Strategem Broadens Investment Strategy

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Ken Morgan
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Appoints Bottomer as Director to Assist Assessment of Exploration Companies

VANCOUVER, BRITISH COLUMBIA – June 23, 2003 – Strategem Capital Corporation (“Strategem”) (TSX-V: SGE) announces that it has amended its investment strategies to include a broader range of potential investments. Strategem had focussed on investment in technology companies, at first concentrating on internet startups and later broadening potential investments to the whole technology sector. However, given the downturn in the technology sector over the past three years, management of Strategem has determined that a much broader range of investments is necessary and desirable in order to achieve Strategem’s potential for return on investment. In particular, management has determined that investments in target companies that explore or develop precious and base metals are currently the best prospects.

Management acknowledges that the investment atmosphere changes from time to time and believes that a flexible investment strategy is the best policy for Strategem. Strategem will therefore seek ratification at its next annual general meeting scheduled for September 2003, for its new investment strategy of a broad focus of targets, making investments where warranted, in the determination of management. In addition, while management does not intend to invest all its assets in one sector, Strategem will not have fixed rules as to diversification of its assets, but will rather invest in good opportunities as they present themselves.

Strategem’s recent investment in Hydromet Technologies Limited (TSX-V: HTL), a mineral exploration company, is an example of the type of investment management may approve from time to time.

Strategem maintains its status as a Tier 2 investment issuer on the TSX Venture Exchange.

Appointment of Lindsay Bottomer as Director

The Company is pleased to announce the appointment of Lindsay Bottomer, M.Sc.(App), P. Geo. to its Board of Directors. Mr. Bottomer is currently the president and CEO of Southern Rio Resources Ltd., a Vancouver based company focused on gold exploration in Canada. He has 28 years in mineral exploration and development, the last 13 years based in Vancouver. He is a former Director of Canadian Exploration with Echo Bay Mines Ltd, and former VP New Projects with Prime Equities International (Pezim Group). He was also past President (1998- 2000) of the BC & Yukon Chamber of Mines.

“Lindsay’s experience and contacts in the field are sure to be great assets for Strategem,” said Ken Morgan, the President of Strategem. “He has been, and continues to be, an active advocate for the exploration industry as a whole, and is widely credited for his role in helping to improve the standards in the business. Strategem has been looking to recruit someone of Lindsay’s calibre for some time, and so it is a pleasure to announce his appointment.”

The Company also announces that Kent Sillars has resigned from the Board of Directors and thanks him for his contribution. Subject to CDNX approval, the Company will grant 130,000 incentive stock options to two of its directors. The options will have an exercise price of $0.50
per share and will expire in five years.

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


“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.