Greetings from our Chairman

Greetings Shareholders of Genesis Development Holdings, Ltd,

Genesis Development Holding, ltd (“Genesis” or “GDH”) is one of the last operating oil and gas Exploration and Production (E&P) company headquartered in S. Korea. Since taking control in 2014, we achieved the following:

  • Established strong local Russian relationships

  • Won over 35 lawsuits

  • Successfully excluded rogue 30% shareholder Reitman through Russian courts. Russian supreme court final ruling in our favor in April 2020.

  • Increased ownership of Vinka from 70% to 100% ownership

  • Extended oil license to 95 years

  • Fracturing and core sampling proves oil in place and commercially feasible

  • Developed and deployed drilling technology that makes our field commercially feasible

When we first took control in 2014, GDH’s primary asset was 70% ownership in Vinka, the company that owns the license to 400 million barrels of reserves in the Republic of Bashkortostan. Today, Genesis owns 100% of Vinka and have established the following businesses:

  • Mini refinery business in Uzbekistan

  • Verde Generation – green friendly energy solutions

  • Slim Drill

With the challenges brought forth by the Ukraine/Russia war, we’ve pivoted our business model and are pursuing opportunities outside of Russia, specifically in the CIS region. Given the high oil prices and instability in Russia, we are seeing many opportunities.

Setting aside the negative political environment of Russia, and looking purely based on Genesis’ asset value, values should have appreciated significantly given that we’ve extended our license to 95 years, proven oil in place, continued production, creation of commercially viable drilling method, removal of rogue minority shareholders and start of new businesses with favorable economic outlook.

As we look into the future, we take comfort in that we own “real assets” in the form of hydrocarbon “oil” resources which continues to perform well and is a dollar denominated asset, which provides a natural hedge. Further, we have potential for sizable upside in our value added businesses such as mini refinery, drilling and green energy solutions. Thank you.

Sincerely,

Rick Cho

Chairman