DynaMotive Energy Systems 2005 Review and Forward Plan For 2006; Company Announces West Lorne Plant Operational.

VANCOUVER, British Columbia -- DynaMotive Energy Systems Corporation (OTCBB:DYMTF) provided a recap today of key company developments during 2005 and the outlook for 2006. The Company also announced that the West Lorne BioOil Cogeneration facility restarted operations on Friday, January 13th, following shutdown for the holidays.

Commenting on the Company's achievements in 2005, DynaMotive President and CEO, Andrew Kingston said, "These are very exciting times for DynaMotive and for the biomass energy sector. DynaMotive has repeatedly demonstrated that its technology is both scalable and reliable. During 2005, we started commercial scale BioOil production at the West Lorne facility, advanced the development of future projects, formed new strategic partnerships with global reach and furthered our research and development initiatives. These company developments pave the way for the rapid deployment of our technology across Canada and internationally. At a time when conventional energy prices are soaring and environmental concerns are becoming more and more critical, DynaMotive is very well positioned to provide new and innovative solutions in an environmentally friendly manner. We look forward to aggressively pursuing our goals for 2006."

Main Company highlights from 2005 are as follows:

--Completed commissioning and start-up of the West Lorne BioOil plant, including power generation and delivery of electricity to Ontario grid;

--Completed conceptual design of 200 tonnes per day plant;

--Successfully tested BioOil for production of synthetic gas, establishing the viability of transport fuels derived from BioOil;

--Advanced development of project in Nova Scotia with signing of interim Project Development Agreement, and with licensing of a 200 tonne per day plant to Megacity Recycling of Toronto;

--Secured commercial agreements for sale of BioOil, char and electricity;

--Commenced commercial shipments of BioOil;

--Signed MOU with Mitsubishi Canada Ltd. for marketing and distribution of DynaMotive's fast pyrolysis technology in Canada and internationally.

In accordance with its business plan for 2006, the Company plans to:

--Construct E & R Langille (Nova Scotia) and Megacity (Toronto) plants;

--Advance penetration of DynaMotive's technology in key world markets (Europe, USA, China and Brazil).

--Secure licensing agreements for DynaMotive's technology.

--Develop commercial agreements for the use of BioOil as a replacement for hydrocarbon fuels with large industrial users;

--Advance Company research and development initiatives and partnerships with the goal of producing transport fuels and treatment of dirty waste streams;

--Optimize revenue streams from West Lorne through continued monthly commercial shipments of BioOil and sale of electricity;

About DynaMotive

DynaMotive's 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 is greenhouse gas neutral. As a clean fuel for power generation in gas turbines, diesel engines and boilers, BioOil presents significant market opportunities. The Company and its partners are also engaged in research and development on a range of derivative products that will further enhance the market and value for 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: disappointing plant production at a rate or of a quality which falls significantly below expectations and results in a material shortfall from the expected economic value, 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.