GENOIL INC. ANNOUNCES SHARES FOR DEBT APPLICATION

TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB

CALGARY, AB, July 18, 2006: Genoil Inc. (“Genoil” or the “Corporation”) will be filing a Shares for Debt Application with the TSX Venture Exchange to satisfy the amounts outstanding to Thomas Bugg, the former Chief Operating Officer of the Corporation, for the second quarter of 2006. These shares are being issued pursuant to a severance agreement between Genoil and Mr. Bugg. Mr. Bugg resigned his position with the Corporation in November, 2004, and provided consulting services until June, 2006. The payment of Q2 debt is to be based on a price per share of $0.632, such price being the closing price on July 17, 2006 less 20%, being the maximum discount allowable by the policies of the TSX Venture Exchange. The terms of these employment and severance agreements and the payment of this debt to Mr. Bugg were approved by the Corporation’s shareholders at the Annual and Special Meeting of the Corporation held on June 3, 2005. In accordance with this severance agreement, the above referenced shares are to be issued as per Mr. Bugg’s instructions and will fulfill Genoil’s obligations to Mr. Bugg.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Genoil Inc.
David 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. INDUSTRY: OIS – Oil (Secondary) SUBJECT: BRD – BOARD OF DIRECTORS