Mr. Scott Tannas reports

WESTERN INVESTMENT COMPANY OF CANADA REPORTS IMPROVED FINANCIAL RESULT WITH REVENUE GAINS IN 2022 AND EXPECTS Q1 2023 RESULTS TO BE RELEASED ON MAY 26

The Western Investment Company of Canada Ltd. has filed its year-end 2022 financial statements, management's discussion and analysis, and annual information form on SEDAR.

Western Investment reported a $215,376 loss for 2022, an improvement from the 2021 loss of $707,244. Western Investment also filed restated financial statements for the years ended Dec. 31, 2021, and 2020. The restatement accounted for prior-year errors discovered during the audit, including an overstatement of the deferred tax asset at Ocean Sales, which reduced its investment in associates and retained earnings. This resulted in a decrease of its investment in Ocean Sales to nil, with no equity income or loss recognized in 2020 and 2021. The restatement also included a milk rebate overpayment at Foothills Creamery, reducing its 2020 equity income by $148,779. Please see Note 4 to the restated financial statements for further details.

In a message to shareholders, Western Investment chief executive officer Scott Tannas said: "Sales at Fortress, Ocean Sales and GlassMasters grew significantly in 2022. Overall sales at our portfolio companies topped $95-million on a combined basis, compared to $91-million in 2021. The big challenge in the year was input cost inflation and investment market conditions at Fortress, which masked the progress they made toward long-term profitability there. Western is experiencing a better 2023, which is expected to be evidenced in the Q1 2023 results, which will be released shortly."

2022 portfolio report:

• Fortress Insurance Company tripled its gross premiums written over 2021, finishing at $17-million. The claim ratio for 2022 at 41 per cent remains below the industry average. Shafeen Mawani and his team have brought Fortress to profitability in underwriting and operations, and investment income is expected to improve in 2023 after last year's mark to market losses. Two thousand twenty-three sales growth targets would see Fortress reach $24-million, and reflect how its nimble, innovative insurance company is on track.
• GlassMasters Autoglass posted record sales, profit and cash flow in 2022. Roger Tulk and his team made some smart inventory buying decisions that paid off handsomely as demand rose steadily throughout 2022. With an 18-per-cent same-store-sales increase, GlassMasters did the groundwork for expansion with three new stores and two wholesale locations coming on-line in 2023.
• Ocean Sales revenues returned to prepandemic levels, with the return of exhibitions and consumer shows across North America. The on-line and home shopping sales channels ticked up. Ocean Sales' long-standing partnership with a big box retailer remains a key component of sales, and a product refresh is under way, which should boost sales in 2023.
• The lengthy and difficult unwinding of unprofitable butter contracts was (finally) completed at Foothills Creamery, bringing revenue down to $35.2-million, from $42.6-million in the prior year. Two thousand twenty-two saw a new challenge of inflation, where costs of ingredients, cream in particular, rose at a pace that was impossible to price into its products. For much of the year, Foothills chased the cost of sales spiral at the expense of margins. By year-end, prices had stabilized, and first quarter 2023 results will show the progress Foothills has made.
• Despite rising costs and an increase in vacancies, Golden Health Care continues to provide a steady, but modest, return to shareholders. Growth in market value of the Golden homes is where Western Investment will earn its return on this investment.

Outlook

"With 2023's stronger business environment, Western is on track. With three unstable years behind us, we're determined to shift our focus to the insurance industry, a sweet spot for our company's leadership. I will continue the candid conversations with investors and other stakeholders and look forward to reporting on our progress," Mr. Tannas concluded.

About The Western Investment Company of Canada Ltd.

Western Investment is a unique publicly traded, private equity company founded by a group of successful Western Canadian businesspeople and dedicated to building and maintaining ownership in successful Western Canadian companies and helping them to grow. Western Investment's shares are traded on the TSX Venture Exchange under the symbol WI.

We seek Safe Harbor.