Strategem Capital Corporation: ABCP Update

Strategem Capital Corporation ("Strategem" or "the Company") (TSX VENTURE:SGE)
today provided additional information regarding its Canadian Asset Backed
Commercial Paper ("ABCP") holdings.


On December 23, 2007, The Pan-Canadian Investors Committee for Third-Party
Structured Asset Backed Commercial Paper (the "Crawford Committee") approved an
agreement in principle to restructure the ABCP issued by 20 trusts (including 43
series) covered by the Montreal Accord, totaling approximately $33 billion. The
restructuring will pool each eligible series of ABCP into one of two master
asset partnerships which, in turn, will receive either senior notes or
subordinated notes depending on the quality of the individual series of ABCP
held by each investor.


The Company does not know the proportion of its ABCP holdings that will be
exchanged for senior or subordinated notes. The Company believes that the
majority of its ABCP holdings will be eligible for the restructuring but cannot
provide any assurance that the restructuring will complete in a timely manner,
or at all.


Strategem holds ABCP with a face value of $6.5 million, which it has previously
written down to $3.9 million and reclassified as long term. Due to the lack of
available information regarding the underlying assets, and the lack of an
available market for the ABCP, the Company will take an additional write-down to
record the ABCP at a value of $3.6 million. The value the Company ultimately
receives upon liquidation of its ABCP assets may differ significantly from the
Company's estimates.


The Company has adequate working capital to meet its operational needs in the
short term. However, if the restructuring does not complete by the March 2008
target, the lack of available cash will affect the Company's ability to make
investments or make distributions to its shareholders. The Company does not
expect that it will require additional financing.


About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank specializing in
the development of emerging companies with above average growth potential. The
current focus is on companies that explore and develop precious or base metals.


This release and prior releases are available on the Company's Internet web site
located at www.strategemcapital.com.


BY ORDER OF THE BOARD OF DIRECTORS

Kenneth W. Morgan, CA, CPA, President, CEO and Director

Strategem Capital (TSXV:SGE)
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