January 13, 2017

Dear Shareholders:

As you may recall, Shee Atiká Incorporated’s mission is to “preserve and enhance our culture for all generations of shareholders, and to provide benefits to shareholders consistently and on an equitable basis.”

Always with our mission in mind, the Shee Atiká Board reviewed the financials in preparation for receiving the proceeds from the sale of Cube Cove land to the US Forest Service.  This past Fall Shee Atiká received $4 million of the $18.3 million sales price for 2 parcels of Cube Cove land and will work to sell the remainder of the property as funds are appropriated by Congress.  Therefore, the Board has taken action to assure that the proceeds from the Cube Cove land sale will be used wisely and in compliance with the mission statement for all generations of shareholders.  In order to accomplish this, the Board has taken a hard look at expenditures.

The Board has evaluated all expenditures in order to preserve cash with the understanding that there are reasonable costs necessary to operate our company.  Moreover, the Board recognizes that shareholder educational benefits and distributions have always been deemed by the shareholders to be a high priority and the Board has taken steps to maintain these benefits to the shareholders.

With this in mind, the Board has taken steps to reduce costs annually at all levels of the corporation and has made the following changes beginning in 2017:

Eliminated:

• Alaska Native Corporation Director Training
• Director travel and attendance to the Alaska Federation of Natives Convention
• Director travel and attendance to the Sealaska Annual Meeting
• Spring Informational/Candidate Meetings in Seattle, Anchorage, Juneau and Sitka
• Holiday Parties in Seattle, Anchorage, Juneau and Sitka
• Art Committee Meetings
• One Board Meeting
• Scholarship Committee travel to Sitka, members will now participate via teleconference
• Janitorial Services for Lincoln and Alice Island buildings, staff will rotate and clean
• William Paul/Charlie Joseph Award Dinner
• Memberships in Southeast Conference and Alaska Chamber of Commerce

Reduced:

• Director Fall Planning Meeting from 3 days to 2 days and moved from Seattle to Sitka
• Contributions
• Wages and benefits by right-sizing staff
• Administrative travel, lodging, and meals
• Number of Special Board Meetings
• Board Fees (by elimination of events)
• Legal and Consulting expense
• Office Supplies expense
• Printing/Mailing/Postage (no longer needed for eliminated events)

• Funeral Benefit by 50% from $1750 per person to $875 per person

The combination of the above changes saves the corporation approximately $1 million in operating expenses annually, which helps achieve the goal of providing benefits to all generations of shareholders.

Additionally, the Board has decided to revert back to the original practice of making one distribution per year rather than two.  This one distribution will take place in the fall.  This change will reduce the expenses required for making the distribution.  More importantly, it keeps the balance of invested funds at a higher level for a longer period of time.  This allows the invested funds to earn more income throughout the year and will therefore be in a better position to grow and to provide for this generation and future generations of shareholders.

We thank you for your understanding as we work through all these changes.

Sincerely,

Kenneth M. Cameron

President/CEO and Chairman of the Board