Vancouver, Canada
October 9, 2007

Quercus Makes $10 Million Equity Investment in Dynamotive

Dynamotive Energy Systems Corporation (OTCBB: DYMTF), a leader in biomass-to-biofuel technology, announced today that it has completed a $10.5 million equity financing with Quercus Trust, an environmentally-oriented fund, and several other private investors.  Ardour Capital Inc. of New York served as financial advisor in the transaction.

Under terms of the transaction, Quercus Trust invested $10 million and other private investors $500,000 to acquire 11.4 million shares of Dynamotive common stock at $0.9215 per share. They also received five-year warrants, with three-year anti-dilution rights, for up to a total of 4.56 million additional shares at $1.06 per share. The shares are restricted securities under the Securities Act of 1933 and were sold pursuant to applicable exemptions.

“The Quercus funding comes at an important time for Dynamotive,” said Andrew Kingston, president and chief executive officer, “as this significant cash investment by a sophisticated, alternative-energy-oriented investor provides additional working capital to help speed our progress on major activities currently under way.”

“This capital infusion,” Mr. Kingston continued, “allows us to concentrate on growing the company, investing in new project initiatives, and accelerating our market penetration in the U.S. and in Europe, where we are developing further projects.

Mr. Kingston noted that the company has two BioOil® biofuel plants in Canada, one of which is now ramping up production, and the other is nearing completion of an upgrade. The company is also working to finalize plans for two major biomass-to-electricity complexes in Latin America.

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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