Early Warning Report

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NEWS RELEASE FOR:
STRATEGEM CAPITAL CORPORATION.

CONTACT:
Ken Morgan
1-604-692-0073
Email: info@strategemcapital.com or visit
www.strategemcapital.com

VANCOUVER, BRITISH COLUMBIA – October 3, 2003 – In accordance with the requirements of Section 111 of the Securities Act (British Columbia), and Section 176 of the Securities Act (Alberta), Strategem Capital Corporation (“Strategem”) (TSX-V: SGE) announces that on September 24, 2003, Strategem acquired direct ownership of six million (6,000,000) common shares and three million (3,000,000) common share purchase warrants of Adrian Resources Ltd. (“Adrian”). The common shares purchased by Strategem represent 14.4% of the issued and outstanding common shares of the Adrian as at September 24, 2003 (based upon 41,673,876 common shares being issued and outstanding). The shares were acquired for $900,000 by way of a private placement for investment purposes. Strategem has no present intention of acquiring more shares of the Company, aside from possible exercise of warrants.

Adrian is a reporting company whose shares are posted and listed for trading on the TSX under the trading symbol “ADL”.

About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank focused on the development of emerging companies with growth potential. The Company invests in debt and/or equity positions in these companies.

This release and prior releases are available on the Company’s Internet web site located at www.strategemcapital.com.

BY ORDER OF THE BOARD OF DIRECTORS

“Kenneth W. Morgan”
Kenneth W. Morgan, CA, CPA
President, CEO and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Not for dissemination in the United States