Genoil Inc. Announces Shares for Debt Application.

CALGARY, Ablberta -- Genoil Inc. (TSX VENTURE:GNO) (OTCBB:GNOLF) ("Genoil" or the "Corporation") will be filing a Shares for Debt Application with the TSX Venture Exchange to satisfy the amounts outstanding to Thomas Bugg, the former Chief Operating Officer of the Corporation, for the fourth quarter of 2005. These shares are being issued pursuant to a severance agreement between Genoil and Mr. Bugg. Mr. Bugg resigned his position with the Corporation in November, 2004, and will be providing consulting services until June, 2006. The payment of Q4 debt will be based on a price per share of $0.275, such price being the closing price on January 6, 2006. Pursuant to the terms of the severance agreement, the shares will be issued at the maximum available discount of 25%.

The terms of these employment and severance agreements and the payment of this debt to Mr. Bugg was approved by disinterested shareholders at the Annual and Special Meeting of the Corporation held on June 3, 2005.

Genoil 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 sulfur, nitrogen and other contaminants in the oil. Genoil's shares are listed on the TSX Venture Exchange under the symbol GNO, as well as on the OTC Bulletin Board under GNOLF.OB.

ADVISORY: 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.

The TSX Venture Exchange has neither approved nor disapproved of t he information contained herein.

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