Dear Shareholders, As recommended by the Shareholder Advisory Committee,

this is the second of several “themed” quarterly newsletters.

Our first themed newsletter (in September) focused on TEC

lands and included updates on the Hartney Bay Subdivision resurvey and the “New” SLUP guid-

ing principles recently approved by the Board. The current newsletter focuses on descendant issues and shareholder engagement, two high

priorities for TEC’s Board. It includes updates on the Descendant Issues Committee’s actions

to date, discusses “pros” and “cons” of descendant enrollment, and contains as an insert a brief

shareholder survey with questions on descendant enrollment. We encourage you to let us

know your views on descendant enrollment. The newsletter also provides a summary of recent recommendations from the Shareholder Ad-

visory Committee and offers several opportunities for shareholders to become more involved

with our corporation. The Shareholder FAQ section of the newsletter provides answers to

several excellent questions and recommendations from shareholders. Please keep those com-

ments coming! We are grateful to the shareholders and descendants who attended the Cordova shareholder informational meeting and look forward to many of you at the following events over the next

several months:

Friday, December 9, 2016- Shareholder Potluck in our Anchorage office for Sharehold-

er and family, 2:00 p.m. – 4:00 p.m.

Saturday, January 21, 2017- Seattle Shareholder Informational Meeting- 4:00 p.m. – 6:00

p.m. (at the DoubleTree Hilton (near SeaTac airport)

Saturday, May 13, 2017- Annual Meeting of Shareholders at the Embassy Suites in An-

chorage We hope you enjoy this newsletter and we thank you for your continued interest in, and sup-

port of, your corporation.

Rod Worl Nancy Barnes

Chief Executive Officer President

CEO’s and President’s Message

THE EYAK CORPORATION On The Hunt . . .

December 2016

Inside this issue:

CEO’s and

President’s Message 1

Message from the

Board of Directors 2

2016 AFN

Convention

AFN Resolution

3

3

Descendant Issues

Committee Update 4

Pros & Cons of

Descendant

Enrollment

Shareholder Survey

Insert

5

5

Cordova Shareholder

Informational Meeting

6

First Fish,

Subsistence Opener

Welcome New Share-

holders

Remembrance

Annual Cemetery

Cleanup

7

8

8

8

Shareholder Advisory

Committee Welcome New

Employees Frequently Asked

Questions

9 9

10

Dates To Remember Board of Directors TEC Staff Mission Statement

11

11 11 12

Page 2

Rhonda Kelley

Message from the Board of Directors

The Board of Directors held our quarterly Board meeting and shareholder informational meeting in Cordova

on November 11. During the Board meeting, among other things we:

Discussed potential investment opportunities in furtherance of the Board’s priority to grow and diver-

sify our businesses;

Analyzed the Descendant Issues Committee’s recommendations on descendant enrollment;

Appointed Todd Lilleness to fill the vacancy on Eyak Development Corporation’s Board of Directors;

Acted on several recommendations from the Lands Committee on TEC lands-related matters;

Discussed the 2017 budget;

Received an update on The Eyak Foundation; and

Approved several recommendations from the Shareholder Advisory Committee

The Cordova shareholder informational meeting was well-attended and there was excellent discussion on de-

scendant enrollment and lands-related issues. Thank you to all who attended and submitted written comments

and shareholder surveys. The Board values each and every shareholder’s opinion, whether provided verbally

or in writing.

Descendant issues and shareholder engagement are very high priorities for the Board and we are pleased to

provide you with this themed newsletter. In the pages that follow, you will see what actions the Board and

committees have taken to date on these matters. Please let us know how we’re doing and how you would like

to see us move forward.

On a final note, we are pleased that the corporation is able to provide a dividend of $12.95 per share that will

be mailed out (or direct-deposited) on December 9, in time for the holiday season. We wish everyone a safe

and happy Holiday Season.

Alaska Federation of Natives 2016 Convention, by Nancy Barnes

The Alaska Federation of Natives (AFN) 2016 Convention was held in Fairbanks in October and it was great to

see many TEC shareholders and descendants. Several TEC Board members attended AFN, including Chairman

Martin Parsons, Vice President Jim McDaniel, and Sylvia Lange. The Eyak Corporation donated $2,500 to Native

Village of Eyak’s Elder Program to assist with costs for elder travel to AFN. We feel it is important to have rep-

resentation at this important convention. As you may know, for many years I have had the pleasure to serve as the AFN Board member repre-

senting the Chugach region villages. This year, I stepped down to provide the opportunity for another

shareholder in our region to serve on AFN’s Board. I’ll continued to be involved with AFN in an infor-

mal capacity and will attend meetings when I am able. AFN continues to be the largest Native advocacy organiza-

tion in Alaska and it is a strong economic and political force in the State and Federal arenas. Editor’s Note: Thank you Nancy, for your exemplary volunteer service on AFN’s Board of Directors!

AFN Adopts TEC-Sponsored Resolution on Gifting of ANCSA Stock

The Alaska Native Claims Settlement Act (ANCSA) limits gifting of shares from a holder to “his or her child,

grandchild, great-grandchild, niece, nephew, or … brother or sister.” During TEC’s annual meeting in May, a

shareholder expressed frustration that she could not gift shares “upstream” to her uncle, who was serving his

country in Vietnam during the enrollment period and was omitted from TEC’s shareholder roll.

TEC submitted a resolution to AFN to support efforts to amend ANCSA to allow gifting of shares to Alaska Na-

tives parents, uncles, aunts and other relatives who were omitted from ANCSA’s rolls because of their military

service during the enrollment period. AFN’s Board expanded TEC’s proposed resolution to amend ANCSA to

allow adult holders of stock to gift shares to “Alaska Native parents, uncles, aunts, and first degree cousins” and

approved the resolution. We are very thankful to AFN for adopting the resolution and look forward to working with them and our Con-

gressional Delegation on implementation of the resolution.

Page 3

Clifford

Nichols

******************************************************************************************

Peggy & Jim

McDaniel

Mary Babic

Senator

Lisa Murkowski

Nancy Barnes Nora (Nichols) Jackie

Hodsdon Ladd

Eyak Website & FaceBook

Page 4

Descendant Issues Committee Update

By Rikki Addy

It is my pleasure to serve as Chair of the Descendant Issues Committee. TEC’s

Board formed the ad hoc committee in 2011 to explore the issue of descendant en-

rollment and make recommendations to the Board. The members of the committee

had a wide range of views on descendant enrollment, with some members very sup-

portive, some very opposed, and others undecided.

From 2011 to date, the committee has taken the following actions:

Created a New Member Enrollment Plan;

Drafted articles for the shareholder newsletter on descendant enrollment;

Included questions on descendant enrollment in the 2013 shareholder survey;

Reviewed other ANC materials and processes on descendant enrollment;

Researched and reviewed descendant enrollment options;

Reviewed a demographic study that quantified the number of potential new shareholders; and

Made recommendations to TEC’s Board on descendant enrollment

Over time, committee members have reached consensus in support of descendant enrollment. That said, the

ultimate “deciders” on the issue of descendant enrollment are TEC’s voting shareholders. We have discussed

descendant enrollment during informational meetings in Cordova (2015 and 2016), during the Seattle informa-

tional meeting and annual meeting in 2016. We intend to continue discussions with shareholders on descend-

ant enrollment at our annual and informational meetings in 2017 and to bring the matter to shareholders for a

vote in May 2018.

I encourage shareholders and descendants to attend the in-person meetings to ask questions and gather infor-

mation about descendent enrollment. If you cannot attend the meetings, please submit your questions or

comments via email at shareholder@eyakcorp.com, by submitting a comment on TEC’s website

(www.eyakcorporation.com), by regular mail, or calling our Anchorage or Cordova offices. We will continue

to answer shareholder questions in future newsletters. Because this is a shareholder decision, your participa-

tion is vital and important to us. Thank you.

Rikki Addy

Page 5

Martin Parsons

Lewis and Lisa

Lange

Melody Jordan Gary Hansen

“Pros and Cons” of Descendant Enrollment

During the Cordova informational meeting, a shareholder made the excellent suggestion that TEC

prepare a document with “pros and cons” of descendant enrollment. Here is a list of the pros and

cons of descendant enrollment:

Pros

Enrolling descendants gives them a means to be a part of their Corporation and connect with

their Alaska Native culture;

Having more shareholders contributes to the strength of the Corporation;

More shareholders will have a say in the Corporation’s future through voting rights and eligi-

bility to serve on the Board of Directors;

As our shareholders age, younger shareholders will take their places in leadership positions;

and

It is not fair to exclude from ANCSA benefits persons born after December 18, 1971.

Cons

Issuing new shares dilutes the monetary value of existing shares and will decrease the divi-

dends and voting strength of current shares;

Educating, enrolling and maintaining records for new shareholders will be an increased cost

burden on the Corporation;

Descendant enrollment will increase administrative costs of the Corporation (mailing costs;

check printing costs; etc.);

Adding descendants as shareholders is not fair to existing shareholders who do not have

descendants; and

Descendant enrollment is unnecessary because current shareholders can gift shares to de-

scendants.

Shareholder Survey Insert

A brief shareholder survey on descendant enrollment is included with this newsletter. Please let us know

your views on this very important issue.

******************************************************************************************

Page 6

Nancy

Barnes

Cordova Shareholder Informational Meeting

The Eyak Corporation held its annual shareholder informational meeting in Cordova on November 11. About

40 shareholders and descendants attended the event, which was held at the new Cordova Center. The Cordova Ikumat Dance Group got the meeting off to a great start, performing several songs, including one

gifted by Pamela Smith. CEO Rod Worl then provided a Management report, and answered questions. Vice

President of Finance, Sue Jolin, followed with a financial update. Several Board members then gave brief presentations on matters they oversee. Land Committee Co-Chairs

Martin Parsons and Brooke Johnson provided an update and answered questions on TEC land issues. Jim

McDaniel, Chair of the Donations Committee, provided an update of TEC’s

donations to Cordova-based entities in 2016. Jerry O’Brien Jr. recapped the

corporation’s efforts to honor its Veterans, including the Veteran’s Monu-

ment, which was dedicated during a Blessing Ceremony held immediately

before the informational meeting. Descendant Issues Committee Chair Rikki Addy and Sylvia Lange provided

an update on the committee’s actions to date, and handed out a brief survey

for shareholder views on descendant enrollment. Excellent discussion fol-

lowed on the very important issue of descendant enrollment. Rocky Dolfi, who serves as the Board’s liaison to the Shareholder Advisory

Committee, expressed appreciation for past and present committee members’ service on the committee. Jim

McDaniel, who also serves as President of The Eyak Foundation, provided an update on the Foundation, and

thanked those individuals who donated items to the silent auctions to benefit The Eyak Foundation.

Thanks to everyone who attended the event, and special thanks to those who submitted written comments and

completed the shareholder survey!

Martin Geraldine

Parsons O’Brien

Cordova Ikumat

Dance Group

Sean

O’Brien

Rikki Addy

Sylvia Lange

Makari

Page 7

First Fish, Subsistence Opener Art Show Fundraiser The opening night for the “third annual” art show fundraiser to benefit The Eyak Foundation, was held at the

Reluctant Fisherman Inn on November 10. As with prior “First Fish” fundraisers, there was a silent auction

with 100% of net proceeds going to scholarships for TEC shareholders and descendants. The art show was

scheduled to run for one month. TEC’s Board approved a 100% match of the amount raised during the event.

We are grateful to each of the donors who helped us hold another successful event. We are also grateful to

the several individuals who have donated to The Eyak Foundation in 2016 and encourage others who are able

to do so. You can donate online at www.eyakfoundation.org. The Foundation wishes to express special thanks

to Rod Worl for his very generous donation.

For more information please call The Eyak Foundation at (907) 334-3940, email us at info@eyakfoundation.org,

and check out our website at www.eyakfoundation.org. Please also like us on Facebook, at https://

www.facebook.com/eyakfoundation.

Angela Raven Rod Paul

Butler Madison Worl Trumblee

Mary Peggy Faith

Babic McDaniel Barnes Theresa

Chappell

Altana Darrel

Hamilton Olsen Faith Brooke

Barnes Johnson

Nancy

E.

Barnes

Nancy

C.

Barnes

Page 8

Bill Hansen, Jr. Annual Cemetery Cleanup

One of the more visible signs of TEC’s presence in Cordova is the revital-

ized Pioneer Cemetery across from Nirvana Park. For the past six years,

TEC, NVE, and city staff, shareholders, tribal members, and other com-

munity members have participated in an annual cleanup of the cemetery.

Earlier this year, a shareholder contacted TEC and requested the annual

cleanup be renamed in honor of the late Bill Hansen, Jr. In addition to

volunteering at the annual cleanups, Bill, along with Bill Bernard, built and

painted the 30 wooden crosses that now grace the cemetery. TEC’s

Board enthusiastically approved the request.

We look forward to seeing you in June

2017 at the Bill Hansen, Jr. Annual Ceme-

tery Cleanup!

******************************************************************************************

Jenna

Remembrance

It is with deepest sympathy and fond memories that

we respectfully recognize those whom have passed.

Terry “TC” Clark

Donald Hines

Elizabeth Hunt

Michael Tiedeman

Welcome New

Shareholders

Chantil Dukart

Dustin Dukart

Jesse Dukart

Raven Madison

Antrillia Montgomery

James Pearson

Tristan Selitch-Hager

Mataya Siemion

Bill Hansen, Jr.

Bill Bill

Hansen, Jr. Bernard

Sylvia Angela

Lange Butler

Eyak Website & FaceBook

Page 9

Shareholder Advisory Committee Update, by Melody Caudill Greetings Fellow Shareholders! It is my pleasure as the newly appointed Chair of the Sharehold-

er Advisory Committee to provide this update. Two of the Committee’s “founding” members,

Lewis Lange and Cynthia Scott, recently stepped down after four years of volunteer service on

the committee. When you get the chance, please thank Lewis and Cynthia for their service to

the corporation and the shareholders. We are pleased to welcome Board Member Rocky Dolfi

who is the new “Board Liaison” to the committee. The committee held its quarterly meeting in early November and, as usual, proposed several recommendations

for TEC’s Board’s consideration, including:

“New” stock will drawings to encourage shareholders to submit stock wills;

Recommendations for Shareholder of the Year, Young Shareholder/Descendant of the Year, and Elder

Recognition; and

TEC submit letters of support for AFN’s efforts to amend ANCSA to allow “upstream” gifting of

ANCSA stock. We have two open seats on the committee and I encourage any shareholder who wants to become more in-

volved with the corporation to submit an email or letter of interest to shareholder@eyakcorp.com If you have any suggestions for the committee, please let us know via email at shareholder@eyakcorp.com, by

submitting a comment on TEC’s website (www.eyakcorporation.com), by regular mail, or calling our Anchor-

age or Cordova offices. The Shareholder Advisory Committee wants to hear from you!

The Eyak Corporation and Eyak Development Corporation

Welcome New Employees! The Eyak Corporation is very pleased to announce two additions to TEC’s Anchorage office. In October, Ra-

chel Rivas was brought on as an Accountant. Rachel has a wealth of experience in financial accounting and sys-

tems integration. She received her Bachelor’s degree in Accounting from Ashford University and previously

worked for the Municipality of Anchorage.

In mid-November, TEC shareholder Heidi (Johnson) Van Gilder accepted TEC’s offer to become the corpora-

tion’s Office and Shareholder Relations Manager. Heidi is the daughter of John Johnson and Kim Aspelund and

the granddaughter of Knute and Babe Johnson and Bill and Irene Webber. Prior to joining TEC, Heidi worked

for the Municipality of Anchorage and Chugach Alaska Corporation.

Eyak Development Corporation (EDC) is similarly pleased to announce two new additions. EDC has hired

TEC shareholder Raven Madison as Public Relations Assistant in EDC’s Cordova office. Raven is the daughter

of Alicia Jensen and Scott Madison and the granddaughter of Herb and Barb Jensen.

In addition, Kate Kalkman, after five years of valuable contributions as TEC’s Administrative Assistant/Accounts

Payable, has accepted EDC’s offer to serve as an Administrative/Finance Support Specialist. Kate will continue

to work in the Anchorage office.

******************************************************************************************

Melody Caudill

Page 10

Frequently Asked Questions

Q. Can you please hand out agendas at the start of shareholder informational meetings and have blank stock will

and other TEC forms available?

A. Absolutely. Thanks for the great recommendation.

Q. What was TEC’s involvement with the closing of the spit on Eyak Lake?

A. TEC had no involvement with the closing of the spit on Eyak Lake.

Q. Can TEC send out an “email blast” to shareholders to remind them of upcoming events?

A. We’ll be happy to. Shareholders who wish to be added to an email list can let us know via email at

shareholder@eyakcorp.com.

Q. Where can I look for more information on descendant enrollment?

A. There are several sources of information on descendant enrollment, including:

ANCSA, 43 U.S.C. 1606(g) and 1607(c);

Alaska Natives and American Laws (Third Edition) by David Case and David Voluck, pages 190-93;

Update on ANC Descendant Enrollment by Sarah Curtis, December 10, 2014; and

Materials prepared by Alaska Native Corporations that have opened enrollment (or explored opening

enrollment), including: Ahtna; Aleut; Calista; Doyon; Nana; and Sealaska

Q. Is a shareholder vote required for descendant enrollment to occur?

A. Yes.

Q. Does ANCSA’s “dissenter’s rights” provision apply to descendant enrollment?

A. Not to our knowledge.

Q. Does TEC invest in shareholder businesses?

A. Although we are happy to advertise shareholder businesses in our shareholder newsletter and on our

Facebook page, we vary rarely invest in shareholder businesses. Any investments TEC makes in share-

holder businesses occur after we perform due diligence on the business and ensure that any potential

conflicts of interest are disclosed and addressed.

(Answers provided by the Communications Committee. Please submit questions via e-mail to

Shareholder@EyakCorp.com, and we will include answers for one or more in the next newsletter.)

December 2016

9 - The Eyak Corporation 2016 dividend distribution

9 - Shareholder Potluck, Anchorage Office 2:00-4:00 p.m.

24-25 - Office Closed Christmas

January 2017

1 - Office Closed New Year’s Day

20 - TEC Board Strategic Planning, Seattle

21 - TEC Shareholder Informational Meeting, Seattle

February 2017

2/1-2/5 - Cordova Ice Worm Festival

April 2017

TBD – Eyak Permanent Fund Settlement Trust Distribution

15 - Tax Day

May 2017

13- Annual Meeting of Shareholders

Board of Directors

Page 11

Dates to Remember & Special Announcements

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

Alaska Staff

Angela Butler

General Manager,

Cordova Operations Rod Worl

Chief Executive Officer

Ext 1

Brennan Cain

Vice President &

General Counsel

Ext 5 Sue Jolin

Vice President of Finance

Ext 7

Kate Kalkman

Administrative/ Financial

Support Specialist

Raven Madison

Public Relations

Assistant /Cordova

Rachel Rivas

Accountant

Ext 2

Heidi Van Gilder

Office and

Shareholder

Relations Manager

Ext 1

The Eyak Corporation

Suite 210

360 West Benson Boulevard

Anchorage, Alaska 99503

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 99503 Cordova, AK 99574

Tel. 907-334-6971 Tel. 907-424-7161

800-478-7161

www.eyakcorporation.com

http://www.facebook.com/eyakcorp/

SAVE THE DATE!

Anchorage Office Potluck

The Anchorage office will be holding a Potluck for share-

holders and family on Friday, December 9th from 2:00 –

4:00 p.m. at our office on 360 W. Benson Blvd., in Suite 210.

We look forward to seeing you!