On The Hunt... CEO s and President s Message. Inside this issue: THE EYAK CORPORATION. September 2016

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1 THE EYAK CORPORATION On The Hunt... Inside this issue: CEO s and President s Message Message from the Board of Directors 1 2 CEO s and President s Message September 2016 Dear Shareholders, As recommended by the Shareholder Advisory Committee, New Shareholder Land Use Program Hartney Bay Subdivision 6th Annual Cemetery Clean-Up this is the first of several themed quarterly newsletters. The focus is on TEC lands and includes updates on the Hartney Bay Subdivision resurvey and the New SLUP guiding principles recently approved by the Board. The Frequently Asked Questions portion of the newsletter provides answers to several excellent questions from shareholders on land-related topics Shareholder Dividend Accountant Position Opening 6th Annual Shareholders Picnic Veterans Monument Installed in Cordova Shepard Point Update Thank you Millie Johnson First Fish, Subsistence Opener Frequently Asked Questions Dates To Remember Board of Directors Although the focus of this newsletter is on TEC lands, there have been several significant developments and shareholder events since our June newsletter (Cordova cemetery clean-up and barbeque; shareholder picnic in Anchorage; upcoming TEC dividend; appointment of Todd Lilleness to TEC s Board; installation of Veteran s Monument in Cordova) and we are very pleased to share that news with you. We look forward to seeing you at the following events over the next several months: Thursday, November 10, First Fish, Subsistence Opener Art Show Fundraiser for The Eyak Foundation- 5:00 p.m. 6:00 p.m. (Cordova) Friday, November 11, Cordova Shareholders Informational Meeting- 4:00 p.m. 6:00 p.m. (Cordova) Saturday, January 21, Seattle Shareholders Informational Meeting- 4:00 p.m. 6:00 p.m. (Seattle area) We hope you enjoy this newsletter and we thank you for your continued interest in, and support of, your corporation. TEC Staff 11 Rod Worl Nancy Barnes Mission Statement 12 Chief Executive Officer President Save-the-Date 12

2 Page 2 Message from the Board of Directors We are very pleased to announce the appointment of shareholder Todd Lilleness to the Board of Directors, effective July 29. Todd is the son of Donald Lilleness and Elfreda Brizgaloff and the grandson of Geraldine O Brien Mike and Pauline Brizgaloff. He is the brother of Teresa Jones and the father of Serena Lilleness. Todd lives in Seattle and is a regular attendee at TEC s Seattle shareholder informational meetings. He ran for the Board in 2016 as a way of giving back to The Eyak Corporation by helping others. Todd was appointed to the seat previously held by Steve Donaldson, who resigned for personal reasons in early July. The Board greatly appreciates Steve s many years of service to the corporation. This newsletter has a lands theme. The Board recognizes our lands are tremendously important to our corporation and our present and future shareholders. In 2011, the Board discussed the many challenging land issues facing our corporation and how best to address those challenges. The corporation identified several land priorities, including: reviewing and updating the corporation s Land Plan; improving the Shareholder Land Use Program ( SLUP ); completing the Hartney Bay Road and re-survey of all of the parcels in the Hartney Bay Subdivision; and supporting the construction of Shepard Point Road. In the pages that follow, you will see we have made progress on each of the issues above (such as a five-year plan to complete the resurvey of Hartney Bay Subdivision) and we still have a long way to go. Unfortunately, it will cost the corporation hundreds of thousands (if not millions) of dollars to solve our lands issues. The primary focus of the Board and Management remains (and must continue to remain) on growing and maintaining our business lines, to ensure we have the financial resources to take care of our lands while providing sustainable dividends to our shareholders.

3 Page 3 New Shareholder Land Use Program Guiding Principles As recommended by TEC s Land Committee, the Board of Directors has approved the following as guiding principles for the New Shareholder Land Use Program to be established by the corporation: * Residential use * No Commercial use * Subsistence use * Not required to build Jenna * Recreational use * Cannot be bought or sold The next step is for the Land Committee to prepare policies and procedures, for the Board s consideration. The New Shareholder Land Use Program will replace the prior land use program and is consistent with feedback from shareholders during meetings in Anchorage, Cordova and Seattle, and through the shareholder survey. ****************************************************************************************** Hartney Bay Subdivision During the late 1970s, The Eyak Corporation s Board of Directors decided to convey two acres of land to each of TEC s 326 original shareholders. In 1981, the survey for the Hartney Bay Subdivision was completed and the corporation conveyed by deed the two-acre parcels to shareholders, at no cost. Unfortunately, because of survey design (and other) problems, the deeds did not accurately describe the boundaries of the parcels. Hartney Bay, Cordova, AK TEC has struggled to remedy the situation. Partnering with the Native Village of Eyak, a corrective resurvey was performed on the first five of the twenty blocks in the subdivision. However, the Federal funding that helped pay for the corrective resurvey has diminished significantly in recent years and may no longer be a viable option. TEC s Board of Directors recognizes that the resurvey for Hartney Bay Subdivision has taken too long and should be completed as soon as possible. The Board also recognizes that the resurvey costs will likely be hundreds of thousands of dollars and wants to complete the project as economically as possible. The Land Plan approved by the Board in 2016 identifies a five-year period to complete the resurvey, with requests for proposals to be issued in 2017 and surveying to commence in The Board is exploring options to minimize the costs of the resurvey while maximizing opportunities for shareholder and local hire.

4 Sixth Annual Cemetery Clean-up Page 4 On June 17, a volunteer group of at least 30 shareholders, descendants, family members, friends and staff of TEC, NVE, the City of Cordova, GCI, Edison Chouest, and UIC Arctic Response Services participated in the Sixth Annual Pioneer Cemetery Cleanup in Cordova. The volunteers applied fresh paint to crosses, tended graves of ancestors, and removed several truckloads worth of brush, branches and tree limbs. Although the cemetery cleanup was hard work, the volunteers were satisfied at the end of the day to see a job well done. The Cordova Times published a very nice article on the cemetery clean-up and we posted photos of the event on our Facebook page: Clifford Nichols Charles Hodsdon Martin Parsons Cordovan Martin Parsons Angela Butler Faye Allen Bill Bernard Martin D. Parsons Lewis and Lisa Lange Charlotte Bray Clifford Nichols Gary Hansen Bob Walsh

5 Page Shareholder Dividend On July 29, The Eyak Corporation s Board of Directors declared a dividend of $12.95 per share. The dividend will be paid on December 9, 2016 for shareholders who are on record as of November 30, The dividend is comprised of two parts: (1) Receipts from the Alaska Native Claims Settlement Act Section 7j, which requires each regional corporation to distribute to village corporations and at-large shareholders enrolled in the region, 50 percent of any net revenues received by the regional corporation pursuant to Section 7i of ANCSA. The 7j receipts are distributed to shareholders net of tax, resulting in a per share amount of $6.02; and (2) Net adjusted income from 2015, which is distributed to shareholders net of contributions to The Eyak Foundation. This year s contributions to the Foundation (or reduction in the net adjusted income Eyak Website for & the FaceBook dividend) is $25,100, resulting in a per share amount of $6.93. This operating dividend combined with the 7j dividend is equal to the total declared divided of $12.95 per share (note: there is only one dividend payment, which combines both the 7j and operating dividends). The 2016 dividend is a 16.6% increase over the prior year s distribution, which was $11.11 per share, $10.11 of which came from 7j receipts. The dividend declared by The Eyak Corporation s Board in July, is in addition to the dividend issued by the Eyak Permanent Fund Settlement Trust in April We offer direct deposit for shareholder dividends. If you have changed your address, but have not yet notified us, please do as soon as possible. Forms to sign up for direct deposit and to update your address are on our website at ************************************************************************************************* Accountant Position Opening The Eyak Corporation has an immediate opening for an Accountant position. The position will be based in TEC s Anchorage office. TEC has a shareholder hiring preference and we encourage qualified shareholders and descendants to apply. More information on the opening is posted on the corporation s website:

6 Page 6 A Great Turnout at The Eyak Corporation s Annual Shareholders Picnic The Eyak Corporation hosted its Sixth Annual Shareholders Picnic at Jewel Lake Park in Anchorage on Saturday, July 30. About 80 shareholders, descendants, families, and staff attended the event, including TEC s Board, whose regular quarterly meeting was held in Anchorage on July 29. As usual, the picnic was a blast with the customary water balloon battle following the water balloon toss. Congratulations to first-time winners Paul and Darren Caldentey, who outlasted defending two-time champions Geri and Julian Victoriano. Two Fat Guys again catered the event and grilled Omaha Steaks donated by Eyak Services, LLC VP of Operations John Goss. Thanks to everyone who attended the picnic (including several first-time attendees) and a special thank you to Kate Kalkman for your excellent work in organizing and running the event. The Eyak Corporation Shareholders, Descendants, & Friends Rod Worl Rocky Dolfi Cameron & Rikki Addy Janessa Jim McDaniel & Todd Lilleness Iris Dawn Caldentey Barnes Pat Borer Sheila Borer Rikki Addy & Martin Parsons

7 Page 7 Enjoying a game of Water Balloon Toss Cole Bray Geri Victoriano Jim McDaniel Sheryl Hartman Melody Jordan Gary Hansen Anthony Lieble Rod Worl Paul & Darren Caldentey Winners of The Balloon Toss

8 Page 8 Veterans Monument Installed in Cordova The Eyak Corporation s Board of Directors identified the need for a Veterans monument in Cordova. The lead on this project was board member and U.S. Marine Corps Veteran, Jerry O Brien Jr. Jerry met with the City of Cordova crew on July 26 and the installation was completed adjacent to the new harbor in one busy day. The monument is granite, with a plaque on the front bearing an inspirational statement honoring all who have served our country. Photo Credit: Mike Hicks The Eyak Corporation wishes to thank the many volunteers who made this project happen. The City of Cordova was instrumental in the installation of the monument, with city workers using city equipment to get the job done. Alaska Marine Lines transported the monument from Anchorage. Wilson Construction hauled armor rock and gravel to the site. Chugach Alaska Corporation donated its portion of the armor rock and gravel royalties. The Native Village of Eyak has volunteered to provide a flower box for the site. Special thanks to Jerry O'Brien Jr. for spearheading the project and his many other efforts to recognize TEC shareholder veterans. The Veterans Monument will be dedicated during a Blessing Ceremony to be held on Veteran s Day (November 11) at 3:00 p.m. Mike Hicks & Jerry O Brien ************************************************************************************************ Shepard Point Update The Eyak Corporation and Chugach Alaska Corporation jointly own land at Shepard Point, the proposed location in the Exxon Valdez Oil Spill consent decree for the construction of an oil spill response facility in Cordova. The Shepard Point Oil Spill Response Facility is now in the mitigation plan phase with Army Corps of Engineers 404 permitting. This project has been long awaited in Cordova with the goal of Enhancing the Protection of Prince William Sound.

9 Page 9 Thank You Millie Johnson On August 18, The Eyak Foundation s President Millie Johnson resigned from the Foundation s Board of Trustees. Millie was appointed to the Foundation s volunteer Board of Trustees in 2012 and has served as President the past four years. Millie Johnson Eyak Website & FaceBook TEC Chairman Martin Parsons noted Millie was instrumental in raising the Foundation to new heights. Her leadership will be missed. The Foundation s accomplishments during Millie s tenure as President include: a significant decrease in administrative expenses; a simplified and more user friendly scholarship application process for shareholder and descendants; and two First Fish art show fundraisers which raised close to $20,000 for scholarships. ************************************************************************************************* First Fish, Subsistence Opener The Eyak Foundation is pleased to announce First Fish, Subsistence Opener, an art show fundraiser for The Eyak Foundation. The art show will run for one month at the Reluctant Fisherman Inn in Cordova, with the opening night on Thursday, November 10, from 5-6 p.m. As with the prior First Fish fundraisers, there will be a silent auction on opening night and 100% of net proceeds from the event will go to scholarships for TEC shareholders and descendants. We would greatly appreciate donations of gallery-ready, subsistence-themed art for the show. For more information please call The Eyak Foundation at (907) , us at info@eyakfoundation.org, and check out our website at Please also like us on Facebook, at

10 Page 10 Rhonda Kelley Frequently Asked Questions Q. Does TEC have an active program for shareholders to remove gravel from the pits on TEC lands? A. Not at this time. Chugach Alaska Corporation, as the ANCSA regional corporation, owns the gravel (and armor rock). Several years ago, TEC and CAC experimented with a limited fee waiver for 50 cubic yards of gravel per shareholder from the gravel pits for personal use. The program was not successful and has been suspended. Safety issues and people taking an amount well in excess of 50 cubic yards were contributing factors in the suspension of the program. Q. Why hasn t TEC cleaned up the trash on our lands? A. The main reason TEC hasn t cleaned up the trash on our lands in recent years is because the corporation has been focusing on other issues critical for our for-profit organization. Those issues include: growing and diversifying our businesses to ensure a steady dividend stream for our present and future shareholders; addressing shareholder and descendant-related issues; and succession planning. In addition, TEC has focused our land-related efforts on developing an overarching Lands Plan and resolving other legacy land issues (SLUP compliance; ANCSA 14(c); ensuring firewood is available for the community; etc.). TEC s Board and Management agree that the trash on TEC s lands needs to be cleaned up and are working on a timeline and a budget to make that happen. Q. Why doesn t TEC post the dates and times of its committee meetings on the corporation s website? A. Because the Board does not believe that is in the best interests of TEC. In January 2013, TEC s Board approved the Governance Committee s recommendation that attendance at committee meetings be limited to committee members, directors and invited guests (at the discretion of the committee s chair). TEC has ten committees and each one serves in an advisory role to the Board and lacks authority to make binding decisions on behalf of the corporation. The Board has found that limiting attendance at meetings has led to more streamlined, focused, and productive committee meetings. Q. Does TEC have an active program for shareholders to harvest firewood and timber to build homes from TEC lands? A. The Eyak Corporation currently has a policy of no downing of live trees on TEC land. Firewood has become increasingly important topic in rural communities due to the high cost of energy. In Cordova, firewood is currently available across from the Mudhole Smith Airport. Community residents can receive a wood cutting permit from the US Forest Service for up to 10 cords of firewood. The Forest Service expects this supply of firewood to last for five years. The Forest Service has also identified 145 acres of Forest Service land in the Saddlebag area as a firewood source in the near future. On TEC lands, there is firewood available at the fallen log decks leftover from the logging days. A land use permit at no cost is required prior to collecting wood from the fallen log decks. We have researched making land available for saw logs and house logs. The challenge with opening land for this purpose is compliance and liability. If we opened an area for collecting wood, how could we ensure rules are followed, keep non-shareholders from downing live trees and prevent injury or accidents? Having considered those questions we do not have immediate plans for providing wood in the form of live trees. (Answers provided by the Lands Committee. Please submit questions via to Shareholder@EyakCorp.com, and we will include answers for one or more in the next newsletter.)

11 Page 11 Dates to Remember & Special Announcements Board of Directors September 5 - Office Closed Labor Day October First Alaskans Elders and Youth Conference, Dena ina Center, Anchorage, Alaska Alaska Federation of Natives Annual Convention, Carson Center Fairbanks, AK November 11 - Office Closed Veterans Day 11 - Eyak Shareholder Informational Meeting, Cordova Sobriety Celebration Festival, Cordova Office Closed Thanksgiving December 9 - The Eyak Corporation 2016 dividend distribution 9 - Shareholder Potluck, Anchorage Office 2:00-4:00 pm Office Closed Christmas January 1 - Office Closed New Year s Day 21 - Eyak Shareholder Informational Meeting, Seattle Martin Parsons, Chairman Nancy Barnes, President Jim McDaniel, Vice President Rikki Addy, Treasurer Roxanne Dolfi, Secretary Brooke Johnson, Director Sylvia Lange, Director Todd Lilleness, Director Jerry O Brien Jr., Director TEC Staff Rod Worl Chief Executive Officer Ext 1 Sue Jolin Senior Controller Ext 7 Brennan Cain Vice President & General Counsel Ext 5 Kate Kalkman Administrative Assistant Accounts Payable Ext 1 Teresa Barnes Administrative Assistant Cordova Office Angela Butler General Manager, Cordova Operations

12 The Eyak Corporation Mission The Eyak Corporation will return financial benefits to present and future shareholders through the development of economic opportunities and growth of our assets while protecting the ownership of our ANCSA lands and Native cultural heritage. Contact Us: THE EYAK CORPORATION ANCHORAGE: CORDOVA: 360 W. Benson Blvd. 901 LeFevre St. Suite 210 P.O. Box 340 Anchorage, AK Cordova, AK Tel Tel SAVE THE DATE The Eyak Corporation Shareholder Informational Meeting, Cordova November 11, 2016 in Cordova, 4pm-6pm. Location to be determined The Eyak Corporation Suite West Benson Boulevard Anchorage, Alaska 99503