Shareholders,

The 2011 Shumagin Corporation’s 37^th Annual Shareholders Meeting  the candidates Peter Devine Jr., Wayne Gundersen and Glen Gardner were re-elected to the board.

Following the 37^th Annual Shareholders Meeting the Board of Directors held a meeting to elect officers. The results were as follows:

            Peter Devine Jr..                  President

            Glen Gardner Jr.                  Vice President

            Dennis McGlashan Sr.          Secretary / Treasure

Thank you to all the Shareholders that attended and to those who submitted proxies.

Respectfully,

Peter Devine Jr., President

2009

Events that have taken place in 2009.

Shumagin still has Administrator position posted until filled.

Shumagin had a few cruise ships visit our Petrified Forest on Unga Island and interest for the next year. Our Vice President, Peter Devine Jr. is Shumagin guide for these visits. Shumagin charges a $35.00 per person fee.

Shumagin Scholarship Program for 2009/2010 was eight students Jack Foster Jr., Barrett Hughie, Cody Krone, Thea Gundersen, Natalie King, Sharrayah Foster, Roseanne Wilson and Ingrid Cumberlidge receiving $2,000.00 for the school year.

Shumagin brought two new heifer bison to Popoff Island adding to the Shumagin Corporation Buffalo Heard. The two bison arrived in Sand Point September 21, 2009 on the Tustumena. Accompanied by volunteer Jerry Nybakken, Veterinarian and released right after unloaded from the ferry. One is a year and a half and the other is two and a half years with a calf in the spring. Both have been tagged to protect them during the Buffalo Hunts.

Board of Directors approved 30 Buffalo Tags for the 2009 Buffalo Hunt Drawing with Shareholder preference and ten for one year resident or longer community members. Tickets were sold for $150.00. Buffalo Hunt started November 26th, 2009 and ends January 15th, 2010. BUFFALO HUNT EXTENED UNTIL JANUARY 31ST, 2010.

Shumagin has been working with U.S. Fish and Wildlife Service for land exchange. Shumagin Corporations land on Nagai Island for Popof Head

Shumagin Board of Directors voted a Stock Dividend for 2009 in the amount of $5.00 per share mailed out in October. Shareholders please update your addresses if needed.

Shumagin continues to hold three bear leases with Canoe Bay Outfitters, LLC., Litzen Guide Service Inc., and Alaska Pike Safaris & Wilderness Adventures.

Shumagin Corporation has invested into Aleutian Pacific Seafoods and continuing with further discussion. And put monies towards a new gear shed for the Sand Point Harbor.

The Board of Directors has given Lot 39 Tract A under 14c (3) Survey #3585 to the City of Sand Point for a new public cemetery; located on the point in Russian Town.

Shumagin Corporation has posted for a Head Bartender/ Manager for the reopen of the Anchor Inn Lounge.

2008

Events that have taken place in 2008.

Shumagin Scholarship Program this year four full-time scholarships in the amount of $2,500.00 was awarded to the following students: Karis Jackson, Barrett Brown, Robert Dushkin III and Thea Gundersen. Also two part-time scholarships in the amount of $1,250.00 were awarded to the following: Glen Nelson and Marita Gundersen.

The Shumagin Board of Directors voted to issue a Stock Dividend for 2008 the amount for this year was $6.00 per share and was mailed out in October.

Western Marine Constructions quarry operating agreement with Shumagin has been extended from November 17^th, 2008 to November 17^th, 2009. Western has future projects that will require rock from the knoll dome quarry two of which are the projects in Chignik, Alaska and False Pass, Alaska. Western resumes work in April or May of 2009.

The Board of Directors decided to hold off on setting a date for a 2008 Buffalo Hunt. The first bison count was conducted on September 13^th, and resulted in a low bison count. The Board has decided to wait until a second bison recount is taken before moving ahead. The bison recount will take place in late November or early December.

Shumagin granted permission to UNAVCO to install a Global Positioning System monument on Nagai Island and a Data Repeater Antenna Site on Popof Island. This monument measures ground shifts caused by earthquakes and slow fault slips between earthquakes. UNAVCO has around 162 of these sites around the world.

Shumagin recently sent a letter of interest in beginning negotiations with the U.S. Fish and Wildlife Service for an exchange of land managed by Alaska Maritime National Wildlife Refuge on Popof Island for Shumagin land located on Nagai Island. The Corporation would like to own all of the land on Popof Island as the Corporation owns a bison herd with around 140 plus animals. In the future this would be a management issue with the U.S. Fish and Wildlife Service. The land exchange process would take a couple of years to complete. This exchange would not affect fishing and subsistence rights.

The Shumagin Corporation worked with (AWC) Alaska Wireless Communications to get cell phone service for the community of Sand Point. This service started in June 2008 and the town is quite happy with the new service.

The Corporation granted permission for a twelve month wind study at the KSDP/ Shumagin transmitter site. The wind study would involve the construction of a seventy-eight foot met tower on the ground leased from Shumagin. This wind study is needed to support KSDP’s grant request for the purchase and installation of a wind turbine at the transmitter site.

The Shumagin Corporation’s 35^th Annual Shareholders meeting date was January 10^th, 2009 at 7:00 p.m.