Mr. George Armoyan reports

CLARKE INC. REPORTS 2023 FIRST QUARTER RESULTS AND ELECTION OF DIRECTORS

Clarke Inc. has released its results for the three months ended March 31, 2023.

First Quarter Results

The Company's net loss for the three months ended March 31, 2023 was $1.7 million, compared to $1.4 million for the same period in 2022. The net loss was primarily attributable to the Company's non-hospitality operating businesses, including its ferry operations, which do not generate revenue in the first quarter, and the lease-up and operating costs for the 1111 Atwater Avenue development in Montreal, QC.

Hotel operations produced stronger first quarter results, achieving net operating income of $4.4 million in the quarter, compared to $3.2 million in the same period in 2022. Hotel revenue was $15.0 million for the three months ended March 31, 2023, compared to $9.6 million in the same period in 2022 - an increase of $5.4 million, or 56%. The increase is primarily due to our markets recovering from the COVID-19 pandemic, which continued to negatively impact results in the first quarter of 2022.

Comprehensive income for the three months ended March 31, 2023 was $1.0 million compared to $5.7 million in the same period in 2022. This decrease is primarily due to reduced remeasurement gains on our pension plan surplus of $2.8 million in 2023 compared to $7.4 million in 2022.

During the first quarter of 2023, the Company's book value per common share increased by $0.07, or 0.5%. The increase can primarily be ascribed to (i) hotel net operating income of $4.4 million, or $0.31 per share, (ii) after-tax remeasurement gains on the Company's pension surplus of $2.8 million, or $0.20 per share, offset by (iii) depreciation and amortization of $2.3 million, or $0.16 per share, (iv) interest and accretion of $1.9 million, or $0.14 per share, and (v) losses in our non-hospitality operating businesses and corporate overhead of $2.0 million, or $0.14 per share. The Company's book value per common share at the end of the quarter was $15.35, while the common share price was $12.50.

Other Information

Highlights of the interim condensed consolidated financial statements for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 are as follows:

Further information about Clarke, including Clarke's Interim Condensed Consolidated Financial Statements and Management's Discussion & Analysis for the three months ended March 31, 2023, is available at www.sedar.com and www.clarkeinc.com.

Election of Directors

Clarke also announced today that the director nominees listed in the Management Information Circular dated April 13, 2023, were elected as directors of the Company. The detailed results of the vote for the election of directors held at Clarke's Annual General Meeting of Shareholders held on May 12, 2023 in Halifax, Nova Scotia are set out below.

Final voting results on all matters voted on at the Annual General Meeting of Shareholders held on May 12, 2023 will be filed on the Company's issuer profile on SEDAR at www.sedar.com.

About Clarke

Halifax-based Clarke is an investment and real estate company with holdings in a diversified group of businesses and across real estate sectors. Clarke's securities trade on the Toronto Stock Exchange (CKI, CKI.DB); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.

We seek Safe Harbor.