Mr. Sandy Loutitt reports

BUILDERS CAPITAL MORTGAGE CORP. ANNOUNCES RECEIPT OF STATEMENT OF CLAIM; INTENDS TO FILE VIGOROUS DEFENCE

Builders Capital Mortgage Corp. has become aware of a filed but unserved statement of claim by Jeremy Cowie in the Court of King's Bench of Alberta. The statement of claim as filed alleges, among other things, a breach of contract relative to certain services provided by the company.

The company is currently reviewing the allegations with its legal counsel. The company intends to vigorously defend itself against the claims, which it believes are entirely without merit. In particular, as the company has never been involved as a vendor of the subject property or as an entity that may have performed contracting work on the property, the company believes the claim to be baseless.

The company does not anticipate that this matter will impact its day-to-day operations or its general outlook. Further updates will be provided as may be required.

About Builders Capital Mortgage Corp.

Builders Capital is a mortgage lender providing short-term course-of-construction financing to builders of residential wood-frame properties in Western Canada.