Vancouver, Canada
November 29, 2007

Dynamotive Reports Q3 Operating Results and Business Update

Dynamotive Energy Systems Corporation (OTCBB: DYMTF) announced today that its net loss for the third quarter ended September 30, 2007 was $3.2 million, or $0.02 per share, compared with net loss of $3.1 million or $0.02 per share in the third quarter of 2006. Dynamotive’s net loss for the nine months ended September 30, 2007 was $9.9 million, or $0.05 per share, compared with a net loss of $10.1 million, or $0.07 per share for the nine months ended September 30, 2006.

Excluding stock-based compensation, the net loss for the third quarter ended September 30, 2007 was $2.1 million, compared with a net loss of $2.4 million for the same quarter in 2006. Dynamotive's net loss for the nine months ended September 30, 2007 was $7.3 million, compared with a net loss of $6.9 million for the same period in 2006.

Total non-cash expenses for the third quarter were $1.1 million in 2007 ($0.7 million in 2006) and for the nine months ended were $2.6 million ($3.8 million in 2006), resulting from non-cash compensation and other non-cash charges.

Dynamotive President and CEO, Andrew Kingston said: “During the third quarter, the company continued start-up operations of its new 200 tpd plant in Guelph Ontario and the upgrading of its first commercial BioOil plant in West Lorne, Ontario. The Company also continued project development activities through its Canadian, US and Latin American subsidiaries and supporting activities by agents and partners in Europe, Far East and Australia. Further activities included continued research in the upgrading of BioOil and market testing for our fuel.”

“The Company’s commercial activities were adversely affected during the quarter due to delays in the start-up of the Guelph plant resulting from the need for completion of non-core systems and civil works, as well as delays in the supply of equipment which were beyond management control.  Notwithstanding this, the Guelph plant operated at capacity (within the operating restrictions established by permitting authorities) and an important number of demonstrations to potential customers were conducted in the period.  The plant is now in operation and related business activities are accelerating as the plant demonstrates its viability.”

A more detailed update of the company’s activities is available at our website.

Other recent Dynamotive highlights:

• Signed letter of agreement with Mitsubishi Corporation identifying how the two companies can proceed on mutual development strategies.
• Completed construction of 200 tonne-per-day biofuels plant in Guelph, Ontario, start-up commenced.
• Upgrade work on West Lorne biofuels plant nearing completion.
• Development of six plants in Argentina announced and began moving forward.
• Reached agreement with Ontario Power Authority to supply renewable power from West Lorne biofuel plant.
• Announced development and launch of high energy content biofuel, BioOil Plus™.
• Initiated tests in Iowa to use char (biochar) for soil enrichment and crop productivity enhancement, as well as carbon sequestration.
• Appointed Wayne Keast of the Consensus Business Group to Dynamotive’s Board of Directors.
• In early October, shortly after the quarter end, Dynamotive’s balance sheet was strengthened with the completion of a $10.5 million private placement financing. The company continues to hold minimal long-term debt.

For a more-complete business update, please visit the company’s website: www.dynamotive.com

Summary financial results are presented as follows:

Unaudited Consolidated Statements of Loss
(Expressed in US Dollars)
	Three Months Ended Sept. 30,		Nine Months Ended Sept. 30,
	2007	2006 (restated)	2007	2006 (restated)
	$	$	$	$
Expenses
Marketing and business development	360,898	464,385	1,055,650	1,394,025
Research and development	232,914	974,743	1,743,080	3,050,615
General and administrative expenses	2,550,162	1,784,153	7,220,857	5,282,125
Depreciation and amortization	34,930	28,997	99,509	84,597
Interest expense	10,763	24,524	13,422	446,877
Exchange (gain) loss	(367,208)	1,445	(329,526)	248,563
	2,822,459	3,278,247	9,802,992	10,506,802
Loss from operations	(2,822,459)	(3,278,247)	(9,802,992)	(10,506,802)
Interest and other income	7,579	191,283	122,929	366,095
Loss on settlement of accounts payable	(107,949)	-	(107,949)	-
Loss on purchase of interest in subsidiary	(229,614)	-	(229,614)	-
Non-controlling interest	(27,224)	-	96,627	-
Net Loss for the period	(3,179,667)	(3,086,964)	(9,920,999)	(10,140,707)
Weighted avg. number of common shares outstanding	189,679,200	162,278,171	184,264,305	148,705,520
Basic and diluted loss per common share
Share for operations for the period	0.02	0.02	0.05	0.07

About BioOil® Biofuel

BioOil® 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® and BioOil Plus™ 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 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® for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals.  For further information, please visit the company’s website at www.dynamotive.com.

Contacts:
Nathan Neumer, Director, Communications, 604-267-6042
Switchboard (604) 267-6000
Toll Free (North America) 1-877-863-2268
Fax (604) 267-6005
Email: info@dynamotive.com
Website: www.dynamotive.com

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