(December 7, 2009) At the Koniag Annual Meeting of Shareholders in Kodiak on Saturday, November 7, 2009, the Board of Directors announced a dividend of $10.00 per share for both A & B stock, which will be mailed or direct deposited on January 14, 2010. This dividend is comprised of earnings from operations in the amount of $7.67 per share, from the Karluk River Conservation Easement Agreement in the amount of $1.45 per share, and $0.88 cents per share from the Exxon Valdez Oil Spill Settlement (EVOS).

As an explanation to the amount of the Dividend coming from the EVOS: in June of 2007, the Board of Directors adopted a Windfall Plan that defined a Windfall as: Substantial gains inuring to the benefit of Koniag through chance occurrences and not derived directly from capital investment, natural resource, management efforts, or sale of assets. Furthermore, the Windfall Plan states that in the event of a Windfall, Koniag will distribute 1/3 (one third) of the Windfall amount to Shareholders in the Annual Dividend, 1/3 (one third) will be donated to support an educational, social, or cultural program that brings a broad benefit to the shareholder community, and 1/3 (one third) will be allocated to long term growth of Koniag, Inc. through income-producing investments based on Koniag’s investment allocation policy.

The deadline to accept changes or additions for addresses or direct deposit for this distribution is December 30, 2009.

If you receive your dividend by direct deposit, please note that Koniag will post a zero dollar transaction known as a pre-note on December 1, 2009. The pre-note is intended to test the validity of your account information. Depending upon your bank, this pre-note transaction may be reflected on your bank statement.

If you should have any questions regarding this matter, please call Gloria Bishop at 907.486.2530 (toll free number, 1-800-658-3818) or email: gbishop@koniag.com.