Genoil Announces Acquisition Of Majority Holding In Velox Corporation.

CALGARY, Alberta -- Genoil Inc. Announces Acquisition of More Than 50% of the Issued & Outstanding Common Shares of Velox Corporation

Genoil (OTCBB:GNOLF) (TSX VENTURE:GNO) has acquired a controlling interest in the Velox Corporation. In the past year Genoil entered into a worldwide licensing agreement to market and manufacture the "Maxis" oil and water separation system developed by Velox. Through a series of transactions involving the acquisition of approximately 1.2 million shares Genoil has now acquired a majority interest in Velox. The Maxis is a cyclonic oil/water separation technology that can process large volumes of water achieving a high quality separation of oil from water. In almost all conditions the Maxis system dramatically reduces or eliminates the requirements for heating and chemical treatments in the knock-out phase of oil/water separation thereby significantly reducing costs. The small percentage of water remaining in the separated oil depends on the quality of crude and the ambient temperature of the flow.

Furthermore, the small percentage of oil remaining in the separated water flow is lower than nearly all existing conventional systems on the market. In combination with Genoil's existing oil/water separation technologies such as the Crystal, the Diamond and the new Claris, extremely low levels of oil in water can be achieved thereby making it possible for producers to meet demanding environmental standards and regulations. Thus, the Maxis complements Genoil's oil/water separation technology and will be a valuable addition to Genoil's goal of providing low maintenance and low cost solutions to the oil and gas industry.

A key characteristic of the Maxis system is its uniquely small footprint in comparison to most conventional systems. While Maxis is a highly efficient technology for on-shore producers, its small footprint makes it especially attractive for offshore producers where space is at a premium. Genoil is actively pursuing both markets.

The Maxis system also complements the Genoil hydroconversion upgrading system known as GHU. In field conditions where producers wish to create "field upgraders" to upgrade low API crude to diluent  standards thereby producing pipeline spec crude, Genoil has been able to work with producers to design field upgrading modules which combine the Maxis system with field GHU units. The Maxis units are able to break through the "oil/water separation bottleneck" at field level locations and directly supply separated oil to field GHU upgraders. Genoil is currently working with an international producer in the design of such a module. While Genoil pursues marketing of its Maxis technology for use in the international oil industry, the Velox Corporation will independently focus on other major uses for the Maxis system in the world market. New international environmental regulations will soon require shipping firms to equip their ships with means to clean up the ballast water that ships dump back into the ocean or harbors. The Maxis system is ideally designed to meet these new and demanding environmental requirements. It is estimated that 84,000 ships worldwide will have to adopt new ballast cleansing technologies to meet international and regional environmental standards within the next few years. The Velox Corporation will be actively pursuing this major market.