CORRECTION FROM SOURCE: Genoil Inc. Plans Commercial Demonstration Plant and Provides Corporate and Hebei Zhongjie GHU(R) Project Update
EDMONTON, ALBERTA--(Marketwire - February 07, 2008) - In the release issued earlier today there were two errors: in the fifth paragraph, and the "PROJECTIONS AND ESTIMATES" table, both instances of "project revenue" should have read as "operating income". The complete and corrected release is as follows:

Genoil Inc. (TSX VENTURE: GNO) (OTCBB: GNOLF) is pleased to announce plans for commerical demonstration facility and to provide a corporate update, including an update of the current status of the Hebei Zhongjie Petrochemical Group Company Ltd. ("HZ") heavy crude and residual oil blend GHU® upgrading facility project in China.

Genoil has entered into an agreement to purchase equipment for a 750 to 1000 barrel per day ("bpd") commercial demonstration plant to prove scale up and commercial viability of its technologies. When sufficient capital has been obtained and the purchase is completed Genoil expects to own or be able to lease all of the components to construct the proposed facility with the exception of the reactor section, which is expected to be sourced and acquired once Genoil has secured a long term crude supply and product off-take agreements with a refiner. Once agreement has been reached on the demonstration facility's location, site conditions, and crude or residual oil feed stock and engineering have been completed, it is estimated that the total installed cost of the demonstration facility will be approximately $10,000,000 USD. The completion and operation of the demonstration facility is contingent on Genoil's ability to raise sufficient funds to meet these financial requirements. To date, Genoil has completed fabrication and purchase of a four compartment heater for the reactor section of the facility and under the agreement outlined above Genoil is currently in the process of purchasing refurbished equipment for the atmospheric and vacuum distillation sections of the facility at a total cost of $650,000 CDN.

Genoil is currently seeking a site for the demonstration plant along the Texas Gulf Coast or in the Middle East butting and/or on a major refinery's site. Genoil intends to acquire and construct the demonstration facility to further test scalability and commercial operations using Genoil's GHU® technology. When completed, it is Genoil's belief that the demonstration facility will prove the viability of commercial operations while using the GHUO technology to demonstrate the potential for scale up of the GHUO facility to handle additional commercial production levels.

Genoil believes that test results to date have verified the technological capabilities of the GHU® units and that it is now necessary to demonstrate feasibility and scalability through the construction and operation of a commercial demonstration plant in the Texas Gulf Coast area. The principal goal of the acquisition and construction of the demonstration facility is to achieve positive performance test results at 700+ bpd as further scalability and as a step towards the construction of a 20,000 to 30,000 bpd unit that can be marketed by Genoil to refineries around the world. A single such unit, or a combination of similar units, 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 revenue data regarding the proposed demonstration facility. Genoil believes that if it can obtain an off-take agreement from a major refining company, the 700 bpd demonstration facility running at an assumed conversion rate of approximately 90% may yield operating income of as much as approximately $7.5 million dollars per year to Genoil based on the operating and economic model and assumptions described herein. 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 demonstration plant 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, or that a major or any refining company will agree to an off- take agreement that assures a return on Genoil's investment. 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 model used in making the potential forecast set out herein were approved by management of Genoil on February 6, 2008 and are set out below:


PROJECTIONS AND ESTIMATES Genoil GHU Development Plant
Gross Capacity Per Day (bbl) 700
Estimated Conversion Rate (%) 90%
Net bbl/day Production Yield 721
Number Days of Production (Annual) 345
Avg. Monthly Production Days 28.75
Cost per bbl Feedstock $45.00
Estimated Operational Expenses/bbl ($) $14.00
Estimated Sales Price Processed/bbl ($) $88.00

ESTIMATED ANNUAL REVENUE
PROCESSING REVENUE $21,830,000


ESTIMATED ANNUAL EXPENSES
Cost of Feedstock (at current market) $10,870,000
Processing Expenses $3,400,000
TOTAL EXPENSES $14,270,000

OPERATING INCOME $7,560,000

Underlying Market Assumptions:
1. WTI Benchmark Crude Price = $90/barrel
2. Heavy vs. Light Crude Price Spread = $45/barrel
3. GHU Upgraded Crude Price Discounted 2.5%



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. To accomplish the foregoing Genoil will require significant additional capital resources and loan facilities, as to which no assurance can be given.

Genoil engineers have recently returned from China where Genoil has been meeting with representatives of the HZ refinery and the engineering, procurement and construction ("EPC") contractor in China. The Genoil GHU® Upgrading Facility, Front End Engineering and Design ("FEED") Study currently being completed by Genoil is on schedule. Genoil anticipates completing the design and costing study in late March 2008. Once the study is complete HZ and Genoil intend to move to finalize a contract as outlined in the memorandum of understanding with HZ dated October 2006 and previously described in a press release dated October 3, 2006 and in Genoil's other public filings, all of which are available on SEDAR and EDGAR. Genoil is currently working with HZ to form a joint venture company in China with a view to the construction, execution and operation of a Genoil GHU® Upgrading Facility in China.

James Runyan, Genoil's COO, stated "we are looking forward to the construction and installation of our commercial demonstration facility that we believe will prove the commercial viability and operational economics of Genoil's technology allowing Genoil and potential clients to examine and plan for larger facilities, including possible merchant facilities, owned and operated by Genoil or in a joint venture with other clients. The HZ project is on schedule, and we are looking forward to completing the FEED study allowing Genoil and Hebei Zhongjie to finalize a binding construction contract and to break ground on the new Upgrading Facility in China."

Yu Guo Chen, Vice President Hebei Zhongjie Petrochemical Group Co. Ltd., stated: "We are very excited about the results of the pilot plant testing and now are working with Genoil and our EPC contractor to finalize the project cost. Hebei Zhongjie and Genoil are working to set up a joint venture company to build, own and operate the new upgrading facility."

In addition to Genoil's project with HZ, Genoil has made proposals to a number of significant oil companies regarding the utilization of Genoil's GHU® technology. While no material agreements have yet been reached in this regard Genoil believes that progress is being made from these efforts and continues to pursue such opportunities together with others around the world.

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.

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.

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

Contacts:
Genoil Inc.
James Runyan
Chief Operating Officer and Executive Vice President
(780) 416-5590
Website: www.genoil.net

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