TKC has recently adopted a new Vision Statement that will help guide us into the future as we continue to grow the company. I am very excited about the new vision, because it provides a specific objective that both the board and shareholders can measure the company against. Keeping in mind that TKC's current shareholder equity is almost $15M, TKC's new vision is that TKC will be an internationally well known $100M (in shareholder equity) Alaska Village Corporation by the year 2015.

We have adopted a strategic plan to identify specific goals to help us reach our goals and have been busy working on these strategies. Our focus will be to revisit the plan on a quarterly and yearly basis so that we keep on track with reaching our vision.

Part of TKC's strategy is to continue to diversify our overall investment portfolio so that we are minimizing our risk while establishing appropriate asset allocations within each investment area.

There will be more focus on TKC's Development Company, increasing our passive real estate investments, and reducing the overall amount in our stock portfolio to obtain maximum diversification of our assets. Overall, TKC had a good year in 2005. You'll see in our audited financial statements that we made 452,824 in comprehensive income. This has been our third year in a row of profitability since the downturns of the stock market in prior years.

One thing you might notice is that expenses were up in 2005 versus 2004. This is mainly due to direct costs for TKC Development's job costs which were not there prior to creating the new company. Administrative expenses were up slightly due to costs relating to personnel of the new company. However, after having these increases in expenses, we had an overall increase in earnings from operations by $303,861. As TKC Development grows we expect to see increase in expense, but these expenses will be offset by increases on revenues from future contracts.

Shareholder hire is up. We currently have 71% shareholder hire within TKC. Last year we hired 8 shareholders on the two new contracts within our subsidiary Suulutaaq during the construction season and their payroll totaled over $175,000. We will continue to focus on training and hiring our own people within TKC, TKC Development and its subsidiaries.

Maver Carey

TKC President & Chief Executive Officer