Dear fellow shareholders,

I hope you have been able to get out and enjoy the summer season. A couple highlights for me were attending the Annual Meeting and Traditional Chief Fred Ewan’s Memorial Potlatch. It was great to see everyone and have the chance to honor Chief Ewan in our traditional way.

Our subsidiaries are currently in one of the busiest times of the year as our construction contracts are in full swing, large service contracts have been coming up for bid, and we are working hard to position ourselves for potential sole source 8(a) contracts for the government’s fiscal year end.

Extreme spring weather in some areas made for a rough start for our operations this year. The 26-inches of rain that fell on Fort Lauderdale, Florida in 24 hours impacted our work at Las Olas and Tiger Tail, the heavy rains in California impacted our Redding Airport project and Natomas Reach project in Sacramento and our environmental work in the Los Angeles area. Additional impacts from Hurricane Ian and snow events also pushed many of our projects to the right. Despite these challenges, we are seeing continued progress on growing our backlog, while keeping our expenses down.

We will be holding Ahtna Netiye’ (AN) Strategic Planning sessions with the Board and leadership in October, where we will discuss our long-range plans and AN growth, direction, organization, succession planning, and future subsidiaries. Part of our future growth will include acquisitions and procurement of strategic equipment and technology assets that will enable us to self-perform more projects. The Palmer Airport project has helped us to grow our equipment inventory with the purchase of multiple crew trucks, two 980 loaders, dozer, compactor, excavator, dirt roller, water truck, skid-steer, traffic control truck and devices, and a side-dump trailer. We have also been conducting pre-due diligence on potential acquisitions that could diversify our operations and grow our presence in new locations.

Ahtna Construction & Primary Products Company (AC&PPC) continues to have success with their guardrail project for the Department of Transportation in the North Central area of Alaska. The $11.3M project kicked off in May, and we are partnered with Mt. McKinley Fence. The crews have finished up work on the Parks Highway and are currently working locations on the Glenn Highway. They have received several compliments for their work and staying ahead of schedule with this project.

AC&PPC was recently awarded the Rivers & Floodplains contract from Alyeska for $3.1M. The work is a pipeline-wide program created to efficiently and proactively deal with flood damages occurring during spring break up and the summer rain season. This is a multi-year maintenance program that seeks to reduce risks to the Trans Alaska Pipeline System and minimize emergency repair situations.

Our Ahtna-Advancia Joint Venture received an award for the National Records Center (NRC) in Independence, Missouri. This work is for the Social Security Administration, and the award is for 5 years and $35M. This is especially good news as we have been looking to grow or maintain our service contracts. We have been at the NRC for over 20 years and will continue to provide the government with reliable and exemplary service.

Ahtna Engineering Services has had a mentor-protégé agreement with the Potawatomi Tribe of Milwaukee, Wisconsin since 2016. This was our first relationship as a mentor and is focused on government contracting, particularly in the Midwest. We recently met with the Potawatomi Business Group in Anchorage and talked about existing projects we are working on and potential opportunities. Currently, we are partnered at the NRC, Western Regional Center for the National Oceanic and Atmospheric Administration in Seattle, and U.S. Army Medical Center in San Antonio.

We were recently notified that Ahtna Global was awarded a grant under the Alaska Energy Authority to conduct Electric Vehicle Charging Station (EVCS) training. The training will be specifically designed to develop a local workforce for EVCS maintenance in and around Anchorage. We are coordinating with Shareholder Enrichment to provide shareholder employment opportunities in this area.

We have officially sold the Ahtna pad on the North Slope to Alaska-owned Alyeschem, LLC for a profit. Alyeschem is looking to develop the first petrochemical facility in the U.S. Arctic. The small chemical plant will use stranded North Slope natural gas to manufacture methanol and ultra-low sulfur diesel. Harvest Alaska LNG played a pivotal role in this transaction, as they will be utilizing the pad to construct a natural gas liquification facility and truck LNG to Fairbanks for the Interior Gas Utility.

I am happy to report that Ahtna has selected a new Vice President of IT. He will report directly to Michelle Anderson, but I will assist in the transition. I have been lucky enough to lead this group for the last eight years and I am pleased with the many projects we were able to accomplish.

I appreciated being able to share more about Ahtna’s current performance and future plans at the Annual Meeting and look forward to connecting at upcoming events!

Thank you,

Roy Tansy Jr., Chief Executive Officer
Ahtna Netiye’, LLC