sealaska annual report 2011

our past 40 years & future 40 years

1974 1975 1976 1977

1978 1979–1 1979–2 1980

1981 1982 1983 1984

1985 1986 1987 1989

1990 1991 1992 1993

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honoring our past and our future

Haa ShagóonForty years ago in June Sealaska was legally incorporated.

As we celebrate our 40th anniversary, we live our core value of Haa Shagóon—honoring our past while looking ahead to the future. For years, our parents and grandparents fought for the passage of a land claims bill that would restore to us a portion of the land that had been unjustly taken. The passion and beliefs of people like Emil Notti, Marlene Johnson, Amy Hallingstad, Peter Simpson and countless others led to the historic passage of the Alaska Native Claims Settlement Act (ANCSA) in 1971, securing in perpetuity our abiding connection to the land.

Last year in this report we celebrated the 40th anniversary of ANCSA and the iconic leaders who fought so hard to secure its passage. This year, we recognize the leaders born since 1972 who share their vision of the company through its next 40 years.

Our first 40 years have seen the company grow into a strong institution with subsidiary businesses operating internationally. We’ve educated, trained and hired tribal member shareholders to be leaders throughout our diverse operations, and through the work of the Sealaska Heritage Institute (SHI) we have seen a resurgence of Native culture, art, dance, language and pride in living our Native values. As Native people, we’ve come together in solidarity and in purpose, putting our values into action every day.

Our very first mission statement captured that sense of solidarity and shared values and the strength of our collective identity. Today, our mission is to create opportunities for our people and to strengthen culture and communities within our homeland by embedding Alaska Native values in daily operations and achieving business excellence.

that’s values in action.

letter

dear tribal member shareholders,Forty years ago in June, Sealaska was

incorporated under the terms of ANCSA. The

purpose of the act was to forever protect Alaska

Native land, rights and ways of life. ANCSA was

forged with the strength of our collective identity

as Alaska Natives and based upon core Native

values that guide our actions. As we celebrate

our 40th anniversary, the board of directors has

reaffirmed that our values will continue to guide

us and the vision for our future, including those

shared by several young Alaska Natives in this

annual report. Together, we will chart the path

for our continued collective success.

You will be hearing more about our core Native

values as we renew our focus and revitalize

Sealaska through our “Values In Action” effort.

Values in Action will permeate everything we do,

grounding all of our efforts in our core values:

Haa Aaní, our land, and the basis of our collective

identity and culture; Haa Shagóon, our past,

present and future; Haa Latseen, our collective

strength and leadership; and Wooch.Yax, balance,

reciprocity and respect. Values in Action will

make plain to Sealaska tribal member share-

holders and the public what Sealaska does and

why we do it. We are not an ordinary for-profit

enterprise. We leverage our core cultural values

as a basis to achieve business excellence that will

create sustainable economies on our land and

opportunities for tribal member shareholders.

Our values are evident in Sealaska’s activities

and growing business ventures.

The formation of the Sealaska subsidiary Haa

Aaní, LLC by the Sealaska Board of Directors

speaks directly to the core value Haa Aaní.

Haa Aaní, LLC was established to promote

the cultural, social and economic viability

of Southeast Alaska communities through

collaboration, innovation and direct-resource

investment in community stability. Haa Aaní,

LLC has built momentum through its initiatives,

such as oyster mariculture and renewable energy,

and we are now seeing interest from state and

municipal governments to collaborate in creating

sustainable economic opportunities. In the

region, Sealaska has led by example, developing

and installing the first renewable energy biomass

heating system for a commercial building in

Alaska, and championing the construction of the

new Walter Soboleff Center in Juneau.

In alignment with the value of Wooch.Yax,

Sealaska continues to create opportunities with

business partners through relationships based on

balance, reciprocity and respect. We continue to

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leverage our Native identity through federal 8(a)

contracting and supplier diversity competitive

advantages, both expanding existing opportu-

nities and developing new ones. But Sealaska

cannot just rely on organic growth: our aim is

to acquire at least one sizeable new enterprise

within the next two years that economically

impacts the Southeast Alaska region, has a track

record of profitability, a pathway to the global

economy and leads to greater tribal member

shareholder capacity.

Increasing tribal member shareholder capacity

is a key goal for Sealaska and reflects the

value of Haa Latseen as we work to develop our

shareholders for employment and leadership.

Especially in rural communities and villages,

where economic conditions are challenging

and jobs are difficult to come by, Sealaska

subsidiaries place a priority on shareholder

employment. Opportunities based in Haa Shagóon

combine the wisdom of experienced Sealaska

directors and staff with leadership programs

for shareholders, such as Sealaska’s scholarship

program, internship program and service as a

board youth advisor.

Along with creating new economic opportunities,

Sealaska has been working hard to maintain

the sustainability of our timber operations—a

key economic driver in the region. Key to this

effort is the continued fight for Sealaska’s land

legislation, a Congressional bill we call Haa

Aaní. We appreciate the hard work of the Alaska

delegation in promoting our bill and credit them

with our success thus far.

It is a huge challenge to live up to the strength

and insight of our past leadership and the

vision of our future leaders. It will take all of us,

standing together, to achieve our ultimate goal

of thriving, healthy Native communities and

culture. We hope you will join us in realizing our

aspirations for the next 40 years and beyond.

Albert M. Kookesh Board Chair

Chris E. McNeil Jr. President and Chief Executive Officer

1980 s 1990 s 2000 s 2011

VISIONARY STATEMENTS from annual reports of the 1970s

1970 s

1970s

“The hearts and minds of our people are as great a resource as dollars, minerals, crops or goods, we pledge to remain what we started out to be; a corporation with a conscience.”

“As a business we must be willing to stand on an equal footing with any business in the world. And we have to be willing to be measured against the demands of the competitive business world.”

“What we have achieved with our investment of time and determination is not a harvest, but the right to plant an immensely valuable crop.”

“With this first annual report, your Sealaska Corporation prepares to take the final organizational steps that will lead our company and stockholders, no matter where they live, to a permanent place in the future of Alaska.”

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Barbara Blake, WAAHLAAL GIDAAK Age: 30 Tribe, Clan: Haida/Tlingit and Athabascan, Yahkw

,Láanaas

Occupation: Technical assistant specialist for the Intertribal Agriculture Council

Barbara applies the lessons of leadership and service she learned as a Sealaska board youth advisor as she helps Alaska Natives navigate the U.S. Department of Agriculture and its myriad programs. Much in the way her career is about supporting Alaska Natives, she believes a successful future for Sealaska means continuing to support tribal member shareholders.

David R. Boxley, Gyibaawm laxha Age: 30 Tribe, Clan: Tsimshian, Wolf Occupation: Self-employed artist

A self-employed artist, David displays his masks, sings original songs and dances with his father’s troupe at Celebration, a biennial event hosted by Sealaska Heritage Institute. David realizes the urgency and importance of preserving Native culture, and would like to see an increase in funding for education, language studies and art. “The next generation should be focused on language and living their lives as modern Tlingit, Haida and Tsimshian people,” he says.

“We have to understand what came before,

before we can change it.” – David Boxley

natural resources see growth in emergent marketsAlaska Coastal Aggregates (ACA) is a supplier of aggregate material for state, federal and municipal projects in coastal Alaska.

2011 was a strong year for ACA, with a 99 percent rise in net revenues over 2010, a substantial increase in tribal member employees, most notably in Klawock, Kake and Hoonah, and a new retail sales office in Yakutat.

Looking to 2012, ACA will maximize tribal member and community employment through additional customer-based operations. Additional initiatives will include a focus on expanding the cement and sand markets in Southeast Alaska and developing a supply line to local mines.

A primary timber producer in Southeast

Alaska, Sealaska Timber Corporation (STC)

continues to pursue forward-thinking

initiatives that ensure the health of the forest

and allow us to continue to harvest timber.

While other timber companies felt the sting of

late quarter dips in operations, STC success-

fully read the markets and avoided significant

drop-offs in sales. STC also continued its work

to engage communities regarding its timber

operations by committing to a “no surprise”

policy that keeps communities abreast of

timber programs in their vicinity.

For STC, one of the highlights of the year

was finding an ancient, partially carved

Haida canoe on forested land Sealaska owns

near the Organized Village of Kasaan (OVK)

on Prince of Wales Island. Recognizing the

canoe’s historical importance, STC took

immediate steps to safeguard the site and

engaged OVK with ongoing protection and

management of the site.

2012 will be another forward-looking year,

with an emphasis on leveraging STC’s skill

set in the region and further defining its role

within a changing industry. The company

will also continue to work with its young

growth stands, focusing on future yields and

opportunities, and setting up the company for

ongoing success.Sealaska Timber Corporation and the

Juneau Economic Development Council

co-chaired a cluster working group on

Southeast timber operations.

natural resources

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99%Alaska Coastal Aggregates exceeded 2010 net revenues by

ACA manages the cedar form program,

which supplies paddle forms

to young artist groups in

Southeast Alaska.

1970 s 1990 s 2000 s 2011

VISIONARY STATEMENTS from annual reports of the 1980s

1980 s

1980s

“We have incorporated the strengths of our culture into our business philosophy.”

“It is not enough to say we support our culture. We must do something.”

“As Western culture and institutions influence the values of our young people, and as assimilation threatens the continuity of our heritage, our relationship with the land is more important than ever. It renews our identity and makes us unique. It sustains us.”

“We will not lose sight of the uniqueness of Sealaska and our special relationship to shareholders and their culture and heritage.”

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Sarah Dybdahl, AAnshaawatk’iAge: 30 Tribe, Clan: Tlingit, Taakw.aaneidíOccupation: Project manager at Sealaska Heritage Institute

Through SHI scholarships and internships, Sarah has worked her way to project manager for SHI, and will be organizing Celebration for the second consecutive time. As the youngest board member of her village corporation, she is modeling a Sealaska tradition of engaging the next generation of tribal member shareholders to take leadership positions.

Ishmael Hope, KAA KWAASKAge: 30 Tribe, Clan: Tlingit, Kiks.ádiOccupation: Intern, Sealaska Heritage Institute

Ishmael is a storyteller, learning the art from his Elders with support from SHI. As Sealaska continues to grow, Ishmael sees it as a tool to keep indigenous languages and multiculturalism alive. He also believes that modern ways of doing business can be positively influenced by incorporating traditional values. “We are much more than symbols,” he says. “It helps us to see the world as our ancestors did.”

“I would like to see Sealaska continue to be an advocate for our people.” – Sarah Dybdahl

20 Number of Sealaska tribal members newly employed at a fish processing plant in Kake, Alaska.

haa Aaní, LLC

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building economic growth in southeastSince its founding in 2009, Haa Aaní, LLC has

been working in partnership with governments,

municipalities, Native organizations and tribes

to promote and create thriving and viable

communities in Southeast Alaska.

As rising energy prices and unemployment

stalk Southeast communities, Haa Aaní,

LLC feels a continued sense of urgency and

desire to bring working solutions to Southeast

Alaska’s rural communities.

In 2011, oyster mariculture took center

stage. Seeking to support a tribal member

shareholder who revitalized a defunct oyster

farm in Angoon, Haa Aaní, LLC brokered a

partnership with Pearl of Alaska, the largest

oyster seed producer in the state, to buoy and

stabilize the small farm. Haa Aaní, LLC also

partnered with Yak-Tat Kwaan to form three

new oyster farms in the Yakutat region,

which will provide jobs for tribal members and

produce more oysters in 2012 than the entire

state combined.

Haa Aaní, LLC also continues to promote

renewable energy across Southeast Alaska.

Projects like the oil-to-wood pellet conversion

implemented by Haa Aaní, LLC at Sealaska

Plaza saved $45,000 in heating costs in 2011. As

a result of the company’s leadership, the U.S.

Forest Service and the U.S. Coast Guard have

followed suit and converted their buildings to

renewable energy.

In 2012, Haa Aaní, LLC will establish the

not-for-profit Haa Aaní Community Development

Financial Institution (CDFI). The CDFI is

intended to spur economic development and

meet the needs of those who might not qualify

for traditional financing.

$45,000The amount saved on heating Sealaska Plaza in 2011, thanks to the conversion to wood pellet heating, a Haa Aaní, LLC project.

1970 s 1980 s 2000 s 2011

VISIONARY STATEMENTS from annual reports of the 1990s

1990 s

1990s

“Growing, harvesting, replanting, and maintaining strict environmental safeguards are equally important jobs for us.”

“Sealaska is responsible for balancing conservation and environmental considerations with shareholders’ economic needs.”

“Sealaska has taken a leadership role in backing subsistence laws that meet shareholders’ needs and that reflect traditional historical practices.”

“Sealaska is many things to many people. But most of all, it is a unique blend. It helps preserve the land and culture of our people, and its business success makes possible economic, educational and cultural benefits for all shareholders.”

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Robert KinneenAge: 37 Tribe, Clan: Tlingit, Eagle Occupation: Chef, co-owner of Fresh 49

Chef and traditional foods advocate Robert Kinneen is inspired by Sealaska’s cultural programming and works to perpetuate Alaska Native resilience. In the future, he hopes to see Sealaska invest in more initiatives like Haa Aaní, LLC, a subsidiary that brings economic opportunities to rural Southeast by incorporating traditional values, like respect for the natural environment. “If you take care of the land it will take care of you. It’s a reciprocal relationship.”

Melissa Kookesh, X’EETOOW Age: 35 Tribe/Clan: Athabascan/Tlingit, L’eeneidí Occupation: Assistant to the president and event coordinator for Central Council Tlingit & Haida Indian Tribes of Alaska (CCTHITA)

As a staff member at CCTHITA and a Sealaska tribal member shareholder, Melissa sees the cooperation between the two entities as one of the most positive aspects of her work. “We’re most powerful when we come together,” she says. She believes a successful future for Sealaska means unity across all Native organizations.

“Everything we do is for our people, and we have to be united to move forward...”

– Melissa Kookesh

services

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100%Year-over-year growth in federal business for Managed Business Solutions

services find expanded opportunitiesColorado-based Managed Business Solutions (MBS) met with success in 2011,in spite of a challenging business climate and delays in negotiated contracts. MBS grew its federal business by 100 percent through federal 8(a) contracting, further diversified its commercial business and launched its Kake, Alaska office with five tribal member shareholder employees. The company also gained traction with its enterprise software solutions, a shareholder-management software program designed for Alaska Native corporations. In 2012, MBS anticipates that increased stability will translate into revenue and profit growth, as well as job opportunities for tribal member shareholders.

Our Subsidiary of the Year for the second year running, Sealaska Environmental Services (SES) achieved a 19 percent increase in profits from last year. Dedicated to environmental management and remediation, SES won three large contracts in 2011, including two with the U.S. Army Corps of Engineers and a competitive contract with the U.S. Navy in Norfolk, Virginia. 2011 was also a year of focused outreach to expand SES’ client base, particularly in New Mexico. With 95 percent of its revenue coming from federal contracts, SES must contend with the general tightening of federal budgets. At the same time, SES continues to build internal capacity and in 2012 will become Sealaska’s first subsidiary to graduate from U.S. SBA 8(a) program.

$25 million Amount of

each of two contracts with the U.S.

Army Corps of Engineers won by

Sealaska Environmental Services

services achieve global presenceFor Security Alliance, LLC (SA), 2011 was a year of geographic expansion. SA opened operations in Los Angeles based on a three-year, U.S. Department of State contract and a new niche in close protection (bodyguard) services. SA also established operations in Seattle to provide security services. In South Florida, SA won three new contracts. In 2012, SA intends to hold on to two major contracts that are expiring this year and which are up for competitive bidding, increase its market share in South Florida and build on its Seattle operation with the goal of creating employment opportunities for tribal member shareholders.

On January 14, 2011, Whiteman Air Force Base in Missouri officially activated its MQ-1 Predator drone squadron beddown facility, a

mere six and half months after kicking off the project with Sealaska Constructors, LLC (SC). The blistering pace was met through careful collaboration between the design team and SC, who was the primary contractor. As a result of this project, SC was awarded new work for the MQ-9 Predator drone. In June, SC was inducted into the Associated General Contractors’ Safety Team based on the high standards of its jobsite safety policies and procedures. SC continues to pursue federal contracts for general construction, civil and infrastructure projects, and environmental remediation and abatement services. SC faces competition from non-federal contractors stepping into federal work and driving down prices. Going forward, SC will stay sharp by focusing on teamwork, safety and streamlined project delivery.

Less than 120 days The time it took Sealaska Constructors

and its design partner to design and construct a Predator drone facility at

Whiteman Air Force Base, 50 percent faster than the typical timeline for such projects.

services

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4Number of continents on which Sealaska Global Logistics works

Sealaska Global Logistics (SGL) is a full-service freight forwarder offering a range of international logistics solutions.

In 2011, SGL enhanced its transportation operations by entering markets in Asia and partnering with connectors on the ground who understand the local nuances. This past year, SGL secured a contract with a Fortune 500 company, proving it has the ability to compete with higher capacity companies and is capable of executing effectively on large projects.

2011 was also a year of building relationships—in India, Europe, Mexico and South Africa, among others—to establish SGL’s position in these emerging markets.

0Number of accidents on Sealaska Constructors, LLC job sites in 2011

1970 s 1980 s 1990 s 2011

VISIONARY STATEMENTS from annual reports of the 2000s

2000 s

2000 s

“The future belongs to those who have the vision to imagine the road ahead, the ability to form a workable plan, and the willingness to work hard to see it through.”

“This is a time of celebration. As we welcome the next generation of Native leaders into the corporation, we are changing the face of our future.”

“There is a vast wealth of knowledge and expertise within our shareholder base. Sealaska is committed to encouraging our shareholders to excel by providing higher education scholarships and career advancement opportunities through shareholder hire.”

“The Southeast economy has benefited significantly through our forestry programs; many communities depend economically on our employment and contracting opportunities.”

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Maka Monture, JINAATLAA Age: 18 Tribe, Clan: Tlingit, K’inéix KwáanOccupation: Student, University of Alaska Fairbanks

As a student of interdisciplinary Native American studies and a Gates Millenium Scholarship recipient, Maka strives to be an example for the next generation. “I live for my culture, and my culture lives through me.” Maka says her career will mirror Sealaska’s commitment to land stewardship and environ-mental protection, which she hopes Sealaska will continue to model in the future.

Madeline Soboleff Levy, SHAA HEI DI TIAA Age: 28 Tribe, Clan: Tlingit/Haida, L’eeneidi Occupation: Law student at UCLA School of Law, self-employed contractor for American Indian law publications

Madeline has worked hard to represent Sealaska, which has supported her through scholarships and internship opportunities, and has set her sights on practicing American Indian law. Madeline would like to see Sealaska receive its full land entitlement under ANCSA in order to further implement its sustainable forestry program and secure economic stability for the region. She hopes to support these endeavors by one day practicing law on behalf of Sealaska. Madeline has been appointed by the Sealaska board as the 2012–13 board youth advisor.

“I live for my culture, and my culture lives through me.” – Maka Monture

nypro kánaak continues to grow despite recessionNypro Kánaak is a full-service plastics manufacturing company that provides high-quality products and services, and is a joint venture between Sealaska and Nypro, Inc.

Building off its success in 2010, revenue grew by more than 30 percent, thanks in part to the acquisition of two anchor clients—Clorox, based in Oakland, Calif., and SC Johnson out of Wisconsin. Kraft also continues to be one of Nypro Kánaak’s top clients.

Nypro Kánaak has taken on the challenge of keeping up with expanding business by fine-tuning its complex manufacturing systems and adhering to lean processes. Goals for 2012 include diversifying its customer portfolio, continuing to pursue large consumer companies as clients and hiring more tribal member shareholders.

largest 4 clients Clorox KraftSC JohnsonProcter & Gamble

manufacturing

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om33 Percent of

revenue growth over 2010

land legislation bills continue to move through congressIn 1971, ANCSA was signed into law, guaranteeing the return of a portion of the ancestral lands of Southeast Alaska’s Native peoples that was unjustly taken. With the return of this land, Sealaska continues to strengthen the economic, cultural and social vitality of its Tlingit, Haida and Tsimshian tribal member shareholders. In 2011, Sealaska’s work to realize the full return of those lands gained momentum.

In an historic bipartisan vote, the bill passed through the House Natural Resources Committee in July and the Senate version now awaits markup in the Senate Committee on Energy and Natural Resources.

This past year we also participated in dialogue with the Obama administration and congressional committee staff, resulting in significant movement toward an agreement on the specific lands that should be conveyed through the legislation.

Sealaska continues to work with all Southeast Alaska stakeholders to ensure that we reach a complete and balanced solution to support our communities, our people and the Tongass itself.

haa aaní—our land

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Ricky tagaban, L’eiw YéilAge: 22 Tribe, Clan: Tlingit, L’uknax.ádiOccupation: Student

Ricky is a student at the University of Alaska Southeast, where he studied the Alaska Native Claims Settlement Act (ANCSA) of 1971. Through his studies, he realized the importance of the land to Alaska Natives. This dedication to the land shapes his vision of Sealaska moving forward. “I think we live in the most beautiful place on earth,” he says. Ricky hopes Sealaska maintains that connection to the land and manages it well into the future.

Ben Young, K’UYÁANGAge: 25 Tribe, Clan: Haida, Taakuu ‘LaanaasOccupation: Haida language specialist and student, Butler University

Ben is currently studying secondary education in hopes of becoming a teacher, and has worked with Sealaska Heritage Institute to create Haida language curriculum geared toward K–12 schools. Ben believes Sealaska’s success lies in its ability to further meet the needs of its rural tribal member shareholders through investments in employment and education.

“Our corporation is so important because it’s one of the ways we relate to the land and each other.” – Ricky Tagaban

three decades of strengthening the future by honoring the pastIn 2011, Sealaska Heritage Institute helped the T’akdeintaan Clan of Hoonah repatriate eight cultural items illegally sold to the Pennsylvania Museum of Archaeology—a project 16 years in the making. The clan will continue to pursue repatriation of the remaining cultural artifacts.

In addition, SHI joined the University of Alaska Southeast to create an internship program that fosters archivists and museum curators. The program’s first intern was accepted to an archivist graduate program in California on a full scholarship.

SHI also engaged the community through our annual lecture series—this year focused on ANCSA—and our newly launched Box of Knowledge Occasional Paper Series, a platform for essays covering all aspects of Alaska Native life.

Looking ahead to 2012, SHI will continue its capital campaign for the Walter Soboleff Center, a premier facility for Southeast Alaska Native arts and cultures. The teachings of Dr. Walter Soboleff, who “walked into the forest” at the age of 102, will serve as the foundation for our new center in Juneau.

sealaskaheritageinstitute

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More than 100 The number of recordings of Tlingit speakers that will be migrated to a digital format, thanks to a grant from the Institute of Museum and Library Services $477,000 Amount that

SHI received in 2011 from Sealaska

and Sealaska Timber Corporation

in support of the institute’s

scholarship program

board of directors

albert M. kookeshAngoon, AlaskaChair

rosita F. worlJuneau, AlaskaVice Chair

byron I . mallottYakutat, Alaska

clarence jackson sr.Kake, Alaska

patrick M. andersonAnchorage, Alaska

bill thomasHaines, Alaska

edward K . thomasJuneau, Alaska

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Joseph G . nelsonJuneau, Alaska

j . tate londonBothell, Washington

barbara Cadiente-nelsonJuneau, Alaska

ralph wolfeYakutat, Alaska

Board Youth Advisor

jacqueline johnson pataFairfax, Virginia

sidney c . edenshawHydaburg, Alaska

jodi m. mitchellJuneau, Alaska

management

chris e . mcneil jr .President and Chief Executive Officer

sam landol Chief Operating Officer

Richard P. Harris Executive Vice President

anthony mallott Treasurer and Chief Investment Officer

jaeleen araujo Vice President and General Counsel

nicole hall ingstad Vice President and Corporate Secretary

doug morris Vice President and Chief Financial Officer

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darlene watchman Director of Shareholder Relations

Jason fuj ioka Director of Sales and Marketing

Vicki Soboleff Corporate Controller

todd antioquia Director of Corporate Communications

Nathan mccowan Director of Corporate

Development and Strategy

Mark Shirley Internal Auditor

Gail cheney Director of Human Resources

Ron wolfe Natural Resources Manager

Rob johnson Information Technology Manager

bob wysocki Director of Operations and Finance

Five-year summary of selected consolidated financial data

2007 2008 2009 2010 2011

Total revenues $ 193,977 $ 119,840 $ 196,017 $ 223,823 $ 259,487

Net income (loss) attributable to Sealaska 30,037 (40,851) 20,285 15,154 6,791

Total assets 360,944 333,892 339,336 361,151 368,664

Sealaska shareholders’ equity 273,652 224,960 240,469 247,933 249,778

Long-term bank debt 21,923 37,074 34,905 31,216 28,288

Short-term bank debt 2,914 2,253 1,949 1,172 1,275

Current ratio 2.75 2.68 3.02 2.39 2.30

Bank debt/equity ratio 0.09 0.17 0.15 0.13 0.12

Shareholders’ equity attributable to Sealaska per share

165.08 123.98 112.72 113.52 112.40

Net income (loss) attributable to Sealaska per share

20.38 (22.66) 11.82 8.08 3.73

Dividends per share $ 7.61 $ 4.32 $ 2.15 $ 3.56 $ 2.24

Cumulative distributions to shareholders and Village Corporations since inception 383,597 409,926 445,795 463,460 487,411

Cumulative Section 7(i) payments $ 315,455 $ 315,499 $ 316,942 $ 317,188 $ 317,188

❖ Dollars are in thousands except per share amounts and ratios. Years ended December 31.

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Corporate OverviewSealaska Corporation was formed in 1972 as one of the

13 Regional Native Corporations created as a result of the

Alaska Native Claims Settlement Act (ANCSA). Sealaska

received an initial sum of money and the title to at

least 362,000 acres of surface and subsurface land and

approximately 300,000 acres of additional subsurface land in

Southeast Alaska. Sealaska currently has more than 21,000

tribal member shareholders descended from the three

Alaska Native groups of Southeast Alaska: the Tlingit, Haida,

and Tsimshian.

Sealaska Corporation operates as a managed holding

company with subsidiaries that maintain offices throughout

the United States and in several other countries, including

Mexico, Canada and in Europe. These subsidiaries operate in

the following business segments:

1. Natural Resources

2. Manufacturing

3. Services

4. Gaming

In addition to these active sources of income, Sealaska also

generates income from the following passive sources:

› Investment income from internally managed

portfolio funds

› ANCSA Section 7(i) revenue sharing from other

Regional Corporations

Financial OverviewSealaska’s consolidated continuing operations produced

revenues of $259.49 million in 2011, up from $223.82 million

in 2010. Net income is $6.79 million, down from net income

of $15.15 million in 2010. Sealaska’s total assets at December

31, 2011 of $368.66 million grew 2.08 percent from $361.15

million at December 31, 2010.

Shareholders’ EquitySealaska shareholders’ equity was $262.1 million at the end

of 2011, which increased from $261.12 million at the end of

2010. Sealaska earned $6.79 million of net income in 2011

and paid shareholder dividends of $4.95 million.

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MD&Amanagement’s discussion and analysis of financial condition and result of operations

REVENUE BY BUSINESS SECTOR

-2% Investments

18%Natural Resources

28%Manufacturing

56%Services

Liquidity and Capital ResourcesAs of December 31, 2011, the Corporation had cash on hand

and current investment securities of $60.27 million. An

additional $91.14 million was held in other investments,

including the Marjorie V. Young Shareholder Permanent

Fund, venture capital funds and private equity funds.

Liquidity 2011 2010

Available funds

Cash, cash equivalents and current investments

$ 60.3 $ 57.7

(Less) restricted balances — —

Total available funds 60.3 57.7

Available line of credit and revolving loan

Total line of credit and revolving loan

68.5 61.5

Less: Outstanding balances (30.4) (26.3)

Less: Outstanding letters of credit — —

Total available line of credit and revolving loan

38.1 35.2

Total liquidity $ 98.4 $ 92.9

❖ Dollars are in millions. Years ended December 31.

Working Capital 2011 2010

Current assets $ 139.2 $ 124.7

Current liabilities 60.4 52.1

Working capital $ 78.8 $ 72.6

Current ratio 2.30 2.39

❖ Dollars are in millions. Years ended December 31.

I. Results of Operations

A. Natural ResourcesIn 2011, Sealaska’s natural resources business segment

was comprised of four wholly owned subsidiaries as well

as the Natural Resources Department within corporate

headquarters. Those subsidiaries were: Sealaska Timber

Corporation (STC), Sealaska Global Logistics, LLC, Alaska

Coastal Aggregates, LLC, and Haa Aaní, LLC.

The natural resources business segment produced revenues

of $45.01 million in FY2011, up from $41.22 million in 2010,

and produced income of $2.2 million in 2011, down from

income of $4.5 million in 2010.

Timber prices were favorable and contributed to a strong

performance for STC in 2011. Sealaska Global Logistics

doubled revenue but fell short of achieving profitability.

The corporate Natural Resources Department in 2011

achieved its forest stewardship plan, and secured $1.2

million in grants. The Natural Resources Department made

considerable investment toward securing Sealaska’s final

land entitlements authorized under ANCSA.

B. ManufacturingFor 2011, Sealaska’s manufacturing business segment

continuing operations included three Nypro Kánaak

facilities: Nypro Kánaak Alabama, Nypro Kánaak Iowa, and

Nypro Kánaak Guadalajara.

The manufacturing business segment produced revenues of

$72.22 million in 2011, up from $54.33 million in 2010, and

income of $1.32 million in 2011, up from income of $728,000

in 2010. Sealaska Corporation completed the shutdown

of Olympic Fabrication, LLC in 2011. As a result of the

shutdown, Olympic Fabrication 2011 liquidation income of

$75,000 is reported on the Discontinued Operations line of

the Consolidated Statements of Operations.

In 2011, Sealaska’s manufacturing businesses grew despite

a weak economy, as orders from large customers, including

Kraft, Clorox and SC Johnson, increased. The uptick in

demand and implementation of “lean” initiatives improved

earnings and operational efficiencies, which resulted in

the manufacturing business segment’s continued positive

income.

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C. ServicesFor 2011, Sealaska’s services business segment included

wholly owned subsidiaries Sealaska Environmental Services,

LLC, Kingston Environmental, LLC, Kingston Environmental

Services, Inc., Sealaska Constructors, LLC, Synergy Systems,

Inc., and majority-owned subsidiaries Managed Business

Solutions, LLC, MBS Systems, LLC, and Security Alliance of

Florida, LLC.

The services business segment produced revenues of

$145.49 million in 2011, up from $112.32 million in 2010,

and produced income of $3.50 million in 2011, up from

$3.06 million in 2010.

The recovery from the global economic recession did not

produce increased demand from non-governmental clients

in the services business segment for 2011, but activity from

governmental sources did show strong growth over the same

period. We believe that profits from the services business

segment will improve in 2012 due to implementation of

“lean” initiatives to achieve operational efficiencies and

control costs. The demand for services from key clients

should continue to improve in the immediate future.

D. GamingFor 2011, Sealaska’s gaming business segment included its

wholly owned subsidiary End-to-End Enterprises, LLC (E2E)

which is collaborating with the Cloverdale Rancheria of

Pomo Indians of California (the Tribe) to develop a gaming

casino and resort facility in Cloverdale, California.

The gaming business segment produced revenues of

$147,000 in 2011, down from $207,000 in 2010, and a loss of

$843,000 in 2011 after a loss of $4.68 million in 2010.

Before a casino development can begin, land suitable for

gaming that is not already held in trust for the Tribe must

receive an Indian Land Opinion (ILO) and complete a Bureau

of Indian Affairs administered Environmental Impact

Statement (EIS). The ILO was issued several years ago. The

EIS is now in the Draft EIS stage, which precedes issuance of

a Final EIS.

The EIS enables the land to be taken into trust for the benefit

of the Tribe and establishes the conditions for gaming to

occur on the land. The Draft EIS concludes that the land at

issue is suitable for gaming purposes. The same or similar

conclusion is considered highly likely for the Final EIS. While

awaiting the completion of the EIS process, the Tribe and E2E

are seeking financing partners/investors.

E. InvestmentsFor 2011, Sealaska’s investments business segment

primarily included the Marjorie V. Young (MVY) Shareholder

Permanent Fund and the Investment and Growth (I&G) Fund.

The investment business segment incurred investment

losses of $3.89 million in 2011, down from investment gains

of $14.44 million in 2010, and a loss, including expenses, of

$4.50 million in 2011 down from income, after expenses of

$13.92 million in 2010.

The combined balance of the MVY Permanent Fund and the

I&G fund was $134.42 million at the start of the year, and ended

2011 with a combined balance of $131.19 million invested in

stocks, bonds, real estate and private equity investments.

Both funds have maintained strong long-term performance,

which shows the strength of the funds’ diversification

strategy directed by the board-approved investment policy.

1. Marjorie V. Young Shareholder Permanent Fund

Renamed as a tribute to longtime Native leader and

retired Sealaska director Marjorie V. Young, Sealaska’s MVY

Shareholder Permanent Fund was created in 1987 to provide

tribal member shareholders with meaningful and consistent

dividends over time.

Sealaska management and the board of directors, along

with their investment advisors and investment managers,

constantly evaluate the risk exposure of the total portfolio

and make changes whenever possible to lessen risk—if doing

so does not inordinately affect long-term expected returns.

Sealaska utilizes the services of several external

investment managers.

2. Investment and Growth Fund

The I&G Fund is managed with a short-term investment horizon

and is used for both operational needs and new investments.

The management focus of the fund is to grow principal with

a prudent level of risk, maintain sufficient liquidity to fund

Sealaska’s current business operations, and provide a source

of capital for corporate development.

F. Corporate and Other IncomeFor 2011, Sealaska’s corporate and other income included

the revenue generating departments at corporate

headquarters besides the Natural Resources Department,

such as Real Estate and Diversity Solutions.

The corporate and other income business segment produced

revenues of $521,000 in 2011, down from $1.31 million in

2010, and a loss of $2.18 million in 2011 after a loss of $1.83

million in 2010. The primary business activities included in

this segment are Real Estate Leasing, Business Development

activities, and pursuit of Diversity opportunities.

II. Shareholder Benefits and Services

A. Sealaska Heritage InstituteEstablished in 1980, Sealaska Heritage Institute (SHI) is

Sealaska’s regional nonprofit organization whose mission is

to perpetuate and enhance the Tlingit, Haida and Tsimshian

cultures of Southeast Alaska. Founded for the Native

peoples of Southeast Alaska, SHI develops Native language

and culture programs, manages the Sealaska scholarship

program, coordinates repatriation of cultural and human

objects, and offers other Native programs. SHI is leading

an effort to build the Walter Soboleff Center in downtown

Juneau. The goal of the center is to promote Native art,

culture, research, and to be an archive center for Native

cultural artifacts. It will serve as an education center for

Native people, the general public and visitors to Alaska.

In 2011, Sealaska contributed $1.31 million in cash and

in-kind services to support the operations of SHI. Using

Sealaska donations as leverage, SHI raised an additional

$2.22 million in grants, revenue and sales. In addition,

Sealaska Timber Corporation contributed $292,000 toward

scholarships, and Sealaska contributed $185,000 for a total

of $477,000.

B. Elders’ Settlement Trust The Elders’ Settlement Trust (EST) is a grantor trust created

to provide a special economic benefit to original tribal

member shareholders at the age of 65. The assets and

liabilities of the EST are reported on Sealaska’s consolidated

financial statements (see notes 4 and 12). The EST, which

is governed by a board of trustees, assumes a long-term

annualized rate of return of seven percent in order for the

trust to meet the estimated benefit payments.

C. DistributionsSince its inception in 1972, Sealaska has distributed $487.41

million in dividends and ANCSA Section 7(j) payments to

tribal member shareholders and Village Corporations. The

outstanding shares of dividend paying stock are affected by

the open enrollment of Descendants when they reach 18

years of age, enrollment of Leftouts, and of the additional

shares issued to Elders reaching the age of 65. Adding more

dividend paying stock for the reasons described above

means that dividends will be paid to a larger number of

individuals and may result in smaller dividends to original

tribal member shareholders. However, the recipients of

Descendant and Leftout shares do not receive ANCSA

Section 7(j) payments. This protects a portion of the

distributions for original tribal member shareholders who

do receive those Section 7(j) payments. Also, when holders of

life estate Class D (Descendant), Class E (Elders) and

Class L (Leftouts) shares pass away, their life estate shares

are canceled.

D. Shareholder RelationsAt year’s end, Sealaska had 21,027 tribal member

shareholders. The Shareholder Relations Department

manages tribal member shareholders’ records, stock

transfers due to gifting or estate settlement, shareholder

distributions, and processing EST payments. In 2011,

Sealaska chose to move to a mail distribution method

outside of corporate headquarters for distributions to tribal

member shareholders. This reduces risk by increasing

privacy, and saves expense. The Shareholder Relations

Department is also responsible for the processing of

applications and the issuance of Class D and Class L

stock, following a 2007 vote by Sealaska tribal member

shareholders approving open enrollment for eligible

applicants. The department also issues new Class E Elders

stock to original shareholders at the age of 65, following

a 2009 vote by shareholders to provide this benefit. The

number of common stock shares outstanding at December

31, 2011 was 2,222,176.

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III. Special Note Regarding Forward-Looking StatementsCertain sections of the annual report contain forward-

looking statements that are based on management’s

expectations, estimates, projections and assumptions.

Words such as “expects,” “anticipates,” “plans,” “believes,”

“scheduled,” “estimates” and variations of these words and

similar expressions are intended to identify forward-looking

statements which include, but are not limited to, projections

of revenues, income, segment performance, cash flows,

contract awards, deliveries and backlog. These statements

are not guarantees of future performance and involve

certain risks and uncertainties, which are difficult to predict.

Therefore, actual future results and trends may differ

materially from what is forecast in forward-looking

statements. All forward-looking statements speak only as

of the date of this report, or in the case of any document

incorporated by reference, the date of that document. All

subsequent written and oral forward-looking statements

attributable to the company or any person acting on the

company’s behalf are qualified by the cautionary statements

in this section. The company does not undertake any

obligation to update or publicly release any revisions to

forward-looking statements to reflect events, circumstances

or changes in expectations after the date of this report.

IV. Significant Accounting PoliciesThe Corporation’s consolidated financial statements and

accompanying notes have been prepared in accordance

with Generally Accepted Accounting Principles (GAAP).

The preparation of these financial statements requires the

Corporation’s management to make estimates, judgments

and assumptions that affect reported amounts of assets,

liabilities, revenues and expenses. The Corporation bases its

estimates on historical experience and assumptions believed

to be reasonable under current facts and circumstances.

Actual amounts and results could differ from these

estimates made by management.

To ensure full disclosure and accurate representation of the

financial condition of the Corporation, Sealaska continually

evaluates the accounting policies and estimates used to

prepare the consolidated financial statements, and working

with independent auditors and the board of directors,

adjusts financial statements to accurately represent

the financial condition of the Corporation. See notes to

consolidated financial statements.

V. additional informationSealaska continues to publish more concise discussion and

analysis of its operations by our management team in the

annual report. This streamlined format, introduced in 2010,

enhances readability and is significantly shorter. Therefore,

paper and production costs are reduced. This format

aligns with important lean and green strategies for the

Corporation. Additional operational information is available

at www.sealaska.com. If you have a detailed financial

question related to data previously reported in the longer

format, please contact the Sealaska Corporate Controller at

907.586.1512.

INDEPENDENTAUDITORS’ REPORTTHE BOARD OF DIRECTORS SEALASKA CORPORATION:

We have audited the accompanying consolidated balance sheets of Sealaska Corporation and subsidiaries

(the Corporation) as of December 31, 2011 and 2010, and the related consolidated statements of operations,

shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2011.

These financial statements are the responsibility of the Corporation’s management. Our responsibility is to

express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of

America. Those standards require that we plan and perform the audit to obtain reasonable assurance about

whether the financial statements are free of material misstatement. An audit includes consideration of

internal control over financial reporting as a basis for designing audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s

internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,

assessing the accounting principles used and significant estimates made by management, as well as

evaluating the overall financial statement presentation. We believe that our audits provide a reasonable

basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,

the financial position of the Sealaska Corporation and subsidiaries as of December 31, 2011 and 2010, and

the results of their operations and their cash flows for each of the years in the three-year period ended

December 31, 2011, in conformity with U.S. generally accepted accounting principles.

Seattle, Washington

April 16, 2012

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CONSOLIDATED BALANCE SHEETSAssets (As of December 31, 2011 and 2010) 2011 2010

Current assets

Cash and cash equivalents $ 20,218 $ 21,989

Investments (note 4) 40,050 35,680

Receivables, net (note 5) 66,126 55,022

Inventories (note 6) 8,181 5,746

Prepaid expenses and other current assets 2,374 5,190

Deferred tax asset (note 11) 2,277 1,091

Total current assets 139,226 124,718

Investments (note 4)

Marjorie V. Young Shareholder Permanent Fund 80,064 86,189

Investment and growth long-term 11,074 12,547

Endowment funds 5,068 5,245

Elders’ Settlement Trust 7,635 9,689

Other 3,122 2,986

Total investments 106,963 116,656

Property and equipment, at cost (notes 7 and 10) 291,631 280,605

Less accumulated depreciation (219,364) (211,030)

Total property and equipment, net 72,267 69,575

Notes receivable 295 50

Other assets 2,463 529

Intangible assets (note 9) 2,361 3,179

Goodwill (note 9) 16,496 16,496

Deferred tax asset (note 11) 28,593 29,948

Total assets $ 368,664 $ 361,151

❖ Dollars are in thousands.

See accompanying notes to consolidated financial statements.

Liabilities and Shareholders’ Equity (As of December 31, 2011 and 2010) 2011 2010

Current liabilities

Line of credit (note 10) $ 4,138 $ —

Current portion of long-term debt (note 10) 1,275 1,172

Accounts payable 26,337 22,909

Amounts payable under ANCSA Sections 7(i) and 7(j) (note 3) 14,427 9,562

Other accrued expenses 14,239 18,452

Total current liabilities 60,416 52,095

Noncurrent liabilities

Amounts payable under ANCSA Sections 7(i) and 7(j) (note 3) 5,302 3,819

Long-term debt, less current portion (note 10) 28,288 31,216

Other noncurrent liabilities (note 12) 12,558 12,902

Total liabilities 106,564 100,032

Shareholders’ equity

Common stock, no par or stated value Issued and outstanding 2,222,176 and 2,183,976 shares, in 2011 and 2010 respectively

Contributed capital 93,162 93,162

Retained earnings 156,616 154,771

Total Sealaska's shareholders’ equity 249,778 247,933

Non-controlling interest 12,322 13,186

Total shareholders’ equity 262,100 261,119

Commitments and contingencies (notes 4, 8, 11, 13 and 15)

Total liabilities and shareholders’ equity $ 368,664 $ 361,151

❖ Dollars are in thousands.

See accompanying notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF OPERATIONSYears Ended December 31, 2011, 2010 and 2009 2011 2010 2009

Revenues

Natural resources (note 8) $ 45,012 $ 41,218 $ 44,473

Manufacturing 72,215 54,334 45,240

Investments (note 4) (3,893) 14,439 20,651

Services 145,485 112,319 84,502

Gaming 147 207 470

Corporate and other income 521 1,306 681

Total revenues 259,487 223,823 196,017

Cost and expenses

Natural resources (note 8) 42,768 36,723 44,978

Manufacturing 70,899 53,606 43,070

Investments 610 516 523

Services 141,987 109,256 86,613

Gaming (note 15) 990 4,882 3,226

Corporate and other expenses 2,698 3,131 2,222

Selling, general and administrative 14,953 14,494 14,688

Total cost and expenses 274,905 222,608 195,320

Income (loss) from operations (15,418) 1,215 697

Other, net (752) 1,820 (1,240)

Income (loss) from continuing operations before natural resources revenue sharing and income taxes

(16,170) 3,035 (543)

Net natural resource revenue sharing under ANCSA Sections 7(i) and 7(j) (note 3) 24,067 16,537 19,836

Income from continuing operations before income taxes and discontinued operations 7,897 19,572 19,293

Income tax benefit (note 11) 181 312 4,779

Income from continuing operations before discontinued operations 8,078 19,884 24,072

Discontinued operations, net of tax (note 2) 134 (2,436) (300)

Net income 8,212 17,448 23,772

Less: Net income attributable to the non-controlling interest 1,421 2,294 3,487

Net income attributable to Sealaska $ 6,791 $ 15,154 $ 20,285

Per share of common stock

Income from continuing operations before discontinued operations $ 3.67 $ 9.21 $ 11.96

Discontinued operations (note 2) $ 0.06 $ (1.13) $ (0.14)

Net income $ 3.73 $ 8.08 $ 11.82

❖ Dollars are in thousands except per share values.

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EqUITY

Years Ended December 31, 2011, 2010 and 2009Contributed

capitalRetained earnings

Noncontrolling interest

Total shareholders'

equity

Balance at January 1, 2009 $ 93,162 $ 131,798 $ 8,316 $ 233,276

Net income —

20,285 3,487 23,772

Dividends to shareholders —

(4,776) — (4,776)

Distributions to non-controlling interest — — (1,693) (1,693)

Purchase of non-controlling interest — — (157) (157)

Balance at December 31, 2009 $ 93,162 $ 147,307 $ 9,953 $ 250,422

Net income — 15,154 2,294 17,448

Dividends to shareholders — (7,690) — (7,690)

Distributions to non-controlling interest — — (1,471) (1,471)

Purchase of non-controlling interest — — 2,410 2,410

Balance at December 31, 2010 $ 93,162 $ 154,771 $ 13,186 $ 261,119

Net income — 6,791 1,421 8,212

Dividends to shareholders — (4,946) — (4,946)

Distributions to non-controlling interest — — (2,285) (2,285)

Balance at December 31, 2011 $ 93,162 $ 156,616 $ 12,322 $ 262,100

❖ Dollars are in thousands.

See accompanying notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CASH FLOwSYears Ended December 31, 2011, 2010 and 2009 2011 2010 2009

Cash flows from operating activities

Net income $ 8,212 $ 17,448 $ 23,772

Adjustments to reconcile net income to net cash provided by (used in) operating activities

Depreciation, amortization and depletion 9,537 7,759 8,683

Deferred income tax expense (benefit) 169 63 (5,101)

Gain (loss) on disposal of fixed assets 325 — (35)

Gain on debt forgiveness — (2,950) —

Loss on impairment of assets — 4,302 3,509

Unrealized (gain) loss on investments 8,941 (7,241) (17,730)

Net proceeds from (purchase of) investments (3,619) 23,572 (12,742)

Decrease (increase) in assets, net of effects of acquisition

Receivables (11,104) (25,465) 25,981

Inventories (2,435) 925 3,315

Prepaid expenses and other current assets 2,816 (1,297) 2,146

Increase (decrease) in liabilities, net of effects of acquisition — 6,990 (249)

Accounts payable 3,428 761 1,576

Other accrued expenses (4,213) 6,655 (11,939)

Amounts payable under ANCSA Sections 7(i) and 7(j) 6,348 833 2,616

Other, net (1,277) — —

Net cash provided by operating activities $ 17,128 $ 32,355 $ 23,802

❖ Dollars are in thousands.

See accompanying notes to consolidated financial statements.

Years ended December 31, 2011, 2010 and 2009 2011 2010 2009

Cash flows from investing activities

Capital expenditures $ (12,711) $ (14,994) $ (10,362)

Acquisitions, net of cash acquired (1,000) (4,315) —

Proceeds from sale of land and equipment — — 185

Repayment of notes receivable (245) 760 226

Net cash used in investing activities (13,956) (18,549) (9,951)

Cash flows from financing activities

Dividends to shareholders (4,946) (7,690) (4,776)

Borrowings (repayments) on short-term debt 4,138 (1,244) 195

Borrowings on long-term debt — 5,518 —

Repayments on long-term debt (1,850) (7,395) (2,473)

Distribution to non-controlling interests (2,285) (1,471) (1,693)

Net cash used in financing activities (4,943) (12,282) (8,747)

Net increase (decrease) in cash and cash equivalents (1,771) 1,524 5,104

Cash and cash equivalents at beginning of year 21,989 20,465 15,361

Cash and cash equivalents at end of year $ 20,218 21,989 20,465

Supplemental cash flow disclosures

Cash paid during the year for interest $ 1,060 1,532 1,477

Cash paid during the year for income taxes (173) $ 123 $ 322

Non-cash investing and financing activity

Disposal of land $ 1,300 — —

Debt forgiveness (975) — —

❖ Dollars are in thousands.

See accompanying notes to consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(1) Operations and Summary

of Significant Accounting Policies

Operations

Sealaska Corporation (Sealaska or Company) is a Regional

Alaska Native Corporation formed under the Alaska Native

Claims Settlement Act (ANCSA). Sealaska’s five primary

continuing business activities relate to the development,

production and sale of natural resources; the manufacture

and sale of plastics, parts and products; services related to

environmental remediation, information technology and

construction; gaming and the management of its investment

portfolio. ANCSA is further described in note 3.

Sealaska consolidated subsidiaries are: Alaska Coastal

Aggregates, LLC, Sealaska Global Logistics, LLC, Sealaska

Timber Corporation, Sealaska Wood Products Solutions, LLC,

Synergy Systems, Inc., Sealaska Constructors, LLC, Kingston

Environmental, LLC, Kingston Environmental Services, Inc.,

Nypro Kánaak Guadalajara SA de CV, Nypro Kánaak Iowa,

LLC, Nypro Kánaak Alabama, LLC, Olympic Fabrication, LLC,

Sealaska Environmental Services, LLC, Managed Business

Solutions Systems, LLC, Managed Business Solutions, LLC,

Security Alliance of Florida, LLC, End-to-End Enterprises, LLC,

Amonos, LLC, Haa Aaní, LLC, and Rocky Pass Seafoods, LLC.

Basis of Presentation and Significant Accounting Policies

The consolidated financial statements include the accounts

of Sealaska and its wholly and majority owned subsidiaries.

All significant intercompany balances and transactions have

been eliminated in consolidation.

(a) Revenue Recognition and ReceivablesRevenue is recognized when earned, and the risks of

ownership have been transferred to the buyer, which is

generally upon shipment to the customer. Receivables

are recorded when invoiced and do not bear interest.

Allowance for doubtful accounts is recorded based upon

Sealaska’s collection experience with credit losses in existing

outstanding receivables.

Revenues on long-term service contracts are recognized

ratably over the term of the contract as services are

performed or based on the specific terms of the contracts.

Unbilled revenue represents uncompleted tasks that will

be billed at the time of completion in subsequent years.

Revenue from claims are recognized when the amounts are

received or the related contract modification is approved by

the customer.

(b) Cash and Cash EquivalentsSealaska maintains zero balance checking accounts, and

resulting book overdrafts of $1.9 million and $1.1 million are

included in cash and cash equivalents at December 31, 2011

and 2010, respectively. Sealaska maintains its cash in bank

accounts with various financial institutions. At times, the

balances may exceed federally insured limits. For purposes

of the consolidated statements of cash flows, Sealaska

considers all highly liquid debt instruments with original

maturities of three months or less from the date of purchase

to be cash equivalents.

(C) INVESTMENTSSealaska’s investments in marketable debt and equity

securities (note 4) are classified as trading securities and

are recorded at fair value. Fair value is based upon quoted

market prices. The increase or decrease in fair value

from period to period relating to marketable securities

included in Sealaska’s investment portfolio is included

in the determination of income. Interest and dividend

income is recognized as earned. Gains or losses on the

sale of marketable securities are determined on a specific

identification basis. Certain investments are valued at the

Net Asset Value (NAV) per share/unit reported at the close

of each business day. NAV is used by the Company as a

practical expedient to estimating fair value as these funds

do not have readily determinable fair values. Sealaska

accounts for certain non-controlling interests, less than

50 percent ownership and control, in privately held

corporations, LLCs and partnerships (the investee) using

the equity method of accounting. Under the equity method,

Sealaska’s original investment in the investee is recorded at cost

and subsequently adjusted for changes in the net assets

of the investee. The carrying amount of the investment is

periodically increased (decreased) by the proportionate share

in the earnings (losses) of the investee.

During 2011, Sealaska Corporation acquired Series B

Preferred Stock of Green Earth Greens, Inc. representing a

7.75 percent ownership interest on a fully diluted basis, for

a purchase price of $1.0 million. Green Earth Greens, Inc. is

engaged in the development of proprietary technology and a

multitiered “Vegetable Factory” providing optimum growing

conditions of vegetables, zero environmental pollutants,

and year-round local production of premium produce. The

purchase price grants Sealaska Corporation an exclusive

right to develop the Alaska market.

(d) InventoriesInventories are stated at the lower of cost (determined on

a first in, first out basis) or estimated net realizable value.

Inventories consist primarily of sorted/scaled timber,

manufacturing materials and finished goods.

(e) Property and EquipmentProperty and equipment are stated at cost.

Depreciation and amortization of property, equipment and

leasehold improvements are provided primarily on the

straight line method over the shorter of the expected useful

lives of the assets or the lease term as follows:

Buildings, leaseholds and improvements 15–45 years

Equipment and furnishings 5–20 years

Computer and office equipment 3–5 years

(f) Timber OperationsCosts of logging yards and camps are amortized as timber

is harvested, based on estimated volumes of timber to be

removed from each tax reporting block. Costs of logging

roads are amortized using a composite rate for each

tax reporting block based on actual road costs incurred,

anticipated future road costs to be incurred and estimated

volumes to be removed from the respective tax block.

Costs of silviculture and reforestation activities are

capitalized as an element of property, plant and equipment

and amortized as the associated timber is harvested.

Depletion of purchased timber is provided based on amounts

harvested in relation to volumes purchased. Timber and

mineral resources received under the provisions of ANCSA

are carried at zero value and no depletion expense is

recorded when such resources are harvested or extracted.

For tax purposes, depletion is reported based upon the

higher of the estimated fair value of a specific timber block

or mineral deposit as of the date of conveyance or first

commercial development.

(g) Roads and Yards AssetsRoads and yards constructed for the harvest of timber

are amortized based on units of production, which are

calculated by taking the total estimated future asset capital

costs plus the current known net actual capital costs,

all divided by the total future harvest (estimated total or

remaining timber volume to be harvested).

Roads and yards are classified as long-lived assets and are

reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amounts may not

be recoverable. Recoverability of the road assets is measured

by a comparison of the carrying amounts of the asset to

estimated undiscounted cash flows expected to be generated

by the asset. If the carrying amount of an asset exceeds

its estimated future cash flows, an impairment charge is

recognized by the amount by which the carrying amount of

an asset exceeds its estimated fair value.

(h) Long-Lived AssetsLong-lived assets, such as property and equipment, are

reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amounts of assets

may not be recoverable.

Recoverability of assets to be held and used is measured by a

comparison of the carrying amount of an asset to estimated

undiscounted future cash flows expected to be generated

by the asset. If the carrying amount of an asset exceeds

its estimated future cash flows, an impairment charge is

recognized by the amount by which the carrying amount of

the asset exceeds the fair value of the asset.

(i) Goodwill and Other Intangible AssetsGoodwill represents the future economic benefits arising

from other assets acquired in a purchase combination

that are not individually identified and separately

recognized. Goodwill is reviewed for impairment at least

annually in accordance with the provisions of the ASC

Topic 350, Intangibles – Goodwill and Other. The goodwill

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impairment test is a two-step test. Under the first step,

the fair value of the reporting unit is compared with its

carrying value (including goodwill). If the fair value of the

reporting unit is less than its carrying value, an indication

of goodwill impairment exists for the reporting unit and

the enterprise must perform step two of the impairment

test (measurement). Under step two, an impairment loss

is recognized for any excess of the carrying amount of the

reporting unit’s goodwill over the implied fair value of that

goodwill. The implied fair value of goodwill is determined by

allocating the fair value of the reporting unit in a manner

similar to a purchase price allocation, in accordance with

ASC 805, Business Combinations. The residual fair value

after this allocation is the implied fair value of the reporting

unit goodwill. Fair value of the reporting unit is determined

using a discounted cash flow analysis. If the fair value of the

reporting unit exceeds its carrying value, step two does not

need to be performed.

Other intangible assets consist of customer relationships.

Customer relationships are amortized over their estimated

useful lives, typically between seven to eight years using the

straight line method.

(j) Alaska Native Claims Settlement AssetsSealaska has received substantial natural resource assets

under the provisions of ANCSA as described in note 8.

These assets are carried in the accompanying consolidated

financial statements at zero value. For tax reporting

purposes, these assets have a tax basis determined as

the higher of their estimated fair value at the date of

conveyance or first commercial development. As a result, a

substantial difference between the book and tax basis exists,

which is considered a temporary difference for purposes of

reporting income tax expense under U.S. generally accepted

accounting principles.

(k) ANCSA Section 7(i) AccountingFixed Assets: In Section 7(i) accounting, ANCSA fixed assets

are expensed in the year they are purchased. For book

accounting, all fixed assets are depreciated using the straight

line method based on their useful life.

Roads and Yards: In Section 7(i) accounting, ANCSA roads

are segregated into three categories: mainline, secondary

and spur. Mainline and secondary roads are amortized based

on units of production and the useful life of 10 and three

years, respectively. Spur roads are expensed in the year they

are placed into service. The book treatment is addressed in

the fixed assets note above. Yards are treated consistently for

Section 7(i) and book accounting.

Inventories: Section 7(i) accounting allows for the deduction

of the cost of inventories from revenues in determining

Section 7(i) sharable income. For book purposes, inventories

are reported at lower of cost or estimated net realizable

value under current assets on the balance sheet.

Accounts Receivable: Section 7(i) accounting allows for

the deduction of outstanding accounts receivables from

revenues in determining Section 7(i) sharable income. For

book purposes, accounts receivable are reported under

current assets on the balance sheets and the associated

revenues are recognized as described in note 1A.

(l) Income TaxesIncome taxes are accounted for under the asset and liability

method. Deferred tax assets and liabilities are recognized

for the future tax consequences attributable to differences

between the financial statement carrying amounts of

existing assets and liabilities and their respective tax bases

and operating loss and tax credit carryforwards. Deferred tax

assets and liabilities are measured using enacted tax rates

expected to apply to taxable income in the years in which

those temporary differences are expected to be recovered

or settled. The effect on deferred tax assets and liabilities of

a change in tax rates is recognized in income in the period

that includes the enactment date. Uncertain tax positions

are recorded when they are determined to be more likely

than not of being sustained on Sealaska’s tax return. See

note 11 for further discussion of income taxes.

Funds and properties received from the U.S. government

under ANCSA are not subject to income taxes.

(m) Income (Loss) Per ShareIncome (loss) per share information in the consolidated

financial statements is based on weighted average shares

outstanding. Sealaska has no agreements or securities

outstanding that represent dilutive potential common shares.

The number of common stock shares outstanding at

December 31, 2011 and 2010 is 2,222,176 and 2,183,976,

respectively. The stock, dividends paid and other stock rights

are restricted; the stock may not be sold, pledged, assigned

or otherwise alienated except in certain circumstances by

gift, court order or death; the stock carries voting rights only

if the holder thereof is an eligible Native. On June 23, 2007,

Sealaska’s tribal member shareholders authorized

the issuance of two additional classes of common stock

without consideration. Class D stock is issuable to Alaska

Natives born after December 18, 1971, who are 18 years

of age or older and are lineal descendants of an original

Sealaska shareholder and meet certain other requirements.

Class L stock is issuable to Alaska Natives born before

December 18, 1971, who were eligible to enroll in Sealaska

Corporation in 1971 (pursuant to ANCSA) but were not

so enrolled and who meet certain other requirements.

On June 27, 2009, Sealaska’s shareholders authorized the

issuance of an additional class of common stock without

consideration. Class E stock is issuable to Alaska Natives

born before December 18, 1971, who are original tribal

member shareholders of Sealaska who have reached the age

of 65 years or older, and meet certain other requirements.

8,900 shares of Class E stock, 28,900 shares of Class D stock,

and 400 shares of Class L stock were issued in 2011. 10,000

shares of Class E stock, 40,400 shares of Class D stock, and

200 shares of Class L stock were issued in 2010. 191,600

shares of Class E stock, 52,800 shares of Class D stock, and

200 shares of Class L stock were issued in 2009.

(n) Fair ValueAccounting Standards Codification 820 (ASC 820), Fair Value

Measurements and Disclosures, establishes a framework

for fair value measurements in the financial statements

by providing a definition of fair value and guidance on

the methods used to estimate fair value, and expands

disclosures about fair value measurements.

Fair Value Measurements

ASC 820 defines fair value as the price that would be

received to sell an asset or the amount paid to transfer

a liability in an orderly transaction between market

participants (an exit price) at the measurement date. Fair

value is a market based measurement considered from the

perspective of a market participant. Sealaska uses market

data or assumptions that market participants would use in

pricing the asset or liability, including assumptions about

risk and the risks inherent in the inputs to the valuation.

These inputs can be readily observable, market corroborated

or unobservable. Sealaska applies both market and income

approaches for recurring fair value measurements, using

the best available information while utilizing valuation

techniques that maximize the use of observable inputs and

minimize the use of unobservable inputs.

Fair Value Hierarchy

ASC 820 establishes a fair value hierarchy that prioritizes

the inputs to valuation techniques used to measure fair

value. The hierarchy gives the highest priority to unadjusted

quoted prices in active markets for identical assets or

liabilities (Level 1 measurements) and the lowest priority

to measurements involving significant unobservable inputs

(Level 3 measurements). The three levels of the fair value

hierarchy are as follows:

› Level 1 inputs are quoted prices (unadjusted) in active

markets for identical assets or liabilities that Sealaska

has the ability to access at the measurement date.

› Level 2 inputs are inputs other than quoted prices

included within Level 1 that are observable for the asset

or liability, either directly or indirectly.

› Level 3 inputs are unobservable inputs for the asset

or liability.

The level in the fair value hierarchy within which a fair

measurement in its entirety falls is based on the lowest level

input that is significant to the fair value measurement in

its entirety.

Fair Value Measurements on a Nonrecurring Basis

Sealaska follows the fair value measurement requirements

related to nonfinancial assets and nonfinancial liabilities

that are not required or permitted to be measured at fair

value on a recurring basis. Those include assets measured at

fair value in goodwill impairment testing and nonfinancial

long-lived assets measured at fair value for impairment

assessment. During 2011, 2010 and 2009, using level three

inputs and an income valuation technique, Sealaska

performed an impairment assessment of certain long-

lived assets and goodwill. In 2011, Sealaska determined

the fair value of these assets to be less than their carrying

amount and accordingly recorded impairment of $691,000

to capitalized roads included in property and equipment on

the balance sheets. In 2010, Sealaska recorded impairment

of $2,950,000 to land in the gaming segment, $195,000 to

property and equipment for the Discontinued Operation

Olympic Fabrication, which was formerly included in the

manufacturing segment, and $1,153,000 to goodwill in the

manufacturing segment. In 2009, Sealaska determined

the fair value of these assets to be less than their carrying

amount and accordingly recorded impairment of $585,000 to

capitalized roads included in property and equipment on the

balance sheets and impairment of $2,924,000 to goodwill in

the services segment.

Financial Instruments

The carrying amounts of cash and cash equivalents,

accounts receivable, notes receivable and accounts payable

approximate fair value because of the short term nature

of these instruments. The carrying amounts of investment

securities are stated at market value. The carrying value of

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debt approximates fair value as the debt bears interest that

adjusts based upon market interest rates.

(o) Foreign Currency TranslationThe financial statements of Sealaska’s foreign operations

have been translated into U.S. dollars in accordance with ASC

830-10, Foreign Currency Matters. As the U.S. dollar is the

functional currency of our subsidiary operations, there are no

foreign currency translation adjustments and all gains and

losses from remeasuring foreign currency transactions into

the functional currency are included in income.

(p) ReclassificationsCertain reclassifications have been made to the 2009 and 2010

balances to conform to the 2010 and 2011 presentation. The

most significant reclassifications to 2009 relate to reporting

of discontinued operations for Olympic Fabrication.

(q) Use of EstimatesThe preparation of financial statements in conformity

with U.S. generally accepted accounting principles requires

management to make estimates and assumptions that affect

reported amounts of assets and liabilities and disclosures of

contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and

expenses during the reporting period. Actual results could

differ from those estimates. Significant estimates include

provisions relating to uncollectible receivables, useful lives

of capitalized timber costs, property and equipment, the

related depreciation and valuation of certain underlying

assets of limited partnership investments and amortization,

realization of deferred income taxes and impairment of

long-lived assets and goodwill.

The recorded amounts are currently believed by

management to be sufficient. However, such estimates could

significantly change in future periods to reflect new laws,

regulations or information. It is not possible to determine

whether changes in amounts recorded, due to such changed

circumstances, will occur or to reasonably estimate the

amount or range of any potential additional loss.

(2) Acquisitions and Divestitures of Subsidiaries

(A) OLYMPIC FABRICATION, LLCIn December 2010 the Sealaska Board of Directors voted to

discontinue Olympic Fabrication, LLC.

Assets and liabilities of Olympic Fabrication at December 31,

2011 and 2010 were:

2011 2010

Cash $ — 18

Accounts receivable (net) — 582

Inventory — 437

Prepaids and deposits — 17

Property, plant and equipment (net) — 223

Total assets $ — 1,277

Accounts payable $ — 463

Other payables — 1,062

Long-term debt (including current portion)

— 3,889

Contributed capital — 707

Accumulated deficit — (4,844)

Total liabilities and shareholders’ deficit

$ — 1,277

❖ Dollars are in thousands.

Operating results from Olympic Fabrication, which was

formerly included in the manufacturing segment, are

summarized as follows:

2011 2010 2009

Sales $ 1,709 $ 4,388 $ 4,988

Pretax income (loss) 75 (1,988) (236)

Income taxes — — —

Net income (loss) from discontinued operations

$ 75 $ (1,988) $ (236)

❖ Dollars are in thousands. Years ended December 31.

(b) Security Alliance of Florida, LLCDuring 2010 Sealaska Corporation created Sealaska Security

Holdings, LLC. In October 2010 Sealaska Security Holdings

purchased 70 percent of Security Alliance of Florida, LLC

(Security Alliance), for $5.7 million. Sealaska Security

Holdings, LLC acquired tangible assets of $3.3 million,

intangible assets of $2.1 million and total liabilities of $6.6

million. The purchase price allocation resulted in $3.6

million of goodwill which primarily represents the implied

value of Security Alliance’s organized workforce, which

cannot be separately recognized under generally accepted

accounting principles. The fair value of non-controlling

interest was $2.4 million at the date of acquisition by

Sealaska Security Holdings. Determination of the fair

value of the assets and liabilities used to allocate purchase

price was based on the discounted cash flow method

using estimated future earnings. Security Alliance is

headquartered in Miami, Florida, and provides an array of

guard and private investigation services in Florida, Georgia

and Texas, as well as outside the United States. The purchase

agreement includes a conditional noncontrolling interest

redemption feature of an eight to nine percent additional

purchase of Security Alliance if revenue targets are met at

December 31, 2012. The goodwill is attributed to the services

segment, and is deductible for tax purposes.

(c) Kingston Environmental, LLCIn August 2009, Sealaska Corporation agreed to purchase the

remaining 49 percent of Kingston Supply, LLC and Kingston

Environmental Services, Inc. for $1. Sealaska also indemnified

the sellers for existing lines of credit. In addition, the sellers

have a right to 10 percent of net income per year from

environmental services business if the resulting net income

is less than $10 million or 15 percent of net income if net

income is greater than $10 million. This right expires in three

years and is projected to result in an additional acquisition

cost of $158,000. This transaction results in Sealaska owning

100 percent of the two Kingston companies.

(d) Synergy Systems, Inc.In December 2008, the Sealaska Board of Directors voted

to discontinue Synergy Systems, Inc.’s manufacturing

operations. The legal entity was repurposed and now

provides design-build construction and construction

management services.

Assets and liabilities of the discontinued Synergy Systems

manufacturing segment at December 31, 2011 and 2010,

respectively were:

2011 2010

Accounts receivable (net) — —

Total assets $ — $ —

Accounts payable $ — $ 57

Other payables — 528

Contributed capital 5,196 4,611

Accumulated deficit (5,196) (5,196)

Total liabilities and shareholders’ deficit

$ — $ —

❖ Dollars are in thousands.

Operating results from Synergy Systems, which was formerly

included in the manufacturing segment, are summarized

as follows:

2011 2010 2009

Sales $ — $ — $ 730

Pretax income (loss) 59 (448) (60)

Income taxes — — 4

Net income (loss) from discontinued operations

$ 59 $ (448) $ (64)

❖ Dollars are in thousands. Years ended December 31.

(3) Alaska Native Claims Settlement Act

Sealaska was incorporated in 1972 as a Regional Alaska

Native Corporation pursuant to the provisions of ANCSA.

Sections 7(i) and 7(j) are significant to the consolidated

financial statements and are further described herein. Under

the provisions of ANCSA, Sealaska has received, or expects to

receive, conveyance of approximately 362,000 acres of land

in the Tongass National Forest in Southeast Alaska, of which

it will own the surface and subsurface estate. At December

31, 2011, Sealaska has received conveyance of approximately

290,800 acres. Sealaska has received its proportionate share

of the monetary entitlement under the act in the amount of

$93,162,000, which is recorded as contributed capital.

ANCSA also provides for selection of land in Alaska by the

Village and Urban Corporations formed thereunder, the

subsurface estate of which accrues to the related Regional

Corporations. It is anticipated that the Village and Urban

Corporations in Sealaska’s region will receive conveyance to

286,400 acres of land formerly part of the Tongass National

Forest of which Sealaska will own the subsurface estate.

Of the approximate 286,400 acres, conveyance has been

received of approximately 278,100 acres. As described in note

8, the land and related surface and subsurface resources

received under ANCSA are carried at zero value in the

accompanying consolidated financial statements.

Section 7(i) of ANCSA requires that each Alaska Native

Regional Corporation that received revenue or value from

certain resources conveyed pursuant to ANCSA distribute 70

percent of the related net revenues to 12 of the 13 Regional

Corporations, including the distributing Corporation. Sealaska

and the other Regional Corporations have entered into a

Section 7(i) Settlement Agreement, which establishes specific

definitions and methods for calculating shareable revenues.

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Revenues received by Sealaska from the timber resources

and subsurface estate obtained through ANCSA are subject

to the revenue sharing provisions of Section 7(i), except

that subsurface resources commonly known as sand, rock

and gravel, are excluded from Section 7(i) revenue sharing.

Distributions to Sealaska from other Regional Corporations

under the provisions of Section 7(i), after reductions

for distributions required by Section 7(j) of ANCSA, are

recorded as income in the fiscal year the amounts become

determinable and collection is reasonably assured. Section

7(j) of ANCSA requires that not less than 50 percent of monies

received by Sealaska from other Regional Corporations under

Section 7(i) must be distributed to Village Corporations,

tribal member shareholders of Urban Corporations, and

At-Large shareholders. Required distributions to other

Regional Corporations are due 90 days following the end

of the fiscal year and unpaid distributions incur interest at

the prime rate plus five percent. Required distributions to

Village Corporations, shareholders of Urban Corporations,

and At-Large shareholders are based on the ratio of the total

number of Sealaska shares owned by shareholders of Village

Corporations, by shareholders of Urban Corporations and by

At-Large shareholders.

Sealaska accrues and expenses an amount determined by

applying the provisions of Section 7(i) to applicable active

revenue and expense transactions as they are recognized in

the consolidated financial statements. Sealaska recorded a

noncurrent liability representing the estimated distribution

payable for near-term timing differences between the

recognition of revenue and expenses for financial reporting

and Section 7(i) reporting purposes.

(4) InvestmentsInvestments consist of the following:

2011 2010

Investment and Growth

Common stock $ 17,253 $ 19,864

Money market 6,561 1,469

Bonds and notes 15,944 14,139

Accrued interest, dividends and other 292 208

Total investment and growth 40,050 35,680

Marjorie V. Young Shareholder Permanent Fund

Common stock 37,144 40,652

Alternative investments 35,219 38,954

Government bonds and notes 6,761 6,058

Money market, accrued interest, dividends and other 940 525

Total Marjorie V. Young Shareholder Permanent Fund 80,064 86,189

Investment and growth long-term portion

Alternative investments 11,074 12,547

Endowment Fund 5,068 5,245

Elders’ Settlement Trust 7,635 9,689

Other investments 3,122 2,986

Total investments $ 147,013 $ 152,336

❖ Dollars are in thousands. Years ended December 31.

Following a tribal member shareholder advisory vote in 1987, the Sealaska Board of Directors designated certain funds held in

investment securities and related investment earnings be held for long-term uses (Marjorie V. Young Shareholder Permanent

Fund) and, accordingly, such funds are not available for current operations, unless necessary.

Additionally, endowment funds have been established for which the earnings accrue to the benefit of the Sealaska Heritage

Institute scholarship program and the Alaska Native Brotherhood.

During 1991 Sealaska’s tribal member shareholders voted to establish an Elders’ Settlement Trust (the Trust). Accordingly, and

pursuant to ANCSA, the Sealaska Board of Directors established the Trust for the benefit of shareholders. Certain Sealaska

directors are trustees of the Trust. A noncurrent liability was established for future one-time distributions that will be made

from the Trust to shareholders who attain the age of 65 years. The amount distributed during 2011, 2010 and 2009 was $447,000,

$347,000 and $309,000, respectively. As noted above with the Marjorie V. Young Shareholder Permanent Fund, the Endowment

Funds, Elders’ Settlement Trust and other investments are not available to fund current operations, unless necessary.

Investment earnings consist of the following components:

2011 2010 2009

Unrealized gains (losses) $ (8,941) $ 7,241 $ 17,730

Realized net gains, dividends and interest 5,048 7,198 2,921

Total investment earnings (loss) $ (3,893) $ 14,439 $ 20,651

❖ Dollars are in thousands. Years ended December 31.

Sealaska invests in limited partnerships that make private investments in real estate, commercial assets and operating entities.

Sealaska has remaining commitments of $2.9 million that are due when called by the general partners of the investment funds.

If Sealaska cannot or decides not to make the additional investment when called, then the general partner, at its discretion, has

the right to sell Sealaska’s investment.

The following table presents assets that are measured at fair value on a recurring basis at December 31 using:

2011 2010

Level 1: Quoted prices in active markets identical assets $ 80,076 $ 79,203

Level 2: Significant other observable inputs 13,747 18,898

Level 3: Significant unobservable inputs — —

Total $ 93,823 $ 98,101

❖ Dollars are in thousands. Years ended December 31.

Sealaska has no financial instruments that are recorded at fair value on a nonrecurring basis at December 31, 2011 and 2010.

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The following table presents quantitative disclosure about the fair value measurements for each class of assets:

Description Totals

Quoted prices in active

markets for identical assets

(Level 1)

Significant other

observable inputs (Level 2)

Equity securities

Equity securities—domestic $ 38,681 $ 38,681 $ —

Equity securities—international (developed) 12,247 12,247 —

Equity securities—emerging markets 5,232 5,232 —

Equity securities—Vanguard LifeStrategy Mod Growth Fd 14,505 14,505 —

Total equity securities 70,665 70,665 —

Debt securities

Government securities 4,570 2,116 2,454

Corporate securities 10,591 — 10,591

Mortgage-backed securities 702 — 702

PIMCO Total Return Fd 7,295 7,295 —

Total debt securities 23,158 9,411 13,747

Total $ 93,823 $ 80,076 $ 13,747

❖ Dollars are in thousands. Years ended December 31.

(5) ReceivablesReceivables consist of the following:

2011 2010

Trade accounts receivable, less allowance for doubtful accounts of $956 and $843 at December 31, 2011 and 2010, respectively

$ 38,110 $ 33,817

ANCSA Section 7(i) revenue sharing 23,371 18,661

Other 4,645 2,544

Total receivables $ 66,126 $ 55,022

❖ Dollars are in thousands. Years ended December 31.

(6) InventoriesInventories consist of the following:

2011 2010

Timber—finished goods $ 3,671 $ 2,174

Plastics

Raw materials 3,336 2,168

Work in process 43 400

Finished goods 1,056 1,004

Other 75 —

Total inventories $ 8,181 $ 5,746

Fair Value at Reporting Date Using

❖ Dollars are in thousands. Years ended December 31.

(7) Property and EquipmentProperty and equipment consist of the following:

2011 2010

Buildings, leaseholds and improvements $ 19,547 $ 18,650

Equipment and furnishings 36,673 33,290

Logging roads, yards and camps 185,847 179,873

Reforestation and silviculture costs 19,456 17,947

Total property and equipment 261,523 249,760

Less accumulated depreciation (219,364) (211,030)

Construction in progress 1,240 2,383

Land 28,868 28,462

Net property and equipment $ 72,267 $ 69,575

❖ Dollars are in thousands. Years ended December 31.

Land held for development as commercial, recreational or residential property totaling $16.4 million and $16.9 million at

December 31, 2011 and 2010, respectively, is included in the caption “Land” above. Sealaska Corporation and the Cloverdale

Rancheria of Pomo Indians of California entered into a settlement agreement regarding the land purchased and held for

casino development.

(8) Timber, Timberland and Mineral ResourcesAs of December 31, 2011 Sealaska has received approximately 290,800 acres of land under the provisions of ANCSA, as

described in note 3. Under U.S. generally accepted accounting principles, assets received in nonmonetary transactions are

recorded at their estimated fair value at the transaction date unless the fair value is not determinable within reasonable limits

due to major uncertainties, in which case the assets received are recorded, and remain, at a value of zero. It was not practical

for Sealaska to determine the estimated fair value of the resources received on the date of receipt within reasonable limits

for financial reporting purposes. Accordingly, Sealaska carries land and natural resource assets received under ANCSA at zero

value. However, these assets have significant economic value to Sealaska.

Sealaska incurs costs related to the selection of ANCSA land and related resources and related to the potential exchanges of

such property. These costs are capitalized as part of the basis in either the land or the related resources (such as timber). Costs

attributable to resources will be amortized as the related resource is harvested or developed.

Any cost of timber, timberland and mineral resources carried in the accompanying consolidated balance sheets and related

depletion expense is attributable to timber that Sealaska, from time to time, purchases from others. In accordance with ASC

360, Property, Plant and Equipment, an annual impairment analysis is performed. In 2011, the estimated undiscounted future

cash flows generated by the roads in these timber areas were less than the carrying value resulting in an impairment charge

of $691,000.

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Sealaska has asset retirement obligations (AROs) arising from regulatory requirements to perform certain asset retirement

activities at the time that certain road systems are maintained or rehabilitated. The liability was initially measured at fair

value and subsequently is adjusted for accretion expense and changes in the amount or timing of the estimated cash flows.

The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and

depreciated over the asset’s remaining useful life. The following table presents the activity included in other current liabilities

for the AROs for the year ended December 31, 2011 and 2010:

2011 2010

Balance at beginning of the year $ 896 $ 1,136

Additional obligations incurred 691 —

Obligations settled in current period (370) (330)

Changes in estimates, including timing — 12

Accretion expense 51 78

Balance at end of year 1,268 896

❖ Dollars are in thousands. Years ended December 31.

(9) Goodwill and Intangible AssetsThe following table provides the gross carrying value for each major class of intangible asset by segment as of December 31,

2011 and 2010:

Goodwill: Services Manufacturing Total

Balance, January 1, 2010 $ 11,057 $ 2,758 $ 13,815

Additional purchase—Kingston 193 — 193

Additional purchase—Security Alliance 3,641 — 3,641

Impairment expense — (1,153) (1,153)

Balance, December 31, 2010 14,891 1,605 16,496

Impairment expense — — —

Balance, December 31, 2011 $ 14,891 $ 1,605 $ 16,496

❖ Dollars are in thousands.

Aggregate other intangible assets consist of the following:

Amortizing intangible assets—customer relationships within services segment Total

Balance, December 31, 2009 $ 1,714

Additional purchase—Security Alliance 2,040

Amortization (575)

Balance, December 31, 2010 3,179

Amortization (818)

Balance, December 31, 2011 $ 2,361

❖ Dollars are in thousands. Customer relationships are amortized over 7-8 years from the date of acquisition.

Amortization expense for intangible assets was $818,000 and $575,000 for the years ended December 31, 2011 and 2010,

respectively. Estimated amortization expense for the next five years:

2012 $ 597

2013 438

2014 438

2015 353

2016 291

❖ Dollars are in thousands. Years ended December 31.

In accordance with the provisions of ASC 350, Intangibles – Goodwill and Other, goodwill is reviewed for impairment at least

annually. In 2011, the implied fair value of each reporting unit exceeded its carrying value. In 2010, a goodwill impairment

charge was recorded in the manufacturing segment of $1.2 million. In 2009, a goodwill impairment charge was recorded in the

services segment of $2.9 million.

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(10) Long-Term DebtLong-term debt consists of the following:

2011 2010

Note payable to a bank under an unsecured revolving term loan with variable interest rate pricing that was 1.50 percent at December 31, 2011, with the note expiring October 2014

$ 11,302 $ 11,302

Note payable to a bank under an unsecured revolving term loan with a fixed interest rate, and variable credit spread that was 2.35 percent at December 31, 2011, with the note expiring October 2014

15,000 15,000

Mortgage payable, collateralized by land and building, with interest at the prime rate minus 0.5 percent (2.75 percent at December 31, 2010), due August 2011

— 552

Note payable by Amonos, LLC to Pacific Gulf, LLC; collateralized by land; interest at three percent; principal due July 2012

1,000 1,000

Note payable by Amonos, LLC to an individual; collateralized by land; interest at seven percent—interest only through August 2010; principal due September 2012

— 975

Note payable by Kánaak Alabama to Nypro, Inc., an affiliated partner with Sealaska Corporation with interest at five percent

882 1,179

Other debt 1,379 2,380

Total long-term debt 29,563 32,388

Less current portion (1,275) (1,172)

Total long-term debt less current portion 28,288 31,216

❖ Dollars are in thousands. Years ended December 31.

Scheduled principal maturities of long-term debt are as follows:

2012 1,275

2013 —

2014 26,302

2015 —

2016 —

Thereafter 1,986

Total $ 29,563

❖ Dollars are in thousands. Years ended December 31.

Sealaska’s $60 million unsecured revolving term loan has various affirmative and negative covenants that are typical within

loan agreements. Sealaska was in compliance with all covenants at December 31, 2011. Interest expense totaled $1.1 million in

2011, $1.5 million in 2010 and $1.5 million in 2009.

Sealaska has the following lines of credit available at December 31, 2011:

Amount Amount Outstanding Interest Rate Collateral

$1,000,000 — 3.25% No collateral

$750,000 $538,000 1-month LIBOR + 3.75% Business assets of the borrower

$3,000,000 — Variable No collateral

$4,000,000 $3,600,000 3.25% Business assets of the borrower

The lines of credit are as follows: NKA $1.0 million at Wells Fargo, Security Alliance $750,000 at BankUnited, MBS $3.0 million at

Colorado State Bank and Trust and NKI $4.0 million at Wells Fargo.

(11) Income TaxesIncome tax expense related to continuing operations was the following:

2011 2010 2009

Current income tax expense (benefit)

Federal $ (40) $ (319) $ 57

State (26) (56) 199

Foreign (284) — 66

Total $ (350) (375) $ 322

Deferred income tax expense (benefit)

Federal (313) (138) 762

State (175) 225 134

Foreign 657 (24) (5,997)

Total 169 63 (5,101)

Income tax expense (benefit) $ (181) $ (312) $ (4,779)

❖ Dollars are in thousands. Years ended December 31.

The income tax expense from discontinued operations was $0, $0 and $4,000 for the years ending December 31, 2011, 2010 and

2009, respectively.

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The provision for income taxes from continuing operations differ from the “expected” amount (computed by applying the U.S.

federal corporate tax rate of 35% to earnings before taxes) as follows:

2011 2010 2009

Computed “expected” tax expense $ 2,685 $ 6,959 $ 6,670

State income tax, net of federal tax 490 1,082 1,412

Change in valuation allowance 1,343 (741) (38,948)

Expiration of net operating losses (4,799) (6,606) 25,898

Addition of ANCSA assets (137) (131) (140)

Discontinued operations — — (4)

Other 237 (875) 333

$ (181) $ (312) $ (4,779)

❖ Dollars are in thousands. Years ended December 31.

Net deferred tax assets and liabilities include the following:

2011 2010

Deferred tax assets

Net operating loss carryforwards $ 139,418 $ 135,185

ANCSA resource basis difference 196,013 206,040

Fixed assets 12,372 12,276

Other 11,478 11,113

Total gross deferred tax assets 359,281 364,614

Deferred tax liabilities—investment unrealized losses (gains) 2,106 (4,401)

Valuation allowance (330,517) (329,174)

Net deferred tax asset 30,870 31,039

Less current portion (2,277) (1,091)

Total long-term deferred tax asset $ 28,593 $ 29,948

❖ Dollars are in thousands. Years ended December 31.

Sealaska has recorded a net deferred tax asset of $30.9 million, which primarily reflects (a) estimated future benefit of $322

million federal, $266 million state and $17 million foreign net operating loss (NOL) carryforwards which expire in varying

amounts from 2011 to 2030 and (b) basis differences for significant natural resources received pursuant to ANCSA which have

no carrying value in the accompanying consolidated financial statements but which have substantial basis for domestic tax

reporting purposes. A valuation allowance has been established, reducing the maximum possible benefit of these carryforwards

to management’s estimate of the benefit likely to be realized. Realization is dependent on generating sufficient taxable

income prior to expiration of the loss carryforwards and basis differences. Although realization is not assured, management

believes it is more likely than not that all of the recorded net deferred tax assets will be realized. Net deferred tax assets

considered realizable are adjusted annually dependent on management’s estimate of future earnings. An increase or decrease

in management’s estimate of the total taxable income that will be generated during the carryforward period will have a

corresponding increase or decrease in net deferred tax assets considered realizable.

During the periods presented above and prior periods,

tax depletion arising from Sealaska’s ANCSA resources

has offset all other federal and state taxable income and

Sealaska has not paid federal or state income taxes except

those taxes related to the activities of certain controlled

subsidiaries operating outside Alaska. Sealaska will need

to earn approximately $40 million in taxable income

within the United States of America to utilize its estimated

realizable deferred tax asset related to state and federal tax

jurisdictions prior to the expiration of its federal and state

net operating losses in 2030. Sealaska will also need to earn

approximately $17 million in taxable income in Mexico prior

to the expiration of its net operating losses in 2018

and 2019.

(12) Other Noncurrent LiabilitiesOther noncurrent liabilities consist of the following:

2011 2010

Elders’ distribution payable $ 7,542 $ 7,785

Shareholders' distribution payable 913 750

Endowments payable 2,068 2,246

Voluntary retirement deferrals 1,935 1,821

Charitable contribution payable 100 300

Total $ 12,558 $ 12,902

❖ Dollars are in thousands. Years ended December 31.

(13) Retirement PlansSealaska has a 401(k) plan for virtually all employees

meeting certain eligibility requirements. Participants may

contribute up to 25 percent of their eligible compensation

to the plan, subject to the limits of Section 401(k) of the

Internal Revenue Code. Sealaska matches 100 percent of the

participant’s contribution up to four percent of their eligible

compensation. All participants are immediately vested in

the preceding contributions. Sealaska may contribute six

percent of the participant’s eligible compensation to the

plan and these contributions are vested over a five year

period. Contributions to the plan are based upon employees’

total yearly contributions and base pay. Total approved

contributions to the plans were $1,194,000, $1,394,000,

$1,109,000, in 2011, 2010 and 2009, respectively.

(14) DEscription of the Business and Segment Information

Sealaska, together with the subsidiaries through which the

Company’s businesses are conducted, is a diversified Alaska

Native Corporation with operations in the following business

segments: Natural Resources, Manufacturing, Services,

Investments and Gaming.

Description of the Business

(a) Natural ResourcesThe natural resources division is responsible for the land

management and land stewardship functions of all Sealaska

lands. Sealaska Timber Corporation is responsible for the

harvesting of timber and marketing of logs into the highest

value export and domestic markets. Management activities

include collection of escrow receipts, cadastral survey

of ANCSA lands, maintenance of land records and other

activities vital to land ownership. Alaska Coastal Aggregates,

LLC markets and manages approximately 568,000 acres

of the Company’s subsurface estate. Haa Aaní, LLC is an

enterprise dedicated to creating sustainable communities

throughout our region and to enhancing the social, economic

and cultural lives of all Sealaska tribal member shareholders.

(b) ManufacturingThe manufacturing division is comprised of a contract

manufacturer of injection molded components. The contract

manufacturer specializes in high quality plastics, injection

molded products and value-added manufacturing services

in partnership with customers in the consumer/industrial,

electronics/telecommunications, healthcare and automotive

industries. Secondary value-added services include product

design, engineering, tooling, automated molding and

some secondary value-added services including shielding,

painting, decorating, graphics and assembly.

Substantially all of the manufacturing division’s revenue is

derived from activities and customers in the United States of

America with the exception of the operation of a facility

in Mexico.

(c) ServicesThe services division provides environmental construction

and remediation, environmental assessments, consulting

and engineering services, custom build construction,

construction management services, and security services to

federal government agencies, private and commercial clients

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through wholly owned subsidiaries: Sealaska Environmental Services, LLC, Kingston Environmental Services, Inc., Synergy

Systems, Inc. and Security Alliance, LLC. The services division provides services in the disciplines of information technology (IT)

strategy and consulting, business intelligence, application services, infrastructure management, managed services and data

processing through the subsidiary Managed Business Solutions, LLC. The services division expanded in 2010 with the controlling

acquisition of Security Alliance, LLC. Through Security Alliance, LLC, the services division provides an array of guard and private

investigation services.

(d) InvestmentsSealaska’s securities portfolio consists of two separate investment accounts that are managed to achieve different objectives:

the Marjorie V. Young Shareholder Permanent Fund is managed long-term with the objective of shareholder dividends, and

the Investment and Growth Fund is managed shorter term and is used for operational needs and new investments. Sealaska

investments follow a disciplined investment philosophy by building off existing strengths, exercising patience and selectivity

in making investment, adding investments that will achieve consistency in growth and earnings, and being prepared to exit

investments or potential investments if upside opportunities arise or if problems change expected returns, and by seeking strong

and strategic partnerships, distributing risk and benefit and establishing a new platform for companies for future growth.

(e) GamingThe gaming segment consists of an investment in a gaming venture with the Cloverdale Rancheria of Pomo Indians in

Cloverdale, California. Through its wholly owned subsidiary End-to-End Enterprises, Sealaska is working to develop a new

casino and resort facility. The End-to-End subsidiary has purchased land for the casino development.

2011 2010 2009

Net income (loss) from continuing operations before income taxes

Natural resources $ 2,244 $ 4,495 $ (505)

Manufacturing 1,316 728 2,170

Investments (4,503) 13,923 20,128

Services 3,498 3,063 (2,111)

Gaming (843) (4,675) (2,756)

Corporate and other (2,177) (1,825) (1,541)

Total segment net earnings (loss) (465) 15,709 15,385

Net revenue (expense) not allocable to a segment

Natural resource revenue sharing under Sections 7(i) and 7(j) 24,067 16,537 19,836

Selling, general and administrative expense (14,953) (14,494) (14,688)

Other, net (752) 1,820 (1,240)

Income before taxes 7,897 19,572 19,293

Income tax benefit 181 312 4,779

Income from continuing operations 8,078 19,884 24,072

Discontinued operations, net of tax 134 (2,436) (300)

Net income 8,212 17,448 23,772

Less: Net income attributable to non-controlling interest 1,421 2,294 3,487

Net income attributable to Sealaska $ 6,791 $ 15,154 $ 20,285

❖ Dollars are in thousands. Years ended December 31.

2011 2010 2009

Total assets by operating segment

Natural resources $ 10,778 $ 7,755 $ 6,415

Manufacturing 34,081 27,532 26,616

Investments 146,992 152,336 168,667

Services 23,268 21,262 11,200

Gaming (4,017) (2,231) 6,567

Corporate and other 157,562 154,497 119,871

Total assets $ 368,664 $ 361,151 $ 339,336

Capital expenditures by segment

Natural resources 6,674 7,190 6,034

Manufacturing 1,670 4,022 2,065

Services 367 1,098 881

Gaming 379 405 226

Corporate and other 3,621 2,279 1,156

Total capital expenditures $ 12,711 $ 14,994 $ 10,362

Depreciation, impairment and amortization by segment

Natural resources 5,259 4,382 5,551

Manufacturing 2,796 2,984 1,632

Services 263 1,433 3,709

Gaming — 2,950 —

Corporate and other 1,219 312 1,300

Total depreciation, impairment and amortization $ 9,537 $ 12,061 $ 12,192

❖ Dollars are in thousands. Years ended December 31.

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(15) Commitments and Contingencies

Management is not aware of or party to any legal action that

would have a material adverse effect on the consolidated

financial condition, results of operations or cash flows of

Sealaska. Sealaska, in its normal course of activities, is

exposed to regulatory and environmental matters. In the

opinion of management, the disposition of these matters is

not expected to have a material adverse effect on Sealaska’s

financial condition, results of operations or liquidity.

Sealaska is currently leasing facilities, and manufacturing and

office equipment, from a variety of vendors. Minimum annual

rental commitments on operating leases at December 31 are

as follows:

2012 3,464

2013 2,915

2014 1,980

2015 1,677

2016 1,431

Thereafter 5,108

Total $ 16,575

❖ Dollars are in thousands.

These leases primarily relate to Kánaak. The facility lease

payments are subject to an annual increase based on changes

in the cost of living, as reflected by the Consumer Price Index.

Kánaak has options to renew, at substantially similar terms,

the facility leases for an additional two to 12 years.

In October 2010, Sealaska Corporation purchased 70 percent

of Security Alliance of Florida, LLC. The purchase includes a

conditional non-controlling interest redemption feature of an

eight to nine percent additional purchase of Security Alliance

if revenue targets are met at December 31, 2012.

During December 2011, Sealaska committed to extend a

loan of $500,000 for working capital needs that can be

converted to additional Series B Preferred Stock at the mutual

agreement of the majority owners of Green Earth Greens and

Sealaska Corporation.

(16) Subsequent EventsSealaska has evaluated subsequent events from the

balance sheet date through April 16, 2012, the date at

which the financial statements were available to be issued,

and determined there are no subsequent events which

require disclosure.

SEALASKA CORPORATION

Corporate Headquarters

One Sealaska Plaza, Suite 400

Juneau, AK 99801

TEL: 907.586.1512

FAX: 907.586.2304

Shareholder toll-free line:

800.848.5921

www.sealaska.com

Seattle Office

13810 S.E. Eastgate Way, Suite 420

Bellevue, WA 98005

TEL: 425.283.0600

FAX: 425.283.0650

Sealaska Heritage Institute

One Sealaska Plaza, Suite 301

Juneau, AK 99801

TEL: 907.463.4844

FAX: 907.586.9293

www.sealaskaheritage.org

www.alaskanativeartists.com

SEALASKA SUBSIDIARIES

Sealaska Constructors

General Manager: Daniel Esparza

13810 S.E. Eastgate Way, Suite 420

Bellevue, WA 98005

dan.esparza@seakcon.com

www.seakcon.com

Sealaska Environmental Services

President and CEO: Derik Frederiksen

One Sealaska Plaza, Suite 400

Juneau, AK 99801

derik.frederiksen@sealaska.com

www.sealaskaenvironmental.com

Sealaska Global Logistics

Vice President: Angela Higgs

13810 S.E. Eastgate Way, Suite 420

Bellevue, WA 98005

angela.higgs@sealaska.com

www.sealaskagloballogistics.com

Sealaska Timber Corporation

President and CEO: Wade Zammit

2030 Sea Level Drive, Suite 202

Ketchikan, AK 99901

wade.zammit@sealaska.com

www.sealaskatimber.com

Managed Business Solutions

President and CEO: Jon Duncan

12325 Oracle Blvd., Suite 200

Colorado Springs, CO 80921

jon.duncan@mbshome.com

www.mbshome.com

Security Alliance

President and CEO: David Ramirez

8323 NW 12th St., Suite 218

Doral, FL 33126-1840

davidr@securityalliancegroup.com

www.securityalliancegroup.com

Nypro Kánaak

Managing Director: Julio Oropeza

julio.oropeza@nyprokanaak.com

www.nyprokanaak.com

Nypro Kánaak Alabama & Iowa

General Manager: Kevin Bokros

208 Nypro Lane

Dothan, AL 36305

400 North Harvey Road

Mt. Pleasant, IA 52641

kevin.bokros@nyprokanaak.com

www.nyprokanaak.com

Nypro Kánaak Guadalajara

General Manager: Alejandro Hernandez

Ignacio Jacobo #23

Parque Industrial Belenes

Zapopan Jalisco, MX 45101

alejandro.hernandez@nyprokanaak.com

Synergy Systems

General Manager: Bob Wysocki

13810 S.E. Eastgate Way, Suite 420

Bellevue, WA 98005

bob.wysocki@sealaska.com

www.sealaska.com/page/synergy_systems

Alaska Coastal Aggregates

General Manager: Bill Bennett

One Sealaska Plaza, Suite 400

Juneau, AK 99801

bill.bennett@sealaska.com

www.sealaska.com/page/aggregates

Haa Aaní, LLC

President and CEO: Russell Dick

One Sealaska Plaza, Suite 400

Juneau, AK 99801

russell.dick@sealaska.com

www.sealaska.com/page/haa-aani-llc

OUTSIDE COUNSEL

Simpson, Tillinghast & Sorensen, P.C.One Sealaska Plaza, Suite 300Juneau, AK 99801

INDEPENDENT AUDITORS

KPMGPhillips Tower South701 West 8th Avenue, Suite 600Anchorage, AK 99501

sealaska directory

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1997–2 1998 1999 2000

2001 2002 2003 2004

2005 2006 2007 2008

2009 2010 2011

www.sealaska.com

Photo credits: Carlos Acero, Todd Antioquia, Scott Areman, Oscar Avellaneda-Cruz, Terrance Booth Jr., Don Derosier, Don Distel and Seanna O’Sullivan.

Copyright 2012 Sealaska Corporation. Design by Pyramid Communications. Printing by Visions, Inc.