Genoil Announces Completion of Bridge Financing

TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB

CALGARY, ALBERTA, October 10, 2006.- Genoil Inc. (the “Corporation”) is pleased to announce that it has completed the previously announced private placement dated August 14th 2006. The private placement consists of convertible debentures and warrants funded by entities affiliated with David K. Lifschultz, the Chairman and CEO of the Corporation. The proceeds of the placement will be used for general working capital purposes and are expected to provide a significant benefit to the Corporation’s current operations and growing international sales program.

The issue has been placed as six month convertible debentures in an aggregate principal amount of Cdn $968,825.19 on substantially similar terms to the private placement completed by the Corporation in January, 2006. The debentures being issued under the private placement carry a 12% annual interest rate and the principal amounts of the debentures are convertible into common shares of the Corporation at Cdn $0.75 per share. According to the terms of the debentures, the Corporation can force conversion if the Corporation’s common shares trade over $1.55 per share for a pre-defined period. The debentures’ conversion and exercise prices are subject to adjustment for certain changes to the Corporation’s share capital and in the event of specified dilutive transactions. Further, the holding period requires that the securities must not be traded before February 7, 2007. In connection with the issuance of the convertible debentures, the Corporation has additionally granted 322,941 common share purchase warrants exercisable for a term of 6 months at $0.98 Cdn per share.

Additionally, in connection with the closing of the private placement previously announced on September 28, 2006, in which the Corporation issued an aggregate 4,863,218 Units the Corporation intends to grant 236,311 options, with an expiry of 2 years from the date of grant and an exercise price of $0.73 to consultants of the Corporation in respect of their services performed.

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.

Genoil Inc.
David K. Lifschultz
Chairman and CEO
(212) 688-8868
Website: www.genoil.net

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