GENOIL INC. ANNOUNCES PURCHASE OF ROYALTY RIGHTS OF MURPHY CANADA EXPLORATION COMPANY
TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB
CALGARY, AB, August 30, 2006: Genoil Inc. (“Genoil” or the “Corporation”) announces that it has agreed to enter into a purchase and sale agreement with Murphy Canada Exploration Company (“Murphy”) for the purchase of certain royalty rights held by Murphy. Murphy is a party, as a successor in interest to the interests of Beau Canada Exploration Ltd., to a purchase and sale agreement between Beau Canada Exploration Ltd., Genoil, and others. This agreement provided Murphy with a 3% royalty on Genoil’s consolidated revenues, excluding revenues from certain facilities.
Genoil is currently involved in a legal dispute with Murphy regarding the basis upon which this 3% royalty is payable and the accrued amounts owing under the royalty. Genoil and Murphy have agreed to enter into a purchase agreement whereby Genoil will acquire Murphy’s interests and rights to this royalty in consideration for 4,500,000 fully paid and non-assessable common shares in the share capital of Genoil. The issuance of such shares and the re-acquisition of this royalty right will additionally result in the settlement of the outstanding dispute.
Genoil is a technology development and engineering company providing environmentally sound solutions to the oil and gas industry through the use of proprietary technologies. The Genoil Hydroconversion Upgrader is designed to economically convert heavy crude oil into more valuable light upgraded crude, high in yields of transport fuels, while significantly reducing the sulfur, nitrogen and other contaminants.
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
Chairman and CEO
ADVISORY: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.