Dynamic Announces Commencement Of Diesel Powered Generator Pilot Project And CFO Appointment


Pickering, Ontario CANADA, August 05, 2008 /FSC/ - Dynamic Fuel Systems Inc. (DYA - TSX Venture), is pleased to provide an update on its Memorandum of Understanding (the "MOU") with First Majestic Silver Corp. (FM - TSX) ("First Majestic"), which was previously announced on March 19, 2008. As noted in that earlier release, the MOU between Dynamic and First Majestic set out the basic terms for the implementation of a pilot project (the "Pilot Project"), whereby Dynamic would provide Jetstar(tm) units, together with required parts, equipment, materials, installation and support personnel, while First Majestic would assume all operational costs and record all technical information regarding the performance of the units. Provided that certain performance thresholds are realized during the Pilot Project, First Majestic will then purchase the units employed during the Pilot Project.


Although there has been some delay in coordinating the logistics of the Pilot Project, Dynamic is pleased to report that the Pilot Project will be proceeding and that its representatives (which will include management, sales and engineering personnel) will be traveling to First Majestic's La Encantada Silver Mine in late September 2008, where Jetstar(tm) units will be installed on several of First Majestic's diesel power generators. Dynamic will also conduct an examination and assessment of other underground pieces of equipment employed in First Majestic's La Encantada Silver Mine that might be candidates for similar retrofits and expansion of the Jetstar(tm) system's applications.


"We are extremely exited about getting this Pilot Project off of the ground and seeing the Jetstar(tm) system applied in new environments and on new types of equipment" stated Mr. Thomas Fairfull, President and CEO of Dynamic. "It is our hope that this Pilot Project will be an important first step in identifying additional uses and potential markets for the Jetstar(tm) application."


First Majestic is an integrated mining concern with three operating silver mines and several exploration projects throughout Mexico. First Majestic anticipates production in excess of 5 million ounces of silver during 2008. First Majestic's shares are listed on the Toronto Stock Exchange and its most recently filed financial statements record total assets of more than $250 million.


Furthermore, Fredrick Gurney, who has been with Dynamic for the past several months, and who brings many years of senior financial experience, has been appointed Chief Financial Officer of the Corporation. Welcome Fred.


About Dynamic Fuel Systems Inc.

Dynamic Fuel Systems Inc. is a Pickering, Ontario based energy sector company engaged in the manufacture, distribution, installation and marketing of a transportable hydrogen generator retrofit targeted for use in the heavy tractor trailer industry. Its flagship product, the Jetstar(tm), is a patent-pending aftermarket retrofit solution that provides combustion enhancement by mixing hydrogen and oxygen into a vehicle's intake air to provide the engine with a more complete burn of the fuel in its internal combustion engine. Its business was founded in 2001 and more information about its products can be viewed at its website at www.dynamicfuel.com


This release includes forward looking statements, which are based on certain assumptions and reflects management's current expectations. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; the uncertainty of the emerging hydrogen economy; including the hydrogen economy moving at a pace not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Corporation disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


For further information, please contact:

Thomas Fairfull

President and CEO

Dynamic Fuel Systems Inc.

890 Brock Road South

Pickering, ON L1W 1Z9

905-831-2440

thomas@dynamicfuel.com

www.dynamicfuel.com