Mr. Cliff Grandison reports

ALASKA HYDRO ANNOUNCES CALL FOR POWER ELIGIBILITY

Alaska Hydro Corp. will not be able to meet the eligibility requirements to submit the More Creek project into BC Hydro's recent call for power. The More Creek project is a 75-megawatt hydroelectric storage dam and generator on More Creek in northwest British Columbia. The project has the potential to deliver up to 446 gigawatt-hours of clean green energy annually. BC Hydro has indicated that it will return to the market on a regular basis, perhaps beginning in 2026, with two-year intervals between calls.

The call for power stipulates, among other things, that the bid must include at least 25-per-cent indigenous equity or equity equivalent from a first nation which has claimed the project is located in its traditional territory. In all other respects, the project meets BC Hydro's bid parameters.

Alaska Hydro attempted to engage with the Tahltan First Nation, which claimed the area where the More Creek project is located as its traditional land. The Tahltan did not respond to the company's efforts to engage with it, consequentially Alaska Hydro will not satisfy the equity requirement of first nation participation because of the failure to engage.

The company believes it would be a very competitive bidder as the project is well located to the growing demand by both the liquefied natural gas producers and new mines for electricity. The company has applications for land and water tenures in the More Creek Valley, which has been set aside under an order in council for a reservoir, hydroelectric dam and generator. The More Creek Valley provides the Galore Creek project with access and is currently the subject of an application for an amendment to its EA (environmental assessment) certificate to realign the Galore Creek access road. Alaska Hydro has advised the EAO (Environmental Assessment Office) of its opposition due to the access road's incursion into the More Creek reservoir.

The project will proceed with permitting and engineering. The company will arrange additional development financing and solicit interest from investors. The demand for electricity is strong in the northwest for power for hydrogen production, cryptocurrency mining and data processing. These markets will be examined for private sales.

We seek Safe Harbor.