SEDAR Interim Financial Statements

STRATEGEM CAPITAL CORPORATION CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 Suite 210 – 240 11 Ave. SW, Calgary, Alberta T2R 0C3 TSX-V: SGE NOTICE OF NO AUDITOR’S REVIEW OF INTERIM FINANCIAL STATEMENTS The accompanying unaudited condensed interim financial statements of Strategem Capital Corporation (the “Company”) have been prepared by the management and approved by the Company’s Audit & Corporate Governance Committee and by the Company’s Board of Directors. The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these unaudited condensed interim financial statements. SGE – Q3 The accompanying notes are an integral part of these financial statements. 2 | P a g e STRATEGEM CAPITAL CORPORATION CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS) (UNAUDITED) These financial statements were authorized for issue by the Board of Directors on November 19, 2025. These financial statements are signed on the Company’s behalf by: (signed) “Hon. Stockwell Day” (signed) “Desmond Balakrishnan” Directo Director September 30, December 31, Notes 2025 2024 ASSETS Current assets Cash and cash equivalents 835 $ 695 $ Short-term investments 6 10,341 9,726 Total current assets 11,176 10,421 TOTAL ASSETS 11,176 $ 10,421 $ LIABILITIES Current liabilities Accounts payable and accrued liabilities 17 $ 30 $ Due to related parties 9 25 1 Total current liabilities 42 31 TOTAL LIABILITIES 42 $ 31 $ EQUITY Share capital 7 11,471 11,471 Deficit (337) (1,081) Total equity 11,134 10,390 TOTAL EQUITY AND LIABILITIES 11,176 $ 10,421 $ Subsequent Event - Note 10 SGE – Q3 The accompanying notes are an integral part of these financial statements. 3 | P a g e STRATEGEM CAPITAL CORPORATION CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE DATA) (UNAUDITED) Notes 2025 2024 2025 2024 Revenues Interest, dividends and other income 56 $ 107 $ 171 $ 268 $ Net realized gain/(loss) on sale of investments (11) 13 (95) 167 Net unrealized gain (loss) on investments 586 (61) 1,021 506 Total revenue 631 59 1,097 941 Expenses Management fees 9 37 55 173 191 Director and committee fees 9 - - 50 5 Professional fees 9 30 5 87 40 Office and general - - 6 12 Interest expense - 11 - 27 Shareholder information and filing fees 3 4 6 7 Commission expense 9 7 3 15 26 Total expenses 77 78 337 308 Other item Foreign exchange gain (loss) 9 (6) (16) 8 Net income (loss) and comprehensive income (loss) for the period 563 $ (25) $ 744 $ 641 $ Earnings (loss) per share - basic and diluted 8 0.06 $ 0.00 $ 0.08 $ 0.07 $ Three months ended September 30, Nine months ended September 30, SGE – Q3 The accompanying notes are an integral part of these financial statements. 4 | P a g e STRATEGEM CAPITAL CORPORATION CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS) (UNAUDITED) Issued and outstanding Class A Number of Shares Class A Share Capital Class B Number of Shares Class B Share Capital Retained Earnings (Deficit) Total Equity Balance as at January 1, 2024 9,201,028 11,507 $ 220 1 $ (1,725) $ 9,783 $ Net income for the period - - - - 641 641 Normal course issuer bid (44,500) (21) - - - (21) Balance as at September 30, 2024 9,156,528 11,486 220 1 --- (1,084) 10,403 Net income for the period - - - - 3 3 Normal course issuer bid (42,500) (16) - - - (16) Balance as at December 31, 2024 9,114,028 11,470 220 1 (1,081) 10,390 Net income for the period - - - - 744 744 Balance as at September 30, 2025 9,114,028 11,470 $ 220 1 $ (337) $ 11,134 $ SGE – Q3 The accompanying notes are an integral part of these financial statements. 5 | P a g e STRATEGEM CAPITAL CORPORATION CONDENSED INTERIM STATEMENTS OF CASH FLOWS (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS) (UNAUDITED) 2025 2024 Cash flow from operating activities Net income 744 $ 641 $ Adjustments to reconcile to net cash flows from operating Loss (gain) on sale of investments 95 (167) Unrealized gain on investments (1,021) (506) Interest income - (78) Interest expense - 27 Foreign exchange loss (gain) 16 (8) (166) (91) Changes in non-cash working capital items: Accounts payable and accrued liabilities (13) (10) Due to related parties 24 (2) 11 (12) Changes in other items: Proceeds from sale of investments 1,953 3,742 Purchase of investments (1,658) (4,352) 295 (610) Net cash provided by (used in) operating activities 140 (713) Cash flow from financing activities Normal course issuer bid - (21) Net cash used in financing activities - (21) Net change in cash and cash equivalents 140 (734) Cash and cash equivalents, beginning of the period 695 231 Cash and cash equivalents, end of the period 835 $ (503) $ Supplemental cash flow information Dividends received $ 162 $ 190 Interest received $ 9 $ 73 For the Nine Months Ended September 30, NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE DATA) (UNAUDITED) SGE – Q3 6 | P a g e 1. Nature of operations and continuance of operations Strategem Capital Corporation (the “Company” or “Strategem”) invests in resource exploration and development opportunities, mining, energy production and agricultural protein products and is listed on the TSX Venture Exchange (the “TSX-V” or the “Exchange”). The Company’s objective since inception in December 1994 is to own and manage operating businesses. The Company’s head office is: Suite 210, 240 11 Avenue SW, Calgary, Alberta, Canada, T2R 0C3. The Company’s Class A shares trade under the symbol “SGE” on the TSX Venture Exchange. These financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) applicable to a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. During the three and nine months ended September 30, 2025, the Company reported net income of $563 and $744, respectively (three and nine months ended September 30, 2024 – net loss of $25 and net income of $641). As at September 30, 2025, the Company had cash and cash equivalents of $835 (December 31, 2024 – cash and cash equivalents of $695) and working capital of $11,134 (December 31, 2024 - $10,390). 2. Basis of preparation These condensed interim financial statements are prepared in accordance with IFRS, including International Accounting Standard (“IAS”) 34 Interim Financial Reporting, as issued by the IASB. These condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2024, which have been prepared in accordance with IFRS and include information necessary or useful --- to understanding the Company’s business and financial statement presentation. These financial statements have been prepared on a historical cost basis (other than investments which are valued using fair value basis). In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information. The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. These financial statements, including comparatives, have been prepared on the basis of IFRS standards that are published at the time of preparation. 3. Material accounting policies The accounting policies applied in these condensed interim financial statements are consistent with those applied in the preparation of the Company’s annual financial statements. These condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2024. Areas of judgement that have the most significant effect on the amounts recognized in the interim financial statements are disclosed in Note 3(a) of the Company’s financial statements for the year ended December 31, 2024. There have been no significant changes to the areas of estimation and judgement during the three and nine months ended September 30, 2025. In the opinion of management, all adjustments considered necessary for fair presentation of the Company’s financial position, results of operations and cash flows have been included. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE DATA) (UNAUDITED) SGE – Q3 7 | P a g e 4. Management of capital The Company manages its common shares as capital. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue suitable equity investments and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue new debt, acquire or dispose of assets or adjust the amount of cash and cash equivalents. The Company does not have any externally imposed capital requirements. 5. Financial risk factors In the normal course of business, the Company’s activities expose it to a variety of financial risks that may affect its operating performance. These risks are credit risk and market risk (including interest rate risk, currency risk and other price risk). The level of risk to which the Company is exposed depends on the type of investments the Company holds. The value of investments can fluctuate daily as a result of changes in prevailing interest rates, economic and market conditions and company specific news. These condensed interim financial statements do not include all financial risk management information and disclosures required in the annual fina --- ncial statements. These statements should be read in conjunction with the annual financial statements as at December 31, 2024. There have been no changes in the risk management or any risk management policies since year end. 6. Short-term Investments The Company held the following short-term investments as at September 30, 2025: The Company held the following short-term investments as at December 31, 2024: Short-term investments in public company securities are held for trading and are classified as Level 1 Financial Instruments. Short-term investments in term deposits are held for a minimum of 90 days and are classified as Level 1 Financial Instruments. Short-term investments in private companies are classified as Level 3 Financial Instruments. Cost Fair Market Value Public company securities $ 19,260 $ 9,831 Term deposits 36 36 Private company 302 474 Total Investments $ 19,598 $ 10,341 Cost Fair Market Value Public company securities $ 19,652 $ 9,200 Term deposits 36 36 Private company 302 490 Total Investments $ 19,990 $ 9,726 NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE DATA) (UNAUDITED) SGE – Q3 8 | P a g e 7. Share capital (a) Authorized: • Unlimited Class A voting common shares without par value; • Unlimited Class B voting common shares without par value; and • Unlimited Class A non-voting preference shares without par value. (b) Issued and outstanding As at September 30, 2025, the Company had 9,114,028 Class A common shares and 220 Class B common shares issued and outstanding. Each Class B common share can be exchanged for one Class A common share. Upon exchange, the Class B voting common shares will be cancelled by the Company. (c) Normal Course Issuer Bid During the nine months ended September 30, 2025, no Class A common shares (nine months ended September 30, 2024 – 44,500 Class A common shares for $21) were purchased under the Company’s approved Normal Course Issuer Bid. The 44,500 common shares were returned to treasury and cancelled. The Normal Course Issuer Bid expired on October 14, 2025. (d) Stock options There were no options outstanding as of September 30, 2025 and December 31, 2024. Class A Shares Number of Shares Balance, September 30, 2025 and December 31, 2024 9,114,028 11,470 $ Class B Shares Number of Shares Balance, September 30, 2025 and December 31, 2024 220 1 $ Value Value NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE DATA) (UNAUDITED) SGE – Q3 9 | P a g e 8. Earnings (loss) per share 9. Key management compensation and related party expenses At September 30, 2025, key management personnel includes five directors and three members of the management executive team (December 31, 2024 - five directors and four members of the management executive team). For the three and nine months ended September 30, 2025, one of the three members of the management executive team waived their compensation. For the three and nine months ended September 30, 2025, four of the five directors waived their director fees. One director is a partner of McMillan LLP, a firm which provides legal services to the Company. For the three and nine months ended September 30, 2025, legal fees paid to this related party were $25 and $73, respectively (three and nine months ended September 30, 2024 – $nil and $23). One di --- rector is the Head of Private Client Group, Canada for Canaccord Genuity Wealth Management. For the three and nine months ended September 30, 2025, commission paid to this related party were $4 and $5. (three and nine months ended September 30, 2024 - $nil). At September 30, 2025, $25 payable to McMillan LLP was included in due to related parties (December 31, 2024 - $1 payable to McMillan LLP). 10. Subsequent Event On October 28, 2025, the Company announced it has received a notification from the TSX Venture Exchange regarding a deficiency in its Continued Listing Requirements. The deficiency relates to the public distribution; the Company has less than 150 public shareholders, holding at least one Board Lot (500 shares) each, free of Resale Restrictions. The Company has 90 days, beginning on the date of the notice, to meet the requirements. Trading of shares of the Company may be halted without further notice due to non-compliance with Exchange requirements. 2025 2024 2025 2024 Income (loss) attributable to common shareholders 567 $ (25) $ 748 $ 641 $ Weighted average shares outstanding - basic and diluted 9,114,248 9,194,929 9,114,248 9,193,303 Earnings (loss) per share - basic and diluted 0.06 $ (0.00) $ 0.08 $ 0.07 $ Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Management fees 37 $ 55 $ 173 $ 191 $ Director fee & committee fees - - 50 5 Legal fees 25 - 73 23 Commission expense 4 2 5 2 66 $ 57 $ 301 $ 221 $ Three months ended Nine months ended September 30, September 30, SGE – Q3 10 | P a g e Board of Directors Committees Honourable Stockwell Day, Chairman Audit & Corporate Governance Committee Desmond Balakrishnan Desmond Balakrishnan, Chairman Matthew Cicci, CFA Matthew Cicci Gordon Flatt Honourable Stockwell Day Dickson Gould Office of the President Executive Officers Gordon Flatt, Chairman Jo-Anne O’Connor, President & Chief Executive Officer Jo-Anne O’Connor Carol Fozo, CPA, CMA, Chief Financial Officer and Secretary Gordon Flatt, Managing Partner & Chief Investment Strategist Legal McMillan LLP Auditor DeVisser Gray LLP, Chartered Professional Accountants