Genoil Announces US$4.6 Million Equity Financing.

CALGARY, Alberta -- Genoil (TSX VENTURE:GNO)(OTCBB:GNOLF.OB) is pleased to announce a U.S. $4.6 million (Cdn. $5.6 million) private placement primarily funded by a major US financial institution. David K. Lifschultz, the Chairman and CEO of Genoil, will be participating in the issue as well. The proceeds of the placement will support the construction of the first commercial GHU (Genoil Hydroconversion Upgrader) for the Silver Eagle Refinery in Utah, in addition to general expenses. The multi-billion dollar financial institution with significant expertise in energy investments has the wherewithal to finance future major projects of Genoil either by itself or with correspondent institutions, although no such agreements have been made in respect of any future financings. As well as providing a dramatic improvement in Genoil's balance sheet, Genoil expects the transaction to provide significant benefit to Genoil's growing international sales program.

The issue is being placed as a 10-year convertible debenture that will have a 0% (zero %) interest rate. The conversion price of the debenture is Cdn $0.44 per share. According to the terms of the agreement, Genoil can force conversion if Genoil common shares trade over $1.55 per share for a pre-defined period. The participants in the private placement will additionally receive 3.2 million warrants (1/4 warrant for each common share purchasable under the convertible debenture). The warrants will be exercisable at $0.85 per share, and will expire December 23, 2009. The conversion and exercise prices are subject to adjustment for certain changes to Genoil's share capital and in the event of specified dilutive transactions.

Genoil is a technology development company providing solutions to the oil and gas industry through the use of proprietary technologies. Genoil's shares are listed on the TSX Venture Exchange under the symbol GNO and on the OTC Bulletin Board under the symbol GNOLF.OB.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential risk factors that could affect the company's financial results can be found in the company's Reports filed with the Securities and Exchange Commission.

ADVISORY: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Certain information regarding the company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements

Genoil Inc. (TSX VENTURE:GNO) (OTC Bulletin Board:GNOLF.OB)