Green Oasis (GRNO)

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Letter to shareholders

GREEN OASIS ENVIRONMENTAL, INC.

1500A Greenleaf Street
Charleston, SC 29405
http://www.greenoasis.com/

William D. Carraway
President and Chief Executive Officer
[e-mail]

January 23, 2002

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Dear Valued Shareholders and Friends of Green Oasis:

Some of you have been investors in Green Oasis Environmental for a very long time. For your faith and perseverance, you have my deep appreciation. Some of you are relatively new investors in the company. Thank you for your involvement and interest. Some of you have yet to invest but have been learning more about our operation and its patented EnviroEconomics? Process. I hope you are finding the promise of our "waste oil to diesel fuel" process attractive.

I am writing to tell you about the recent developments in the Green Oasis business during 2001, and to describe our plans for 2002 and beyond. The past 12 months have been a pivotal year for Green Oasis. Much has happened and much of what has happened positions us for success in the coming months and years.

As many of you know, Green Oasis was founded to research, develop and commercialize a process that protects the environment from damage caused by the disposal of waste oil. After investing millions of dollars, Green Oasis was successful in obtaining a process patent in 1999 for the United States, and has filed a patent application with the European Union.

Since securing our patent and patent application, we have been aggressively marketing the EnviroEconomics? System directly and through agents around the world. We have received overwhelming, positive responses and interest in the Green Oasis process. Waste oil and other disposable hydrocarbons have created catastrophic environmental problems:

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Forty percent of the pollution found in the waterways of the United States is created by waste oil.
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One gallon of waste oil can contaminate one million gallons of water.
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One quart of waste oil can create a two-acre slick.
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Burning of waste oil (a common means of disposal) creates pollution.

Additionally, the levels of waste oil and other disposable hydrocarbons are growing around the world:

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The amount of waste oil generated from manufacturing, transportation, mining and automotive use in the United States is more than 1.7 billion gallons per year.

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The level of waste containing complex hydrocarbons that can be recycled using the Green Oasis EnviroEconomics? System exceeds 11.9 billion gallons annually in the United States.

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The top 25 oil producing countries annually generate 5.5 billion gallons of used motor oil and 47.5 billion gallons of disposable hydrocarbons -- all of which can be recycled using the Green Oasis patented process.

These estimates are derived from a study Green Oasis conducted using industry resources. Using this data, GOE was able to size the annual worldwide market for our EnviroEconomics? System (based on the 1500GPH system) at $1.7 billion for waste oil recycling and $15.4 billion for all disposable hydrocarbons.

Over the past year we also have completed an analysis, based primarily on cash flow projections, estimating the value of the Green Oasis patented process to the company, its shareholders and users of the technology, which has helped us improve and more effectively focus our marketing and sales efforts. The economics of our process offer a return on investment of 18-24 months even on our smallest capacity EnviroEconomics? System and less than a year on our larger systems. This return on investment makes our patented process particularly attractive to:

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Private investors seeking business models that generate recurring margins and a rapid return on investment.

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Waste management companies wishing to diversify their businesses through technology that is built on an economic model that will help expand their margins.

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Utility companies and their suppliers using the conversion of waste fuel into diesel fuel, which is then used to power turbine engines that generate electricity.

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Petroleum companies increasingly under pressure from governments to invest in technology that provides an environmentally sound cradle-to-grave environmentally friendly solution for crude oil and its byproducts.

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Transportation companies, specifically the shipping industry, where the environmental impact of bilge water and other ship materials, which could be recycled using the Green Oasis process, has increased regulatory oversight and operating expenses for shipping companies.

Green Oasis is happy to announce that in 2001, our marketing and sales efforts led to the signing of contracts for four EnviroEconomics? Systems.

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The most significant contract is for a 6500GPH system and a 7000GPH system EnviroEconomics? Systems in the United States, which will use our process to produce #2 diesel to power generators that create electricity that can be sold to power companies and townships.

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The second system will be deployed in the United Kingdom where our engineers are working with British engineers to incorporate design modifications that will allow our system to process tallow (animal fats) & waste oil into a low sulfur bio-diesel. According to the European Economic Commission, approximately 200,000 tons of tallow may be available for processing due to the growing acceptance of "new environmental technology."

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The fourth system will be shipped to Turkey, and will be operated by private investors to create diesel fuel for general-purpose use. These investors are financing their purchase of the EnviroEconomics? System through the Export/Import Bank of the United States.

All of these contracts are subject to final approval of financing and permitting. The value of the contracts exceeds $20.5 million. Manufacturing of the systems is expected to begin in the first half of 2002, and the systems should be fully operational in late 2002 and mid 2003. Moreover, our pipeline of business interests beyond these initial contracts is strong. While we are still in the due diligence stage in each case, we are working on additional business opportunities in the United States, Canada, United Kingdom, Turkey, Mexico, Germany, Korea, Thailand, Malaysia, India and China. It is too early to tell at this time whether these "discussions" will materialize into contracts for Green Oasis, but the level of activity on the marketing and interest fronts is higher than at any other time during the history of the company.

Last year Green Oasis set several objectives, all of which were completed in 2001:

1.
Securing contractors to manufacture the fully automated skid designed systems for installation and start-up by Green Oasis.
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Improving Green Oasis? operating capital in order to fund broader marketing and sales activities.
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Entering into contracts for the sale of one to four EnviroEconomics? System.

This year, Green Oasis will be pursuing the following objectives:

1.
Meeting the requirements for Green Oasis to return to the NASDAQ Bulletin Board.
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Delivering the five EnviroEconomics? Systems currently under contract.
3.
Securing six new sales contracts for delivery in late 2003 or early 2004.
4.
Recruiting and hiring additional management executives with expertise in investor relations, corporate development and marketing.
5.
Educating the trade, business and general media, as well as the broader investment community concerning the Green Oasis EnviroEconomics? System.

These goals and objectives will be accomplished through new strategies designed to maximize our operating efficiencies and increase shareholder value.

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Focus: The Company will focus its marketing and sales activities in the United States, Western Europe, a subset of Asia Pacific (Japan, Korea, Australia) and a subset of Latin America (Brazil, Argentina, Mexico). These regions produce the majority of the world?s waste oil and disposable hydrocarbons.

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Sales Models: The Company will sell its products directly and indirectly through sales agents to third parties with expertise in waste disposal and/or the petroleum industry in key markets.

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Sound Financial Models: Green Oasis will create recurring revenue through its use of contracted royalties and maintenance fees set in relation to the production capacity of the systems sold.

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Outsourcing of Manufacturing and Installation: In an effort to minimize overhead costs, the Company has identified manufacturers for the components of its EnviroEconomics? System.

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Strategic Partners: Green Oasis will focus on joint ventures, mergers, and other partnering opportunities, which may provide Green Oasis with market advantages, and/or benefit its shareholders. Green Oasis will also entertain inquiries by major petroleum leaders and similar companies who may wish to purchase Green Oasis? patented technology.

I hope you found the foregoing snapshot of where our company is today as exciting as we do. Again, I want to express my appreciation to you for your continued interest in and support of Green Oasis Environmental. If you have questions or need more information, please do not hesitate to contact me. I also invite you to visit our web site at www.greenoasis.com. We have recently finished revising the site to include additional information that you may find interesting. May you all have a healthy, happy and prosperous New Year!

Very truly yours,

William D. Carraway
President and Chief Executive Officer

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Copyright© 1999-2002, Green Oasis Environmental, Inc.