GENOIL INC. ANNOUNCES CLOSING OF FIRST TRANCHE OF OVER-SUBSCRIBED PRIVATE PLACEMENT

Calgary, Alberta, Canada — June 27, 2007 — Genoil Inc. (TSX.V: GNO; OTCBB: GNOLF) is pleased to announce that it has closed the first tranche of a private placement, whereby the Corporation has issued 3,590,382 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 total gross proceeds of U.S. $1,867,000. 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 common shares issued in connection with this private placement are subject to a four-month hold period pursuant to the rules of the TSX Venture Exchange and Canadian securities legislation.

Genoil is also pleased to announce that the private placement, which was originally approved for up to U.S. $2,000,000, has been oversubscribed and the Corporation intends to increase the size of the private placement by up to U.S. $1,000,000 to accommodate additional subscribers. The increase in size of the private placement remains subject to receipt of all necessary approvals, including that of the TSX Venture Exchange.

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 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 Lischultz

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.