Mr. Scott Tannas reports

WESTERN INVESTMENT COMPANY FILES FIRST QUARTER FINANCIAL RESULTS WITH AN $804,000 POSITIVE SWING IN NET INCOME FROM PRIOR YEAR ON STRENGTHENING MARGINS AT FOOTHILLS CREAMERY AND INCREASED PROFITS AT FORTRESS INSURANCE

The Western Investment Company of Canada Ltd. has filed its financial statements and MD&A (management's discussion and analysis) for the first quarter ending March 31, 2023, on SEDAR.

In a message to shareholders, Scott Tannas, Western chief executive officer, provided the following commentary:

"Our strong first quarter results featured much improved performance at Foothills Creamery, combined with continuing sales and profit growth at Fortress Insurance, GlassMasters and Ocean Sales Group. This is the best first quarter result in Western's history, providing positive momentum as we move into our traditionally stronger second and third quarters.

"Portfolio report

"Fortress Insurance Company saw its gross written premiums grow by 58 per cent over 2022. The claims ratio stands at 44 per cent on a trailing 12-month basis. Fortress's investment portfolio of high-quality bonds and equities improved in value, with investment income returning to more normal levels compared with a tough first quarter for their investments last year. Overall net income at Fortress in Q1 was $274,000, compared with a loss of $257,000 in the same period last year.

"GlassMasters was busier than usual in Q1, which is its seasonally lowest quarter. Sales were up 25 per cent over Q1 2022. Management expects a very busy spring and summer season, reporting that revenues continue to track strongly in April and May. Having had success with inventory management last year, the company is well stocked and ready to meet rising demand. GlassMasters is executing on expansion this year, with three new locations (Okotoks, Alta., Kelowna, B.C., and North Battleford, Sask.) coming on-line.

"Ocean Sales completed Q1 with much stronger sales and profit results over the same time last year, with balanced sales activity across their exhibition, on-line, TV home shopping and big box retail channels. The public exhibitions and consumer show channel continues to regain strength postpandemic, and the team is looking forward to a busy schedule of summer and fall events.

"Sales and profitability at Foothills Creamery are on budget, providing evidence that all the effort to align pricing with the rising cost of goods has been achieved. This is welcome news, to say the least. With a busy ice cream season in Q2 and Q3, the order book is ahead of last year, and ice cream inventory is at healthy levels, which should allow for Foothills to respond to peak demand during the 2023 season. The weather makes a big difference, so the folks at Foothills are hoping for a nice, sunny summer.

"Golden Health Care is behind budget in Q1, but still profitable. Two of its three homes have seen improved occupancy rates in Q1, while the third continues to have spaces available for seniors needing long-term care. As I mentioned in my year-end report, we are working with our partners to engage in broader industry and government discussions on a potential new way forward for Saskatchewan and its seniors' care programs. We will provide further reports on our progress in the months to come.

"Outlook

"As we enter the final days of May, our second quarter is more than half complete, and we continue to hear reports from our investee companies of stronger sales compared with last year. As mentioned in my year-end report, we also have a number of strategic discussions under way and objectives we are working toward. We will provide additional news as to our progress on these fronts in our next report."

About The Western Investment Company of Canada Ltd.

Western 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.

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