From Alaska s Arctic An Overview, Prepared by Institute of the North

Enterprise Infrastructure Pathways to Capital Alaska Infrastructure Development World Trade Center - Anchorage Anchorage, Alaska November 30, 2016

AIDEA (Owned) Project Finance: Camp Denali Readiness Center An AIDEA owned project, in partnership with the DMVA, that provided an expansion of the National Guard Armory on JBER to house the US Coast Guard. The 29,000 square foot expansion and the additional parking allowed for the retention of the USCG in Anchorage and enhances cooperative efforts by strengthening interagency relations.

AIDEA Loan: Bonanza Fuel Tank Farm AIDEA participated in a loan originated by Northrim Bank for $7,312,500 to Bonanza Fuel, LLC in Nome. The project adds three storage tanks to the existing six tanks at the facility, and increases storage capacity by 2.3 million gallons to a total of 5.9 million gallons. The project also increases competition among local fuel suppliers and enhances the development of Nome s harbor, and reduces the likelihood of a fuel shortage in Nome.

AIDEA Owned (Project Finance): Federal Express MRO Anchorage The Federal Express Maintenance, Repair and Overhaul (MRO) facility consists of a hangar capable of accommodating one wide-body aircraft, such as a Boeing 747. The project also includes a ramp, taxiway, road, utilities and landscaping. The hangar is supported by a fire suppression pump house and water storage facility, which was constructed as part of this project.

AIDEA Loan: Deadhorse Man Camp AIDEA partnered with Northrim Bank to finance a 334 unit man camp in Deadhorse. Approximate cost of the project was $36,500,000, with Northrim contributing 30% of the loan at $8.75 million, and AIDEA participating on the remaining 70% with $20 million. This new construction project is servicing the oil patch and created approximately 32-36 new jobs.

AIDEA Infrastructure Assets

DeLong Mountain Transportation System (Red Dog Mine) PPP The DMTS consist of a 52-mile long industrial road, an offshore conveyor system to load ore concentrates, ore storage capacity up to 1.2 million tons, a shallow water dock for fuel and other supplies, and on-site power generation. This project provides access to markets for the zinc and leads ores produced by the Red Dog Mine.

Stakeholders in the Red Dog Mine 10

Red Dog Mine Benefits Employment (2015) 1 >500 Winter (November May) >600 May to October 61% NANA shareholder employment ~$39 million in combined shareholder wages Economic Impact >$1.1 billion in royalties to NANA since 1982; $705.5 million shared with other regions under 7(i) & 7(j) 1 $6.5 billion in net proceeds to NANA over the life of mine (through 2031) 2 PILT from Teck to NWAB was more than $9 million in 2012 1 NANA Corporation & Teck Alaska, 2015 2 McDowell Study, 2009

AIDEA Overview Development finance authority for the State of Alaska Provide long term capital to support economic growth, diversity, and job creation. Debt/Loans, Preferred Equity, Conduit Revenue Bonds AIDEA is self funded receiving no General Funds Revolving Fund $1.3 billion in assets. Standard & Poor s AA+ credit rating

AIDEA Governance Shareholders Population of Alaska 735,000 Shareholder Representatives Governor of Alaska Alaska Legislature AIDEA Board Commissioner Dept. of Revenue Commissioner DCCED 5 successful Alaska business people AIDEA Staff

AIDEA Funds & Special Projects Different risk characteristics and eligibility criteria Fund 1 Fund 2 Fund 3 External Capital Special Appropriated Projects Revolving Fund Economic Enterprise Account Commercial Finance Economic Development Account Project Finance SETS Energy Infrastructure Arctic Infrastructure Fund Arctic Infrastructure Conduit Revenue Bonds External Capital Markets Interior Energy Project Affordable Energy for Interior Alaska DCCED, AEA, DNR, EPA, & Local Governments AMDIAP Ambler Mining District Industrial Access In Federal Permitting Process ANILCA 201(4)(b)

Well Stocked Tool Box Infrastructure Development Project Development AIDEA Programs Energy Development Commercial Finance Specialty Financing Conduit Bonds

Project Finance Continuum 16

AIDEA Six Factor Model 1. Operating Experience: The developer has a demonstrated background and history in successfully building and operating the type of project for which they are seeking financing from AIDEA. 2. Capital Contribution: The developer will invest funds in tandem with AIDEA for the construction of the project. 3. Plans and Designs: The developer has complete plans, designs, and specifications for the project they wish to develop. 4. Permits: The developer has the necessary permits for the project. 5. Purchase Contracts: The developer has access to key materials and equipment. 6. Sales Contracts: The developer has revenues under contract from credible entities. 17

Contact Alaska Industrial Development and Export Authority 813 West Northern Lights Blvd., Anchorage, Alaska 99503 (907) 771 3000 (888) 300 8534 (Toll Free in Alaska) www.aidea.org #AIDEA