Genoil partnership was over, says Silver EaglIn regards to the March 10, 2006, news in Stockwatch from Genoil Inc., Silver Eagle Refining-Woods Cross cannot verify or otherwise substantiate most of the alleged facts contained therein. Silver Eagle can verify the following:
Effective Sept. 3, 2003, Silver Eagle entered into a hydrocracking process agreement with Genoil for the building and installation by Genoil of a hydrocracking process unit (GHU) at Silver Eagle in Woods Cross, Utah.
Although the agreement expressly provided that time was of the essence, Genoil failed to meet the Aug. 31, 2004, deadline to deliver the completed GHU to Silver Eagle in Woods Cross, Utah.
In February, 2005, and June, 2005, Genoil committed and confirmed to Silver Eagle that the GHU would be installed no later than Dec. 31, 2005.
On Dec. 20, 2005, Silver Eagle terminated the agreement after it became clear that Genoil could not meet the extended deadline. Since that date, there has been very little communication between Silver Eagle and Genoil. There are no continuing negotiations between Silver Eagle and Genoil, and none are expected at this time.
Although Genoil referred a potential third party purchaser to Silver Eagle, Silver Eagle has neither negotiated nor executed any letter of intent with the third party purchaser referred by Genoil, and has no active discussions with the potential purchaser regarding the purchase of Silver Eagle or the conduct of due diligence.