nership, have indicated that the discovery could result in the worlds largest copper mine.

The Board is watching the devel-opments closely. We have adopted a neutral position. We believe that it is up to the devel-opers to prove that a mine can be built safely, and will not threaten our resources and fish, but that they should have the opportunity to prove this in the process that the law provides. This process requires years of studies to estab-lish base line environmental information, and then, to go through a rigorous and public review process. As the developers go about their studies, we are learning all we can, both pro and con, about mining and, with APCS, about baseline environ-mental conditions.

Finally, I am looking forward to seeing you at APC’s Annual Shareholders Meeting in Kok-hanok on December 14, 2007. We were required to reschedule the meeting due to events beyond our control. For those of you who cannot make it to the meeting, we will miss you. Remember, to be eligible for a door prize, you have to turn in your proxy!

Sincerely,

Ralph Angasan, Sr., APC President

The President’s Corner

Alaska Peninsula Corporation News

Welcome to the first edition of the Alaska Peninsula Corporation News. With winter settling in, I hope that you will have time to read about your corporation and to let us know what you would like to see in future editions. Let us know about events that are happening in your community, concerns that you have and how we can better serve the needs of our shareholders.

APC has been busy and growing over the past year. A few of the highlights are:

♦ Our oldest subsidiary, Wētaviq, Ltd., recently entered into a sub-contract with Chugach Support Services, another 8(a) company, to operate transportation ser-vices on the King Salmon Air Force Base.

♦ Our newest subsidiary is APC Services, LLC or APCS. APCS is staffed with scientists and techni-cians to study hydrology (ground and surface water), biology and other environmental concerns. APCS presently is conducting a study of water quality on the Upper Talarik Creek and the Newhalen River under a contract with Pebble Limited Partnership. In addition, APCS is maintaining transmitter towers and partici-pating in fish studies on the Up-per and Lower Talarik Creeks. APCS will be seeking 8(a) certifi-cation shortly as well.

Mary Jane Nielsen, our General Manager for many years, is no longer alone at our Anchorage office. We welcome Maile Zimin, who has just joined us as Admin-istrative Assistant and, now, our newsletter creator and editor. Together, Mary Jane and Maile are responsible for the day to day operations of our Anchorage office. They are also responsible for helping the board to manage APC’s natural resources and its investment managers.

APC’s licensing programs provide the funds to manage the lands. This past year, we had leases with the Alaska Department of Fish and Game on the Ugashik and Naknek Rivers, licensees for commercial sports fishing in the Kokhanok area and on the New-halen River, and we licensed commercial big game guides on the Copper River and around Gibraltor Lake. We also licensed casual individual recreational use. In addition, we require Peb-ble Limited Partnership to pay license to enter fee for entering onto, and flying over APC lands as its consultants conduct wild-life, fish and plant studies.

A number of our shareholders have expressed interest in the Pebble Prospect. This is a huge copper, gold and molybdenum discovery about 17 miles from Newhalen. The owners of the prospect, Pebble Limited Part-

Inside this issue:

The President’s Corner 1

New Employee Introduction 2

On the Legal Side of Things 2

A Walk Down Memory Lane 3

APC Services, LLC Report 4

Wētaviq, Ltd. Report 5

Just for Fun 5

Mission Statement

The mission of Alaska Peninsula Corporation is to protect and preserve the land and the culture while growing the assets and enhancing the quality of life of APC sharehold-ers.

A l a s k a P e n i n s u l a C o r p o r a t i o n :

T h e C o n s o l i d a t e d V i l l a g e C o r p o r a t i o n f o r S o u t h N a k n e k , P o r t H e i d e n , U g a s h i k , K o k h a n o k a n d N e w h a l e n

November 19, 2007

Volume 1, Issue 1

New Employee Introduction

ministration projects and support work. She is in charge of keeping the office functioning on a daily basis and takes care of client and in-house needs specific to projects and daily business operations. She communicates daily with the parent company and has clear knowl-edge of the goals and deadlines set for the company and implements those by assisting with reminders and scheduling meetings. She has structured an employee data base and has implemented the initial start up of the 8(a) process.

Wētaviq, Ltd.

Larry Pickett is the Lead Motor Vehicle Mechanic at King Salmon Air Station. He’s originally from Abilene, TX but has spent the last 12 years working in Fairbanks and King Salmon.

Nekifer “Nick” Smithmeyer is originally from the Pribalof Islands, but grew up in Delaware. He moved to Alaska in 1974, resid-ing in Levelock prior to going to work for Chugach Support Services. Nick is a Motor Vehicle Mechanic Helper.

Brian Rice is originally from Springdale, Arkansas and is the Motor Vehicle Mechanic and Heavy Equipment Operator. He has worked on various projects in Iraq, the Mar-shall Islands, and most recently, King Salmon Air Station. Brian enjoys commercial fishing and hanging nets.

Alaska Peninsula Corporation

Maile (rhymes with smiley) Zimin is APC’s Administrative Assistant. She has over 17 years of bookkeeping and administrative as-sistant experience and is currently seeking her accounting degree. Maile helps APC’s General Manager, Mary Jane Nielsen, in making sure the office runs smoothly and efficiently. Not only does she handle the bookkeeping and administrative duties of APC, she currently has been assisting APC Services and Wētaviq with its bookkeeping needs until they become established.

APC Services, LLC

Dr. David Sommers is APC Services, LLC (APCS) CEO and Senior Scientist. Dr. Som-mers is a Registered Professional Geologist with approximately 40 years of geological and environmental consulting experience. His professional experience covers exploration for minerals and oil & gas, evaluation of contami-nated lands from leaking underground stor-age tanks, landfills, and Superfund Sites to the design and installation of remedial systems to clean up toxic substances. He also has vast experience conducting surface water and groundwater hydrology studies including mine dewatering, water supply development and in-situ solution mining evaluations.

Greg DuBois is the Business Manager and Senior Project Manager. Mr. DuBois has 23 years of professional geologic experience in Alaska including 18 years of environmental consulting experience. He has completed en-

vironmental projects throughout Alaska. His professional consulting work includes con-ducting Phase I/Phase II projects, NEPA En-vironmental Assessments, contamination site characterization and remediation projects, and baseline hydrology projects at mining sites. In addition to project management, he also supervises the APCS technical staff.

Melissa Cunningham is the APCS Project Biologist. Ms. Cunningham has 11 years of biological research experiences studying vari-ous species of fauna and flora. She has com-pleted baseline studies and research projects throughout Alaska. Her professional consult-ing experience includes two years of freshwa-ter fisheries baseline studies for the Chuitna Coal Project, Endangered Species inventories for the U.S. Air Force, and fisheries studies for ConoccoPhillips in the NPRA, Alaska. She has also obtained experience as a hydrologist for the Chuitna Coal Project and Pebble Project in Alaska.

Sharon Runkle is the Administrative Super-visor for APCS. Ms. Runkle has a diverse ex-perience of over 6 years of working with ad-

Page 2 Volume 1, Issue 1

On the Legal Side of Things Continued on Page 4….

♦ Exxon Case: Many Bristol Bay fishermen have received information from the Exxon Qualified Settlement Fund about a possible payout. Unfortunately, there will not be a payout for at least another 9 months. This is because the United States Supreme Court has

recently agreed to hear the case. The Court will determine whether maritime law allows punitive damages against owners (like Exxon) for the misdeeds of the captains that cause harm to others. If the court decides that mari-time law does allow punitive damages, then it

will decide how much is allowable. The Ninth Circuit Court of Appeals in San Francisco said that $5 billion was too much, and $2.5 billion was about right. The United States Supreme Court will now consider whether the 9th Cir-cuit was right in allowing 2.5 billion dollars, or whether that is too much.

A Walk Down Memory Lane…..

Page 3 Alaska Peninsula Corporation News

APC Board of Directors at the March 19, 1983 Shareholders Meeting at Port Heiden.

APC Shareholders at the annual meeting in Port Heiden on March 25, 1995.

APC Shareholder’s at the annual meeting in Kokhanok on November 12, 1988.

APC Shareholder’s at the annual meeting on November 21, 1987 in South Naknek.

Recognize any of these little tykes from the APC Shareholder Meet-ing in South Naknek on November 28, 1998?

Ralph Angasan, Sr. and Peter Denn of Deloitte & Touche at the Annual Shareholders Meeting in Port Heiden on March 19, 1983

stream is crossed multiple times and the data reduced with special software to provide an accurate cross section of the stream showing channel widths and depths, as well as esti-mates of discharge.

These stream flow measurements and the water quality analyses from collected samples taken simultaneously with monthly discharge measurements will be studied in the office and analyzed & interpreted to estimate the amount of discharge of the streams and vari-ous stages during various times of the year.

These interpretations will be used to assess the potential impacts of the planned Pebble Mine close to APC lands.

APC Services, LLC (APCS) is an Alaska Native owned environmental and engineering firm dedicated to ethically, efficiently meeting cli-ent needs. APCS is a wholly owned subsidiary of Alaska Peninsula Corporation (APC).

APCS was incorporated in November 2006. In its first year of operation APCS has obtained approximately $2 million in new contracts. The current projects mainly revolve around mining baseline studies including hydrologic studies of the Upper Talarik Creek and New-halen River near Iliamna, Alaska.

This project involves a baseline hydrology study of the two major drainages that flow through the APC lands, i.e., the Upper Talarik River and the Newhalen River, both major

rainbow trout and salmon fisheries. For the investigations, the field work included setting up and surveying stream gauging stations with data loggers and pressure transducers to continuously record the stage above the da-tum set by the station.

After the station was set up, the stream cross

section was surveyed and flow measurements were collected. After the samples were col-lected they were delivered to a field laboratory for filtering and preservation and then shipped in specialized cooling containers to laboratories following proper chain of custody procedures.

APCS also has conducted discharge measure-ments of the Newhalen River using Doppler sonar methods from a special water craft. The Doppler is mounted on the watercraft with a laptop computer to run the program. The

APC Services, LLC Report

Page 4

APC opposed the bill in hearings before the House Legislative Committee, and the Alaska Federation of Natives also registered its oppo-sition to the bill as a wrongful regulation of Native land rights.

♦ Clean Water Initiative: This is a citizen initiative that would have the effect of banning “large mines” anywhere in the State of Alaska that are not already permitted. As such, the initiative, if it became law, would ban not only a Pebble Mine, but any new mine on Native Corporation lands as well. The Pebble Pros-pect is on State lands, but the initiative would apply to private lands as well as public lands. It would have the effect of depriving Native shareholders, statewide of a promise con-tained in the Alaska Native Claims Settlement Act, that resource revenues would be shared with Natives throughout the state.

♦ HB 134: This legislation, introduced in the State House of Representatives last year, and reintroduced again for the 2008 legislative session, seeks to halt most economic develop-ment on lands that are connected, in any way, to the surface and ground water systems of the Nushagak, Kvichak, Naknek, Egegik and Uga-shik Rivers. The sponsors believe that the bill, if passed, would stop the Pebble Prospect from becoming a mine. It is more likely, at least in the short-term, that the bill, if it became law, would deprive Village Corporations, such as APC, of the economic benefits of their lands. The bill proposes huge day fines as penalties against corporations, and up to $5,000 a day for individuals who violate it.

...Continued from Page 2 On the Legal Side of Things

Volume 1, Issue 1

Wētaviq, Ltd. Report

aries (APC Services, LLC and Wētaviq Ltd.). The designs were created through Blue Dia-mond Gems web-page and logo designer, Don Steinberger.

The design of the main logo for APC came after careful consideration of commonalities of each individual village corporation commu-nity within APC; many aspects of culture and local significance were considered. Ultimately the mountain image graphic was chosen out of its shared relevance to each of the five com-munities.

The chosen colors are organic and embody elements of our corporation’s lands; dark blue representing the far off appearance of our land and water, the dark green represents the natural state and sustainability of our lands. Additionally, the contemporary imagery of the graphic represents a stable, professional foun-dation of continuity and growth.

In essence, Alaska Peninsula Mountains reach back from beyond our knowledge, they are there no matter what; weathering the worst of the elements, yet appear unchanging or phased by their harsh climate. Somehow, they even appear to grow in their existence; characteristics our shareholders have come to expect from our corporation.

Wētaviq is one of APC’s subsidiaries and Brad Angasan is its Project Director. Over the course of the last ten months, Wētaviq has effectively established an office and this has been made possible through an agreement with APC Services, LLC. Our new office is located at 4450 Cordova Street, Suite 120 in Anchorage.

As of September 28, 2007 we have partnered with Chugach Support Services (CSS) to pro-vide management of transportation-maintenance at King Salmon Air Station (KSA) for the period of October 1, 2007 to September 30, 2008.

Although we manage a portion of the general KSA contract, the newly formed relationship with CSS has opened a significant opportunity for us to eventually propose complete man-agement of KSA after a preliminary proba-tionary period.

We’ve recently requested from the Small Busi-ness Administration (SBA) proposing formal participation in the mentor-protégé program to CSS. Although there is an informal agree-ment already determined within the sub-contract, our level of achievement could be better met through their assistance and exper-tise in business development through the

mentor-protégé effort. A formal proposal will be developed and prepared by April 1, 2008.

Upon finalization of the KSA sub-contract, we’ve begun the application process with the SBA Historically Underutilized Business (HUB) Zone program. In addition to our designation as an 8(a) corporation, this will

work toward our benefit as we begin to make contracting proposals through the SBA, or to contractors who favor businesses with these designations.

Lastly, we are in the final process of logo and web-page design for APC and its two subsidi-

Page 5

Wētavaq President, Trefon Angasan Jr., signing the Sub-contract Agreement with Chugach Support Ser-vices.

Alaska Peninsula Corporation News

What do you call people who are afraid of Santa Claus? Claustrophobic!

What do snowmen eat for breakfast Snow-flakes!

Answer to Crossword Puzzle will be in the next APC Newsletter.

Just for Fun! 1 2

3

4

5 6

7 8 9

10 11

12 13

14

ACROSS 3 Number of villages in Alaska Peninsula Corporation 6 Last name of web-page and logo designer for APC 7 The Board is closely watching the development of this project 10 Number of APC subsidiaries 13 The volume and issue are this same number 14 An Environmental subsidiary DOWN 1 BLM manages this for APC 2 Type of measurement that APCS has conducted 4 First name of APC President 5 Wētaviq has begun the application process for this program 8 You must turn this in to be eligible for a door prize 9 Street name where APC subsidiary offices are located 11 An 8(a) subsidiary 12 Month of rescheduled APC Shareholder Meeting

To:

Alaska Peninsula Corporation (APC) encompasses five small vil-lages which are consolidated to form Alaska Peninsula Corpora-tion. Those villages are:

Meshik Incorporated (Port Heiden), Merge Date: 11/3/78 Qinuyang Limited (South Naknek), Merge Date: 11/3/78

Kokhanok Native Corporation, Merge Date: 2/27/80 Ugashik Native Corporation, Merge Date: 2/27/80

Newhalen Native Corporation, Merge Date: 4/6/81

APC, an Alaska Native Claims Settlement Act Village Corporation man-ages approximately 400,000 acres of land within the APC village land withdrawals areas, has income derived from leasing, and licenses to enter APC lands. APC has entered into surveying contracts from the Bureau of Land Management and managing gravel sales.

111 West 16th Avenue Suite 101 Anchorage AK 99501-6206

Phone: (907) 274-2433 Fax: (907) 274-8694 E-mail: akpc@alaska.net

4450 Cordova Street Suite 120 Anchorage AK 99503

Phone: (907) 677-9451 Fax: (907) 677-9452 E-mail: ofthewoods@msn.com

4450 Cordova Street Suite 120 Anchorage AK 99503

Phone: (907) 522-9382 Fax: (907) 522-9383 E-mail: wetaviq_proj_director@gci.net

111 West 16th Avenue, Suite 101 Anchorage AK 99501-6206

Petrof Falls

Happy Holidays from all of us at Alaska Peninsula Corporation!!