NOT FOR DISTRIBUTION TO
Sentient IV has control or direction over 52,793,704 common shares of
Strateco (each a "Strateco Share") (representing approximately 24.69%
of the outstanding Strateco Shares) and the right to acquire 1,500,000
Strateco Shares through 1,500,000 share purchase warrants of Strateco
(the "Strateco Warrants").
In the event all of the Strateco Warrants are fully exercised, Sentient
IV would acquire control over a maximum of 54,293,704 Strateco Shares
(including the 52,793,704 Strateco Shares over which Sentient IV has
control or direction). These combined holdings would represent
approximately 25.22% of the outstanding Strateco Shares, calculated on
a partially diluted basis assuming the full exercise of the Strateco
Sentient IV acquired the Shares for investment purposes only and not
with a view to materially affecting control of Strateco.
Sentient IV relied on section 2.10 of Regulation 45-106 - Prospectus and Registration Exemptions for the purchase of the Shares as the acquisition price for the Shares
was greater than