Dynamotive to Develop Biofuel & Electricity Complexes for Rural Argentina; Plans $105 Million Investment.

BUENOS AIRES, Argentina & VANCOUVER, British Columbia -- Dynamotive Energy Systems Corporation (OTCBB:DYMTF), a leader in biomass-to-biofuel technology, and its subsidiary Dynamotive Latinoamericana S.A. announced today they have submitted documents to the Government of Corrientes detailing plans to invest approximately $105 million to develop two self-contained biofuel-to-electricity complexes in this northeastern province of Argentina.

Each complex will be comprised of a 15.7-megawatt electricity-generating station powered by the majority of the fuel output of two 200-ton-per-day modular plants producing BioOil([R]) biofuel from wood waste and residues from nearby forests and other biomass residue. Excess BioOil produced at these facilities will be sold into commercial and industrial fuel markets.

Dynamotive said sites for the two complexes - to be located approximately 500 miles from Buenos Aires, in Virasoro and Santa Rosa - are being secured by the Province of Corrientes. The company said the projects will proceed promptly once existing 10-year agreements-in-principle are finalized for the needed supply and cost of the biomass raw materials, and for the pricing structure of the electricity to be produced and transmitted to nearby industry and communities from the complexes. Other similar projects are being planned for additional locations in Corrientes, in Argentina, and elsewhere in Latin America, Dynamotive said.

Development and construction of the complexes will be implemented by Dynamotive, jointly with TECNA, a major Argentine engineering firm,

and financing will be provided by a group of banks and other private sources. When fully operational late next year, the complexes will have available approximately 340,000 dry tons of biomass annually, providing opportunity for further expansion.

The announcement was made in the city of Gobernador Virasoro by Vice President Raul Parisi of Dynamotive Latinoamericana and Governor Arturo Colombi of Corrientes Province, at a gathering that included city and provincial officials, including Mayor Rodolfo Fernandez and members of the provincial and local cabinets.

Governor Colombi stated: "Dynamotive's proposed investment reflects strong support for the progress we are making in Corrientes toward economic growth and environmental protection, two goals to which we are all committed."

Mr. Parisi of Dynamotive commented: "Working with the Governor, the Mayor and other officials in developing these biomass-to-energy facilities will provide us with an attractive business opportunity, as well as foster progress in the region with widespread positive impact on the provincial economies, the local job market and the environment."

Andrew Kingston, chief executive officer of Dynamotive, said, "We are moving forward with these projects in Argentina because the need and the economics are compatible with our corporate growth goals, and they reflect how Latin America is helping to lead the biofuel revolution. We are honored to be enabling this major step toward sustainability and to provide opportunity for economic growth in the region. We look forward to developing future plants here and elsewhere in Argentina and South America."

Kingston continued, "Dynamotive's proprietary fast-pyrolysis technology is a proven and cost-effective method of turning agricultural and forest residues into renewable fuel and electric power. Furthermore, we have pioneered our technology as a readily transportable series of modules that can create such biofuel-to-electricity complexes virtually anywhere in the world."

Dynamotive said a joint focus of the development of the complexes is to tackle environmental issues arising from vast stockpiles of decomposing wood waste and substantially increase electricity-generating capacity in this forested region of Argentina.

The above transactions are subject to negotiation of definitive agreements and to securing sufficient 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.

About BioOil([R]) Biofuel

BioOil([R]) is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog-precursor nitrogen oxides ("NOx") emissions than conventional oil as well as little or no sulfur oxide gases ("SOx"), which are a prime cause of acid rain. BioOil([R]) and BioOil Plus[TM] are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada's Environmental Choice Program. BioOil([R]) can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production.

About Dynamotive

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse-gas-neutral fast pyrolysis technology uses medium temperatures and oxygen-free conditions to turn dry, waste cellulosic biomass into BioOil([R]) for power and heat generation. BioOil([R]) can be further converted into vehicle fuels and chemicals. For further information, please visit the company's website at www.dynamotive.com.

Forward-Looking Statement 

Statements in this news release concerning the company's business outlook or future economic performance; including the anticipation of future plant start-ups, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, 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." Forward-looking statements are by their nature 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 in energy prices, availability of capital, and the company's ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans and schedules, customer and partner acceptance of new projects, changes in input pricing, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the company's disclosure filings with the Securities and Exchange Commission.