Dynamotive Contracts Biomass for First Two Projects in Argentina

2.5 Million Tonnes Secured Over 10 Years
BUENOS AIRES, Argentina & VANCOUVER, British Columbia--(Business Wire)--
Dynamotive Energy Systems Corporation (OTCBB: DYMTF), a leader in
biomass-to-biofuel technology, and its subsidiary Dynamotive
Latinoamericana S.A., are pleased to announce the execution of
contracts for the provision of biomass for two of its proposed plants
in the Province of Corrientes in Argentina. The Company further
disclosed that it has identified, and has been offered, a site for the
project within the Municipality of Virasoro. Negotiations in regard to
the site are progressing and are expected to be completed in the near
term.

The signing of the biomass supply contract follows months of
cooperative work with the Town of Virasoro which has been instrumental
in attracting Dynamotive to the region. This represents a key step in
the progress toward the development of the project announced in May,
2007.

The contract envisages the delivery by the Municipality of
Virasoro of 250,000 wet tonnes (approx. 150,000 dry tonnes) of biomass
(sawdust and other forestry operations residues) per year for 10
years. The contract further provides Dynamotive an option to request
deliveries beyond the initial 250,000 tonnes envisaged and beyond the
initial period. The supply can be further enhanced through the
utilization of land filled biomass in the region alleviating a
significant environmental issue caused by soil and air pollution as a
consequence of stockpiling and burning of biomass.

Deliveries of biomass in accordance with the contract are
envisaged to commence at the time that the proposed projects become
operational. Dynamotive has the option to request earlier deliveries.

Dynamotive continues to work with the Municipality of Virasoro and
other biomass providers in the region. The development plan envisages
up to 6 plants with further potential within the Province of
Corrientes.

The city of Gobernador Virasoro and the government of the Province
of Corrientes have actively supported and continue to support this
project.

Dynamotive and its development partners in the region are in
negotiations with the Province and other users in the region for the
purchase of the plants' output. The project envisages the potential
for power generation and / or BioOil and char deliveries to customers.
Proposals for the establishment of two power plants in the region have
been presented. Further, the Company is working with financial
institutions who have expressed interest in the financing of the
projects subject to conditions precedent being met. The company will
report progress as it advances in its negotiations.

All parties acknowledge that the project remains subject to
satisfactory negotiations and execution of definitive agreements
beyond the ones completed. 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 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-less conditions to turn
dry, waste cellulosic biomass into BioOil for power and heat
generation. BioOil can be further converted into vehicle fuels and
chemicals. Photographs of the Guelph and West Lorne plants may be seen
on the company's website. www.dynamotive.com

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.

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.

Dynamotive Energy Systems Corporation
Nathan Neumer, Director of Communications, 604-267-6042
or
Switchboard (604) 267-6000
or
Toll Free (North America) 1-877-863-2268
or
Fax (604) 267-6005
or
info@dynamotive.com
or
www.dynamotive.com

Copyright Business Wire 2008