GENOIL INC. ENTERS INTO NOTE EXTENSION AGREEMENT

Calgary, Alberta, Canada – October 3, 2007 – As previously announced, on October 10, 2006 Genoil Inc. (TSXV : GNO; OTCBB SYMBOL: GNOLF) entered into loans (the “Loans”) from Lifschultz Enterprises Co., LLC (“Enterprises”), Sidney B. Lifschultz 1992 Family Trust (the “Trust”), and Lifschultz Family Partnership LP, each of which entities are affiliated with the Corporation’s Chairman and Chief Executive Officer (collectively, the “Lenders”), for an aggregate principal amount of $968,825.19.

Such Loans were evidenced by the issuance of convertible promissory notes (the “Original Notes”) carrying an annual interest rate of 12% and having a maturity date of April 6, 2007. In connection with the issuance of the Original Notes, the Corporation additionally granted an aggregate of 322,941 common share purchase warrants (the “Original Warrants”), exercisable at any time prior to April 6, 2007 at a price of $0.98 per share for 322,941 common shares of the Corporation, to the Lenders.

As announced on April 2, 2007, the Corporation and each of Enterprises and the Trust agreed, by way of a Note Extension Agreement, to extend the maturity date of the Original Notes from April 6, 2007 until October 6, 2007, with such notes (the “Extended Notes”) to continue on the same terms in all other respects. The Corporation and each of Enterprises and the Trust also agreed, by way of the Note Extension Agreement, to extend the term of the Original Warrants for a similar six month term, with such warrants (the “Extended Warrants”) expiring on October 6, 2007.

The Corporation and each of Enterprises and the Trust have agreed, by way of another Note Extension Agreement (the “Agreement”), and subject to receipt of all necessary regulatory and Stock Exchange approvals, to extend the maturity date of the Extended Notes from October 6, 2007 until April 6, 2008. The Corporation and each of Enterprises and the Trust have also agreed, by way of the Agreement, and subject to receipt of all necessary regulatory and Stock Exchange approvals, to extend the term of the Extended Warrants for a similar six month term, from October 6, 2007 to April 6, 2008.

Genoil Inc. is an international engineering technology development company based in Alberta, Canada that owns, developed and continues to develop innovative hydrocarbon, oil and water separation, and marine technologies for the oil and gas and commercial marine industries.

For further information contact:

Genoil Inc.

David Lifschultz

Chairman and CEO

(212) 688-8868

Website: www.genoil.net

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ADVISORY: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.