UPDATE: GENOIL INC. COMPLETES PURCHASE OF EQUIPMENT FOR COMMERCIAL DEMONSTRATION PLANT AND PROVIDES ESTIMATES FOR 30,000 BPD PROJECT

Genoil has completed the planned purchase of refurbished equipment for a 750 to 1000 barrel per day (“bpd“) commercial demonstration plant. Genoil expects to complete the installation in approximately 12 months following finalization, identification and completion of: the location and site conditions; a long term contract allowing Genoil to obtain crude or residual feed stock; required engineering; and an off-take agreement for upgraded crude. The completion and operation of the demonstration facility is additionally contingent on Genoil’s ability to raise sufficient funds to meet these financial requirements, currently estimated at approximately $10,000,000 USDin additional funds.

The principal goal of the demonstration facility is to demonstrate positive performance and commercial operation of Genoil’s GHU^® technology at the 700⁺bpd level. Assuming success at this 700+ bpd level Genoil views operation of this demonstration facility as a step towards the long term construction of a 20,000 to 30,000 bpd merchant facility to be owned and operated by Genoil or marketed by Genoil to refineries around the world. A single such unit, or a combination of similar units, if successful, is expected to provide significant economic savings and revenue generation opportunities to Genoil based on today’s price of light crude.

Based on assumptions of heavy crude oil price discounts as recorded in both historic and current trading markets, the following model is being used by Genoil to provide basic project operating facility data in respect of such a 30,000 bpd upgrading facility. Genoil estimates the total capital cost for the completion of such a 30,000 bpd facility to be approximately $300,000,000 USD. Genoil believes a 30,000 bpd facility running at an assumed conversion rate of approximately 85% may yield operating income of approximately $162 million dollars per year to Genoil based on a $45 dollar per barrel spread between sour heavy and sweet light crude, along with the operating and economic model and assumptions described herein and using 15% of the incoming feedstock as feed for a residue gasification unit to generate hydrogen, power and steam for the new facility. Readers are cautioned that the projections and models set out in this release constitute forward looking statements and that actual results may vary significantly from such projections and models. No assurance can be given that the facility will run at the assumed conversion rate, that oil prices will remain high, that the spread between heavy vs. light crude prices will remain advantageous, that a major or any refining company will agree to an off-take agreement that assures a return on Genoil’s investment or that Genoil will be able to effectively raise the capital required for construction of the facility. Readers are directed to the section of this release titled “Forward Looking Statements” set out below for a further description of such statements, some of the factors which may cause actual results to vary, Genoil’s policy on updating such forward looking information and related matters. The operating and economic models used in making the potential forecast set out herein were approved by management of Genoil on February 20, 2008 and are set out below:

Genoil will continue pursuing alliances with refineries and merchant field applications where the GHU^® can be installed. Where possible, Genoil will seek to take an ownership stake in the GHU^® installation by sharing in capital costs, revenues and / or as part of a joint venture. Genoil’s present long-term goal is to own a vertically integrated GHU^® refinery that refines crude oil and bio fuels for delivering of the finished petroleum products into the global market.

James Runyan, Genoil’s COO, stated “we are looking forward to the construction and installation of our commercial demonstration facility and believe it will be a step to building a large scale upgrading facility or Merchant Plant with or without a possible partner and again the demonstration facility will allow Genoil and potential clients to examine and plan for larger facilities”.

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

ABOUT GENOIL: 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 PLEASE CONTACT:

James Runyan

Chief Operating Officer and Executive Vice President

Tel: 780-416-5590

David Lifschultz

CEO & Chairman

(212) 688-8868

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FORWARD LOOKING STATEMENTS: Certain information regarding Genoil, including management’s assessment of revenues and expenses, availability of capital and other sources of funds, cost of crude, heavy vs. light crude price spreads, conversion rates, ability to utilize remaining feedstocks, number of days production, future plans, strategic partnerships or joint ventures, operations, financing alternatives, ownership of facilities, and the timing of and completion of proposals or financings 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, including competition from other technologies, the ability to access sufficient capital from internal and external sources, price fluctuations in the market, availability of expertise, the timely and effective execution of construction, engineering and procurement activities, competitive factors, technological development, market demand, OPEC actions, political and economic risks and events, and Genoil’s ability to obtain new contracts and accurately estimate net revenues due to the variability in size, scope and duration of projects, market fluctuations and internal issues. 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 at www.sec.gov.