Presentation Summary 2

Overview of Haida Gwaii and the Haida Introduce the Haida Enterprise Corporation Haico Corporate Goals Introduction of Taan Forest Ltd. Forest Management and Operating Principles Best Practices Challenges and Opportunities

October 23. 2012

Haida History

First settlements as long as 13,000 years ago Up to 30,000 Haida in more than 100 villages Rich culture and traditions Linguistically distinct, complex class and rank system World Renowned Artists, Dancers, and Musicians

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Skidegate Village 1884

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RBCM Photo

Haida History

European Contact started in 1700’s Smallpox and disease 1860’s <500 survivors Today about 4000 Haida people, half live on Haida Gwaii Many legal/political accomplishments by HAIDA NATION

related to achieving rights and title protection Strong interest in renewed economic development for

islands

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Islands Recent History

Governor Douglas of Western Canada named the Islands “Queen Charlotte” German Princess who was married to King George III

Colony of Queen Charlotte Islands 1853-1863 Absorbed in Colony of British Columbia 1863 Became part of British Columbia 1871 as QCI Industrial logging began in 1920’s Officially renamed to Haida Gwaii in 2010

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Haida Gwaii Today 7

• 150 islands largest being Graham and Moresby • 1 million hectare land area- 48% protected/park status • Largest community – Queen Charlotte City – 950 people • Population about 4900 • Fishing, tourism, logging, government are mainstays • Communities-Sandspit, Queen Charlotte City, Skidegate, Tlell,

Port Clements, Masset and Old Massett village

HaiCo – An Introduction 8

100% Haida Nation ownership Haida Leaders nominate HaiCo board

members Nominees selected based on diverse business

experience and skills Independent Board of Directors Businesses operated separately with shared

administration

Haida Shareholder Direction

Council of Haida Nation Letter of Expectations Approval of HaiCo’s Strategic/Business Plans Focussed on direction at Strategic levels

Quarterly Gatherings and annual Haida House of Assembly Close Communications Expected-No surprises approach

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Introduction to Taan Forest Ltd.

First Logging Operations in 2010 Granted first forest tenure (FLTC) Sept. 2010 TFL 60 Purchased from WFP in June 2012 First full year of operations in 2011

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HaiCo Forestry Tenures 11

Forest Inventory/AACs

Tenure Total Area - Ha Timber Harvesting Land Base - Ha

Annual Allowable Cut – M3

TFL 60 136,400 55,574 340,000

First Nations Woodland Tenure 71,000 30,003 120,000

Total 207,400 85,577 460,000

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M3 = Cubic Metres Ha = Hectares

Taan Financial Results/Projections 13

2011 Revenue /Sales Can$17,000,000

2012 Revenue/Sales $21,000,000

2013 Revenue /Sales $30,000,000

2011 Custom Cut Sales $500,000

2012 Custom Cut Sales $2.5 million

2013 Custom Cut Sales $5.0 million

Ferguson Bay Pole Plant 14

Joint venture with Skidegate Band Started in mid 2012 - $1 million investment Annual capacity 15,000 + high value poles 4 new full time jobs-mostly Haida workers First 3000 poles shipped October 2012 Opportunities from off cuts, rejects and waste

HaiCo Board

Chair- Dr. Roslyn Kunin – Economist Paul Wates CGA – former corporate executive Dana Bellis – First Nations Fisheries Council Lonnie Young – Hereditary Chief Kevin Ainsworth – CEO and businessperson Tasha Samuels – business school student

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HaiCo Executives

CEO - Kevin Ainsworth MBA, graduate forester with extensive sawmill and business experience in energy, capital and forestry

COO – Bob Brash RPF, MBA, professional forester, former

District Manager with Ministry of Forests, served as President of a Haida Gwaii forestry company

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Taan Core Principles Best Operating Practices

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Operate as a business without subsidies Meet or Exceed all BC forestry/environmental laws through HG

Land Use Order Exceed “normal” Ecosystem Based Management principles Maintain Forest Stewardship Council® standards Focus on sustainability, community, safety and employment

Governance Best Practices

• Diversity of Experience based on merit and ability • Haida and non-Haida representation • Independent Board • Strategic Link between Owners and Board • Constant communications between all levels • Long and short term focus

Haida Gwaii Land Use Plan (Best Practices on the Land)

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World class land use planning 48% parks and protected areas Riparian Management Cedar Stewardship Areas and

Culturally Modified Tree protection

Marbled Murrelets/Owl reserves Black Bear Dens-Wildlife reserves Complex and comprehensive

FSC Certification (Best Practice Environmentally)

Both Forest Management (SW-FM/COC-005656 ) and Chain of Custody (SW-COC-005649) certification

One of largest FSC® log suppliers on BC coast Provides customer and shareholder assurance of responsible

management Annual audits and public reporting

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Trademark license FSC®-C104355 & C108282

Best Management Practices

• Hire on Ability • Pay Competitively • Invest in capacity building • Work with Youth • Sell by the Ounce not the Tonne • Manage the Money • Plan for Bad Times • Have the Right Systems in Place

Community Best Practices 22

Commitment to Haida Gwaii community A focus on creating Local employment and management Frequent Community Meetings Ongoing and frequent Newsletters Address Issues Head-on

The Challenges 23

To be profitable and successful Ramping up to Harvesting the Allowable Annual Cut Contractor capacity Shortage of technical personnel Working capital for future projects Ability to carry inventories for extended times Isolation and transport costs to markets

Current Priorities Long Term Best Practices

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Establish new partnerships and long term relationships with domestic and international customers

Establish foundation for manufacturing on Haida Gwaii Leverage high value products into benefits for Haida Gwaii Promote value added HaiCo/Taan products in high quality

lumber, cedar poles, seafood and sportsfishing

Other Businesses

West Coast Resorts Lodges Two Haida Gwaii hotels Haida SeaPak seafood processing company Aquaculture operations with scallops Biomass energy

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West Coast Resorts Haida Concept Lodge 26