2024 Annual Report

THEWESTAIMCORPORATION

ANNUAL REPORT 2024

THEWESTAIMCORPORATION

ANNUAL REPORT 2024

Contents

Letter to Shareholders 1

Management's Discussionand Analysis 3

Management's Responsibility for Financial Information33

Independent Auditor'sReport 34

Consolidated Financial Statements 38

Notes to Consolidated Financial Statements 42

Board of Directors 60

Shareholder and Corporate Information 60

All currency amounts are in United States dollars, unless otherwise indicated.

LETTER TO SHAREHOLDERS1LETTER TO SHAREHOLDERS(1)

March 26, 2025

Dear Fellow Shareholders,

Over its storied history, The Westaim Corporation ("Westaim" or the "Company") has encountered several critical inflection points in its journey to create value for shareholders. While Westaim went public in 1996, the current management team commenced in 2009 with the acquisition of JEVCO Insurance Company in 2010. This was followed by the acquisition of Houston International Insurance Group, Ltd. in 2014, which was subsequently renamed Skyward Specialty Insurance Group, Inc.("Skyward Specialty")and shortly thereafter, the creation of Arena Investors, LP("Arena")in 2015. In 2024, we once again reached a significant inflection point with the announcement of the transformational partnership with CC Capital and the indirect acquisition of Ceres Life Insurance Company("Ceres Life") (collectively, the "Transaction"). We firmly believe the Transaction will position Westaim in the life/annuity insurance and asset management sector for long term value creation for shareholders. We are very excited to close the Transaction soon and launch thenew "Westaim" oncemore.

The precursor to this latest transformation was facilitated by the monetization of our ownership in Skyward Specialty following its highly successful 2023 IPO. On September 10, 2024, Westaim sold its remaining interest in Skyward Specialty completing an effective and tax efficient monetization. After approximately 10 years of ownership, Westaim received total net proceeds of approximately US$455 million (C$620 million), resulting in a gain of approximately US$285 million (C$413 million) and an internal rate of retuof 12.8% (US$) and 14.8% (C$). We are delighted with this outcome and the value created for shareholders.

CC Capital Strategic Partnership-A New Chapter

On October 9, 2024, Westaim announced a transformational strategic partnership with CC Capital, including an investment by CC Capital of US$250 million in exchange for common shares and warrants of Westaim, for an approximate 40% ownership interest (assuming the vesting and exercise of all warrants). The Transaction, fueled by CC Capital'saligned investment and expertise, aims to transform Westaim into an integrated insurance and asset management platform. The platform will feature a growing and diversified credit manager and an advantaged, tech-enabled insurance carrier that is expected to provide competitively priced fixed income and multi-year guarantee annuity products to policyholders. This transformation is anticipated to generate strong and sustainable value creation for Westaim shareholders. The Transaction is expected to provide Arena with long-dated insurance assets and better position Arena to increase its third-party assets under management ("AUM"), creating a path to a potential US$10 billion of AUM with just the existing equity capital base.

Ceres Life, recently acquired, will be led by Deanna Mulligan. Ceres Life will continue to develop its advanced technology platform and invest in enhanced distribution and service offerings to provide compelling annuities products to customers. Ceres Life is expected to launch this Spring with access to considerableorganic distribution flow through a unique distribution partnership which is expected to significantly accelerate Ceres Life's growth, delivering more assets to Arena and in tuenabling the Ceres Life business to scale and serve a broader range of potential policyholders. With these additional capabilities, Ceres Life is expected to be positioned to leverage the long-standing insurance relationships across CC Capital's and Ceres Life's management teams' networks to opportunistically pursue reinsurance transactions to further accelerate the platform's growth.As part of a combined platform, both Ceres Life and Arena businesses are expected to generate a powerful value creation flywheel, driving continued growth and stability of both the insurance and asset management businesses for Westaim.

The Transaction has received overwhelming support from Westaim's shareholders, with over 99.9% ofvoting shareholders approving the Transaction. As part of the Transaction, Westaim completed a plan of arrangement on December 31, 2024 pursuant to which it redomiciled from Alberta, Canada to Delaware, USA, and its shares were consolidated on a 6:1 basis. On February 5, 2025, Westaim closed the acquisition of ManhattanLife of America Insurance Company and subsequently renamed the company Ceres Life. We now expect to close these remaining transactions, including the private placement and the Arena reorganization, in early April.

In October 2024 we welcomed Richard DiBlasi, Managing Director at CC Capital, to Westaim as our new Chief Strategy Officer. Upon the closing of the private placement, we will welcome Chinh Chu (CC Capital Senior Managing Director and Founder)as Westaim's Executive Chairman and Matthew Skurbe

1 This Letter to Shareholders contains forward-looking information and should be read in conjunction with the Company's financial statements including the notes thereto and the related MD&A as well as the Company's other publicfilings. Please also read the Company's cautionary notes on forward-looking information as may be found in the Company's MD&A.

(CC Capital's Senior Managing Director, CFO and COO) as Westaim's new Chief Financial Officer.Additionally, we will welcome six new directors to ourexpanded board of eleven, adding to the board'sexpertise and knowledge as the Company embarks on this new and exciting journey.

Looking forward, it is always beneficial to reflect on the achievements accomplished in the past. In that regard, here is the performance of Westaim'scommon shares since January 1, 2009, through the end of 2024, the period of the current management team'sinvolvement:

This is a very exciting time for Westaim and its shareholders-a newchapter. Westaim'sAnnual and Special Shareholders Meeting and Investor Day will be held on June 12, 2025 at 9:00 am ET. The schedule for the Investor Day will include a business overview and discussion with Westaim, Arena andCeres Life's management as well as members of CC Capital, followed by a question-and-answer session. We look forward to seeing you there.

Respectfully,

Cameron MacDonald

President and Chief Executive Officer

The Westaim CorporationManagement's Discussion and AnalysisYear ended December 31, 2024

(Currency amounts in millions of United States dollars except per share data, unless otherwise indicated)

TABLE OF CONTENTS

• 1. THE COMPANY

• 2. OVERVIEW OF PERFORMANCE

• 3. INVESTMENTS

• 4. ANALYSIS OF FINANCIAL RESULTS

• 5. ANALYSIS OF FINANCIAL POSITION

• 6. OUTLOOK

• 7. LIQUIDITY AND CAPITAL RESOURCES

• 8. RELATED PARTY TRANSACTIONS

• 9. MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

• 10. MATERIAL ACCOUNTING POLICIES AND RECENTLY ADOPTED AND PENDING ACCOUNTING PRONOUNCEMENTS

• 11. QUARTERLY FINANCIAL INFORMATION

• 12. RISKS

• 13. ADDITIONAL ARENA FINCOS INVESTMENT SCHEDULES

• 14. NON-GAAP MEASURES

• 15. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

The "Company" in this Management's Discussion and Analysis ("MD&A") refers to The Westaim Corporation ("Westaim")on a consolidated basis. This MD&A, which has been approved by the Board of Directors of Westaim, should be read in conjunction with the Company'saudited consolidated financial statements including notes for the years ended December 31, 2024 and 2023 as set out on pages 38 to 59 of this annual report("Financial Statements"). Financial data in this MD&A has been derived from the Financial Statements and is intended to enable the reader to assessthe Company'sresults of operations for the year ended December 31, 2024 and financial condition as at December 31, 2024. The Company reports its consolidated Financial Statements usinggenerally accepted accounting principles ("GAAP")and accounting policies consistent with IFRS Accounting Standards as issued by the International Accounting Standards Board. All currency amounts are in United States dollars ("US$"), the functional and presentation currency of the Company, unless otherwise indicated. Canadian dollars are referenced as C$. The following commentary is current as of March 26, 2025. Additional information relating to the Company is available on SEDAR+ atwww.sedarplus.ca. Certain comparative figures have been reclassified to conform to the presentation of the current year, and certain totals, subtotals and percentages may not reconcile due to rounding.

IFRS for Investment Entities

The Company qualifies as an investment entity under IFRS and uses fair value as the key measure to monitor and evaluate its primary investments. The Company reports its financial results in accordance with IFRS applicable to investment entities.

Functional and Presentation Currency

The US$ is the functional and presentation currency of the Company. International Accounting Standard21 "The Effects of Changes in Foreign Exchange Rates"describes functional currency as the currency of the primary economic environment in which an entity operates. A significant majority of theCompany'srevenues and costs are earned and incurred in US$, respectively.

Non-GAAP Measures

The Company uses both IFRS and non-generally accepted accounting principles ("non-GAAP") measures to assess performance. The Company cautionsreaders about non-GAAP measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. Management believes these measures allow for a more complete understanding of the underlying business. These measures are used to monitor the Company's results and should not be viewed as a substitute for those determined in accordance with IFRS. Reconciliations of such measures to the most comparable IFRS figures are contained in Section 14,Non-GAAP Measuresof this MD&A.

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The Westaim CorporationManagement's Discussion and AnalysisYear ended December 31, 2024

(Currency amounts in millions of United States dollars except per share data, unless otherwise indicated)

Cautionary Statement Regarding the Valuation of Investments in Private Entities

In the absence of an active market for its investments in private entities, fair values for these investments are determined by management using the appropriate valuation methodologies after considering the history and nature of the business, operating results and financial conditions, outlook and prospects, general economic, industry and market conditions, capital market and transaction market conditions, contractual rights relating to the investment, public market comparables, net asset value, discountedcash flow analysis, comparable recent arm's length transactions, private markettransaction multiples and, where applicable, other pertinent considerations. The process of valuing investments for which no active market exists is inevitably based on inherent uncertainties and the resulting values may differ from values that would have been used had an active market existed. The amounts at which the Company's investments in private entities could be disposed of may differ from the fair value assigned and the differences could be material.

Cautionary Statement Regarding Financial Information of the Arena FINCOs and Arena

Supplementary financial measures concerning the Arena FINCOs (as hereinafter defined) and Arena(as hereinafter defined) (the "ArenaSupplementary Financial Measures") contained in this MD&Aare unaudited and have been derived from the audited consolidated financial statements of Arena and the unaudited consolidated financial statements of Arena FINCOs for the years ended December 31, 2024 and 2023 and the unaudited consolidated financial statements of Arena FINCOs and Arena for the three months ended December 31, 2024 and 2023, which have been prepared in accordance with either IFRS or US GAAP. Such statements are the responsibility of the management of the Arena FINCOs and Arena. The Arena Supplementary Financial Measures, including any Arena FINCOs and Arena non-GAAP measures contained therein, may not be reconciled to IFRS and so may not be comparable to the financial information of issuers that present their financial information in accordance with IFRS.

The Arena Supplementary Financial Measures should be read in conjunction with the Company's historical financial statements including the notes theretoand the related MD&A as well as the Company's other public filings.

The Arena Supplementary Financial Measures have been primarily provided by the management of the Arena FINCOs and Arena. Although Westaim has no knowledge that would indicate that any of the Arena Supplementary Financial Measures contained herein are untrue or otherwise misleading, neither Westaim nor any of its directors or officers assumes any responsibility for the accuracy or completeness of such information, or for any failure by the Arena FINCOs and Arena to disclose to Westaim events or facts which may have occurred or which may affect the significance or accuracy of any such financial information but which are unknown to Westaim.

Westaim disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the Arena Supplementary Financial Measures, its accuracy, completeness or by reason of reliance by any person on any of it.

Forward-Looking Information

This MD&A may contain forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from theseforward-looking statements as a result of various factors, including those discussed hereinafter, and inthe Company's Annual Information Formfor its fiscal year ended December 31, 2023, (as same may be modified or superseded by a subsequently filed Annual Information Form) and theCompany'smanagement information circular dated November 19, 2024, both of which are available on SEDAR+ atwww.sedarplus.ca. Please refer to Section 15,Cautionary Note Regarding Forward-Looking Informationof this MD&A.

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The Westaim CorporationManagement's Discussion and AnalysisYear ended December 31, 2024

(Currency amounts in millions of United States dollars except per share data, unless otherwise indicated)

• 1. THE COMPANY

  The Westaim Corporation (TSXV: WED) is a United States investment company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. The Company invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation.Westaim's strategy is to pursueinvestment opportunities with a focus towards the global financial services industry and grow shareholder value over the long term.

  On October 9, 2024, the Company, Wembley Group Partners, LP (the "Investor") (an affiliate of CC Capital Partners, LLC ("CC Capital")), Arena(as defined hereinafter), Daniel Zwiand Lawrence Cutler entered into an investment agreement (as amended on November 15, 2024)(the "Investment Agreement"). Pursuant to the Investment Agreement,among other things, the Investor agreed to make a $250.0 investment in the Company via aprivate placement (the "Private Placement") to acquirecommon sharesof the Company ("Common Shares")and warrants to purchase Common Shares. The proposed transactions included in the Investment Agreement(the "Proposed Transactions") have not yet closed.

  On December 31, 2024, the Company completed a statutory plan of arrangement under theBusiness Corporations Act(Alberta) (the "Plan ofArrangement") pursuant to which, amongother things, it has consolidated its Common Shares on the basis of one post-consolidation Common Share for every six pre-consolidation Common Shares and changed its jurisdiction of incorporation from the Province of Alberta in Canada to the State of Delaware in the United States(the "Redomiciliation").Unless otherwise indicated all references to Common Shares herein are after giving effect to the Share Consolidation.

  The Company's principalinvestments consist of the Arena FINCOs and Arena. See discussion in Section 3,Investmentsof this MD&A for additional information on these investments.

• 2. OVERVIEW OF PERFORMANCE

Highlights

Three months ended December 312024 2023

Year ended December 312024 2023

Revenue and net change in value of investments Net expenses

$

• 1.1 $

• 53.3 $

38.6 $ 212.8

(25.6)

(16.1)

(58.1) (26.6)

Income taxes recovery (expense)

3.2

(2.1)

3.3 (2.3)

(Loss) profit and comprehensive (loss) income

(Loss) earnings per share-basic

(Loss) earnings per share-diluted

$ $ $

(21.3)

(0.99) (0.99)

$ $ $

35.1

1.58 1.57

$ $ $

(16.2)

$

183.9

(0.75) (0.75)

• $ 7.98

• $ 7.90

At December 31:

Shareholders' equity

$

• 497.4 $ 518.3

Number of Common Shares outstanding1Book value per fully diluted share-in US$2Book value per fully diluted share-in C$3

21,706,501	21,959,548
$ 22.88	$ 22.98
$ 32.90	$ 30.48

• 1The Common Shares are listed and posted for tradingon the TSX Venture Exchange ("TSXV") under the symbol "WED".

• 2See Section 14,Non-GAAP Measuresof this MD&A.

• 3Period end exchange rates: 1.43815 at December 31, 2024 and 1.32405 at December 31, 2023.

  Three months ended December 31, 2024 and 2023

  The Company reported a (loss) profit and comprehensive (loss) income of $(21.3) and $35.1 for the three months ended December 31, 2024 and 2023, respectively.

  Revenue and net change in value of investments was a net increase of $1.1 for the three months ended December 31, 2024 (2023-$53.3), and consisted of interest income of $4.5 (2023 - $1.6), advisory fees of $0.1 (2023 - $0.2), an increase of $nil in the value of the investment in SkywardSpecialty Insurance Group, Inc. ("Skyward Specialty")(2023-$51.9), an increase of $2.4 in the value of the investments in the Arena FINCOs (2023-decrease of $0.9),the Company's share of Arena'scomprehensive loss of $5.9 (2023- share of Arena's comprehensive income of$0.6) and a decrease in the value ofthe Company'sinvestment inArena Special Opportunities Fund, LP ("ASOF LP")of a nominal amount (2023-$0.1).

  Net expenses for the three months ended December 31, 2024 of $25.6 (2023-$16.1) consisted of salaries, director fees and benefits of $2.6 (2023 - $12.2), general and administrative expenses of $0.3 (2023 - $0.2), other expense of an emigration tax of $4.0 (2023 - $nil), professional fees of $5.1 (2023 - $0.5), share-based compensation expense $14.1 (2023-$2.9), and a foreign exchange gain of $0.5 (2023-loss of $0.3).

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The Westaim CorporationManagement's Discussion and AnalysisYear ended December 31, 2024

(Currency amounts in millions of United States dollars except per share data, unless otherwise indicated)

• 2. OVERVIEW OF PERFORMANCE (continued)

  The Company reported income taxes recovery for the three months ended December 31, 2024 of $3.2 (2023-expense of $2.1).

  Years ended December 31, 2024 and 2023

  The Company reported a (loss) profit and comprehensive (loss) income of $(16.2) and $183.9 for the years ended December 31, 2024 and 2023, respectively.

  Revenue and net change in value of investments was a net increase of $38.6 for the year ended December 31, 2024 (2023-$212.8), and consisted of interest income of $14.7 (2023 - $3.7), dividend income paid to the Company from the Arena FINCOs of $1.9 (2023 - $4.4), advisory fees of $0.4 (2023 - $0.5), an increase of $19.8 in the value of the investment in Skyward Specialty (2023-$210.3), an increase of $5.6 in the value of the investments in the Arena FINCOs, which was an increase of $7.5 before dividends paid of $1.9 (2023-decrease of $10.4, which was a decrease of $6.0 before dividends paid of $4.4), the Company's share of Arena's comprehensiveloss of $3.9 (2023- share of Arena's comprehensive incomeof $4.5) and an increase in the value of the Company's investment in ASOF LP of$0.1 (2023-decrease of $0.2).

  Net expenses for the year ended December 31, 2024 of $58.1 (2023-$26.6) consisted of salaries, director fees and benefits of $26.2 (2023 - $16.0), general and administrative expenses of $1.0 (2023 - $0.9), other expense of an emigration tax of $4.0 (2023 - $nil), professional fees of $11.4 (2023 - $1.5), share-based compensation expense $16.2 (2023-$6.7), a foreign exchange gain of $0.7 (2023-loss of $0.6), interest on preferred securities of $nil (2023 - $1.0) and an unrealized gain resulting from a change in the fair value of derivative warrants of $nil (2023 - $0.1)

  The Company reported income taxes recovery for the year ended December 31, 2024 of $3.3 (2023-expense of $2.3).

• 3. INVESTMENTS

  TheCompany's principal investments consisted of its investments in Skyward Specialty, the Arena FINCOs and Arena.

Place of	Principal place	Ownership interest	Ownership interest
establishment	of business	at December 31, 2024	at December 31, 2023
Skyward Specialty	Delaware, U.S.	Texas, U.S.	nil owned by the Company	17.5% owned by the Company
Arena FINCOs	Delaware, U.S.	New York, U.S.	100% owned by the Company	100% owned by the Company
Arena	Delaware, U.S.	New York, U.S.	51% owned the Company	51% owned the Company

Foradditional information on the Company's corporatestructure (as may be superseded by the organizational structure herein), seethe Company'sAnnual Information Form for its fiscal year ended December 31, 2023, which is available on SEDAR+ atwww.sedarplus.ca, as same may be modified or superseded by a subsequently filed Annual Information Form.

Skyward Specialty

The Company had an ownership interest in Skyward Specialty (NASDAQ: SKWD), a U.S. based publicly traded diversified specialty property & casualty insurance holding company that underwrites select property, casualty, surety, and accident and health insurance coverages through its insurance and reinsurance subsidiaries. During the year ended December 31, 2024, the Company fully divested its remaining investment in Skyward Specialty which was recorded under investmentsin the Company'sconsolidated financial statements.

Arena FINCOs

The Arena FINCOs are private companies which include specialty finance companies that primarily purchase fundamentals-based, asset-oriented credit and other investments for their own account and a company that primarily facilitates the origination of fundamentals-based, asset-oriented credit investments for its own account and/or possible future sale to specialty finance companies, clients of Arena Investors and/or other third parties. Fundamentals-based, asset-oriented credit investments refer to loans or credit arrangements which are generally secured by assets. Fundamentals-based, asset-oriented lenders and investors manage their risk and exposure by carefully assessing the value of the assets securing the loan or investment, receiving periodic and frequent reports on collateral value and the status of those assets, and tracking the financial performance of borrowers.The Company's investments inthe Arena FINCOs are recordedunder investments in the Company'sconsolidated financial statements. Arena FINCOs refers to WOH, AF (as each is defined hereinafter) and each of their respective subsidiaries.

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The Westaim CorporationManagement's Discussion and AnalysisYear ended December 31, 2024

(Currency amounts in millions of United States dollars except per share data, unless otherwise indicated)

3.

INVESTMENTS (continued)

Arena

Arena Investors Group Holdings, LLC("AIGH" or "Arena"), is a private company, through its wholly-owned subsidiaries and subsidiaries which Arena has a controlling interest. Arena consists of two main business lines, Arena Investors and Arena Institutional Services ("AIS").Arena Investors operates as a global investment manager offering third-party clients, including the Arena FINCOs, access to fundamentals-based, credit and asset-oriented investments that aim to deliver above-market returns with low volatility. Arena Investors provides investment services primarily to institutional third-party clients consisting of, but not limited to, insurance companies, endowments, foundations, pensions, sovereign funds and other pooled investment vehicles or private investment funds. AIS leverages certain intellectual property to offer third-party services to other entities to assist in the management of their investments.

The Company's investment in Arena isaccounted for using the equity method and consists of investments in corporations or limited partnerships where the Company has significant influence and is recordedunder investments in the Company'sinterim consolidated financial statements.

The following chart illustrates a simplified organizational structure of Arena and the Arena FINCOs as of December 31, 2024:

1Legal equity ownership and profit percentage are 51%. Ownership and profit percentage are subject to change over time pursuant to the earn-in rights granted to BP LLCdescribed under "Investment in Arena".

On October 4, 2024, Arena Finance Holdings Co, LLC("AFHC")merged intoThe Westaim Corporation of America ("WCA"). On December 31, 2024, after the Redomiciliation, WCA was liquidated with its assets and liabilities consumed into Westaim.

For a detailed discussion of the business of Arena and the Arena FINCOs,see the Company's Annual Information Formfor its fiscal year ended December 31, 2023, which is available on SEDAR+ atwww.sedarplus.ca,as same may be modified or superseded by a subsequently filed Annual Information Form.

Accounting for the Company's Investments

The Company qualifies as an investment entity under IFRS and uses fair value as the key measure to monitor and evaluate its primary investments. Accordingly,the Company'sinvestments in Skyward Specialty, the Arena FINCOs and ASOF LP are accounted for at fair value through profit orloss ("FVTPL").The Company's investment in Arena is accounted for using the equity methodsince the Company does not exercise control but exercises significant influence over Arena. For a detailed description of the accounting and valuation of theCompany's investments, see Note 5,Investmentsin the Notes to the Financial Statements.

Dividend income from investments in private entities are reported under "Revenue" in theconsolidated statements of (loss) profit and comprehensive (loss) income. Changes in the fair value ofthe Company'sinvestments in Skyward Specialty, the Arena FINCOs and ASOF LPand the Company'sshare ofArena'scomprehensive (loss) income are reportedunder "Net results of investments" in theconsolidated statements of (loss) profit and comprehensive (loss) income.

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The Westaim CorporationManagement's Discussion and AnalysisYear ended December 31, 2024

(Currency amounts in millions of United States dollars except per share data, unless otherwise indicated)

3.

INVESTMENTS (continued)

A.INVESTMENT INSKYWARDSPECIALTY

TheCompany'sinvestment in Skyward Specialty consisted of the following:

Three months endedDecember 31, 2024

Skyward Specialty Proceeds from sale

Skyward Specialty common shares held by the Company

$

-$

-

$

-

-

$

-Three months ended December 31, 2023

SkywardOpening

Specialty preferred shares converted to

Proceeds fromNet increaseBalance common shares

sale of Skyward	(decrease) in	Dissolution of
Specialty	value of	HIIG	Ending
common shares	investment	Partnership	Balance

HIIG Partnership-Company's share of Skyward Specialty common shares1HIIG Partnership-Company's share of other HIIG Partnership net assetsSkyward Specialty convertible preferred shares held by the Company Skyward Specialty common shares held by the Company

$ 289.5

$

OpeningBalance

value ofinvestment

Skyward Specialty common shares held by the Company

$ 236.5

$

-$

(256.3)

$

19.8

$

-Year ended December 31, 2023

Skyward SpecialtyProceeds frompreferred shares sale of SkywardNet increase Dissolution ofOpeningconverted toSpecialtyBalance common shares common sharesin value ofinvestmentHIIGPartnershipEndingBalance

HIIG Partnership-Company's share of Skyward Specialty common shares1HIIG Partnership-Company's share of other HIIG Partnership net assetsSkyward Specialty convertible preferred shares held by the Company Skyward Specialty common shares held by the Company

$ 109.2

$

0.4

- -$

• - $ -

63.3

$ (172.5)

$

109.3

-(109.3)109.3

-(192.3)

- -146.9

(0.4)

-172.5

- - -236.5

$ 218.9

$

-$ (192.3)

$

210.3

$ (0.4)

$ 236.5

1The Company's share of Skyward Specialty common shares held by the Westaim HIIG Limited Partnership (the "HIIG Partnership").

On January 18, 2023, Skyward Specialty closed its initial public offering(the "IPO"). In connection with the IPO, the Skyward Specialty common shares becamelisted on the Nasdaq Global Select Market under the ticker symbol "SKWD".Also in connection with the IPO, the Skyward Specialty convertible preferred shares automatically converted into Skyward Specialty common shares, including those owned by the Company which converted into 7,285,359 Skyward Specialty common shares.

On June 12, 2023, Westaim sold 3,987,500 Skyward Specialty common shares at a price to the public of $23.00 per Skyward Specialty common share through a Skyward Specialty secondary offering. The proceeds to Westaim from the 3,987,500 Skyward Specialty common shares it sold, less underwriting commissions of 4.75%, were $87.4.

On July 31, 2023, the HIIG Partnership expiredpursuant to the terms of HIIG Partnership's limited partnership agreement, originally made as ofMarch 12, 2014 and amended and restated as of June 27, 2014 and as further amended on November 10, 2022. Accordingly, on July 31, 2023, the HIIG Partnership was dissolved and distributed its net assets to its limited partners, resulting in the Company (in its capacity as a limited partner) receiving 7,281,780 Skyward Specialty common shares valued at $172.5 ($23.69 per Skyward Specialty common share on July 31, 2023) and $0.4 in cash on the dissolution date.

On November 20, 2023, Westaim sold 3,600,000 Skyward Specialty common shares at a price to the public of $30.50 per Skyward Specialty common share through a Skyward Specialty secondary offering. The proceeds to Westaim from the 3,600,000 Skyward Specialty common shares it sold, less underwriting commissions of 4.5%, were $104.9.

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The Westaim Corporation published this content on March 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 26, 2025 at 20:14:18.980.