Strategem Capital Corporation
TSX VENTURE : SGE

Strategem Capital Corporation

July 27, 2005 18:20 ET

Strategem Capital Corporation: Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 27, 2005) - Strategem Capital Corporation ("Strategem" or the "Company") (TSX VENTURE:SGE) announced today that is has arranged a private placement financing of 360,000 Units for gross proceeds of $129,600, subject to regulatory approval. Each Unit consists of one common share and one common share purchase warrant. Each warrant is exercisable into one common share for two years at $0.40 per share. The common shares and the shares resulting from the exercise of the warrants will be subject to a four month hold period. The proceeds of the private placement will be used for working capital.

The private placement that was announced on June 3, 2005 and June 10, 2005 has been cancelled.

About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank focused on the development of emerging companies with growth potential. The Company is currently focusing on companies that explore or develop precious or base metals.

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, 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.

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