Keweenaw Land Association, Limited Reports First Quarter 2010 And Preliminary Shareholder Vote Results

May 26, 2010

Keweenaw Land Association, Limited (Pink Sheets: KEWL) reported a slightly worse loss for the first quarter of 2010 of $.32 per share compared to $.28 in 2009. However, the loss from timber operations was reduced 90% due to a 16% increase in gross margin on timber sales and a decrease in administrative expenses.

According to David Ayer, Chairman of Keweenaw, the Company has noticed an increase in demand for its pulpwood and high-value veneer logs. The Company expects to recognize a better return for harvest production as the industry rebounds.

The company has also been aggressively reducing debt over the last year. The Company’s line of credit is down to $304,549 from $750,008 and long-term debt has been slashed by more than 50% to $977,943 from $2,037,746 at the end of the first quarter of 2009.

The company also recently announced the preliminary results from its 2010 Annual Shareholder meeting held May 24, 2010. The results indicate the re-election of existing directors and the defeat of dissident candidates Ronald S. Gutstein and Scott Frisoli. It also appears the three shareholder proposals put forth by Ronald Gutstein have been defeated.

Keweenaw owns and manages more than 161,000 acres of timberland and over 400,000 acres of mineral rights in the Upper Peninsula of Michigan.

Disclosure: The author holds a long position in KEWL at the time of this article.

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