Normal Course Issuer Bid

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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 – September 24, 2004 – Strategem Capital Corporation (“Strategem” or the “Company”) (TSX-V: SGE) announced today that it intends to make a Normal Course Issuer Bid through the facilities of the TSX Venture Exchange to purchase 195,344 common shares of the Company, which would represent 5% of the Company’s 3,906,880 issued and outstanding share capital. The shares are being purchased for investment purposes, as management believes the Company’s shares to be under-valued at current market prices. The Company has not purchased any shares in the past 12 months. The Normal Course Issuer Bid will be conducted through Canaccord Capital Corporation. The contact person is Seth Allen (Phone: 604-643-7300).

The share repurchase program will commence on October 1, 2004 and terminate on September 30, 2005. The extent to which the Company repurchases its shares and the timing of such purchases will depend upon market conditions and other corporate considerations.

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