Mr. Scott Tannas reports

WESTERN INVESTMENT COMPANY FILES Q3 STATEMENTS AFTER STRONG SUMMER BRINGS YEAR-TO-DATE NET INCOME OVER $1 MILLION MARK

The Western Investment Company of Canada Ltd. has filed its third quarter financial statements and management's discussion and analysis on SEDAR+.

Third quarter net income of $488,590 brings Western Investment's year-to-date net income to $1,070,035, which is a historic high.

In a message to shareholders, Western Investment chief executive officer Scott Tannas provided the following commentary: "Total income earned from our portfolio companies continues to gain momentum, growing by 401 per cent to $2.36-million compared to the first nine months of 2022. Strong results were achieved at GlassMasters Autoglass and Foothills Creamery through their heavy summer sales season. Fortress Insurance continues to grow its top and bottom line. Double-digit sales growth at all three companies was achieved, but it's the strengthening profit margins -- particularly at Foothills -- that continues to be the financial driver of success.

"Portfolio report

"Growth at Fortress Insurance continues. Gross written premiums in the first nine months of 2023 are at $15.3-million, compared to $11.5-million this time last year. The trailing 12-month claims ratio is a healthy 41 per cent after navigating an active summer weather and fire season. Management continues to pursue new growth opportunities in the insurance market in Western Canada, striving to hit their year-end GWP goal of $23-million. Investment income was a drag on profit in Q3 for Fortress as bond prices bottomed out.

"At GlassMasters, year-to-date revenue is up 20 per cent. [Earnings before interest, taxes, depreciation and amortization are] up 37 per cent over this time last year. A strong fall sales season continues with exceptionally good weather through November. Revenue and profit growth was achieved through same-store-sales increases and expansion of its network of locations. Wholesale business is also growing its sales to automotive industry customers. Earlier this year, new locations in North Battleford, Sask., and Okotoks, Alta., were added to the network. A new wholesale facility in Kelowna, B.C., opened in October.

"The most impactful improvement to Western's results has been achieved through the hard-earned turnaround at Foothills Creamery. Nine-month EBITDA stands at $3.7-million compared to $400,000 last year. Management's focus on increasing sales in high-margin products like ice cream and specialty butter has substantially bolstered gross margins. While sales have increased modestly over the past year, the product mix has yielded a 61-per-cent improvement in gross profit. We reiterate our comments of last quarter that while there is still plenty of room for improvement at Foothills, the trajectory is upward, and the latest quarter provides further evidence of a return to stable and profitable growth at Foothills.

"So far in 2023, Golden Health Care has modest growth in revenue, countered by rising labour and other operating costs. Management remains focused on filling vacancies and enjoyed some success in Q3, with two of its three homes at full capacity. The fact remains that Saskatchewan government's long-term-care homes are approaching full capacity, and Golden Health Care's facilities will be needed more than ever in the coming years. Positive evidence of this came earlier this year with Golden receiving their first cohort of patients referred and funded by Saskatchewan Health Authority.

"Outlook

"We remain focused on finishing strong and delivering a record financial result in 2023. We have four strong companies with significant momentum and capacity to continue to grow revenue and profit into the future. We are in the final stages of closing our debenture offering and will have more to report on this in the coming days."

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, 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.