Genoil Inc Announces Cdn. $750,000 Bridge Financing.

CALGARY, Alberta -- Genoil Inc. (TSX VENTURE:GNO) (OTCBB:GNOLF) has announced a Cdn. $750,000 private placement funded by a corporation affiliated with David K. Lifschultz, the Chairman and CEO of Genoil Inc. The proceeds of the placement will be used for the repayment of existing debt, to support the construction of Genoil's GHU (Genoil Hydroconversion Upgrader) for the Silver Eagle Refinery in Utah and for the payment of general expenses. The funds from the private placement are intended to provide short term bridge financing and are expected to provide a significant benefit to Genoil's current operations and growing international sales program.

The issue is being placed as a six month convertible debenture on substantially similar terms to a private placement completed by Genoil in late December, 2004. The debenture being issued under the private placement carries a 12% annual interest rate and the conversion price of the debenture is Cdn $0.44 per share. According to the terms of the debenture, Genoil can force conversion if Genoil common shares trade over $1.55 per share for a pre-defined period. The debenture's 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 Inc. is a technology development company providing solutions to the oil and gas industry through the use of proprietary technologies. The Genoil Hydroconversion Upgrader can economically convert heavy crude oil into more valuable light synthetic crude, high in yields of transport fuels, while significantly reducing the sulphur, nitrogen and other contaminants in the oil. 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.

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.

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.

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