DynaMotive Starts Commissioning BioOil Plant at West Lorne; Pyrolysis Loop Successfully Tested at Design Standards.

VANCOUVER, British Columbia -- DynaMotive Energy Systems Corporation (OTCBB:DYMTF) announced today that all major systems of its BioOil plant are completed and that commissioning started at West Lorne on November 25th. Full commissioning will be finalized once the certificate of acceptance by the Ministry of Environment of the Province of Ontario is received and final grid connection (currently pending inspection) is approved. The Company disclosed that key systems have been tested and have operated within design standards. The Company also informed that operator training has taken place.

The BioOil plant will process wood residue from Erie Flooring and Wood Products. The residue will be sized and processed by DynaMotive's patented pyrolysis system. BioOil production is expected to reach 70 tonnes per day once the plant reaches full operational capacity. Char production at full capacity is estimated at 18 tonnes per day.

Main systems and status:

Feed system and feed input silo           Completed: Nov. 5

Pyrolysis loop: reactor, cyclones,        Completed: Nov. 18
BioOil condenser, separator tank,         Successfully tested: Nov. 25
electrostatic precipitator, heat
exchanger and compressor

Charcoal handling system: collector,      Completed: Nov. 30
cooling and conveyor

BioOil receiving tanks                    Completed: Nov. 5

Char receiving tanks                      Completed: Nov. 25

Combustion system:                        Pending Certificate of
                                          Acceptance

Transmission: 27.6 kV and 11 kV high
voltage power stations erected and
the 600-volt feeders                      Connected: Nov. 22

Final electrical interconnection          Pending inspection

The process of commissioning comprises the installation of instrumentation and testing of all subsystems in preparation for BioOil production. The DynaMotive engineering team has completed the initial testing of the pyrolysis loop, charcoal handling system and receiving tanks. The final commissioning will test combustion systems and feed input to the reactor. A major milestone was completed Saturday, December 4, when the Company conducted a "Big Circle" test of systems. All systems operated successfully.

The West Lorne BioOil Cogeneration Project has secured a Cdn $5 million contribution from Sustainable Development Technology Canada (STDC) for its development and demonstration phases, including plant commissioning. STDC is a foundation created by the Government of Canada that operates a $350 million fund to support the development and demonstration of clean technologies that address issues of climate change and air quality. These solutions deliver environmental, economic and health benefits to Canadians. An arms length, not-for-profit corporation, SDTC works with private, financial, academic and public sectors and with the Government of Canada to build a sustainable development technology infrastructure in Canada.

DynaMotive is an energy systems company focused on the development of innovative energy solutions based on its patented fast pyrolysis system. Through the application of fast pyrolysis, DynaMotive unlocks the natural energy found in the world's abundant organic resources traditionally discarded by the agricultural and forest industries. DynaMotive's technology economically converts biomass into a renewable, environmentally friendly fuel. DynaMotive has successfully demonstrated conversion of these residues into fuel known as BioOil, as well as char.

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, future capital needs, 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.