HaiCo Update: Significant Changes Underway

Xaydaa Laas and Xaayda Gwaay.yaay Residents,

Fall is upon us and so is a season of change at the Haida Enterprise Corporation.

As mentioned in prior communications, the absolute necessity of change has been recognized. As a result of our Board-initiated operational reviews, we have been able to determine the level of restructuring required to transform HaiCo companies into economically viable enterprises.

As anticipated, these changes are significant. We recognize that to align ourselves with shareholder values and to become profitable businesses, difficult decisions must be made. And as we face adverse market conditions and other unforeseen circumstances, we must make decisions that will mitigate further risk to HaiCo. Short-term implications for staff and operations is inevitable, however, we are confident in our ability to maintain strategic priorities as we move in this new direction.

The Board is working collaboratively with Council of the Haida Nation and Secretariat of the Haida Nation on the restructure, ensuring a secure foundation for the future is established in Xaayda Gwaay.yaay.

With CHN and SHN support, HaiCo will be engaged in the following this fall:

• Extending a normal summer shutdown for Taan Forest until the end of September.

• Closing the Haida Wild plant in Masset and seeking a lease arrangement to operate this facility on our behalf, with Xaayda and local employment.

• Moving to exit the commercial sportfishing industry by putting the Englefield barge up for sale.

• Refocusing our tourism businesses (Haida House and Ocean House) to capitalize on our strengths.

• Terminating leases at Granville Island and the Vancouver airport, consolidating operations and relocating positions to Xaayda Gwaay.yaay.

We understand the process of change is difficult, especially at this scale. We regret such necessity and genuinely appreciate the support HaiCo has received from the Shareholder and community to date.

HaiCo will hold Xaayda public dinner meetings in advance of the House of Assembly; October 8th at the Old Massett Community Hall and October 9th at the Skidegate Small Hall. We are committed to providing clear channels of communication going forward and are eager to provide more information at that time.