Alaska Industrial Development and Export Authority

1. Alaska Industrial Development and Export Authority Investing in Alaskans Alaska Broadband Taskforce Presentation| August 2012

2. AIDEA’s Mission The mission of the Alaska Industrial Development and Export Authority is to promote, develop and advance economic growth and diversification in Alaska by providing various means of financing and investment Alaska Industrial Development and Export Authority

3. Key AIDEA Programs AIDEA has an extensive portfolio of programs to finance economic development in Alaska. The programs that are most relevant for broadband infrastructure expansion are: Conduit Revenue Bond Project Development Infrastructure Development Alaska Industrial Development and Export Authority

4. Conduit Bond Program • Provides financing where AIDEA acts as a conduit for the issuance of taxable and tax-exempt bonds. • Neither the assets nor credit of AIDEA or the State of Alaska are at risk • The creditworthiness of the project and credit enhancements offered by the applicant are essential to the underwriting and placement of bonds. • The benefit that AIDEA offers is that it is a known entity in the market and may expedite the sale of the bonds in a public offering. • AIDEA can also provide the expertise to issue bonds through a private placement Alaska Industrial Development and Export Authority

5. Project & Infrastructure Development Programs • Objective: • To provide financing for Alaskan projects and infrastructure necessary to support Alaskan economic development. • AIDEA can: • Own all or a part of a project or infrastructure • Invest in a Corporation or Limited Liability Corporation (LLC) that owns the project or infrastructure. Alaska Industrial Development and Export Authority

6. Project & Infrastructure Development Programs • The project must be endorsed by the local government. • The project and its development must be economically advantageous to the state and to the general public welfare. • The project applicant is financially responsible. • The project must be economically and financially feasible and able to produce revenue adequate to repay the investment, bonds or loans with which it is financed. Alaska Industrial Development and Export Authority

7. Project & Infrastructure Development Programs • Flexibility in structuring our financing packages with each deal being unique and requiring its own specific structure. • The final financing package may include several sources of funds and several different financing vehicles including debt, private and public equity, tax credits and incentives, and grants. • Examples of AIDEA project deals include: • Cook Inlet Jack Up Rig • DeLong Mountain Transport System • Skagway Ore Terminal Alaska Industrial Development and Export Authority

8. AIDEA Process

9. AIDEA Development Projects Jack-Up Rig Endeavor – Spirit of Independence Purchased on 11/14/2011 LOCATION: Cook Inlet – May 2012 Alaska Industrial Development and Export Authority

10. Endeavor – Spirit of Independence • Investment in an oil and gas jack-up rig for Cook Inlet exploration in partnership with Buccaneer Energy and Ezion Holdings Limited through a Limited Liability Corporation. • AIDEA investment will be approximately $24 million to be paid back over 5 years with an 8% preferred dividend. • The rig is currently enroute to Alaska scheduled to arrive in late August and begin operations in the Cook Inlet shortly there after. Alaska Industrial Development and Export Authority

11. DeLong Mountain Transportation System • Ownership of a concentrate storage facility, shallow water dock and 52 mile haul road connecting the Red Dog Mine to the coast. • AIDEA invested $265 million which is being paid back through user fees over a 50 year period. • AIDEA is exploring an expansion of the port and an extension of the road to accommodate new development in the area. Alaska Industrial Development and Export Authority

12. Skagway Ore Terminal • 100,000 sq. ft. ore concentrate storage facility and ship loader. • AIDEA recently made approximately $14 million in improvements to the facility. This investment has been paid back through user fees by the current tenant. • SOT supports family wage year-round jobs and the expanding mining sector in the Yukon Territory. • AIDEA is in preliminary planning for a major expansion of the terminal and has legislative authorization to issue up to $65 million in bonds to fund expansion. Alaska Industrial Development and Export Authority

13. Potential Projects • Rare Earth Elements • Internet server farm • Fiber optics line – Western Alaska as well as connecting with Yukon territory • Deepwater Arctic ports • Infrastructure in the broadest sense Alaska Industrial Development and Export Authority

14. Limitations on Financing All Programs All financing is dependent on AIDEA’s prevailing debt capacity Conduit Bonds $400 million issuance cap in a rolling 12 month period Project/Infrastructure Development • Legislative approval required for investments over $10 million • Local approval for projects over $6 million

15. Our Mission is to promote, develop and advance economic growth and diversification in Alaska by providing various means of financing and investment With the vision to be an active partner with Alaskans and a dynamic resource in Statewide economic development

16. AIDEA 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