ALEUTIAN

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C O N T E N T SPRESIDENT’S REPORT

ANNUAL MEETING

CEO ANNOUNCEMENT

ALEUTIAN MARKETPLACE

ARCTIC ECONOMIC COUNCIL

TAF UPDATE

President’s Reportby Thomas Mack

DECEMBER 2014 • VOL 43 • ISSUE 4

Greetings Shareholders,

If you were one of the 650 attendees at the 2014 Village Seminar, Culture Night, Annual Meeting of Shareholders, the Banquet, or if you watched the webcam of the event, let me thank you for your participation. We get a great deal of important work done during our three days together, and your involvement is vital to the annual meeting process.

During the Annual Meeting we voted in three incumbent Board members. Congratulations to returning directors Tara Bourdukofsky, Stanley Mack and Jenifer Samuelson-Nelson.

We also recognized Elder of the Year Haretina Krukoff from St. Paul, Shareholder of the Year Alice Tu of Seattle, and Student of the Year Lauren Peters of Winters, California.

The five 2013 Shareholder Resolutions were reviewed, and the Shareholder Resolution Committee recommended seven resolutions for 2014. You’ll see these further in the newsletter.

During the President’s Report, I reviewed the financial status of our corporation and our subsidiaries. I’m always proud when I report on shareholder dividends. Did you know that the Aleut Corporation has paid $34.3 million in regular dividends and $5.3 million in Elder benefits since inception? That’s almost $40 million!

I wish every one of you a very happy holiday season with your

family and friends.

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CURRENTAleut

C O R P O R AT I O N

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2014 Annual Meeting of ShareholdersTHE 42ND ANNUAL MEETING OF SHAREHOLDERS THEME WAS “BUILDING REL ATIONSHIPS .”

SHAREHOLDERAWARDS:

• Honored Lauren Peters of Winters, California, as Student of the Year

• Honored Alice Tu of Seattle, Washington, as Shareholder of the Year and AFN Culture Bearer President’s Award

• Honored Haretina Krukoff of St. Paul Island, Alaska, as Elder of the Year

THE FOLLOWING ARE HIGHLIGHTS FROM THE MEETING:

President Mack reviewed the Fiscal Year 2014 financials and events of the corporation.

Seven advisory resolutions which included:

• Shareholder Resolution 14-01: A resolution petitioning The Aleut Corporation to place a resolution on the 2015 proxy to enroll descendants. Motion carried.

• Shareholder Resolution 14-02: A resolution petitioning The Aleut Corporation to modify the timing of 7(j) payments to village corporations and 7(m) payments to at-large shareholders. Motion carried.

• Shareholder Resolution 14-03: A resolution supporting efforts for implementation by the responsible federal parties of the “Aleut Tribal Policy for Restoration of Federal Sites in the Aleutian and Pribilof region.” Motion carried.

• Shareholder Resolution 14-04: A resolution requesting The Aleut Corporation have more participation in social media. Motion carried.

• Shareholder Resolution 14-05: A resolution requesting TAC to actively solicit support for the King Cove/Cold Bay Road. Motion carried.

• Shareholder Resolution 14-06: A resolution requesting The Aleut Corporation to incorporate the traditional Unangax Culture Camp

Dance performance by the Anchorage Unangax Dancers

reports as part of Culture Night. The Shareholder Resolution Committee TABLED Resolution 14-06.

• Shareholder Resolution 14-07: A resolution requesting that TAC allocate funds for travel scholarships to The Aleut Foundation to fund facilitator(s) for the village seminar.

• Shareholder Resolution 14-08: A resolution regarding The Aleut Corporation’s involvement in arctic issues.

President Mack thanked Sharon Svarny-Livingston for her work over the years in organizing and reporting on the village seminar and presented her with a gift made by Sharon Dye.

Building Relationships

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ELECTION RESULTSCandidates

Robert Berntsen

Tara Bourdukofsky

Stanley Mack

Martha Malavansky

Leo Merculief

Jenifer Samuelson Nelson

Number of Votes

28,471.3274

138,332.6146

99,826.5464

49,427.7364

65,080.2629

140,664.2411

CONGRATULATIONS TO THE PROXY PRIZE WINNERS $ 5,000 Jessica R. McGriff Kansas City, MO

$ 2,500 Laurence Yatchmeneff Jr. Anchorage, AK

$ 2,500 Herman E. Samuelson King Cove, AK

$ 1,000 Delores F. Stokes Kodiak, AK

$ 1,000 Perry A. Galovin Sand Point, AK

$ 500 Pamela J. Manley Kasilof, AK

$ 500 Lydia H. Gordon Unalaska, AK

$ 500 John H. Cowden Walla Walla, WA

$ 500 Samantha Fairbanks Anchorage, AK

$ 500 Vincent L. Keen Las Vegas, NV

$ 250 Bonnie J. Clayborn Lawton, OK

$ 250 Lucy A. Kenezuroff King Cove, AK

$ 250 Henry P. Nielsen, Sr. Sand Point, AK

$ 250 Boris Bear Akutan, AK

$ 250 Lila L. Vigil Hoodsport, WA

ANNUAL MEETING RANDOM IPAD MINI WINNERS Margaret LekanoffWinner printed in Annual Meeting Program

Joe GalaktionoffWinner posted under chair

WEBCAST WINNERS$ 100 Carlos Torres Daly City, CA

$ 100 Alma George Everett, WA

CASH DOOR PRIZE WINNERS$ 100 Rena Kudrin

$ 100 Pat Rich

$ 100 Ted Sherebernikoff

$ 100 Larisa Moses

$ 100 Stanley Mack

$ 100 Cynthia Henry

$ 100 Trenton Calugan

$ 100 Tiffany Jackson

$ 100 George Kudrin

$ 100 Gregory Fratis Sr.

ELDERS CASH PRIZE DRAWING$ 100 Larry Chercasen

$ 100 Makrina Mack

$ 100 Ernest Shaishnikoff

$ 100 Rudy Dushkin

$ 100 Ray Koso

BANQUET DOOR PRIZE DRAWING• 2 Round Trip Tickets on PenAir -

Marisa Mack

• 2 Round Trip Tickets on Ravn Air -

Ellen Pace

• 25,000 Alaska Airline Miles - Sheila Rich

• 42” Flat Screen TV - Dion Bourdukofsky

• iPad Air – LeAnn Jenks

• PlayStation 4 - Timothy Lind

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Thank you, Sharon Svarny-Livingston!

Dorothy and David HenryAnchorage Unangax Dancers

Haretina Krukoff, Elder of the Year Lauren Peters, Student of the Year

Ariana Tumanuvao and Kira Zacharof

2014 Annual Meeting

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Mercedes KashatokMarge Lokanin and Larry Chercasen admire Ethan Petticrew’s regalia

Drummer Sage Stepetin Buddy Berntsen and Edna HuweAleut Veterans

Anchorage Unangax Dancers

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On behalf of Chairman Dick Jacobsen and the rest of the Aleut Corporation Board of Directors, we are happy to announce and welcome our new CEO, Matthew Fagnani. Mr. Fagnani comes to us with an extensive background in Native Corporations, oil and gas and leadership. We are excited for him to get to work and for the future of the Aleut Corporation.

From Our New CEO

CEO Announcement

I am pleased to be joining the Aleut Corporation as your CEO. I am excited to be working with the Board and President Thomas Mack and will be focused on getting to know each of you in the near future. This communication is intended to provide you with a brief summary of my experience and background as way of introduction until we meet in person.

My 25-year professional background has focused on a combination of leadership positions and innovative business development. Most of which, can be tied directly to Alaska’s oil and gas industry, government and the Native community. Specifically, 14 of those years were spent working for NANA Development Corporation, including six years as the board chair of North Star Gas, a fuel distributorship co-op owned by 16 village and two regional corporations located in western Alaska.

Most recently, I have been the executive director of the Alaska Process Industry Career Consortium, which offers secondary and post-secondary career and technical educational opportunities within the process technology oil/gas and mining industries. While with Pebble Partnership I strategically worked to position Tribal and Native Village Corporations to expand their government contracting and business

experience outside of the Pebble project. As president and CEO of WorkSafe, we became one of the state’s largest occupational health/drug and alcohol testing clinics. In addition to WorkSafe, I was concurrently assigned numerous senior leadership positions within the NANA family of companies including NANA Management Services (Workforce Solutions Division), NANA Oil Field Services, and NANA Development Corp. I have also been very actively involved in the local and national political process promoting industry relations among government regulators, members of the Alaska Legislature and federal government.

Throughout my career, I have had the distinct pleasure to work with numerous Native corporations. This has given me the unique perspective of watching a corporation balance the need for social and economic development of its subsidiaries and natural recourses with the need for preserving cultural heritage, shareholder employment, land use policies and subsistence lifestyles. This perspective will be a guiding light during my tenure with the Aleut Corporation.

Respectfully,

Matthew T. Fagnani

Estate EscheatmentThe Aleut Corporation Shareholder Department is seeking information regarding the following shareholders and/or their heirs/family members per our Pre-Escheatment Procedures.

• Estate of Lauresa Rapin

• Estate of Francisco Metri Barnardo

• Estate of Theresa D. Velazquez

If we are unable to locate the mentioned shareholders or their family members, the shares held in the corporation will escheat back to the Aleut Corporation per our escheatment policy. TAC escheatment policy applies to all outstanding TAC shares and is applicable in the event that a deceased shareholder did not have a will and is without any heirs under the intestacy laws.

The Aleut Corporation is seeking information regarding the following shareholders and/or their heirs/family members due to “missing shareholder” status with an extended period of inactivity.

Missing Shareholders

• Melody Clary

• Annie M. Scott

• Heather M. Van Pelt

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The Aleut Foundation awarded 207 scholarships to shareholders and descendants in 2014 for a value of $708,000. Also, the Aleutian Pribilof Island Restitution Trust presented $100,000 to the Foundation for higher education and training. APIRT’s accumulative funding is now over $500,000.

I also answered questions during the shareholder question and answer session. One person asked how many shareholders had gifted shares. I am pleased to report that 631 people have gifted shares, which allows descendants to be a part of the corporation.

On a lighter note, 42 shareholders won cash prizes from $5,000 to $100. An iPad Air, two iPad Mini’s, a PlayStation 4, a 42” flat screen television, two roundtrip tickets on PenAir and Ravn Alaska, and 25,000 Alaska Airlines miles were also given away.

...continued from front page PRESIDENT’S REPORT

For the performance of the Anchorage Unangax Dancers, there was standing room only, and they brought down the house.

It all ended with the Banquet. Over 600 people attended. Marge Ford and the Alaska Polka Chips and the Premium Blend band provided music for people to dance and visit with friends and family till the wee hours.

I know it’s impossible for all of our shareholders to attend these events, but I hope next year you will take advantage of the webcast. We plan to introduce a shareholder portal before the next Annual Meeting, which will allow easier access.

I wish every one of you a very happy holiday season with your family and friends. I’ll talk with you again in 2015!

New Shareholders

David Hancock

Joseph Hancock

Mark Hancock

Karson Christiansen

Calvin Mack Jr.

Jonathan Zaochney

Tammy Groves

Jonathan Gustafson

The Aleut Corporation Board of Directors welcomes the following shareholders who have received Aleut Corporation stock through inheritance or gifting.

Aleutian Marketplace Competition Winners AnnouncedThe Aleutian Pribilof Island Community Development Association (APICDA) and the Aleut Corporation (TAC) are pleased to announce the inaugural Aleutian Marketplace Business Idea Competition winners.

“The Aleutian Marketplace is a pilot project to generate a variety of innovative business concepts and provide start-up funds for viable businesses that will operate in the Aleutian region. We were pleased that 12 competitive ideas were submitted,” said Larry Cotter, APICDA CEO.

Kristjan Laxfoss of Unalaska, Alaska, won $1,000 for his pollock fish hotdog idea. Kristjan’s idea is to manufacture a healthy and tasty fish hot dog made out of pollock in Unalaska or St. George.

Anne Morris of Sand Point, Alaska, won $650 for her Aleutian burger

concept. Anne’s idea is to produce and market a burger product from a new and original secret recipe using two types of seafood from fisheries in the region.

Blaine Shaishnikoff of Unalaska, Alaska, won $350 for his hydroponic greenhouse submission. Blaine believes that the region needs a hydroponic greenhouse large enough to supply the Aleutians with fresh, inexpensive produce.

Award winners presented their ideas to the APICDA Board and TAC staff on Dec. 5 in Anchorage. Judges Casey Campbell, Tim Pearson and Allan Johnston selected the three winners out of 12 submissions for the first phase of the project that wrapped up Oct. 31.

Thomas Mack, president of the Aleut Corporation commented, “There is great innovation and talent in the Aleutian and Pribilof Islands region and we thank all those who participated in the first phase of the competition.”

The structure of the Marketplace is two-tiered; the first tier has two business idea competition phases and the second tier is a business plan competition. The second idea phase starts Jan. 15, 2015.

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I am honored to let you know that I have been chosen to represent the Aleut region on the Arctic Economic Council (AEC). This international organization is the business arm of the Arctic Council, which is made up of eight arctic nations: Canada, Denmark, Finland, Iceland, Norway, Russian Federation, Sweden and the U.S. The aim of the circumpolar business forum AEC is to foster sustainable development, including economic growth, environmental protection and social development in the Arctic region. Arlene Gunderson and I represent the Aleutian region and are among 40 other international businesses and indigenous groups.

You might be thinking, “But the Aleutians are not in the Arctic.” As the map shows, the arctic boundary, as defined by the Arctic Research and Policy Act, is much larger than the “top of the world” region that many believe encompass the Arctic.

President Thomas Mack invited to be a member of the Arctic Economic Council

It includes the entire North Slope region, down the coastline of the Bering Strait and encompasses the entire Alaska Peninsula coastline on the Bering Sea side and the entire Aleutian chain out to Russia. You can see it outlined in red, and it is everything north of the red line.

Not only are the Aleutians the international gateway to the Arctic, they are the international gateway to and from Asia and Europe. Why is this?

With the melting of sea ice, increased salinization of the sea and rising water levels, three major arctic transportation lanes are slowly opening. You’ve probably heard of them—the Great Northern Route, the Northwest Passage and the Great Circle Route. By utilizing these, ocean shipping lines will be able to cut their shipping time by nearly half!

Countries, companies, mega-shipping lines, governments and militaries are all looking at the Arctic—the newest

frontier. Our Aleutian communities are in the center of it all. We will see an increase in businesses, from cargo and ship repair facilities to eco-tourism, all due to the opening of these shipping lanes.

The Arctic Economic Council will focus on the safe, responsible, economic development of the Arctic region with the indigenous people’s well-being at the forefront. We look forward to working with our communities, policy makers and industry to ensure that arctic development is done for the betterment of all Alaskans and the people of the Arctic.

Alaska, the last frontier, is now the first frontier of the Arctic.

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CondolencesThe Board of Directors and the staff of the Aleut Corporation would like to extend their sincere

condolences to the families and friends of shareholders who have recently passed away.

FRANK LOOFAge: 63

Yreka, CA

GUY MERCULIEFAge: 54

Anchorage, AK

PAUL REEDYAge: 57

Mountain Home, ID

LAURENCE PROKOPIOF, JR.Age: 77

St. George Island, AK

ZENOVIA LESTENKOFAge: 75

Wasilla, AK

STEVEN BEARAge: 58

False Pass, AK

SHIRLEY MCCALLUMAge: 82

Bellingham, WA

ESTHER BRAINARDAge: 86

Bellingham, WA

ADAM GOLODOFFAge: 45

Anchorage, AK

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The AleutFoundation Update by Cynthia Lind, Executive Director

Aang Aang! Can you believe it is almost the end of the year already? Where has the time gone?

The Foundation has been getting the last of the 2014-2015 Scholarship award letters and checks sent out and we are working with students on the 2015 Spring Scholarship applications.

The Aleut Foundation Board of Directors and staff wish to thank the Aleutian Pribilof Islands Restitution Trust for their very generous donation of $100,000. We appreciate all the support they have given and continue to provide to the Foundation.

In October, during the Annual Shareholders Meeting, The Aleut Foundation rolled out a new design and website. TAF Board of Directors approved to move forward with our rebranding effort, and we contracted with Northwest Strategies. The board appointed Jessica Borenin and Michael Jenks to serve on this committee along with TAF staff, Tiana Lestenkof and myself. We plan to include videos of past Foundation recipients on the website. If you are interested in sharing your Foundation experience, please contact us. We wish to thank Tiffany Tutiakoff, president of Northwest Strategies, Bernie Freeman, Bailey Beaty and all the creative staff for helping us.

Elders & Youth ConferenceThe Foundation sponsored eight shareholders/descendants to attend the Elders & Youth Conference and the Alaska Federation of Natives (AFN) Convention that was held in Anchorage.

They were:

• Mary Kelsay from Washington

• Raymond Kochuten from King Cove

• Ruth Kudrin and daughter Anesia from Akutan

• Anthony Lekanof from Sitka (he is attending Mt. Edgecumbe High School)

• Agatha Lestenkof-Archer from Mississippi

• E. Jane Mensoff from Washington

• Edward Swanson from Colorado

Please check out our new website and let us know

what you think.thealeutfoundation.org

We wish you and your family a wonderful and safe

holiday season.

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My sincerest thanks for what you do to make it possible for me and other shareholders and descendants to pursue our educational dreams. Because of your financial support, I recently graduated with my master’s degree in English and received an award for “Outstanding Graduate.” I hope that in my career as an educator I can give back to our community as well. I intend to work closely with Native populations as a teacher, mentor and, hopefully, a role model. I feel so lucky to be a part of such an important and supportive organization.

THANK YOU SO MUCH!

-Lauren Hatch

2015 Future Leaders Summit Application Now AvailableThe Aleut Foundation will hold a Future Leaders Summit February 7-9, 2015, in Anchorage, Alaska.

• Do you have a child who is in high school?

• Is your child interested in college, vocational school or working after high school?

• Is your child trying to decide what s/he wants to do after high school graduation?

• Then, the Future Leaders Summit is perfect for your child.

The Aleut Foundation is committed to providing professional development opportunities to its shareholders and descendants. The goal of the Future Leaders Outreach Program is to prepare Aleut students for post high school. The Aleut Foundation in partnership with the Afognak Native Corporation will sponsor a three-day summit February 7-9, 2015, in Anchorage, Alaska. During this fun-filled summit, Aleut high school students will participate in trainings that will prepare them for entering the workforce and college/vocational educational institutions. TAF will provide airfare and lodging for students who attend the summit.

All Aleut shareholders and descendants who are high school students are encouraged to participate in the Future Leaders Summit.

DEADLINE is 5:00 p.m. December 30, 2014

For information about internships, scholarships, travel scholarships or any other programs we provide, please contact The Aleut Foundation at:

Phone: 907.646.1929 or toll free at 800.232.4882 and asked to be transferred to The Aleut Foundation.

Fax: 907.646.1949

Email: taf@thealeutfoundation.org

Website: thealeutfoundation.org

REMINDER: There is NO deadline for vocational or career development scholarships.

One Aleut Plaza4000 Old Seward Highway, Suite 300Anchorage, Alaska 99503

Phone Number: 907.561.4300Toll-Free: 800.232.4882Fax Number: 907.563.4328Email: receptionist@aleutcorp.comWebsite: www.aleutcorp.com

Shareholder AffairsEmail: info@aleutcorp.com

Shareholder Records Email: records@aleutcorp.com

The Aleut Corporation reserves the right to edit and revise all news items submitted for publication.

PRSRT FIRST CLASSU.S. POSTAGE

PAIDPermit #69

Anchorage, AK

The AleutCorporation Board of DirectorsDICK JACOBSENChair

TARA BOURDUKOFSKY Vice Chair

JENIFER NELSON Vice President

O. PATRICIA LEKANOFF GREGORYSecretary/Treasurer

GARY FERGUSON Director

SHARON LINDDirector

STANLEY MACKDirector

DEBI SCHMIT Director

VINCENT TUTIAKOFF Director

TAC StaffEXECUTIVE & SHAREHOLDER AFFAIRS

Thomas Mack, PresidentMatthew Fagnani, CEOCara Fairbanks, Human Resources DirectorChris Lace, Director of AdministrationAngela Bourdukofsky, Shareholder Relations ManagerSilvia Leon-Guerrero, Shareholder Records TechnicianShirlee Smith, Executive Assistant Maggie Samuelson, Shareholder Records Technician IIDesiree Lekanof, Receptionist

FINANCE & ACCOUNTING

Lionel Campos, Controller Joe Kashevarof, Asst. ControllerMargaret Sealock, Senior Staff Accountant Dave Nevzuroff, Accounting ManagerKatherine Gordinier, Accountant Betti Malagon, AccountantMarisa Mack, Accounting Specialist

ALEUT REAL ESTATE, LLC

Melvin Smith, Operations Manager

A L E U T W O R D

Slum Tagadagan

Qagataa

HappyNew Year