SEPTEMBER 2011 • VOL 40 • ISSUE 3

ALEUTIAN CURRENT

AleutC O R P O R AT I O N

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C O N T E N T S

CEO Report by Dave Gillespie

Aang Aang!

Summer’s almost over and it’s back to the routine of nagging the kids about whether they’ve finished their homework. This month I’m going to provide an update on what’s happening with our subsidiary Adak Fisheries, LLC and the Adak Island seafood processing plant.

As we all know, the Adak processing plant has a long and storied history of litigation, bankrupt operators and the occasional processing of fish now and then. I am happy to say that all of the legal cases related to the prior operators are resolved and we won! I’m sure most of you also know that we have signed a long term lease with Icicle Seafoods to operate the plant for the next several years. We’re excited to be working with such a highly respected processor and we wish them much success in the coming years.

Icicle’s success, and our own, are highly dependent on the quality of the fishery around Adak. For example, our subsidiary Aleut Enterprise generates a significant amount of its revenue from fuel sales to vessels that are either fishing the waters around Adak or making deliveries to Icicle for processing. Our Aleut Real Estate, LLC subsidiary generates a portion of its income from rental of rooms at the Adak Inn.

The fishery in the Western Aleutians is challenged and the future success of Icicle’s operation on Adak Island is not a slam dunk. As many of you know, the National Marine Fisheries Service has issued a Biological Opinion (BiOp) that links commercial fishing to reduced populations of endangered Stellar Sea Lions. This BiOp greatly restricts fishing in the waters around Adak and throughout the Western Aleutians. Although the BiOp is being challenged in court, its provisions are currently being enforced and their effects on the Adak processing plant are as yet unknown. Additionally, the cost of energy in Adak and throughout our region remains high.

Despite the challenges ahead we remain optimistic that Adak will continue to be a vibrant and productive community with a profitable processing operation. Icicle has already begun processing halibut and Pacific ocean perch over the summer, has tentative plans to process king crab, and is gearing up for the big pacific cod season that begins in late January.

CEO REPORT

PRESIDENT’S REPORT

CHAIR REPORT

BOARD ACTIONS

2011 ANNUAL MEETING

FINANCIAL RESULTS

TAF UPDATE

PFD EARNINGS TO COMMUNITIES

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You’ll find all the information about it in

this issue, along with information about the

Village Seminars, October 13 & 14, Culture

Night, October 14, and Banquet, October 15.

I truly hope you can make it, but if you can’t,

please log on to the webcast of Culture

Night starting at 6:30 p.m. Friday, October 14

and the Annual Meeting, October 15,

starting at 9:00 a.m. Saturday morning. Login

information for the webcasts can be found

on the Aleut Corporation website at www.

aleutcorp.com. Board of Director candidates

will speak at Culture Night with a question

and answer session to follow.

By now you have received your Proxy

Statement. Early bird prizes for $2,500 and

$1,500 will be drawn from those proxies

received by the election judge no later than

September 23, 2011, at 5:00 p.m. AST.

Voting prizes of $5,000, $2,500, $1,000,

$500, and $250 will be drawn from

those proxies received no later than

October 11, 2011, at 5:00 p.m. AST.

Every vote counts and we appreciate your

participation. Remember, you can vote

online as well.

I enjoyed my August visit to Unalaska

but unfortunately couldn’t get to Atka,

Nikolski, Akutan or the Pribilofs due to the

Aleutian weather. We’ll try again next year.

Hope to see you next month!

President’s Reportby Thomas Mack

This summer’s Culture Camps were a

great success and every one of them had

more participants than ever before. It’s

wonderful that our Elders, artists, dancers

and instructors pass on our cultural ways

in much the same manner that it’s been

done for hundreds of years.

With Culture Camps behind us, it means

only one thing…the Annual Meeting is

right around the corner. We’re putting

together the final details for the 39th

Annual Meeting of Shareholders to be held

October 15, 2011, at the Dena’ina Center.

Welcome New Shareholders

Diane AndersenMichael AndersonJulia Anderson-BrooksJohn BereskinDonald BernerKirk BernerMarie BivensTina BrownCrystal CarterBeverly CraigKenny CraigRobert CraigSandra CraigFermore Craig, Jr.Fermore Craig, Sr.Mary Craig-KenorasTara Craig-McKayJohn DelaneyJuliet DelaneySusan DuganKaylyn DushkinDennis EndresenGeorge GundersenEric GustafsonAlfey HansonAndronik HansonAlfey Hanson, Jr.Arthur HapoffCherhonda HartongKaleah KochutinElizabeth LowtherJeannie LowtherKathy LowtherBrandy MerculiefCasper MerculiefMiriam NationDebbie PenneyDennis PercyTrey PowellAlice RoseColleen ScholtenJeremiah StepetinDannette SzczutowskiTerryl TruluckAnna WahlenDale WahlenDwayne WestShannon Williams

TAC subsidiary C & H Testing LLC team. Gold award winner in recognition of excellent Safety Scorecard performance for the 2nd quarter of 2011.

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Chair Report by Sharon Lind October and the Annual Meeting are upon us very soon. Typically I use this space in the newsletter to inform you of board actions. This time, however, I would like to share with you some changes in the boardroom that are taking place very soon.

Recently, I was hired by the University of Alaska as an assistant professor. I am now in the position teaching this semester and working with UAA to develop curriculum for a course we are calling Alaska Native Business Management. The Alaska Native Corporation business model is unique to Alaska. A course on this model is a welcome addition to the UAA business department and I’m excited to be part of this new emphasis at UAA. I look forward to mentoring future managers for Alaska Native corporations around the state.

In light of my new career direction, I feel it is be best to step down as Chairman of the Board at this time. I will remain on the board of directors as a board member and I so look forward to serving you in that capacity. I have had the pleasure of serving

Board ActionsDirected management to schedule a • workshop in conjunction with TAC Christmas party to review Board Policies.

Directed management to move • forward with the Shareholder Survey.

Tabled discussion on the President’s • wage adjustment until the February board meeting.

Approved the FY2011 incentive • compensation payout of $222,654 for staff and $127,224 for the CEO, CFO and President.

Approved management’s • recommendation for TAC to formalize an agreement for a potential acquisition by TAC.

Approved the Aleut Enterprise • Board’s recommendation of $700K for capital equipment and to also create an LLC for this organization.

as your Chairman for five years now and I have found this role to be rewarding. I have learned so much from my fellow board members and I look forward to working with them as a board member with a new Chairman at the helm this October.

To my fellow board members, I would like to say thank you. I have appreciated the opportunity to serve, and I have learned so much from each of you. You have given me the guidance, support, and mentorship I have needed while in this important role. This has been a gratifying position to hold with such a wonderful team of individuals alongside me.

Approved a donation of $10,000 to • the Alaska Native Heritage Center.

Approved a donation of $5,000 to • the Lost Village project.

Approved revisions to Policy 204.1 • Board Benefits.

Directed management to pursue • Pollock allocations as per original Adak agreement.

Directed management to issue • a Request for Proposals for TAC audit.

Directed the Shareholder Affairs • Committee to develop a policy on the criteria for selecting Shareholder of the Year, Elder of the Year and Student of the Year.

Directed management to plan a • joint meeting with the subsidiaries after TAC annual shareholders meeting in October.

I would also like to thank you, our shareholders, for your support, kind words, and advice. The Aleut Corporation is growing and your board is excited about TAC’s future prospects. Finally, I would like to thank the wonderful management team and staff. What a wonderful group of individuals we have both in the boardroom and on the staff.

As I said, I am not resigning from the board. I am just stepping down as Chairman. Our future is bright, the foundation of your company is strong, and our opportunities are exciting. Your board is working hard to secure the future for generations of Aleuts to come!

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2011 Annual Meeting

THEME: Moving Forward

You’ll notice in the Proxy Statement and the Annual Report that our focus this year is on moving the corporation forward based on the results of the shareholder survey. We are using this same theme at the Annual Meeting.

V ILLAGE SEMINARS: All shareholders are welcome. Thursday, October 13 & Friday, October 14, 9:00 AM to 5:00 PM 2nd floor – Kenai Rooms 1 & 2

The village seminars are utilized by shareholders to draft shareholder resolutions to be presented at the annual meeting and to listen to and discuss topics currently affecting our communities and shareholders.

CULTURE NIGHT: Friday, October 14, 6:30 PM to 8:30 PM 2nd floor – Tyonek Rooms 3, 4 & 5

We will host Culture Night on Friday, October 14, the evening prior to the annual meeting. The program schedule is as follows:

Hors d’oeuvres will be served at 6:30 PM•

Introduction of village corporation presidents•

Introduction of board of directors•

Thank you to sponsors•

Introduction of board candidates (2 mins each)•

Questions to board candidates (15-20 mins)•

Dance performance by • Atxam Taligisniikangis

The question and answer period will run as follows:

All candidates running for the board will get two minutes to state their name, •

where they are from and why they are running for the board of directors.

Audience members will be asked to write down their questions on pieces of •

paper when candidates are giving their two minute introductions.

Because of time constraints, only a few questions will be randomly drawn and •

asked of all candidates.

THE 39TH ANNUAL MEETING OF SHAREHOLDERS WILL BE HELD AT THE DENA’INA CENTER ON OCTOBER 15, 2011.

WHERE TO STAY?

The Downtown Marriott • (circled on the map on page 5) is offering rates of $105 plus tax per night. Call (800) 228-9290 and ask for the Aleut Shareholders block. Or go online to www.marriott.com/ancdt. Enter the check-in and check-out dates. Click on “Special Rates & Awards.” Select “Group code” and enter ALEALEA.

The Anchorage Sheraton • Hotel is offering rates of $99 plus tax per night. Call (907) 276-8700. Or go online to www.aleutcorp.com and find the Sheraton link to make reservations for the special rate.

Coast International Inn• is offering competitive rates. Call (907) 243-2233 for reservations.

MOVING FORWARD

COR PO R AT I ON

2011 ANNUAL REPORT

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Key Parking Garage Hours of Operation Rates

17th & G Street Garage

627 H StreetMon.-Thurs. 3pm-6pm Fri.-Sun. 24 hours

Hourly: $1.00

Daily: $8.00

26th & H Street Garage

700 West 6th Avenue24 hours

3JC Penney Garage 414 West 6th Avenue

24 hours

PARKING AT THE DENA’INA CENTER

For more info on downtown parking, visit http://www.acda.net/

Dena’ina Civic & Convention Center

Marriot Hotel

TownSquare

AlaskaPAC

5th Avenue Mall

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ANNUAL MEETING OF SHAREHOLDERS: Saturday, October 15, 8:30 AM to 4:00 PM2nd floor – Tyonek Rooms 3, 4 & 5

Highlights:

Shareholder Resolution Reports•

President’s Report•

CEO’s Report•

Dance Performance by • Atxam Taligisniikangis

Elder, Shareholder, and Student of the Year Awards•

Board of Directors’ Election Results •

The Aleut Foundation Split the Pot•

Proxy Prize Drawings•

ANNUAL BANQUET AND DANCE: Saturday, October 15, 6:30 PM to 1:00 AM3rd floor – Cook Inlet Ballroom

Dinner – Ticket required (only 700 •

available) $50 each, includes dance.

50 children’s plates available for age

10 and under at $15 each. Tickets are

available at TAC office. Credit card

orders accepted. Call (907) 561-4300

or (800) 232-4882.

The Aleut Foundation Split the Pot•

Door Prize Drawings •

Dance – Music by • Blast from the Past

WEBCAST

If you can’t make it to the Dena’ina Center for the Annual Meeting, join us by webcast.

For login information, email info@aleutcorp.com. Use WEBCAST for the subject line, and in the email include your name

and last four digits of your social security number or date of birth.

Atxam Taligisniikangis

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By now you have all had an opportunity to review the 2011 Annual Report. We normally explain the financials at the Annual Meeting, and a number of you have

Comparison of FY2010 & FY2011 Financial Resultsasked for an explanation of the difference in results from FY2010 to FY2011. We realize not everyone can attend the meeting, so we are including a brief explanation here:

FY 2011 FY 2010 Year Over Year ChangeTotal Revenue 143,046,000 159,416,000 (16,370,000)Total Net Income 8,381,000 26,702,000 (18,321,000)

The $16,370,000 reduction in revenue is coming primarily from Aleut Management Services (AMS), our government contracting company. AMS, like many other government contracting companies, has experienced a slow-down of business as a result of the many changes and challenges to the 8(a)

program. Sam Cole and his team at AMS are

working hard to turn those results around.

The $18,321,000 reduction in net income is coming primarily from three sources (none of which are from our core business operations):

FY 2011 FY 2010 Year Over Year ChangeGain on Sale of Ki & Akima - 8,538,000 (8,538,000)

Income Tax Benefit 9,000 6,414,000 (6,405,000)Equity in Earnings of Unconsolidated Investments 4,560,000 6,319,000 (1,759,000)

Total (16,702,000)

The reduction in equity earnings is primarily the winding down of the CSA contract in Kuwait. The reduced income tax benefit means that fewer NOLs were utilized in 2010. These NOLs are still available for use in future years.

The 2011 audited financials also show that there was a reduction of $7,495,000 in cash, but that there is still a healthy cash position of $31,079,000 as of March 31, 2011. About half of the $7,495,000 reduction in cash or $3,357,000 is coming from paying off debt and increased dividend payments.

FY 2011

Pay-Off of Line of Credit 2,000,000

Increased Dividend Payout from $4,332,000 to $5,689,000 1,357,000

Total 3,357,000

The other factors causing cash to decrease is less cash from operations in FY2011 as compared to FY2010. Again, at the end of FY2011, TAC maintained a healthy cash

position of $31,079,000 (which does not include the $11,251,000 in the Permanent Fund or the $15,257,000 in investments).

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MOVING FORWARD

2011 non-board proxy statement

AleutCOR PORAT I ON

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How to ApplyTo submit your name for consideration to serve on a subsidiary board, please submit a letter of interest and a resume.

MAIL: 4000 Old Seward Hwy, Suite 300 Anchorage, Alaska 99503

EMAIL ADDRESS: info@aleutcorp.com

FAx:(907) 563-4328 Your letter of interest should include why you wish to serve on a subsidiary board and what you believe you will bring to the organization.

The Aleut Corporation wholly or partially owns a number of subsidiary corporations. A five-member board of directors oversees the subsidiary corporations and works closely with subsidiary management. The Aleut Corporation appoints members to serve on the subsidiary boards for three-year terms.

Qualified persons may submit an application and resume for consideration of appointment to a subsidiary board.

Appointment decisions will be based on a combination of any or all of the following qualifications.

PROFESS IONAL QUALIF ICATIONS

Demonstrated experience and • knowledge in the subsidiary’s area of responsibility.

Demonstrated ability to organize, • plan and act strategically.

Subsidiary Board of DirectorsDemonstrated successful • experience in strategic planning.

Demonstrated experience and • knowledge in analytical, problem-solving, decision-making skills and sound judgment.

Demonstrated ability to identify • and resolve problems.

Prior service on a for-profit board • of directors.

Demonstrated ability to work • cooperatively with others.

High motivation, with the time and • dedication required to prepare for and attend board meetings.

Strong communications skills. •

Demonstrated education and • experience in business.

Is committed to the Aleut • Corporation’s purpose, vision and strategic goals.

You may have noticed that this year’s proxy

statement is a new design. This was an option

the board of directors approved to insure

that all shareholders are aware of any legal

proceedings involving candidates running for

the board. Therefore, this new proxy and proxy

statement were the legal way to disclose this

information to all shareholders. You also may

have noticed that the new proxy statement

does not include compensation information.

That information is included when the board

of directors solicits a proxy, but the law does

not provide for that information in a proxy

solicitation which is not from the board

of directors. However, that compensation

information is posted on The Aleut

Corporation’s website for shareholders

to review.

New Proxy Form for FY2011

DISQUALIF ICATIONSBankruptcy • Conviction of fraud or theft•

For job openings, visit:www.ALEUTCORP.com

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PNAC Annual Picnic

Checking door prize tickets

CEO Dave Gillespie, PNAC President Margaret Wisbey, and ticket winner Lorna Washington

Lowell Williams, Jr. and familyTeddy bear prize winner

Elder Alice Tu

PNAC children prizes

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Don’t want to wait for your November dividend to arrive in your mailbox?DIRECT DEPOSIT APPLICATION

DEADLINE - OCTOBER 24, 2011

If you want your November dividend

direct deposited, please submit your

application and voided check by the

deadline.

November DividendsNovember dividends at $7 per

share will be mailed or deposited

November 4, 2011.

The Aleut Foundation Board of Directors congratulates the 2010-2011 graduates. Please note that these are graduates that we are currently aware of and are current or

former scholarship recipients. If we missed a student who has graduated, please let us

know so we can acknowledge the accomplishment.

Beers, Timothy Masters in Teaching, Central Washington University

Comer, Jade Education, University of Alaska Southeast

Cumberlidge, Edith Educational Leadership, University of Alaska Fairbanks

Dempsey, Madison Exercise/Sports Science, Western State College of Colorado

Gerking, Leslie Makeup Artist, Joe Blasco Makeup Artist

Gladsjo, Dorothy Business, University of Alaska Southeast

Gromoff, Cierra Child Psychology, Hampshire College

Guffey, Deanna Art History, Western Washington University

Steven Hall Teaching, Central Washington University

Hinkle, Haley Cosmetology, Marinello School of Beauty

Jansen, Kelley Psychology, Whitworth University

Johnson, Troy Masters in Business Administration, Marylhurst University

Kelsay, Mary Apparel Design and Services, Seattle Central Community College

King, Natalie Masters in Acupuncture/Oriental Medicine, Seattle Institute of Oriental Medicine

Lee, Jessica Law Degree, University of the Pacific McGeorge School

Lekanof, Phillip Business and Office Technology, AVTEC

Lekanoff, Felipe Heavy Equipment Operator, West Coast Training

Merculief, Chris Marine Technician and Mechanic, Marine Mechanics Institute

Merculief, Desiree Technology, University of Alaska Anchorage

Philemonof, Dimitrius Computer Aid Drafting, Charter College

Philemonoff, Lynelle Civil Engineering, University of Alaska Anchorage

Philemonoff, Rachel Business Management, University of Alaska Anchorage

Pletnikoff, Perfenia Paul Masters in Sport & Exercise Psychology, University of Jyväskylä

Rivers, Eula Emergency Services and Law Enforcement, University of Alaska Fairbanks

Schliebe, Edith Early Childhood Development, University of Alaska Fairbanks

Simmons, Chris Graphic Design, Northern Kentucky University

Smith, Edward Information Technology, Charter College

Solden, Darlene Medical Assisting, Heald College

St. Michell, Jessica Sociology, University of Washington

Villalobos, Jasmine Medical Administrative Assistant, Everest College

Wilson, Roseanne Masters in Business Administration, University of Alaska AnchorageIqyax̂ launching ceremony

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Unalaska Visit

ShareholdersDenise Ranking, Randy White and Genee Shaishnikoff

Shareholder meeting

Posing Harbor Seal

Brian Rankin and family Shane Tungul & Cheyanne Shaishnikoff

Akutan

Baby Islands, Akutan Pass

Village of Akutan

Construction of Akutan Harbor

Ticket winner Rufina Shaishnikoff with President Mack

Gert and Sam Svarny

Dutch Harbor

Akutan Volcano

CEO Gillespie and Mercedez Caudillo

Josephine Shangin and Sally Swetzof

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The Aleut Foundation Update by Cynthia Lind, Executive Director

Aang Aang! It has been a very busy summer at The Aleut Foundation and it just continues to get busier. We like it that way.

CULTURE CAMPS

The Aleut Foundation had a number of requests to attend the cultural camps that were held throughout our region and in Anchorage this summer. The following people were sent to the APIA Culture Camp: Edna Larsen Huwe, E. Jane Mensoff, Lynette Mack, Ethan Mack, Emmaly, Bethany and Braydyn Brandell. To the Sand Point Culture Camp we sent Dawn, Joshua, Katelynn, April and Robert Kochuten.

ALEUT ExTR AVAGANzA R AFFLE

We are pleased to announce that we will have the Aleut Extravaganza Raffle this year at the Aleut Corporation’s Shareholder Meeting in October. We are in the process of soliciting donations for raffle prizes. If you are interested or can suggest anyone or an organization that can donate an item, please contact us at TAF.

the

foundation

“Enhancing the life and culture of the Aleut People”

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

THE ALEUT FOUNDATIONPhone Number: 907.646.1929Toll-Free: 800.232.4882 – ask to be transferred to The Aleut FoundationFax Number: 907.646.1949Email: taf@thealeutfoundation.orgWebsite: www.thealeutfoundation.org

REMINDERThe Spring 2012 Scholarship Deadline is November 30th!

The scholarship applications for spring 2012 are currently available online. If you missed the deadline for the fall, here is your chance to apply.

As a reminder, there is no deadline for the vocational training or career development scholarships. These applications are available online.

Urban Unangax Culture Camp - saquchaadan - little birds

Urban Unangax Culture Camp Potluck

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Honors (GPA 3.5-4.0) Bartell, ScottBeers, MarleeBeers, JacobBoyce, JordanBishop, KaylaBruce, CaitlinCalver, ShaunaDobson, ChelseaDosal, MariaDunn, KaraEtheridge, SaraiFoster, AmberFranzel, TaylorGeorge, CherylGould, RayGundersen, MartinHatch, HaleyHenney, zachKashevarof, MichelleKenezuroff, EvangelinaKochuten, ChantaeKozloff, SashaLekanoff, RachelLestenkof-Mandregan, CaraLestenkof, SherryMeehan-Regnani, TinaMelovidov, SeanMerculief, AlexisMerculief, TylynOrloff-Duffey, JuliaPallotta, CaitlynScott, MarieShultz, EmilyStepetin, RobinStone, FrancesStrick, AliceStowe, LukeTutiakoff, Anfesia

Exceptional (GPA 3.0-3.4)Beers, JessicaBurritt, MonethaChambers-Link, JiannaChristiansen, MadisonCurtis, JohnDobbs, NathanielFranzel, ChelseaFrisby, AnnaGalovin, JessicaGalovin, ThomasGerking, HaleyGould, HeidiGregory, DeloresHatch, LaurenHenney, TylerJackson, EleanorJackson, JacobKimball, AlexandriaKochuten, NadineKashevarof, KailynLestenkof, AlexandraLestenkof, LeilaniMack, KjellMack, SamanthaMcMillan, KennethMeisner, AlexanderMelovidov, ConcepcionMelovidov, Myron Jr.Melovidov, RaymondMelovidov, ShionaMerculief, RodneyMoller, CarleneNewhall, ChristinaOlanna, TheresaPfeifer, JamesRobinson, NikitaRuiz, OmarSavaglia, MonicaShay, DedraShelford, Scott

Shellikoff, DanelleWales, IsaiahWalker, MilesWebb, AshleyWebb, BriannaWithers, Carsonzacharof, Sophia

Achievement (GPA 2.5-2.9)Adams, MarcusArcher, SamuelBereskin, SarahDeatherage, VictoriaElgarico, MarissaFostyk, DerekHarris, DominickIvanoff, RolandKirch, JustinLaramie, LeahLawrence, JustinLekanof, TracyLindsey, RichardMack, MarisaMerculieff, TerrenceMierzejek, SamanthaMoehring, NicholasMyers, TanaNiederhofer, FayePaull, ElizabethShelford, NicholasTorres-Pallotta, ChelseaTurner, ErikWarman, ShaunWeston, ziannaWilliams, RobertWilson, Honey Lou

Merit (GPA 2.0-2.4)Anderson, ShastaAus, TrinaBland, Lauren

Chuitt, RachelDushkin, CharleyGreen, EvaJansen, JacobKohler, CoulsenJackson, SamuelJohanssen, JonathanKudrin, DougMack, CodyOwens, KelseySamuelson, JonathanSavaglia, AnthonySchaack, CandaceStepetin, AngelicaStepetin, ThomasTakaoka, Bianka

Part-TimeBeers, JoshuaEndresen, ArthurFoster, SherryGronholdt, JacoleKashatok, RoxanaLudvick, HilaryMaitland, AmyMerculief, AthenaMcGlashan, MichelleMcMillan, MelissaPeters, Lauren

GraduateChristiansen, TessDirks, LisaFostyk, StephenGillette, KatrinaHinson, MatthewHorine, WayneJackson, NicholasLee, RyanMack, LizaMakarin, SeanNewton, Fanny

Page, AmyWoods, Tina

Working Evans, GillianHall, GingerVergen, Skoey

Distance LearningMack, SummerGladsjo, DorothyHoblet, NicoleLewis, TannaMelovidov, NadiaSchliebe, Edithzacharof, Juliana

VocationalChristianse, JanelleGould, RayannaKenezuroff, KatrinaMack, JaniceMelovidov, VictorOsterback, DanaSamuelson, Raven

Advanced College CreditsMaxwell Beers

Lily Hope-McGarvey Health ScholarshipSharayah Foster

Gabe Stepetin Business ScholarshipDesiree Merculief

Andrew Gronholdt Arts ScholarshipDevyn Dobson

2011-2012 SCHOLARSHIPS

This year TAF awarded over 180 scholarships. This is an amazing increase from last year and we are very excited to help provide funding for our shareholders’/descendants’ education.

On behalf of TAF Board of Directors and staff, we wish the following students the best of luck this coming year.

Article reprinted with permission from The Loop, a newsletter published by the Aleutians East Borough.

AEB’s communities have big plans for permanent fund earnings the Assembly agreed to disperse to its five cities and one tribal village as part of an economic development grant agreement. Earlier this summer, the AEB Assembly discussed the Borough’s code, which allows the Assembly to take a percentage of the Borough’s PFD earnings and allocate funding (up to a limit established by the ordinance) to projects. Assembly members voted unanimously to provide $150,000 each to Akutan, King Cove and Sand Point and $75,000 each to Cold Bay, False Pass and Nelson Lagoon.

Sand Point intends to use its $150,000 allocation as a match for the engineering and design work to upgrade the Robert E. Galovin Small Boat Harbor. The City has received a $5 million grant from the State of Alaska’s Department

Aleutians East Borough Assembly Allocates Permanent Fund Earnings to Communities

of Transportation. These funds must be matched dollar-for-dollar. The City anticipates having the final design completed by March 2012.

King Cove plans to use $100,000 towards the permitting and final design work for the Waterfall Creek Hydro electric project. An additional $50,000 will go toward the water geophysical investigation project for the Delta Creek Valley ground water system. The City will match the amounts for both projects dollar-for-dollar.

Akutan has a City Council and Planning Commission meeting scheduled for September 13, 2011. At that time, community leaders and residents will identify project needs.

The City of Cold Bay intends to use its $75,000 allocation to go towards the installation of a new cathodic protection adnodes system to the causeway. The goal is to prevent decay of the causeway pilings leading out to the dock since there isn’t any protection left on the pilings.

Nelson Lagoon is dedicating its $75,000 allocation to repay a portion of its loans used to purchase the community’s annual bulk fuel and aviation gas.

False Pass owns the community’s electrical utility and runs it as a co-op. The purchase of its bulk fuel is now complete for fiscal year 2012. The city plans to pass its $75,000 grant funding on to False Pass residents by subtracting this funding from the fuel surcharge on customers’ bills.

Ethan Petticrew, Crystal Dushkin and Sally Swetzof

Isaac Giles and Emmaly BrandellAndrew AbayoLaunching of Iqyax̂ ceremony

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Lost ShareholdersIf you know anyone on this list, please have him or her contact the Shareholder Department at (800) 232-4882 to update his or her current contact information.

Egan Hugh AskayMary Ann BagleyTina BrownFrederick Lee ChouinardRobert ChouinardMelody ClaryKenny CraigSandra CraigChris DimickMary Lou FletcherAlbert Wayne Fredericks, Jr.Michael Ray GalovinRonald Ray GalovinStanley Robert GalovinAlexandra GilbertLloyd Dale GundersenRod E. HareDavid L. JohnsonRegina Ann Kelly JohnsonButch Geronimo Johnson, Jr.Tony E. KalookTammy Ann LekanoffPaula Marie LevesqueLeo John MillerJessi L. NewmanJacinda Susan OlsenCarole OrloffSara OrloffClarence L. PardueAlice RoseAnnie M. ScottBonita Dee SeverianQuemond L. ShearerArnold SifsofChristopher G. SiftsoffRobert James SmithmyerDannette E. SzczutowskiMuriel Jeanette TumblooHeather Marie Van PeltThomas F. WhiteTony Arnold WhittedGlen Nathaniel Woodall

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.

93 VIVIAN CARLSON Seattle, WA

51 TIMOTHY EMANOFF Tacoma, WA

57 HELEN HAzELYuma, Az

55 W. JAY HIGGINS Anchorage, AK

66 SANDRA JOHNSON Anchorage, AK

51 AGAFANGEL LEKANOF St. George Island, AK

56 NENA MATHE Anchorage, AK

89 ALMA MCCORMICKAnchorage, AK

71 ELISAVETA MELOVIDOV St. Paul, AK

47 ALICIA MERCULIEF St. Paul, AK

49 RICKY MITCHAM Newton, KS

82 EVELYN MOLINE Bellingham, WA

75 ELIzABETH OWENS Rock Island, IL

72 KATIE SEVERSON Anchorage, AK

48 DANIEL STEFFENSEN, JR. Anchorage, AK

39 MELINDA LAYFIELD Anchorage, AK

Irene Thompson passed away on August 23, 2011. She is survived by Rodney Thompson of Republic, WA; sons Miles Thompson of Anacortes, WA and Dan Thompson of National City, CA. Also brothers Wilbur and Gabe McGlashan of Sand Point, AK and sisters Anna Mack of King Cove, AK; and Jenny Guffy of Edmonds, WA; and many, many nieces and nephews. She will be greatly missed by all.

71 IRENE THOMPSON Republic, WA

15

Unangam TunuuWord of the Week Sound file narrated by Crystal Dushkin of Atka, AK*

Nii}u}im Tunuu (Atkan Dialect)

Kiimidgi{ Fall, Autumn

A sound file is sent as an email attachment, along with this pdf document, as part of the subscription to Unangam Tunuu Word of the Week. Please see email message to hear the attached sound file. For more information please contact Millie McKeown at milliem@apiai.org or Sharon Kay at sharonkay@apiai.org or (907) 276-2700. Week of 09/26/10

The Aleut Corporation Board of DirectorsSHARON GUENTHER LIND Chairman

DebrA MAck Vice Chair

DICK JACOBSEN Vice President JENIFER SAMUELSON NELSON Secretary/Treasurer

TArA BOURDUKOFSKY Director

ELARY GROMOFF JR.Director

JAMES JENCKES IIDirector

STANLEY MACK Director

cArL MOSES Director

A L E U T W O R DKiimidgi{Fall , Autumn

TAC StaffExECUTIVE & SHAREHOLDER AFFAIRSThomas Mack, PresidentDavid Gillespie, CEOJenelle Morris, Director of Environmental, Health and Safety Memry Dahl, Human Resources DirectorChris Lace, Administrative ManagerShirlee Smith, Executive AssistantAngela Bourdukofsky, Shareholder Relations ManagerAnna Jensen, Shareholder Records ManagerMaggie Samuelson, Receptionist

FINANCE & ACCOUNTING

Tracy Woo, CFO & General CounselRob Hemmen, ControllerBill McDonnell, Financial Analyst Dave Nevzuroff, Accounting ManagerGenevieve Karlsen, Accounting TechnicianShelly Tuttle, Staff Accountant

ALEUT REAL ESTATE, LLCTony Cange, PresidentMelvin Smith, Operations Manager

One Aleut Plaza

4000 Old Seward Highway, Suite 300

Anchorage, Alaska 99503

Phone Number: 907.561.4300

Toll-Free: 800.232.4882

Fax Number: 907.563.4328

Email: receptionist@aleutcorp.com

Website: www.aleutcorp.com

Shareholder Affairs

Email: info@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