.4 million shares of Dynamotive common stock at $0.9215 per share. They also received five-year warrants, with three-year anti-dilution rights, for up to a total of 4.56 million additional shares at $1.06 per share. The shares are restricted securities under the Securities Act of 1933 and were sold pursuant to applicable exemptions.

"The Quercus funding comes at an important time for Dynamotive,"said Andrew Kingston, president and chief executive officer, "as this significant cash investment by a sophisticated, alternative-energy-oriented investor provides additional working capital to help speed our progress on major activities currently under way."

"This capital infusion,"Mr. Kingston continued, "allows us to concentrate on growing the company, investing in new project initiatives, and accelerating our market penetration in the U.S. and in Europe, where we are developing further projects.

Mr. Kingston noted that the company has two BioOil(R) biofuel plants in Canada, one of which is now ramping up production, and the other is nearing completion of an upgrade. The company is also working to finalize plans for two major biomass-to-electricity complexes in Latin America.

Technology
Prepared feedstock (<10% moisture and 1-2 mm particle size) is fed into the bubbling fluid-bed reactor, which is heated to 450-500 °C in the absence of oxygen. This is lower than conventional pyrolysis systems and, therefore, has the benefit of higher overall energy conversion efficiency. The feedstock flashes and vaporizes like throwing droplets of water onto a hot frying pan. The resulting gases pass into a cyclone where solid particles, char, are extracted. The gases enter a quench tower where they are quickly cooled using BioOil already made in the process

The BioOil condenses and falls into the product tank, while non-condensable gases are returned to the reactor to maintain process heating. The entire reaction from injection to quenching takes only two seconds.

100% of the feedstock is utilized in the process to produce BioOil and char. As the non-condensable gases are used as energy to run the process, nothing is wasted and no waste is produced. The uncondensed, flammable gases are re-circulated to fuel approximately 75% of the energy needed by the pyrolysis process.

Three products are produced: BioOil (60-75% by weight), char (15-20% wt.) and non-condensable gases (10-20% wt.). Yields vary depending on the feedstock composition. BioOil and char are commercial products and non-condensable gases are recycled and supply a major part of the energy required by the process. No waste is produced in the Dynamotive process

A fourth product, BioOil Plus, can be produced by adding back the separated char into the BioOil, in a finely ground form of about 8 microns in size.