Dividend Policy

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Dividend Policy (as adopted by the Board of Directors on October 10, 2012)

Principles:

  1. Comply with Alaska law.
  2. Comply with any debt covenants.
  3. Only be made if adequate cash is available.
  4. Not impact ability to operate in the future.
  5. Allow for company growth.
  6. Not reward the current generation of shareholders at the expense of future generations -  inflation proofing.
  7. Be based on objective criteria.
  8. Provide for smoothing of the amount over time to avoid sharp drops or increases in the dividend when possible.

Procedure:

  1. The indicated amount will be calculated using 40% of the average of the last three year’s consolidated net income. This amount will be used as a guideline.
  2. The CFO will ensure that the Principles 1‐4 above have been met with respect to the indicated amount and will certify that in his/her opinion the amount meets all the requirements set forth above.
  3. In considering the actual amount to be distributed, the board will consider other factors including the general economic climate, the outlook for the company’s businesses and any other factors that could affect the company moving forward.

Timing:

  1. Management will develop its recommendation for the annual dividend in September of each year and will present its recommendation to the board at the regular September board meeting.
  2. The board will declare an amount and set the record date and payment date for the dividend. The payment date unless otherwise set by the board, will be the third week in November, prior to Thanksgiving.
  3.  The amount and timing will be conveyed to the shareholders (but not the media).

Any of the above may be modified at any time at a duly constituted meeting of the Goldbelt, Inc. Board of Directors.