USA (212) 688-8868 sales@genoil.net

GENOIL ANNOUNCES HIRING OF VICE PRESIDENT, ENGINEERING, RESULTS OF ANNUAL MEETING, AND PROVIDES STRATEGIC UPDATE (2006-06-01)

GENOIL ANNOUNCES HIRING OF VICE PRESIDENT, ENGINEERING, RESULTS OF ANNUAL MEETING, AND PROVIDES STRATEGIC UPDATE
2006-06-01

 

TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB

Calgary, Alberta, Canada: Genoil is pleased to announce that Mr. Peter Chung has agreed to join the Corporation, as Vice President, Engineering and will be working with the Corporation’s current Senior Vice President, Engineering and Operations, Mr. James Runyan. Mr. Chung’s addition to the Genoil team complements the hiring of Mr. James Runyan and serves to further enforce the strength of the Corporation’s management as it transitions from a technology development corporation to a corporation focused on the commercialization of its technology.

Peter Chung has over twenty years in engineering and design of heavy oil upgrading facilities in Canada. Mr. Chung’s experience and expertise in the heavy oil upgrading industry has been utilized by several major engineering firms and oil companies over the years, for his knowledge in producing oil for the Canadian Tar Sands. Mr. Chung is joining Genoil from a major joint venture company currently designing and executing projects in Northern Alberta. Mr. Chung has in-depth design experience of petrochemical, oil sands or refinery processes. Mr. Chung also has operations and project management experience with a degree in Chemical Engineering and is registered with the APEGGA. Mr. Chung has strong leadership, interpersonal and communication skills that when combined with a focus on customer service make him an excellent addition to the Genoil engineering team.

In connection with Mr. Chung’s hiring, Mr. Chung has been granted 1,000,000 stock options pursuant to the Corporation’s stock option plan, such options being exercisable at a price equal to $1.20 and vesting at a rate of 333,333 options on each of the first three anniversary dates of his initial employment. Following the approval by the Corporation’s shareholders to the amendment of the Corporation’s stock option plan at the Meeting, and subject to regulatory approval regarding the same, the Corporation’s stock option plan allows for grants of up to 41,978,079 options, of which, 6,066,245 are unissued and available for future exercise (following the grant of the 1,337,500 options to outside directors and to Mr. Chung). Mr. Chung’s employment as an officer of the Corporation remains subject to the approval of the TSX Venture Exchange and the approvals of all additional applicable regulatory bodies.

Genoil Inc. (the “Corporation”) is additionally pleased to announce that at Genoil’s Annual and Special Meeting of shareholders (the “Meeting”) held May 31, 2006, Messrs. David Lifschultz, Lawrence Lifschultz, Adam Hedayat and Brian Korney were re-appointed to the Corporation’s Board of Directors and that Genoil’s shareholders passed each of the motions voted upon at the Meeting. In connection with the election of directors the Corporation has granted an aggregate 337,500 stock options to outside directors having an exercise price of $1.12 in consideration for their respective service on the Corporation’s audit and compensation committees for 2006.

Genoil additionally advises that it is continuing to pursue and examine a number of opportunities in Russia, China and the Middle East and is pursuing strategic partnerships both with entities in the Middle East and through a number of private equity sources which strategic partnerships could potentially involve the granting of an equity interest in the Corporation or an alternative financing component.

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, as well as on the OTC Bulletin Board under GNOLF.OB.

For more information on Genoil Inc. visit www.genoil.net
David Lifschultz
Chairman and CEO
(212) 688-8868

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, strategic partnerships, operations and financing alternatives may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with an oil and gas technology development corporation, including competition from other technologies and the ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated. The Corporation 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. Additionally, 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.

Further information on potential risk factors that could affect the company’s financial results can be found in the company’s disclosure materials filed on SEDAR at www.sedar.com and with the Securities and Exchange Commission.