Fewer than 18 per cent of those who applied for Indian status in the Qalipu First Nation Band have been deemed eligible.

According to the Department of Indigenous and Northern Affairs Canada, out of the 104,000 people who applied, 18,044 people were accepted for founding membership. More than 68,000 applications were rejected.

Brendan Mitchell, chief of Qalipu First Nation, says the band will appeal the decision of the enrolment committee. (Colleen Connors/CBC)

The Qalipu Mi'kmaq First Nation is an off-reserve Newfoundland and Labrador band. It is the second largest First Nation by population in Canada, and it is anticipated that 95 per cent of its membership will be made up of people living in the province.

"The main focus of membership was meant to be people who live in or around Mi'kmaq communities," Fred Caron, ministerial special representative for the Department of Indigenous and Northern Affairs Canada, said as numbers were released Tuesday.

"Therefore, if you did not live in the Mi'kmaq community it would be more difficult — difficult but not impossible — for you to establish the current, substantial connection with the band that was required,"

The biggest reason people were rejected was because people couldn't demonstrate they still have a connection to Mi'kmaq communities <a href="https://twitter.com/hashtag/cbcnl?src=hash">#cbcnl</a> —@PeterCBC

Roughly 13,000 people [who are eligible] are living in these Mi'kmaq communities, Caron said.

"Another 4,000 and a little bit live in Newfoundland, but not in the Mi'kmaq communities, and they were accepted, and roughly 1,000 were accepted who live in other parts of Canada."

"Some registered members could lose their entitlement as part of this process," Caron says <a href="https://twitter.com/hashtag/cbcnl?src=hash">#cbcnl</a> —@PeterCBC

Caron said the biggest reason an applicant was rejected is because they couldn't demonstrate they still have a connection to Mi'kmaq communities.

"The applicant must either demonstrate residence or sustained active involvement in the community, despite living away from the location if they are not a resident," he said.

"The connection has to go beyond close contact with family members and include participation in the cultural and social life of the Newfoundland communities forming the Mi'kmaq group of Indians of Newfoundland."

Reaction from Qalipu

Brendan Mitchell, chief of Qalipu First Nation, said he is very disappointed with Tuesday's news.

Less than a quarter of those who applied received approval letters like this one. (Submitted by Julia Bennett)

"We have a right to appeal the decision of the enrolment committee ourselves, and we will be doing that on behalf of a lot of people ... this is disappointing for all of us and we're upset, as our members are upset," he said.

"People are disappointed and will be emotional about this, so all I can say is for those out there that have a right to appeal, please appeal."

Those that are losing status (up to 10,000) have until Spring 2018 to use benefits. —@colleencbc

There are 10,512 applicants who are on the current founding members list, but did not meet the criteria set by a joint enrolment committee. Though their applications were rejected, they are entitled to appeal the decision.

"To see these final numbers, with 10,512 members of our current band being knocked out, that is absolutely disgusting for me and our council. We're very surprised by this," Mitchell said.

"If people in Ottawa believe that they have concerns about the legitimacy of our band size or membership or legitimacy with respect to the people who applied, well let them say that. Let them finally be honest with people and tell them why they're not part of this process anymore."