Dynamotive Energy Systems Corporation (OTCBB: DYMTF) announced today that independent analyses of upgraded BioOil samples have established the potential for development of synthetic hydrocarbon mobile fuels. Distillation analysis of the samples provided confirmed gasoline, jet, diesel, and vacuum gasoil fractions.

The process developed by Dr. Desmond Radlein and his research team, involves pyrolysis of lignocellulosic biomass to produce a primary liquid fuel, BioOil, which is then hydro-reformed to a Stage 1 gas-oil equivalent liquid fuel that can either be directly utilized in blends with hydrocarbon fuels for industrial stationary power and heating applications or be further upgraded to transportation grade liquid hydrocarbon fuels in a Stage 2 hydrotreating process.

The samples analyzed were stage 2 upgraded BioOil (Upgraded BioOil B or UBB). Dynamotive further confirmed that it is actively continuing to optimize the upgrading process and will continue both internal and external independent testing. The Company also informed that it has initiated the design and engineering of a pilot plant to produce required quantities for testing in targeted mobile applications. It is anticipated the pilot facility will have the flexibility to produce the desired fuel type in Stage 2 based on catalyst selection and hydrotreating process conditions.

Independent and internal analyses have determined the following characteristics of UBB samples.

UBB is a mixture of components similar to a crude oil fraction with an overall oxygen content of less than about 0.1% and a heating value of about 45 MJ/kg. Its main components are paraffins, olefins and aromatics in the range of C4 to C30.

Approximate distillation fractions:

1. Gasoline 20 %wt
2. Jet 30 %wt
3. Diesel 30 %wt
4. Vacuum Gasoil 20 %wt

Based on initial tests and analyses, the Company currently estimates that it can deliver advanced (second generation) fuels from biomass at a cost of less than $ 2 per gallon of ethanol-equivalent fuel in facilities processing about 70,000 tonnes of biomass per annum (current scale of its 200 metric tonne per day plant).

Cautionary Notes:
Although Dynamotive believes the yield and cost figures described herein are reasonable estimates based on its current knowledge, it cautions that these results were achieved at bench-scale levels only. While Dynamotive believes the process can be scaled-up using conventionally available upgrading equipment, until such upgrades are in place on a large scale and have operated for a longer term, these estimates may be subject to material adverse changes. Subject to availability of financing, construction of a first commercial upgrading pilot plant is planned for later this year. Although patents for the process will be filed shortly, there is no assurance that patents will ultimately issue or that proprietary protection will be available.

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