GENOIL INC. ANNOUNCES COMPENSATION OF COMMITTEE MEMBERS

CALGARY, AB, January 24, 2006 – Genoil Inc. (“Genoil” or the “Corporation”) (TSX Venture: GNO, OTCBB: GNOLF) hereby announces that, on January 15, 2006, the board of directors of the Corporation (the “Board”) approved the issuance of 64,000 common shares to Adam G. Hedayat and 16,000 common shares to Brian Korney. Messrs. Hedayat and Korney are both directors of Genoil and the shares approved for issuance are to be issued as compensation for their involvement and contribution on a special committee of the Board. The Board is of the opinion that the work required by this committee was considerably greater than that originally anticipated upon the creation of the committee and as such Messrs. Hedayat and Korney should be compensated accordingly.

The special committee was comprised of Messrs. Hedayat and Korney (with Mr. Hedayat acting as chairman) and was charged with investigating ways in which Genoil could take advantage of certain opportunities available to it relating to technologies compatible to that owned by Genoil. The special committee was involved in the negotiation and entering into of certain agreements that would allow Genoil to exploit such technologies.

Genoil is a technology development company providing solutions to the oil and gas industry through the use of proprietary technologies. The Genoil Hydroconversion Upgrader can 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 contaminants in the oil.

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 FURTHER INFORMATION PLEASE CONTACT:
David Lifschultz
Chairman & CEO
(212) 688-8868
Website: www.genoil.net

ADVISORY: Certain information regarding the company, including management’s assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, 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. 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. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.