October 3, 2006
Vancouver, BC, Canada

Dynamotive Receives Australian License Revenue

Vancouver, BC, Canada, October 3, 2006 – DynaMotive Energy Systems Corporation (OTCBB: DYMTF) Dynamotive Energy Systems Corporation (OTCBB: DYMTF) said today that its BioOil technology licensing initiatives are moving forward in Australia and are expected to contribute $300,000 in initial revenue to this year’s third quarter results, with additional revenues expected in 2007.

BioOil is Dynamotive’s advanced, non-fossil biomass fuel, produced by converting organic residues, such as waste from agricultural and forest products, using its patented fast pyrolysis process.

Under terms of a master license contract announced last July with Renewable Oil Corporation (ROC, then known as Enecon Pyrolysis Pty. Ltd.), Dynamotive confirmed the initial licensing fee of $200,000. The company has also issued a site-specific license to ROC for a 200-tonne-per-day facility, along with an option for a second production facility. The other $100,000 in near-term revenues for Dynamotive reflects the non-refundable part of an additional $300,000 payment for the first plant license. Dynamotive also said that ROC has agreed to engage it to provide basic engineering services for the first plant.

Significant additional revenues from Dynamotive’s Australian ventures are anticipated to be derived from the construction and commissioning of the facility, and from licensing royalties from the BioOil production operations as well as from ROC’s exercise of its option for a second facility.

“This Australian initiative provides another example of Dynamotive’s steady drive to transition the company from development stage to operating status,” said Andrew Kingston, president and chief executive officer. “These initial steps are part of our strategy to foster BioOil production in selected locations where our technology and local markets are in synch to take advantage of this clean, carbon-neutral, renewable fuel.”

Mr. Kingston noted that while ROC is not contractually bound to purchase the production facility and its equipment from Dynamotive, “We expect to become ROC’s supplier and contractor for our pyrolysis production modules, as well as to supervise the necessary services during facility construction and lead the process commissioning,” he said. The first Australian BioOil production facility, which would be built next year and become operational in 2008, is expected to cost approximately $12.5 million for the pyrolysis modules.

Colin Stucley, Managing Director of ROC commented: “one of the key benefits of these pyrolysis modules for Australia is that the design, sizing, and potentially the project team, will be much the same as for the 200 tpd pyrolysis plants currently being designed and fabricated for Canadian projects. This sends a strong message to our investors as to the reliability and support that comes with the Dynamotive plants.”

Dynamotive also said that Renewable Oil Corporation is currently completing a $1.5 million fundraising round, in which Dynamotive and certain of its officers have invested a total of $200,000 in ROC. Dynamotive and its financial partner, United Kingdom-based Consensus Business Group, may also participate in the Australian roll-out of BioOil-related technology, fuels and production facilities.

Unless otherwise stated, all figures are in U.S. dollars.

For more information on ROC, please email: cstucley@renoil.com.au

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