Settlement of Lawsuit & Director Fagerstrom Resigns

Our Sitnasuak Board of Directors is pleased to announce the settlement of a pending lawsuit.  This ensures Sitnasuak will be able to hold its 44th Annual Meeting this summer. The settlement resolves many months of conflict and provides a framework for positive and meaningful cooperation.

As many of our Shareholders are aware, Sitnasuak filed a lawsuit (Sitnasuak Native Corporation v. Fagerstrom, et al.) last fall against individuals on issues protecting Shareholder voting rights and fair elections. This settlement resolves the lawsuit out of court and Director Charles E. Fagerstrom has resigned his seat on the Sitnasuak Board of Directors as part of the settlement agreement.

Since the start of this action, we were always looking for a resolution. We still have a lot of work to do, but now we can move forward.

According to the terms of the settlement, we will hold our 44th Annual Meeting in Anchorage within the shortest possible time consistent with regulatory requirements for notice, preparation and printing of proxies, and providing reasonable and adequate time for maximizing the quorum and proxies returned. In this new election, Shareholders will be required to resubmit proxies. New proxy cards and a new proxy statement will be distributed to Shareholders in the coming weeks. Sitnasuak will also update election rules, which will be distributed to Shareholders as well. We expect to provide more information on these topics as the 44th Annual Meeting approaches. Sitnasuak intends to hold the 45th Annual Meeting in Nome.

This settlement agreement gives us all a chance to begin anew in the election process. Each director has a fiduciary duty of care and loyalty to Sitnasuak Native Corporation and all parties agreed that Shareholders have the right to receive truthful information in exercising their voting rights. The agreement also states our shared understanding on the legality of discretionary voting and fair elections.

We welcome this agreement and look forward to what we can accomplish working together under our core corporate values – Culture, Character, and Contribution – all derived from our traditional values.