Public Statement of Makivik Corporation Board of Directors

It has come to our attention that people in Nunavik need to be better informed about payments that were made earlier this year to Directors of our wholly owned subsidiary First Air. We, the Board of Makivik, unanimously take this opportunity to set the record straight.

Firstly, it should be made clear that the Directors of First Air fully disclosed to the Board of Directors of Makivik the following: who were receiving payments; how much each person was to receive; and how the amounts were determined for each individual.

This decision to issue payments was then approved and ratified by the Makivik Board of Directors by resolution.

Secondly, it should be noted that the payments were based on each individual’s years of service to the Company so that there was a large differential between those with a few years of service and those with many years of service.

Thirdly, First Air has been successful and has generated a favourable return to Makivik. Moreover, each year, the Company pays out profit sharing to a large number of its senior and executive management, but has never paid out any such profit sharing or bonus amount to Board members.

Over the years, profits from First Air have benefited all our beneficiaries in all our communities through investments and donations towards a number of community based projects.

Fourthly, a number of the Directors receiving payments have been involved in the management and corporate activities of the Company over and above the normal functions of a Board member and this, in some cases, since the acquisition of the Company in 1990.

Given accepted and usual corporate compensation packages, our Board believes that these payments were earned, were reasonable and fair and were based on service over a period of many years. Indeed a number of us feel that these amounts were long overdue, should have been addressed earlier and could have been higher. Our Board has also agreed to formalize a policy on annual payments to Board members based on the performance and profits of our subsidiaries. It is in this context that it should be viewed as a vehicle to encourage youth to complete their education, develop commitment and leadership especially within our Inuit owned companies.

The Board of Directors of Makivik would like these individuals to know that we are truly thankful for their outstanding efforts on behalf of Nunavik Inuit and are pleased that we were in a position to be able to recognize their efforts financially.