Canfor and DynaMotive Establish Alliance To Develop Commercial BioOil Applications for the Forest Industry

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TO BUSINESS AND ENVIRONMENTAL EDITORS:

Canfor and DynaMotive Establish Alliance To Develop Commercial BioOil Applications for the Forest Industry

CANADA, BRITISH COLUMBIA, VANCOUVER, Mar. 8 -/E-Wire/-- DynaMotive Technologies Corporation (OTCBB: DYMTF) and Canadian Forest Products Ltd. (CFP:TSE) have signed a Memorandum of Understanding to develop commercial applications for BioOil in the forest industry. The announcement was made at the official opening of DynaMotive's new 10 tonne per day BioOil pilot plant in Vancouver, BC, Canada.

"This partnership is a significant milestone in our commercialization program," said Andrew Kingston, DynaMotive President & CEO. "Canfor is one of the largest and most respected forest product companies in North America and we are delighted to be taking this first step to formalize the relationship. This MOU is the culmination of many months of work between DynaMotive and Canfor management to understand the value proposition that our BioOil technology provides within the forest industry. We believe that there is the potential to create value for both companies."

Canfor's President and CEO David Emerson said, "Canfor is very pleased to announce this alliance with DynaMotive, whose BioOil technology has the potential to convert our sawmill wood residue into clean burning fuel. This technology also has the potential to provide Canfor with positive environmental benefits by helping to eliminate beehive burners currently being used to incinerate the material. In addition, should it prove feasible to use BioOil to replace natural gas in our pulp mill lime kilns and sawmill lumber dry kilns, Canfor could increase its energy self-sufficiency and further reduce its greenhouse gas emissions."

"The MOU establishes a framework for collaboration through several stages of development," said Jonathan Rhone, DynaMotive's Chief Operating Officer (Canada). "Initially, Canfor will provide prepared feedstock for the operation of DynaMotive's 10 tonne per day pilot plant and work with DynaMotive to validate BioOil fuel applications in sawmills and pulp mills. The companies have also established the principles for developing a 25 - 50 tonne per day BioOil demonstration project and for commercial BioOil projects including feedstock supply and fuel purchase agreements."

Canada's forest industry produces approximately 18 million tonnes of sawmill residues per year, of which approximately 6 million tonnes is currently incinerated or landfilled at a cost to the industry. Converting surplus wood residue into BioOil could help the industry create value and provide a non-depleting, renewable source of energy for use in forest operations.

Canfor is an integrated forest company based in Vancouver, Canada. With sales of over $2.2 billion in 2000, Canfor is the largest producer of softwood lumber and market pulp in Canada and one of the largest in North America. Canfor employs over 5,700 people in 13 sawmills, 2 pulp mills, one specialty paper mill and other operations in BC, Alberta and Washington State.

DynaMotive is an energy systems company based in Vancouver, Canada. It is developing a proprietary "fast pyrolysis" technology that converts renewable, forest and agricultural wastes such as bark, sawdust and sugar cane bagasse into a liquid BioOil fuel. BioOil is clean burning, low in emissions and greenhouse gas neutral. BioOil can be used to replace natural gas, diesel and other fossil fuels to produce power and heat in industrial boilers, kilns, gas turbines and diesel engines.

Forward Looking Statement Statements in this news release concerning the company's business outlook or future economic performance; anticipated profitability, 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" as that term is defined under the Federal Securities Laws.

Forward-looking statements are 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 and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.

DynaMotive Technologies Corporation

DynaMotive Technologies Corporation: Raymond McAllister,

Director, Corporate Communications, Tel: [REDACTED-PHONE], Fax: [REDACTED-PHONE],

Email: [REDACTED-EMAIL], For more

information in Europe, contact: DynaMotive Europe Limited, Antony Robson,

Managing Director, Tel: 44-0-20-7518-9380; Fax: 44-0-20-7518-9381, Email:

[REDACTED-EMAIL]; For US enquiries, contact: DynaMotive Corporation,

James Acheson, Chief Operating Officer, Tel: [REDACTED-PHONE], Fax: [REDACTED-PHONE],

Email: [REDACTED-EMAIL]; Canadian Forest Products Ltd.: Lee Coonfer,

Manager, Corporate Communications, Tel: [REDACTED-PHONE], Fax: [REDACTED-PHONE],

Email: [REDACTED-EMAIL], Website: www.canfor.com

To request a free copy of this organization''s annual report, please go to

www.newswire.ca and click on reports@cnw./

http://www.dynamotive.com

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