GENOIL INC. ANNOUNCES APPROVAL OF GRANT STOCK OPTIONS

TSXV SYMBOL; GNO
OTCBB SYMBOL: GNOLF.OB

Calgary, Alberta, Canada. – Genoil Inc. (the “Corporation”) reports that the board of directors of the Corporation has approved the grant of incentive stock options to certain officers and employees to acquire up to an aggregate of 430,000 common shares of the Corporation. All of the options were approved with an exercise price of $1.650 per share, being the most recent closing price of the Corporation’s shares on the TSX Venture Exchange on the date the grants were approved. All of the options approved for grant have a five year term.

Of the options approved for grant, an aggregate of 50,000 are to be granted to the Corporation’s Chief Financial Officer in respect of 2006 compensation and the remaining 380,000 are to be granted to employees in recognition of their efforts and performance in 2006. All options approved for grant are conditional upon the receipt of all necessary regulatory and stock exchange approvals.

Genoil is a technology development company providing 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 synthetic crude, high in yields of transport fuels, while significantly reducing the sulfur, nitrogen and other contaminations in the oil.

Genoil’s shares are listed on the TSX Venture Exchange under the symbol GNO, as well as on the OTC Bulleting Board under GNOLF.OB.

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

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.

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 and operations, may constitute forward-looking statements under applicable securities laws and necessarily involves risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of process, 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.