GENOIL INC. ANNOUNCES BRIDGE FINANCING|GenOil Inc.

GENOIL INC. ANNOUNCES BRIDGE FINANCING
2008-05-12

Calgary, Alberta, Canada – May 12, 2008 – Genoil Inc. (TSX.V: GNO; OTCBB: GNOLF.OB) announces that it plans to enter into a Cdn. $5,000,000 funding agreement (the “New Funding Agreement”) with David K. Lifschultz, the Corporation’s Chairman and Chief Executive Officer, which shall replace a $1,000,000 funding agreement (the “Old Funding Agreement”) previously entered into with Mr. Lifschultz.

Pursuant to the terms of the proposed New Funding Agreement, Mr. Lifschultz has agreed to make available to the Corporation up to Cdn. $5,000,000 which amount may be drawn at any time within one year from the date of the execution of the New Funding Agreement, upon demand by the Corporation provided that such amounts have received pre-approval by Mr. Lifschultz. Any such amounts drawn pursuant to the New Funding Agreement shall bear interest at a rate of 12% per annum and shall become due and payable on the date that is one year from the date of the New Funding Agreement. Any amount that has been drawn by the Corporation pursuant to the Old Funding Agreement shall be deemed to have been drawn by the Corporation pursuant to the New Funding Agreement.

In consideration for entering into the New Funding Agreement, the Corporation has agreed to issue to Mr. Lifschultz 1,200,000 common share purchase warrants of the Corporation (the “Warrants”). Each Warrant is exercisable for one common share of the Corporation per share at any time within one year from its date of issue, at an exercise price equal to the closing price of the Corporation’s shares on the day prior to the date of execution of the New Funding Agreement. Any amounts drawn pursuant to the New Funding Agreement will be used for the payment of general expenses. The funds made available under the Funding Agreement are intended to provide short term bridge financing and are expected to provide a significant benefit to the Corporation’s current operations.

The terms of the New Funding Agreement are subject to receipt of all outstanding approvals from directors and all necessary regulatory and stock exchange approvals.

About Us

Genoil is an international engineering technology development company based in Alberta, Canada that develops innovative hydrocarbon, oil and water separation, and marine technologies.

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.

FORWARD LOOKING STATEMENTS: Certain information regarding Genoil, including availability of capital and other sources of funds and future plans may constitute forward-looking statements under applicable securities law. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “hope”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made and, in some cases, information received from or disseminated by third parties, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Forward looking statements contained in this release necessarily involve risks and uncertainties associated with an oil and gas technology development and engineering corporation. As a consequence, actual results may differ materially from those anticipated. Accordingly, readers should not place undue reliance upon forward-looking information contained herein. Although Genoil believes that the assumptions underlying such forward looking statements are reasonable given current market conditions, and information received or disseminated by third parties is reliable, it can give no assurance that such expectations will prove to have been correct. Genoil does not assume responsibility for the accuracy and completeness of the forward-looking statements and such forward-looking statements should not be taken as guarantees of future outcomes. Subject to applicable securities laws, Genoil does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. The forward-looking statements contained in this press release are expressly qualified, in their entirety, by this cautionary statement. Additionally, statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Further information on potential risk factors that could affect Genoil’s financial results can be found in Genoil’s disclosure materials filed on SEDAR at www.sedar.com and with the Securities Exchange Commission available atwww.sec.gov.