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

GENOIL INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT. GENOIL AND HEBEI ZHONGJIE PETROCHEMICAL GROUP HYDROCONVERSION PROJECT ON SCHEDULE. (2007-07-10)

GENOIL INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT. GENOIL AND HEBEI ZHONGJIE PETROCHEMICAL GROUP HYDROCONVERSION PROJECT ON SCHEDULE.
2007-07-10

Calgary, Alberta, Canada —  Genoil Inc. (TSX.V: GNO; OTCBB: GNOLF) is pleased to announce that it has closed the second tranche of the private placement initially announced on June 27, 2007 (the “Offering”). Subsequent to the closing of the first tranche of the Offering, the Corporation has issued an additional 1,540,000 Units, at a price of U.S. $0.52 per Unit, each Unit consisting of one common share and 0.25 common share purchase warrants (“Warrants”) for additional gross proceeds of U.S. $800,800. The Warrants are exercisable until three years following their issue date at a price of U.S. $0.78. Additionally, subject to a warrantholder’s right to exercise such Warrants, if at any time following the issuance of the Warrants, the 20-day average closing price of the Corporation’s common shares on the OTC Bulletin Board is greater than U.S. $1.56, the Corporation will be entitled to redeem the Warrants at a price equal to U.S. $0.01 per Warrant. The Corporation has covenanted not to redeem such Warrants before the date that is four months plus one day from their issue date.

Following the closing of this second tranche of the Offering, the Corporation has issued an aggregate 5,130,382 Units for aggregate gross proceeds of U.S. $2,667,800 under the Offering. The common shares and Warrants issued in connection with this Offering are subject to a four-month hold period.

The securities to be issued by the Corporation have not and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.
 
Genoil is also pleased to provide an update on the progress of its hydroconversion project with Hebei Zhongjie Petrochemical Group Company Ltd. (“HZ”).  Genoil has received the heavy crude shipment of samples of the M180 blend and HZ refining residual oil, pursuant to its testing agreement of April 2007, at its pilot plant in Two Hills, Canada.  Testing at the pilot facility is aimed to allow Genoil to complete its feasibility study and determine the final catalyst selection, operating conditions and optimization of the Genoil GHUTM process required to move this project, into the Front End Engineering and Design (“FEED”) phase, subject to the availability of final project funding once the FEED study is complete.  The HZ GHUTM project continues to be on schedule and is slated to begin plant start up in late 2009 or early 2010, and is expected to result in a new 20,000 bpd combined crude feed and vacuum tower bottoms upgrading facility at the HZ refinery in Nampaihe Town, Huanghua City, Hebei, in North Eastern China.
 
“We are very pleased with the progress made to date and are eager to start our pilot plant run using the crude oil samples Hebei Zhongjie has sent us to determine the final design parameters and the properties of the upgraded crude prior to entering the new distillation section and finally the existing refinery. Genoil plans to begin working with EPC (Engineering, Procurement & Construction) contractors upon completion of the FEED study and once final project funding has been secured. Hebei Zhongjie and Genoil engineers have been working together closely since the Letter of Intent was signed in October of 2006 and we look forward to their continued involvement and support on this project,” stated Genoil’s COO and Executive Vice President, James Runyan.
 
About Genoil
Genoil Inc. is an international engineering technology development company based in Alberta, Canada, that develops innovative hydrocarbon, oil and water separation, and marine technologies for the oil and gas and commercial marine industries.
For further information contact:
David Lifschultz
Chairman and CEO
(212) 688-8868

www.genoil.net

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ADVISORY: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.