Genoil Inc.
TSX VENTURE : GNO
OTC Bulletin Board : GNOLF

Genoil Inc.

December 13, 2010 06:09 ET

Genoil Inc. Installs Larger Crystal Sea Separator for Installation on Board VLCC Tanker & Provides Update on Growing Interest in Genoil's Upgrader

CALGARY, ALBERTA--(Marketwire - Dec. 13, 2010) - Genoil Inc. (TSX VENTURE:GNO)(OTCBB:GNOLF) ("Genoil" or the "Corporation") announced today that it has installed a second Crystal Sea Separator on board a 2,000,000 barrel Middle East based tanker. In recent sea trials the Crystal Sea Separator has essentially no operational cost due to the fact that filters were not required to meet regulations. This new five cubic meter model can easily meet the requirements of a two million barrel tanker, while exceeding International Maritime Organizations Resolution (MARPOL MEPC 107) overboard discharge guidelines for pollution prevention of 15 parts per million. The Crystal Separator exceeds Coast Guard and ABS standards for pollution prevention as well. Genoil has achieved 2.5 parts per million in recent trials. Competitors' filters can cost $4000.00 and must be changed regularly. Genoil has eliminated these expensive filter requirements.

The Corporation also announces that it has retained Nichole Rhodes managing partner of Rhodes Global Public Relations Group. Rhodes Global Group has significant outreach and will assist Genoil in launching products and implement multiple campaigns to target customers and marketing communities. Rhodes will assist Genoil in developing an integrated Public relation, media, and marketing strategy. Primary goal being to raise awareness of the long term energy shortages brought on by the peaking of light oil, and Genoil's technological solution for converting heavy oil to light which increases profits margins $20.00 per barrel benefit to end user.

CEO David Lifschultz says "Current simulations being furnished to Middle East producers indicate per barrel profit margins of about $20.00 or approximately 30% internal rate of return on investment before amortization. This is drastically lower than the $36.00 spread before the 2008 crash in oil prices as most of OPEC's cutbacks centered on heavy oil thereby artificially driving up the heavy oil feedstock price." Lifschultz added: As the world economy improves, and oil demand rises, the OPEC production of heavy oil will increase thereby significantly widening the profit margins on the Genoil upgraded crude back to and above the $36.00. The simple figure of 900 billion barrels of heavy oil reserves demonstrates the potential of the upgrading industry.

As a result of the recent increased demand for oil, Genoil has seen growing interest from several major Middle Eastern producers moving to exploit their high sulfur light and heavy oil deposits. Genoil is making significant progress towards concluding agreements in the near future. Intensive work is advancing with five different oil producing countries.

The Genoil Hydroconversion Upgrader can operate as a stand alone field unit or within a refinery. Genoil's new zero waste hydrogen-oil blending process desulfurizes 99.5% without the need for external hydrogen or natural gas and with an operating cost savings of 61% compared with competing technologies. The ability to generate its own hydrogen from its own residue gives the GHU Upgrader the ability to operate in remote regions, and in countries where hydrogen either unavailable or restricted. It's extremely low operating costs are due to its zero waste.

Genoil's Two Hills property in Alberta Canada is capable of storing 125 million tons of CO2 waste from the nearby tar sands operations of Fort McMurray Alberta, Canada's premiere tar sands productions site in 250 salt caverns with the potential to be one of the largest storage facility of its kind in North America. Alternatively it could be used for natural gas storage.

Genoil Inc. has also issued 1,379,116 common shares of Genoil to satisfy $455,110.23 outstanding to certain lenders (the "Creditors") of the Corporation. The issuance is pursuant to Genoil's previously announced Shares for Debt Application, which was accepted by the TSX Venture Exchange on December 8, 2010. Genoil reached debt cancellation agreements between the Corporation and the Creditors, whereby each of the Creditors agreed to forgive and cancel debts currently owing to such Creditor by the Corporation.

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 there from under the 1933 Act and the securities laws of all applicable states.

About Genoil:

Genoil is a publicly traded Canadian engineering technology development company headquartered in Edmonton Alberta, with offices in Calgary, Sherwood Park, New York City, Constanta Romania, and Dubai & Abu Dhabi. Genoil offers an array of petroleum technologies. Genoil operates two major research facilities located Canada and Romania. It owns and operates a world class 10 bpd hydroconversion upgrader (GHU) complete with independent water electrolysis unit for high purity hydrogen supply, hydrogen compressor, electrical substation, fired heater, low-pressure separator for vapor-liquid separation, and a PLC for automated operational control in Two Hills, Canada. Genoil's research and development (R&D) personnel develop cutting edge methods and new breakthrough patents to find solutions to the world's complex energy problems. Genoil also owns several patents related to the GHU, its water purification, Crystal oil and water separator, well testing, sand cleaning technologies, and environmental remediation technologies. Genoil has been successful in patenting these new technologies and with a most recent patent on its sand cleaning technology.

ADVISORY: Certain information regarding the company, including management's assessment of future plans, strategic partnerships, operations, financing outcomes and the ability to negotiate a definitive agreement on terms acceptable to both parties may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with an oil and gas technology development corporation, including competition from other technologies and the ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated. The Corporation 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. Additionally, 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. Further information on potential risk factors that could affect the company's financial results can be found in the company's disclosure materials filed on SEDAR at www.sedar.com and with the Securities and Exchange Commission.

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