Board-recommended candidates

CIRI's team delivers

It is an exciting time to be a CIRI shareholder. CIRI weathered a severe worldwide economic downturn in late 2008 and early 2009. It is pleased to report that in 2009 we have returned to profitability in spite of the continued difficult business climate. The Company’s 2009 net income was $24.5 million. Shareholders’ equity, on which our dividends are based, increased in 2009. This means that shareholder dividends for 2010 will increase slightly; demonstrating your Company’s financial stability during the worst economic period in a half-century.

Weathering a difficult business climate requires a steady hand. CIRI’s Board of Directors worked throughout the year to provide leadership and guidance. By working together and challenging one another, CIRI’s Board of Directors and its executive team refreshed CIRI’s strategic plan to take advantage of distressed assets and investments that would not only maintain long-term asset growth but would provide strong cash flow in the near-term and mid-term.

Due to the volatility of the market and to achieve other portfolio management goals, at the end of 2008 CIRI liquidated a substantial portion of our marketable securities portfolio and gained a significant tax benefit in the form of an income tax refund in late 2009. CIRI reentered the stock market strategically in 2009, which positioned the Company to benefit as world markets recovered.

Our Company is involved in some of the most cutting-edge and promising energy developments in Alaska, such as underground coal gasification on CIRI lands on the west side of Cook Inlet and the Fire Island Wind Energy project. Adding to CIRI’s portfolio of “cleantech” ventures, in 2009, CIRI invested in a biotech company that develops technologies to improve the efficiency of energy, pharmaceutical and environmental industries.

In Anchorage, the build-out continues on the very successful Tikahtnu Commons retail and entertainment center. Alaska’s first IMAX theater is scheduled to open in June, and will bring thousands of moviegoers and shoppers to the area. In San Antonio, Texas, the Hyatt Place North Stone Oak at Sonterra is scheduled to open this month.

Strategic planning and results like these are not possible without an experienced, intelligent, culturally sensitive team whose members respect – but actively challenge – one another’s viewpoints. New directors have brought vision, energy and strength to our Board in recent years, and this year's Board-recommended slate represents both seasoned leadership and fresh perspectives. They all have one thing in common: a commitment to sound, long-term management of CIRI for the benefit of current and future generations of shareholders.

When you return your proxy this year, make it a vote for CIRI’s continued progress and profitability. Vote for the Board-recommended slate.