THE LEADING BLOCKCHAIN AND ADVISORY COMPANY

2022 Review of

Performance

of

GOLDCHAINEX OÜ

January 16, 2023

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Contents
SUMMARY GOLDCHAINEX OÜ 2022 ............................................................................................... 1
CONFIDENTIALITY ......................................................................................................................... 3
COMPLIANCE................................................................................................................................ 3
VALUERS EXPERIENCE ................................................................................................................... 3
CONFLICT OF INTEREST STATEMENT .............................................................................................. 3
DISCLAIMER ................................................................................................................................. 3
NATURE AND SOURCE OF THE INFORMATION RELIED UPON........................................................... 4
EXTENT OF INVESTIGATION........................................................................................................... 4
RESTRICTIONS ON USE, DISTRIBUTION OR PUBLICATION ................................................................ 4
REPORT ADDRESS ......................................................................................................................... 5
REVIEW DATE ............................................................................................................................... 5
PURPOSE...................................................................................................................................... 5
CRYPTO MARKET OVERVIEW 2022 ................................................................................................. 5
GOLDCHAINEX SUMMARY ANALYSIS.............................................................................................. 7
MARKET PERFORMANCE............................................................................................................... 7
GOLDCHAINEX OPERATIONS ......................................................................................................... 8
FINANCIAL PERFORMANCE.......................................................................................................... 10
INDEPENDENT CONTRACT AUDITING ........................................................................................... 11
TOKENOMICS ............................................................................................................................. 12
PROOF OF RESERVES................................................................................................................... 14
SHARIAH COMPLIANCE ............................................................................................................... 16
GOLDCHAINEX EXCHANGE .......................................................................................................... 17
XAUS-NFT................................................................................................................................... 18
BIOTMETRIC WALLET .................................................................................................................. 18
FUTURE DEVELOPMENTS ............................................................................................................ 18
CONCLUSION.............................................................................................................................. 19

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SUMMARY GOLDCHAINEX OÜ 2022

The crypto market had one of its worst years this year. Market prices dropped by over 70% on
average with spectacular failures of UST token, Three Arrows Capital hedge fund, and FTX
exchange. There was a change in market sentiment to negative, and an increase in calls for
government regulation. As a startup, Goldchainex OÜ ("Goldchainex") faced increased
challenges due to these events as it entered the market.

Goldchainex successfully launched and operated the gcex.lt exchange, IEO GCS token, and issued
USDm and XAUS tokens, including launching the XAUS-NFT. Since its IEO date, the price of GCS
token has increased by 23.4% (annualized). Several market firsts were achieved by
Goldchainex. The first Shariah-compliant regulated exchange, the first Shariah-compliant utility
token, and the first stable token redeemable for gold. The tokenomics and ecosystems built on
Goldchainex have proven effective during one of the worst crypto markets ever.

Goldchainex summary at end of 31st December 2022

BNB BEP-20 Issued Contract
GCS 0x3d2bb1f7ab5d64C3917DbE03d37843421A42e0cD
GCS February 23rd, 2022
Ether Authority Audit
https://www.Goldchainex.com/_files/ugd/5b76bc_8ecd39897bb94be5b26037b4b5b58f7c.pdf
XAUS 0x9b1dE0DBB19273d859b077f9F083A441FbcBCb8d
XAUS Token Aug 10th, 2022
Ether Authority Audit
https://earn.Goldchainex.lt/static/media/XAUS%20Smart%20Contract%20Audit%20Final.da721a9161110eadfa77.pdf
USDm 0xf1fb837CCd4153ebA68f332Fb3E5c125E24F6473
USDm June 8th, 2022
Ether Authority Audit
https://earn.Goldchainex.lt/static/media/XAUS%20Smart%20Contract%20Audit%20Final.da721a9161110eadfa77.pdf

GCS Price Volume 24hr-Goldchainex US$5,287,692

IEO US$11.00 Volume 24hr- GCS US$1,874,764
Peak US$11.75
Year End US$11.72 Market Cap
GCS Appreciation 23.4% (annualized) Goldchainex US$58,600,000
Swap DEX US$8,841,401

Sukuk Websites
Sukuk Issued Price $10.00 Goldchainex.com Corporate website
Sukuk Payout 11.55% www.Goldchainex.lt Regulated Exchange
Sukuk 25.80% (annualized) https://earn.Goldchainex.lt DEX – swapping
Appreciation

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GCS Supply https://earn.Goldchainex.lt/staking Staking of GCS tokens

Circulating Supply 5,000,000 XAUS-NFT (Return of the Gold Dinar) Opensea.io
Total Supply 10,000,000

GCS Proof of Reserves Renewal Date Amount % GCS Supply

XAUS Reserves 30 Aug 2023 160,000 1.6%
XAUS-NFT Reserves 30 Dec 2026 177,759.9 1.8%
USDm-GCS Reserves 30 June 2023 755,030 7.6%
Exchange Liquidity Pool 31 Dec 2024 1,000,000 10.0%
GC Treasury 1 30 Dec 2023 5,000,000 50.0%
Total GCS Locked 7,092,790 70.9%

Balance Sheet Highlights

Cash and Cash Equivalents US$14,108,503
Non-Current Assets US$153,214,715
Assets to Liabilities 8.0x coverage

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CONFIDENTIALITY
This document is confidential between National Certified Valuators Company Limited and
Goldchainex OÜ with address Harju maakond, Tallin, Kesklinna linnaosa, Tornimäe tn 7-26,
55330 Estonia

Goldchainex OÜ to whom it is addressed for the specific purpose discussed herein and neither
the whole of this document nor any part may be published in any document, statement, and
circular nor in any communication with third parties without a prior written approval of NCVC
as to the form and context in which will it appear.

COMPLIANCE
The Review of Performance was conducted in line with The Royal Institution of Chartered
Surveyors Review of performance Global Standards effective 31st January 2022 edition and
guidelines and recommendations focused on the blockchain industry encompassing blockchain
coding and transparency standards along with the industry’s best practices. Compliance with
these standards may be subject to monitoring under Royal Institution of Chartered Surveyors
(“RICS”) conduct and disciplinary regulations.

VALUERS EXPERIENCE
We confirm the signatory valuer acting for and behalf of National Certified Valuators Company
is a Member of the Royal Institution Charter Surveyors with the academic qualifications and
blockchain technology experience to undertake this review of performance.

CONFLICT OF INTEREST STATEMENT

We confirm no pecuniary interest or conflict of interest in Goldchainex OÜ (“Goldchainex”) that
we believe would prevent an objective and unbiased Goldchainex review of performance. We
have sufficient skills, knowledge and experience of this sector, environment, and market trends
to undertake the review of performance competently.

DISCLAIMER
This is a review of performance of Goldchainex and should not be construed as a proposal to
buy or sell any tokens or investments of Goldchainex. We do not guarantee the accuracy of the
information contained in this review and specifically disclaim any responsibility for any liability
loss, or risk, professional or otherwise, incurred as a direct or indirect result of the use and
application of any content of this review.

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NATURE AND SOURCE OF THE INFORMATION RELIED UPON

We relied on information provided by Goldchainex and upon our own research and knowledge
including assessing public information. In addition, we used third parties’ resources including
public information, blockchain ledger, and technology professionals. This included engagement
for professional audits of physical gold and cash reserves held within custodial vaults to ensure
the accuracy and existence. This accuracy of the information is accurate at the date of this
review.

When assessing anticipated performance, we include revenue and costs that are attributable to
the personal circumstances, or skills, expertise, reputation and/or brand name of the existing
management team, operator, and stakeholders In analyzing the business, we examine value
from (a) ecosystems, (b) tokenomics, (c) synergies between various platforms and exchanges
that promote or undertake trading of tokens, (d) legal rights, patents or proprietary technology
or systems, (e) excluded are tax benefits or tax burdens, and (f) and management to sustain
profitability.

EXTENT OF INVESTIGATION
This is a review of performance of blockchain ecosystem and does not involve undertaking
physical investigations as traditional “brick and mortar” businesses, this is because the
blockchain ecosystem is principally on the public ledger of the blockchain except for the
engagement of professionals for auditing of physical assets including gold, and fiat currencies.

As part of the review of performance, we reviewed Goldchainex’s business projections for 2022
made in 2021 against actual performance, business strategy success, effectiveness of operations,
and technology. We also discussed and received information from Goldchainex management
and strategic partners. This included audit reports by professionals regarding physical assets,
reserves, and use of the blockchain ledgers including sites used for blockchain locking of tokens
in accordance with Goldchainex’s published tokenomics. Through this we are confident that we
have sufficient information for our analysis of performance to be representative of Goldchainex
performance in 2022.

RESTRICTIONS ON USE, DISTRIBUTION OR PUBLICATION

The review of performance report is not to be distributed or published to any third party
without the approval of NCVC.

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REPORT ADDRESS
The report is undertaken on behalf of Goldchainex OÜ with address at Harju maakond, Tallin,
Kesklinna linnaosa, Tornimäe tn 7-26, 55330 Estonia.

REVIEW DATE
Audit review of performance and financial information is current at date of 31st December 2022.

PURPOSE
To review the performance of Goldchainex for the year ending 2022.

CRYPTO MARKET OVERVIEW 2022

• Crypto industry market lost over US$2 trillion in value.
• Leading cryptocurrencies loss up to 99% in value.
• FTX valued at US$32 billion in October 2021, entered bankruptcy in December.
• Three Arrows Capital hedge fund entered bankruptcy after once managing US$10 billion
of crypto assets.
• Terra US stable token (UST) price fell to US$0.0001 after suffering liquidity reserve
failure.
• Bitcoin down 64%, Ethereum down 67%.
• Ethereum switched from Proof-of-Work to Proof-of-Stake.

The "dark side" dominated the blockchain industry in 2022. Many centralized finance exchanges
("CeFi") started 2022 overleveraged and without sufficient liquidity reserves. Many investors
chased high yields offered by hedge funds, such as Three Arrows Capital, Celsius Network, and
Voyager Digital, among others. As soon as it became apparent within the market that hedge
funds could not deliver on the promised high yields, investors began selling their crypto assets.
Leading to crypto assets prices falls, that was further exacerbated by the price collapse of
prominent stable token Terra UST. This selling caused hedge funds to default on borrowed
funds owed to CeFi companies, resulting in several CeFi companies going bankrupt. Besides
CeFi companies losing money, many investors also lost money. As traders and investors lost
confidence in the market, crypto prices continued to fall.

In the beginning of the second half of 2022, prices started to stabilize following the large falls
during the first half of 2002. Slowly investors’ confidence began to return on the market believe
that overleveraged hedge funds and CeFi companies had been purged from the market. FTX

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stepping in to save hedge funds BlockFi and Celsius from bankruptcy assisted in restoring
market confidence. FTX exchange seemingly remained strong and continued to invest in crypto
companies, bailing out many distressed startups. On September 12, the CoinDesk Market Index
reached a year high of $1,092.

In terms of crypto exchanges, FTX was considered among the best. It wasn't until November
that concerns about the solvency of FTX and sister company Alameda Research emerged.
Changpeng Zhao, CEO of Binance, publicly raised concerns about the solvency of FTX's exchange
and the value of FTX's token - FFT. This news led to investors and traders withdrawing funds
from FTX and selling FTT. It was soon discovered that FTX exchange commingled funds from
customers and investors. FTT's price fell from US$26 to US$1 in just a few days. As a result of
these events, FTX paused exchange withdrawals and then after filed for bankruptcy protection.
Prior bailouts by FTX were reversed and returned these companies to bankruptcy court. As
investors continued to flee the crypto markets, the CoinDesk Market Index plummeted to a
record low of $795.

Fraud, theft, along with irresponsible commingling of funds by exchanges, over leveraging, and
unreliable proof of reserves verification, created a difficult environment for investors and
traders. As a result of these events, investors and traders have intensified their calls for greater
regulation of the crypto market. Many believe these events would not have occurred or would
have been isolated events had there been effective government oversight and regulation. No
failure in 2022 was caused by a failure of the blockchain technology underlying it. Failures were
caused rather by flawed liquidity mechanisms, ineffective auditing, fraud, and lack of
compliance.

Consumers and businesses are expected to accept cryptocurrency on a broad basis once they
gain better knowledge, understanding, and protection. In the absence of regulatory compliance
assurances, financial institutions remain reluctant to participate in the crypto market. However,
the blockchain technology and crypto assets remain attractive because they offer investment
opportunities, cost savings, improved transactions processing times and immutability.
Mainstream and financial institutions will be attracted to blockchains and ecosystems that
incorporates transparency and compliance mechanisms.

To achieve adoption of a blockchain ecosystem, companies must control the "dark side".
Increasing adoption will be slowed by crypto threats such as tax evasion, bribery payments,
terrorist financing, and "junk" tokens. Existing blockchains and ecosystems lack effective

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screening mechanism to minimize or exclude the "dark side". Compliance with identity in
blockchain is inevitable through direct or indirect regulations, regardless of whether the market
is ready for it. In an executive order, Biden directed most federal agencies, including the
secretary departments, to develop comprehensive crypto regulation and enforcement plans.

There was some good news in 2022. The most publicized was Ethereum switching from a Proof-
of-Work to a Proof-of-Stake. This switch potentially lowering gas fees and increased speed to
process transactions on the Ethereum blockchain. As a result, Ethereum's tokenomics were
changed, which is expected to increase the value of ETH.

GOLDCHAINEX SUMMARY ANALYSIS

In contrast to the overall negative market performance and scandals, Goldchainex’s
performance was a rare exception. Goldchainex ecosystems supported the appreciation of GCS
token price. Goldchainex achievements in 2022 include:

• GCS tokens appreciation up 14.7% from IEO.

• Sukuk appreciation annualized 25.8%.
• Goldchainex market capitalization from inception reached $58 million.
• Goldchainex adopted Proof-of-Stake ahead of Ethereum (a market leader).
• Goldchainex based on Shariah principals incorporated Proof of Reserves from inception.
• Goldchainex deployment of leading Fireblocks security vault prevents commingling of
investors and traders’ funds with an automatic audit logging of funds transfers.
• Goldchainex proof of reserves verified, locked, and transparent on the blockchain.
• Continue to deliver blockchain developments ahead of schedule.
• Highly qualified, skilled, and competent management and development team.
• Strong balance sheet with Total Assets to Liabilities 8.0x coverage

MARKET PERFORMANCE
The crypto market suffered one of the worst years. The industry reported losses of more than
$2 trillion dollars of value, and leading to the collapse of leading tokens, crypto exchanges, and
hedge funds. Within this environment, Goldchainex launched its GCS utility token that increased
and held value despite many including leading crypto currencies losing value. Comparing GCS
price performance with top tier cryptocurrencies is:

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High and Low High Price Current High to

Prices in 2022 Price Current Price
Change
GCS Token $11.75 $11.72 -0.21%
BTC (Bitcoin) $48,086 $14,546 -70%
Eth (Ethereum) $3,842 $1,155 -70%
BNB (Binance) $515 $256 -50%
Polygon $2.58 $0.76 -71%
UniSwap UNI $19.80 $5.16 -74%
Theta $5.23 $0.72 -86%
Cake $12.53 $3.18 -75%
Maker MKR $2,580 $506 -80%
RVN $0.14 $0.02 -86%
GMT $4.11 $0.24 -94%
Gala $0.46 $0.02 -96%
SUSHI $11.52 $1.23 -89%
Average $4,589.97 $1,373 -78%
Median $12.03 $2.21 -77%

These top tier tokens on average fell more than 70% from their peak price in 2022.
Outstandingly, GCS within its IEO year exhibited strong price support as its price fell less than
0.2% from its peak price despite large price falls of other major cryptos. GCS appreciated 23.4%
(annualized) over 2022.

GOLDCHAINEX OPERATIONS
Goldchainex participates in the blockchain industry. The GCS utility token captures the value of
Goldchainex ecosystems. The original Goldchainex’s ecosystems planned at the start of 2022::
• Minting XAUS
• Market Maker Arbitrage
• Tokenization of gold
• Regulated crypto exchange
• Biometric Wallet
However, the actual ecosystems implemented during 2022 were:
• Minting XAUS
• Market Maker Arbitrage
• Tokenization of gold
• Regulated crypto exchange
• XAUS-NFT (new ecosystem added)
• Hybrid exchange DEX for swapping and staking (new ecosystem added)

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GCS tokens are based on BEP20 smart contract operating on the Binance (BNB-BSC) network.
During the IEO conducted between 30th March to 15 April 2022, 110,000 GCS tokens at a price
of 11 USDT. The IEO sales achieved the soft cap. To ensure effective tokenomics (limit
concentration of ownership), the maximum sale to a buyer was limited to 3,000 GCS during the
IEO. We believe this was a prudent decision to avoid “whales” that could manipulate the GCS
price and minimized the occurrence of “rug pulls”. Our research prove large holdings by
institutions and founders are locked in smart contracts for varying periods, restricting the
chances of rug pulls and manipulations of the GCS price by this group.

Goldchainex owns and operates a decentralized exchange and a hybrid regulated centralized
digital exchange under Darlitana UAB in Lithuania. Assets include two licenses in Lithuania –
“License to Operate a Crypto Exchange” and “Crypto Currency Wallet Services”. These licenses
are monitored and regulated by the Financial Crime Investigation Service under The Ministry of
the Interior of the Republic of Lithuania (“FCIS”). Goldchainex centralized exchange commenced
operations on 1st April 2022 and the decentralized exchange in the 3rd quarter of 2022.

Goldchainex ecosystems in 2022 were designed around the usage of XAUS tokens. XAUS use
BEP20 smart contract on the Binance (BNB-BSC) network and collateralized by an off-chain
0.425 grams of gold. Goldchainex states that XAUS is a stable token offering unprecedented
efficiency, security, and reliability with an intrinsic value of gold.

Goldchainex exchange, GCS and XAUS tokens received a “Certificate of Sharia Compliance” on 5th
March 2022 from the International Halal Assurance.

The Goldchainex ecosystems are backed by real assets managed and audited by international
financial and legal entities. Enhanced protection of investors and traders’ funds through
deployment of leading Fireblocks security vault that prevents commingling with an automatic
audit logging of funds transfers. Goldchainex proof of reserves are verified, locked, and
transparent on the blockchain.

Management reported that the ecosystems of Biometric Wallet and Tokenization did not
commence in 2022. The Biometric Wallet was postponed because of a decision to adopt Web3
instead of Web2 technology. Tokenization was postponed concentrating on the development of
the other ecosystems and opportunities that arose e.g., XAUS-NFT and the DEX platform
(swapping and staking), both new ecosystems. We believe management flexibility to seize
opportunities is positive. The Goldchainex staking platform provides holders of Goldchainex
with the opportunity to stake their GCS tokens to support the network and earn rewards.

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XAUS-NFT were issued on Opensea.io marketplace by Goldchainex on 8th November 2022.

XAUS-NFT was an opportunity for Goldchainex to leverage and promote XAUS tokens. XAUS-
NFTs are the world's first NFTs fully backed by physical gold coin. Each XAUS-NFT has a unique
serial number embossed on a physical gold coin of 4.25 grams, equivalent to 10 XAUS tokens.
Goldchainex has allocated 1,000 XAUS-NFT for its initial mint on the Opensea.io marketplace
with an additional 2,500 allocated for the future Goldchainex NFT marketplace.

Goldchainex DEX platform permits swapping of tokens: GCS, XAUS, USDm, and USDT.
Goldchainex group holds a significant portion of issued USDm along with several individuals.
Management state that USDm is an innovative fungible BEP20 token on the BNB-BSC blockchain
network that digitizes the value of a Myanmar kyat currency based on the government fixed
Kyat to USD rate. USDm’s primary purpose is to facilitate the use of kyat in commerce and
defending against the free fall of the Kyat.

The group is currently developing the Maal Blockchain as the world’s first Shariah compliant
blockchain. Based on our findings of the group’s current undertaking in development of Maal
Blockchain, the entirety of GCS ecosystems and digital assets will be migrated to Maal-20. This is
likely to increase the usage of the ecosystems leading to expected greater value.

FINANCIAL PERFORMANCE
The forecast made by management in 2021 was remarkably close to the actual results. This is
positive as it demonstrates management has a strong understanding of its operations,
ecosystems, and market.
Forecast
Model 2022* Actual
Revenue 1 - Minting of XAU $66,667 $35,000
Revenue 2 - MM Leverage Trading $400,000 $340,439
Revenue 3 - Goldchainex Exchange - $60,000
Revenue 4 - Biometric Wallets - -
Revenue 5 -Tokenization JV with Banks - -
Other Revenue - $5,000
Revenue Total $466,667 $440,439
Opex ($186,667) ($176,176)
EBITDA $280,000 $264,263
GCS Value (End of Period) $11.19 $11.72
*RICS reviewed management forecast in Sept 2021 report, adjusted for 8 months operation and its
assets are yet to be capitalized with zero gearing

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Goldchainex has no debt and is in a strong cash position that supports liquidity of the
ecosystems, the cash position at year end:

Cash and Cash Equivalents 2022 End

Cash Wallet (Fireblocks) $225,000
Cash Wallet (internal) $25,000
USDT Wallet (Fireblocks) $50,000
Ether reserve $90,266
Vault reserve (Fireblocks) $303,380
Ecommerce reserve (new ecosystem 2023) $330,000
USG trading reserve $500,000
USDT Wallet (Binance DEX wallet) $534,858
XAUS-NFT reserves (physical gold) $1,050,000
Liquidity Pool (3rd party smart contract) $11,000,000
Total Current Assets $14,108,503

Goldchainex has a strong asset base even without capitalization of its development and
technology assets and ecosystem values:

Non-Current Assets 2022 End

Technology Platforms Assets1 $16,000,000
Goldchainex Platform 2 $58,600,000
DEX Platform 2 $8,841,401
GCS-USDm Reserves2 $8,848,952
GCS-XAUS Reserves2 $1,875,200
GCS-NFT Reserves2 $410,200
GCS Treasury Reserves2 $58,600,000
Goldchain.Tech $38,962
Total Non-Current Assets $153,214,715

INDEPENDENT CONTRACT AUDITING

Goldchainex is committed to industry best practices to ensure security and value of their crypto
assets. As part of this, its smart contracts are subject to independent auditing by the Ether
Authority, an independent company conducting smart contract audits since 2018. The purpose
of an audit is to identify potential smart contract risks both performance and hacking, then
resolve any issues found and ensure effective coding to minimize gas fees. It is common because
of costs, for tokens to be launched without independent audits, leading to increase risks for

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holders of these tokens. Goldchainex through audits seeks to minimize these risks for holders.
Summary of the audit reports for the various smart contracts is:

Ether Authority Audit GCS* USDm* XAUS*

0x3d2bb1f7ab5d64
Contract C3917DbE03d3784
3421A42e0cD
Well Secured
Overall Rating
(Highest rating)
Total Supply (max) 10 million
Decimals 18 places
Contract Component Ether Authority
Business Risk
Passed – low risk
static address attack
Business Risk
Passed – low risk
double spend attack
Passed – optimal
Gas Optimization
level
Critical Severity Issues None
High Severity Issues None
Medium Severity Issues None
Low Severity Issues None
Best Practices –
Very Low Severity Issues
qualified level
GCS February 23rd, 2022
https://www.Goldchaine
x.com/_files/ugd/5b76b
Report Link c_8ecd39897bb94be5b2
6037b4b5b58f7c.pdf
Note: NCVC was not responsible for the smart contract audit reports undertaken by the Ether Authority. NCVC does not have any
association with the Ether Authority.
0x08Ab7E5C08CC0 0x9323E0B8c1E17B
D78589Fc506c35Ea 3954F473fe1D33a4D
9c2520A86bc 503494860
Secure Secure
No limit – subject to No Limit – subject to
Reserves Reserves
18 places 18 places
Ether Authority Ether Authority
Passed – low risk Passed – low risk
Passed – low risk Passed – low risk
Passed – optimal Passed – optimal
level level
None None
None None
None None
None None
Best Practices – Best Practices –
qualified level qualified level
USDm June 8th, 2022 USDm June 8th, 2022
https://earn.Goldchaine https://earn.Goldchainex.
x.lt/static/media/XAUS lt/static/media/XAUS%2
%20Smart%20Contract 0Smart%20Contract%20
%20Audit%20Final.da7 Audit%20Final.da721a91
21a9161110eadfa77.pdf 61110eadfa77.pdf

TOKENOMICS
Tokenomics is an important determinate on the long-term success and price appreciation of a
token. A token with well-designed incentives to buy and hold is more likely to be successful and
achieve greater price appreciation compared to tokens with less well-designed incentives.
Tokenomics designed for the ecosystem often translates into higher token demand by attracting
investors and traders. The release plan of a token significantly impacts its price and is an
important component of tokenomics.

Designing tokenomics considers the ‘in and out’ flow of tokens within an ecosystem. The goal is
to achieve an optimal “in and out” flow to maximize ecosystem performance and token value.
While there are different theories on an optimum tokenomics design, common factors cited are:

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Factor Abbreviation Derived

Circulating supply TS Issued tokens
Transaction Volume TV Transactions / period
Market capitalization TMCAP TS x P
Transaction TT Transaction time
Hold Time HT Average time a token is held
Transaction Ratio R TV / TMCAP
Velocity of tokens R1 R / TT
Resonance of tokens R2 R / HT

It has been observed that tokens with values of R, R1 and R2 that are low outperform tokens
that have higher R, RI and R2 values. In other words, all other matters being equal, a token with
lower R, R1 and R2 will have greater chance of price appreciation compared to a token with
higher values of R, R1 and R2.

Transaction volume within a period indicates liquidity and demand for the token. While total
market capitalization is dependent on the price of the token. R measures the transaction volume
to market capitalization. It is assumed that transaction volume will be high over the long term
provided the market perceives value in trading the token. A high transaction volume should
support an increasing token price and increase the market capitalization of the token. This leads
to low value of R means, meaning a sustained upward pressure on token price. In other words, R
is inversely proportional to the value of the token.

Transaction time should be optimized between the transaction cost (gas fee) and risk of price
slippage (the difference between the settled price and bid price). Hold time should be balanced
between holding, indicating confidence that a token price will increase in the future and offering
an incentive for people sell to generate market trading volume. Holding leads to a reduction in
token circulating supply, leading to an upward price pressure for the token as supply cannot
meet demand, provided there is active trading. Active trading, establishes a market price and
interest in the token. As the hold time increases the value of R2 decreases. Likewise, higher
transaction time means a lower R1 value. Lower values of R1, R2 brings transaction volume to
transaction market capitalization ratio lower, and this results in an increase in token value.

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In this review, GCS token was compared to a variety of tokens within the top quarter of the top
100 listed cryptocurrencies on CoinMarketCap. This comparison is below.

Token Average Total Supply Circulating TMCAP R= R1 = R2 =

Volume 24hr Supply (USDT TV/TMCAP R/TT R/HT
Million)
GCS Token $1,758,000 10,000,000 5,000,000 59 0.030 0.060 0.0013
BTC
$18,296,898 21,000,000 19,252,475 0.000 0.000 0.0000
(Bitcoin) 280,047
Eth
$6,281,560,393 unlimited 122,373,866 0.044 0.089 0.0019
(Ethereum) 141,342
BNB
$471,468,348 unlimited 159,963,996 0.012 0.023 0.0005
(Binance) 40,884
Polygon $105,579,298 10,000,000,000 8,734,317,475 6,638 0.016 0.032 0.0007
Uniswap
$35,745,676 1,000,000,000 762,209,327 0.009 0.018 0.0004
UNI 3,933
Theta $7,937,136 1,000,000,000 1,000,000,000 718 0.011 0.022 0.0005
Cake $13,846,829 750,000,000 164,963,195 525 0.026 0.053 0.0011
Maker
$25,002,071 991,328 977,631 0.050 0.101 0.0021
MKR 495
RVN $13,871,229 21,000,000,000 12,055,494,921 237 0.059 0.117 0.0024
GMT $32,383,794 6,000,000,000 600,000,000 146 0.221 0.443 0.0092
Gala $22,819,252 35,240,112,493 6,977,205,436 118 0.194 0.388 0.0081
SUSHI 349,010,000 61,062,820 61,062,820 75 4.647 9.294 0.1936
Average $614,793,410 7,507,316,664 2,554,818,429 39,596 0.441 0.882 0.0184

Median $28,692,933 1,000,000,000 382,481,598 621 0.035 0.071 0.0015

As GCS is less than a year away from its initial coin offering (IEO), this comparison may appear
harsh, particularly when compared to leading tokens. Nevertheless, GCS tokenomics based on R,
R1 and R2 values outperforms some of the leading tokens. GCS values are better than the
median and average of these leading crypto tokens. This implies GCS tokenomics and ecosystem
are well designed and supports future GCS price appreciation.

PROOF OF RESERVES
Proof of reserves refers to cryptocurrency tokens and exchanges creating public attestations
regarding their reserves to prove their solvency. GCS proof of reserves are locked on the
blockchain and transparent are:

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GCS proof of reserves

Vaults* Renewal Date Quantity GCS % GCS Supply**

0x9b1dE0DBB19273d859b077f9F083A4
30 Aug 2023 160,000 1.6%
41FbcBCb8d (Pinksale: PinkLock V2)

0x8A25ea29363894eAcf4f0ef1Bfe0cAfc7
30 Dec 2026 177,759.9 1.8%
5a224FF (Pinksale: PinkLock V2)

0x3eAAaE7e4846D0a9d5516bA7b31836
30 June 2023 755,030 7.6%
7e0482C573 (Dxsale)

0x8A25ea29363894eAcf4f0ef1Bfe0cAfc7
31 Dec 2024 1,000,000 10.0%
5a224FF (Pinksale: PinkLock V2)

0x9b1dE0DBB19273d859b077f9F083A4
30 Dec 2023 5,000,000 50.0%
41FbcBCb8d (Pinksale: PinkLock V2)

Total GCS Locked 7,092,790 70.9%

*Pinksale: PinkLock V2 www.pinksale.finance/pinklock/detail/0x3d2bb1f7ab5d64C3917DbE03d37843421A42e0cD?chain=BSC

*Dxsale: www.dxsale.app/dxlockview?id=0&add=0x3d2bb1f7ab5d64C3917DbE03d37843421A42e0cD&type=tokenlock&chain=BNB
**The maximum supply of GCS is capped at ten million

Proof or reserves is important part of transparent operation of an exchange, tokenomics and

long-term token price appreciation. GCS proof of reserves is extremely strong at nearly 71% of
maximum supply of GCS tokens. In addition, GCS has internal locking of GCS tokens on
Fireblocks vaults totaling 1,687,818 representing 16.9% of total GCS supply. Adding these to the
above table, brings the total locked GCS tokens to 87.8% of total GCS supply.

Goldchainex proof of reserves demonstrate strong support for liquidity for GCS tokens. GCS
proof of reserves are easily verifiable unlike many crypto tokens and exchanges including the
leading ones. When companies utilizing blockchain technology to issue coins, tokens, and
operate exchanges do not utilize the blockchain to verify their proof of reserves, we find this to
be less transparent. The common market practice is to use traditional external or internal
accounting audits to verify proof of reserves, which is of course, subject to manipulation.
Proof of reserves provides information on liquidity and functions as capitalization for the
trading of tokens. Goldchainex locking is strong for the industry, supporting the long-term
confidence of the exchange performance and appreciation of GCS token. The importance of
transparent proof of reserves cannot be stressed. Insufficient locked reserves were among the

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predominate reasons for the collapse of Luna UST that lost holders $60 billion in value, and the
FTT token of FTX lost $32 billion in value.

As a result of the collapse of leading tokens and exchanges, market criticism is growing against
traditional accounting audits for proof of reserves. Demands are growing for greater proof of
reserves transparency and verification. Goldchainex avoids this criticism by making its proof of
reserves publicly available on the blockchain.

The main way proof of reserves is verified within the market may change. In December 2022,
Mazars - the largest global auditor of proof of reserves, which has audited proof of reserves for
FTX, Binance, Crypto.com, and KuCoin announced that they will no longer undertake proof of
reserves audits. Mazars cites that information provided by firms to undertake proof of reserves
audits is often restricted, limiting Mazars ability to provide an accurate and complete proof of
reserves audit for the exchange or cryptocurrency project.

There has been a rush to issue proof of reserve audits following the collapse of FTX using
accounting audit reports. Goldchainex, having verifiable blockchain proof of reserves did not
have to take any action. While the public issuing of proof of reserve audits by firms including the
leading exchanges is a step in the right direction, it is a curiosity that they continue to use
accounting audit reports instead of posting the proof of reserves on the blockchain.

Goldchainex implements best practices for verifying proof of reserves using the blockchain,
providing liquidity assurances to users and investors. This is exceptionally transparent and
verifiable compared to the usual market practice.

SHARIAH COMPLIANCE
Goldchainex focus is on delivering the Shariah principals of principles of fairness, justice, and
equity to the blockchain for all participants. Given the numerous scams and recent collapses
with the blockchain industry, the adoption of Shariah principals by others within the industry
would improve integrity and could increase rate of adoption of blockchain technology.
Goldchainex is the first to achieve “Certificate of Sharia Compliance (05-03-22)” from the
International Halal Assurance Institute for an exchange, (Goldchainex), utility token (GCS) and
stable token (XAUS).

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GOLDCHAINEX EXCHANGE
Goldchainex commitment in establishing principles of fairness, justice, and equity through
developing a regulated crypto exchange. The Goldchainex advantages are:

• Regulated Exchange by the Lithuania Government providing assurance of compliance

to custodial standards, transparency, and integrity.
• Protection of Personal and Transaction Information protected through encryption
using MD5 technology and a decentralized blockchain network.
• Secured Blockchain Ledger using advance encryption and verifications will ensure
information is accurate and safely stored. This virtually prevents unauthorized access to
the information.
• Goldchainex Digital Assets in Fireblocks Vaults are insured by Lloyds of London
amounting $30 million.
• Disaster Recovery within 48 hours provided by Coin Cover.
• Competitive Transaction and Trading Fees Compared to other exchanges.

Creating a regulated exchange was a management decision to establish market trust and
security. This was a good decision in hindsight as many non-regulated exchanges collapsed
during 2022 and there is increasing international pressure for crypto exchanges to be regulated.
Goldchainex valid license extract can be seen below:

License Extract Translated License Extract

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XAUS-NFT
Goldchainex launched the World's first NFT backed by physical gold coins, achieving many firsts
within the NFT space:

i. Backed by dedicated gold coin and assigned by a distinctive unique serial number.
ii. Embedded with both sentimental value and intrinsic value.
iii. Issued with a certificate of authenticity and ownership to a specific gold coin.
iv. In alignment with the gold dinar standard.
v. Combines two assets into one, a NFT token and a physical gold coin.

Goldchainex launched the XAUS-NFT on Opensea.io as “The Return of the Gold Dinar” that
commemorates the historical beginning of the gold dinar more than 1,400 years ago within the
Muslim World. The launch occurred on the 8th of November 2022, with the initial supply of
1,000 XAUS-NFT minted on Opensea.io. Goldchainex is planning to launch its own NFT
marketplace to mint the remaining 2,500 XAUS-NFTs. The custodian of the physical gold coins is
held by and redeemable from GC Trust KB (Sweden).

BIOTMETRIC WALLET
Management decided to postpone the development of the biometric wallet in 2022 due to:
• Advancements in Web3 technology. Based on these advances management decided to
redesign the biometric wallet using Web3 technology.
• Requirement to swap Goldchainex security vault Fireblocks assets with the
counterparty FTX exchange. Management assessed swapping risk because FTX was
technologically less secure.
• Concerns of FTX liquidity that arose in late 2022. This proved to the right decision
because FTX filed for bankruptcy.

FUTURE DEVELOPMENTS
Goldchainex is developing a platform to issue prepaid MasterCards on Goldchainex's Web3
based Neo bank environment.

It is expected that Goldchainex will benefit from the development of the Maal blockchain and
ecosystem. Currently, Tijarah Holding Ltd., Goldchainex’s parent company, is developing the
Maal blockchain (“Maal”). The Maal blockchain will be the first Shariah-compliant blockchain
created through the forking of a Polygon blockchain and the implementation of the innovative

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Concept of Identity (CoI) consensus mechanism. By forking the Polygon blockchain, Maal
developers will have access to the familiar Ethereum open-source code libraries, although not
all libraries will be allowed. Shariah compliance and adherence to regulatory standards using
the CoI mechanism will be regularly inspected by government agencies acting as validators. The
genesis block has been created and is currently undergoing testing of block creation and the CoI
mechanism.

Maal is a significant breakthrough in addressing the problem of decentralization animosity

faced by blockchain for the digital and Web3 industries. Banks, insurance companies, financial
institutions, corporations, and governments that are currently skeptical about compliance and
transparency concerns are likely to adopt it due to its CoI mechanism. It is likely that this
innovation in consensus mechanism will have a significant impact on the blockchain and the
emerging Web3 sectors soon.

CONCLUSION
Spectacular failures within the crypto market in 2022 significantly increased negative market
sentiment regarding crypto assets and exchanges. Goldchainex faced major challenges as a
result of these events. Amidst this negative market sentiment, Goldchainex successfully
launched its regulated exchange - gcex.lt, achieved the IEO GCS token soft cap, and launched its
USDm and XAUS tokens, and XAUS-NFT. Goldchainex achieved several market firsts - First
Shariah-compliant regulated exchange, first Shariah-compliant utility token, first shariah
compliant stable coin redeemable for physical gold and first shariah compliant gold backed and
gold coin redeemable NFT.

GCS price rose 23.4% (annualized) compared with the market average price drop of over 70%
in 2022. GCS's peak price to end of year price decreased only 0.21%. This is a testament to
Goldchainex's strong tokenomics and ecosystems working effectively to support the GCS price
during the worst crypto market year.

Billions of dollars were lost in 2022 by investors and users due to market scandals. The result
has been a call for more regulation, transparency, and evidence of reserves. From the very
beginning, Goldchainex made a commitment to Shariah principles, which require fair, honest,
and transparent operations. Management’s decision to use blockchain for proof of reserves
avoids the issues being raised because of opaque proof of reserves.

Despite its advantages, Goldchainex suffers from poor marketing of its exchange, tokens, and
ecosystems. Management focused on developing platforms and ecosystems that included strong

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governance mechanisms, tokenomics, and proof of reserves. Participation in Goldchainex

ecosystems is relatively small and geographically limited, which we suggest should be
improved, especially in Islamic countries to increase the value of Goldchainex.

Our observation is that Goldchainex's management understands and analyzes the crypto
industry competently before making important operational and strategic decisions. Two
management decisions that support our observations were (i) deciding not to develop the
biometric wallet using FTX and (ii) not pairing their tokens with UST but instead with USDT.

Despite the worst crypto market on record and limited marketing, GCS tokens and Goldchainex
Exchange have performed well compared to the top 100 cryptocurrencies and top 10 crypto
exchanges. Considering Goldchainex's performance so far, we are optimistic that it will
continue.

Yours sincerely,

For and behalf of:

National Certified Valuators Company Limited MRICS #6800954
46 Edward Street, Level 9
Brisbane, Australia 4000

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APPENDIX I – RICS LICENSE

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