Strategem Capital Corporation
TSX VENTURE : SGE

Strategem Capital Corporation

October 20, 2005 14:49 ET

Strategem Capital Corporation.: Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2005) - Strategem Capital Corporation ("Strategem" or the "Company") (TSX VENTURE:SGE) announced today that it has raised the price of the private placement announced July 27, 2005 and expanded the offering.

The revised private placement financing will consist of 410,000 Units for gross proceeds of $229,600, 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 $0.70 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.

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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