PHI Group Update from CEO Henry Fahman Dear Valued Shareholders, Over the last couple months, we have been quite busy with a number of developments and major initiatives that are expected to have a very positive impact on our business, both shortterm and long-term. While news and 8-K filings are intended to inform shareholders and the investment community overall, I wanted to take a few moments at this juncture share some more specific details regarding recent important developments with our Company. American Pacific Resources, Inc. Special Dividend Our Board of Directors has passed a resolution to declare a 20% special dividend of American Pacific Resources, Inc. (www.aprgold.com, “APR”) Common Stock for our shareholders. All eligible PHI Group shareholders of record as of May 31, 2018 will be entitled to receive two (2) shares of Common Stock of APR for every ten (10) shares of Common Stock of PHI Group, Inc. held as of the record date without any action by the shareholder. The payment date is set for October 31, 2018. APR plans to file a registration statement and list its shares on the Nasdaq Stock Exchange when it reaches certain milestones in the future. In the past, we were successful in giving a special stock dividend to our shareholders and spinning off one of our subsidiaries, ATC Technology, which has later become Cellular Biomedicine Group (Nasdaq: CBMG) with very significant market capitalization. Gildex Tokens GildexShop, a Singapore company, has signed an agreement with APR to launch Gildex Tokens using blockchain technology and the mining claim assets of APR as a safeguard for the value of the tokens in case its price falls below the original purchase price after the tokens are listed for trading on a prominent token exchange in the near future. Holders of the originally-acquired Gildex tokens will be able to purchase physical gold from GildexShop and APR at 50% discount to the London Metal Exchange (LME) gold price by redeeming their tokens at that time. In compliance with the U.S. Securities and Exchange Commission’s requirements, the Gildex ICO’s are not available to U.S. investors at this stage. Filing of a S-1 Registration for the PHI Group Special Stock Dividend Our securities attorney Dieterich and Associates will file a S-1 Registration Statement with the Securities and Exchange Commission for 5,673,327 shares of Common Stock of the Company that have been reserved for a special dividend distribution for shareholders of record as of July 31, 2012.



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Smartways International Pte Ltd. We have signed a Joint Business Cooperation Agreement with PT Mega Kencana Persada, an Indonesian company, and Smartway GmbH, a German company, to provide logistical and payment solutions for the Indonesian maritime transportation systems using blockchain technology, fintech and robust proprietary mathematical algorithms. We are in the process of establishing Smartways International Pte Ltd. as a Singapore company to launch a blockchain token for this program. Luxembourg Institutional Bank Funds We have been working diligently to set up a Reserved Alternative Investment Fund (RAIF) known as “PHI Vietnam GI Funds” and several specific sub-funds under this master fund in accordance with the laws of Luxembourg to invest in renewable energy, agriculture, real estate and consumer goods. We will explain in greater detail how these funds may be instrumental to our growth and expansion. Acquisitions and Major Real Estate Development Programs We have been investigating several acquisition targets in Asia and Europe during the past few months and also studying very special opportunities regarding multi-billion dollar real estate and hospitality development projects in Vietnam. We are confident these recent developments will have a very positive impact on our Company’s business in the near future as well as in the long run, and we will continue to update our shareholders and the investment community further in the coming weeks. Truly yours, /s/ Henry Fahman Henry Fahman Chairman & CEO PHI Group, Inc.



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