#1▲WESTAIM Q4 2021 Investor Presentation April 13, 2022#2Disclaimer ▲WESTAIM Safe Harbour Statement This document and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part either directly or indirectly without the prior written consent of each of The Westaim Corporation ("Westaim" or the "Corporation" or the "Company"), Skyward Specialty Insurance Group, Inc. ("Skyward Specialty"), Arena FINCOS (as defined in the MD&A) and Arena Investors (as defined in the MD&A). The terms "Arena" or "Arena Investors" refer collectively to Arena Investors Group Holdings, LLC ("AIGH") and its subsidiary entities. This document is not and under no circumstances is it to be construed as, an advertisement or a solicitation for any investment or any investment product with respect to Westaim or any of the entities described herein. The information set forth herein does not purport to be complete and no obligation to update or otherwise revise such information is being assumed unless required by law. Where any opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. In addition, certain of the information contained herein is preliminary and is subject to change. Unless otherwise stated, the information contained herein is current as of the date of this presentation. There is no guarantee that any of the goals, targets or objectives described herein will be achieved. This document is not intended to provide specific investment, financial, legal, accounting and/or tax advice. This document contains certain historical results and performance data including, without limitation, relating to Skyward Specialty, Arena FINCOs and Arena Investors. Such historical results and performance data have been prepared and provided solely by the relevant party and have not been independently verified or audited. The historical results and performance data have been included in this document for illustrative purposes only. The historical results and performance data are in no way indicative of any future results, performance or returns by any of Westaim, Skyward Specialty, Arena FINCOS and Arena Investors. Certain statements in this presentation are "forward-looking statements". Any statements that express or involve discussions with respect to predictions, target yields and returns, internal rates of return, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always using words or phrases such as "expects", "does not expect", "is expected", "seeks", "endeavours", "anticipates", "does not anticipate", "plans", "estimates", "believes", "does not believe" or "intends", "does not intend" or stating that certain actions, events or results may, could, would, might or will occur or be taken, or achieved) are not statements of historical fact and may be "forward-looking statements". In particular, but without limiting the foregoing, this presentation contains forward-looking statements pertaining to: Skyward Specialty's growth strategy and potential expansion opportunities; Opportunities available to Arena FINCOs and Arena Investors; Arena Investors' pipeline; and opportunities for building value at Westaim. Forward-looking statements are based on expectations, estimates and projections as well as other relevant factors at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. These include, but are not limited to, the risk factors discussed in Westaim's Annual Information Form for its fiscal year ended December 31, 2021. Except as required by law, Westaim does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement or to update such forward-looking statement. Select financial information concerning the Arena FINCOS and Arena Investors contained in this MD&A is unaudited and has been derived from the annual audited financial statements of the Arena FINCOs and Arena Investors for the years ended December 31, 2021 and 2020 and the unaudited consolidated financial statements of Arena FINCOS and Arena Investors for the three months ended December 30, 2021 and 2020, which have been prepared in accordance with either IFRS or US GAAP. The information contained herein is based on publicly available information, internally developed data and other sources. Although Westaim believes such information to be accurate and reliable, it has not independently verified any of the data from third party sources cited or used. Westaim and each entity described herein disclaims and excludes all liability (to the extent permitted by law) for all losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on it. All amounts herein are in United States million dollars unless otherwise indicated. 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. 2#3Important Disclosures WESTAIM Non-GAAP Measures Westaim Westaim reports its consolidated financial statements using generally accepted accounting principles ("GAAP") and accounting policies consistent with International Financial Reporting Standards ("IFRS"). Westaim uses both IFRS and non-generally accepted accounting principles ("non- GAAP") measures to assess performance. Westaim cautions readers 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. Book Value Per Share ("BVPS"), adjusted profit and comprehensive income, and adjusted earnings per share - diluted, excluding unusual items are non-GAAP measures - see section 15 of Westaim's MD&A for the quarter and year ended December 31, 2021 for a discussion of these non-GAAP measures including a reconciliation to Westaim's financial results determined under IFRS. Skyward Specialty Skyward Specialty uses United States generally accepted accounting principles ("US GAAP") and non-GAAP measures to assess performance. Please refer to section 3.A.i of Westaim's MD&A for the quarter and year ended December 31, 2021 for Skyward Specialty's non-GAAP measures. The adjusted stockholders' equity of Skyward Specialty as at December 31, 2021 reflects the Skyward Specialty stockholders' equity obtained from the audited financial statements of Skyward Specialty as at and for the quarter and year ended December 31, 2021 prepared in accordance with US GAAP, adjusted for a reclassification of a stock notes receivable from employees relating to their purchase of Skyward Specialty common and convertible preferred shares. Arena FINCOs and Arena Investors Arena FINCOs and Arena Investors uses both US GAAP, IFRS and non-GAAP measures to assess performance. Net Return on the Arena FINCOS investment portfolios is the aggregate of investment income, net of gains (losses) on investments less interest expense, management, asset servicing and incentive fees, and other operating expenses of the Arena FINCOS divided by average carrying values for the Arena FINCOS, for the period. Gross Return on the Arena FINCOS investment portfolios is the aggregate of investment income, net of gains (losses) on investments less interest expense divided by average carrying values for the Arena FINCOs, for the period. Realized IRR: Realized calculations are presented net of investment level expenses and gross of fund level fees (e.g. management and incentive fees), which can impact returns significantly. Current IRR reflects all investment activity, i.e, prior actual cash flows and future projected cash flows (which are discounted as of the reporting date), from the inception of each applicable investment through December 31, 2021. The current IRR may not be representative of the realized IRR upon exit of each investment, which may increase or decrease. Underwritten IRRs: Investment-level gross underwritten IRR represents the internal rate of return prior to or at the time of making the initial investment as reflected in and supported by loan agreements, including, but not limited to, note purchase agreements and origination agreements. The underwritten IRR is one of many metrics considered by Arena prior to investment and is not typically updated after the initial funding date. The underwritten IRR may be presented as a single percentage or a range. Such gross IRRS are estimated and do not take into account any entity level management fees, incentive allocation and/or any other associated fees, all of which may significantly reduce the net return received attributable to any investment. These underwritten IRRs are not a proxy for investment performance for any strategy or fund. The underwritten IRRS disclosed herein are being presented for the purpose of providing insight into the investment objectives of Arena, detailing anticipated risk and reward characteristics in order to facilitate comparisons with other investments and for establishing a benchmark for future evaluation of Arena's strategy. The IRRS are also being presented because financially sophisticated investors may find this information useful in determining where Arena's strategies may fit within their investment portfolios. The IRRs included in this presentation are not intended, and must not be regarded, as a representation, warranty or prediction that any Arena vehicles will achieve any particular return with respect to any particular investment opportunity or for a particular time period, or that Arena and its investors will not incur losses. In evaluating these IRRS, it should be noted that (a) there can be no assurance that Arena will be able to source and consummate investments of the type it is seeking to make and (b) the assumptions underlying the IRRS may prove not to be accurate or not materialize. There can be no assurance that the objective of the investment shown can be met or that substantial losses will be avoided. All amounts herein are in United States dollars unless otherwise indicated. Certain comparative figures have been reclassified to conform to the presentation of the current period, and certain totals, subtotals and percentages may not reconcile due to rounding. 3#4Important Disclosures ▲WESTAIM Arena Investors The following is being provided solely in relation to Arena Investors, LP, its funds, subsidiaries and affiliates: Returns shown are unaudited. Past performance is not indicative or a reliable indicator of future performance. Actual results may vary. The information set forth herein does not purport to be complete, is unaudited and subject to change. Arena has no obligation to update or revise such information. Unless otherwise stated, the information contained herein is current as of the date of the presentation. This document does not constitute investment advice nor is it a recommendation or an offer of investment advisory services or products. No person in any jurisdiction may treat this document as a solicitation or offer of any advisory product or service. A prospective investor must rely solely on the terms and associated disclosures in any final offering memoranda, investment management agreement and associated subscription documents (if any), which would constitute the only basis upon which offerings of any product or service may be made. Investments in Arena vehicles are speculative in nature and involve risk. There can be no assurance that investment objectives will be achieved and investment results may vary substantially over time. These investments are not intended to be a complete investment program for any investor. There is no secondary market for an investor's interest in Arena funds and none is expected to develop. Arena's funds are not registered under the Investment Company Act of 1940 and accordingly are not extensively regulated. Opportunities for redemption and transferability of interests are restricted, so investors may not have access to capital when it is needed. Leverage may be employed in the funds, which can make investment performance volatile. Valuation of the investments may involve uncertainties and the exercise of judgment. An investor should not make an investment unless the investor is prepared to lose all or a substantial portion of its investment. The fees and expenses charged in connection with investments may be higher than the fees and expenses of other investment alternatives and may offset profits, and the performance-based compensation paid to Arena may create an incentive for Arena to make more speculative investments than would otherwise be the case. Arena has total authority and control over its funds and the use of a single advisor applying generally similar investment programs could mean a lack of diversification and, consequently, higher risk. For a comprehensive list of risk factors, an investor must review the risk factors as specified in the related confidential information memorandum for a specific fund or investment management agreement, which will be made available upon request. The information provided herein should not be considered a recommendation regarding a particular investment. The actual and potential investments discussed herein are meant to be examples of Arena's investment approach. It should not be assumed that any of the investments discussed herein will prove to be profitable, or that the investment recommendations or decisions made by Arena in the future will be profitable. The particular investments discussed herein are those that most closely represent the current average-sized Arena investment in a particular category (Corporate Private Credit, Real Estate Private Credit, Commercial and Industrial Assets, Structured Finance and Consumer Assets). In addition, performance of market indices is being provided for the purpose of making general market data available as a point of reference only. We believe there are no known directly comparable indices for the Arena Special Opportunities Strategies composite which is comprised of the Arena Special Opportunities Fund, LP and Arena Special Opportunities (Offshore) Master, LP (collectively the "Fund"). The Fund's investments are not limited to the investments listed by the market indices. The Fund may invest in different securities and engage in different trading strategies from the indices. In addition, it should be noted that the sector, industry, stock and country exposures, volatility, risk characteristics and holdings of the Fund differ materially from those of the indices. The indices do not reflect fees and expenses associated with the active management of portfolios. The performance returns of the indices were obtained from Bloomberg and other third-party sources and include the reinvestment of earnings. Although Arena believes these sources to be reliable, it is not responsible for errors or omissions from these sources. Market indices used: The Standard & Poor's LSTA Leveraged Loan 100 Index is a capitalization-weighted syndicated loan index that seeks to mirror the performance of the 100 largest syndicated loans in the levered loan market. Leveraged loans are senior secured debt obligations rated below investment grade. The index information provided is for illustrative purposes only. The Fund's strategy does not track the index and can significantly vary than that of the performance on the indexes provided. 4#5The Westaim Corporation ▲WESTAIM The Westaim Corporation Westaim is a publicly listed (TSXV:WED) investment holding company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. Our focus has been, and continues to be, to seek high quality investment opportunities that allow us to partner with businesses and aligned management teams that are well positioned to compound wealth and provide above average returns over the long-term for our shareholders. Skyward Specialty Insurance Group Specialty Property and Casualty Insurance 44% look-through ownership(1) Arena Investors Arena FINCOS Skyward Specialty is a US based specialty property and casualty insurance company with approximately $1 billion in annual gross written premium and over $2 billion in assets. Skyward Specialty writes on both an admitted and non-admitted basis with a focus on defined business lines in high profit niche segments to deliver top quartile consistent returns. Rated A- by AM Best. Skyward Specialty's highly experienced team of 395 are represented across 12 offices providing coverage in all 50 states and select international markets. Alternative Investment Manager 51% ownership(2) Arena Investors is a New York based global institutional money manager that originates and underwrites portfolios of asset-backed credit investments that are highly diversified and uncorrelated, delivering consistent returns for investors with a duration of approximately two years. Arena Investors' committed AUM of $3.4 billion includes Westaim's proprietary capital of $176 million plus third party institutional and high net worth clients. A highly skilled and experienced team of 100+ full-time employees and consultants across the globe are enabled by robust processes, proprietary infrastructure and access to a global origination network. Arena Investors' regularly has been recognized for its performance, investment approach and operational controls. Westaim's Proprietary Capital Invested with Arena Investors 100% ownership The Arena FINCOs are specialty finance companies that primarily purchase diversified asset-backed credit and other investments and in certain circumstances, facilitate the origination and creation of credit investments for their own account and for third parties. Arena FINCOS' capital has been and remains very strategic in the development of Arena Investors and the Arena FINCOS have participated as lead investor in several new product offerings. (1) (2) The Company's look-through interest in the HIIG Partnership of 22.0% (December 31, 2020 – 21.3%), combined with its direct ownership of the Skyward Specialty preferred shares, which were convertible into Skyward Specialty common shares representing 22.0% (December 31, 2020 23.2%) of the fully diluted Skyward Specialty common shares outstanding, resulted in a 44.0% (December 31, 2020 - 44.5%) look-through interest in Skyward Specialty at December 31, 2021. At December 31, 2021, based on the Company's control of the HIIG Partnership, and its ownership of convertible preferred shares, the Company held a 57.5% voting interest in Skyward Specialty (December 31, 2020 - 57.5%). The remaining 49.0% is Bernard Partners, LLC's initial profit sharing percentage, and under the Associate Agreements, Bernard Partners, LLC has the right to earn-in up to 75% equity ownership percentage in the associates and to thereby share up to 75% of the profit of the associates based on achieving certain AUM and cash flow thresholds. 5#6▲WESTAIM Westaim Q4 2021 Quarterly Operating Highlights Skyward Specialty Insurance Group Arena Investors Arena FINCOS Westaim • • • • . • • • • Westaim reports strong quarterly earnings driven by favourable results from all businesses Skyward Specialty's Q4 2021 Net Income was $1.3 million (Net Income excluding unusual items of $13.2 million) compared to Q4 2020 Net Loss of $32.9 million (Net Income excluding unusual items of $12.6 million); FY 2021 Net Income was $38.3 million (Net Income excluding unusual items of $49.5 million) compared to FY 2020 Net Loss of $74.6 million (Net Income excluding unusual items of $16.8 million) The FY combined ratio of 94.6% outperformed the prior year of 96.8%; Q4 2021 combined ratio was 94.7% compared to 96.3% in Q4 2020 Underwriting result improvements, primarily from strategic actions taken over the past year to refocus the portfolio towards the most profitable underwriting divisions and rate actions, are reflected in the combined ratio excluding catastrophes of 92.8% in Q4 2021 compared to 95.6% in Q4 2020; FY 2021 combined ratio excluding catastrophes was 92.2% compared to 95.8% in FY 2020 Total investment income for Q4 2021 was solid at $11.1 million composed of $4.0 million of net investment income and realized and unrealized net gain of $7.1 million, primarily on the equity portfolio, compared to the total investment income of $13.2 million in Q4 2020; FY 2021 investment income was $41.7 million compared to $14.4 million in FY 2020 Adjusted stockholders' equity at December 31, 2021 increased to $435.2 million from $404.3 million at December 31, 2020 Arena Investors' Q4 2021 Net Income was $11.3 million compared to Q4 2020 Net Income of $2.8 million; FY 2021 Net Income was $19.6 million compared to FY 2020 Net Loss of $0.2 million Committed AUM at December 31, 2021 was $2.8 billion, an increase from $2.0 billion at December 31, 2020 Fee-Paying AUM at December 31, 2021 was $2.4 billion, an increase from $1.3 billion at December 31, 2020 Revenue was $24.9 million in Q4 2021 vs. $10.2 million in Q4 2020; FY 2021 revenue was $65.8 million vs. $28.8 million in FY 2020 Arena Investors' AUM pipeline remains strong with several product offerings marketing to a well diversified base of sophisticated investors (insurance companies, pension funds, endowment funds, foundations and other investors) which, combined with strong investment performance, is key for Arena Investors to achieve operating leverage as the business grows Arena FINCOS' Q4 2021 Net Income was $0.5 million (+0.3% net investment return) compared to Q4 2020 Net Income of $1.5 million (+0.9% net investment return); FY 2021 Net Income was $9.8 million (+6.1% net investment return) compared to FY 2020 Net Loss of $0.1 million (0.0% net investment return) At December 31, 2021, the fair value of Arena FINCOS was $172.8 million compared to $163.0 million at December 31, 2020 Westaim's Q4 2021 Net Profit was $6.7 million compared to Q4 2020 Net Loss of $14.5 million; FY 2021 Net Profit of $28.3 million; FY 2020 Net Loss of $34.5 million Westaim's Adjusted Net Profit excluding unusual items was $11.9 million in Q4 2021 compared to $4.9 million in Q4 2020; and FY 2021 Adjusted Net Profit of $34.2 million compared to $5.0 million FY 2020 GAAP earnings per share in Q4 2021 of $0.04 compared to Q4 2020 loss per share of $0.10; GAAP earnings per share in FY 2021 of $0.19 compared to FY 2020 loss per share of $0.24 At December 31, 2021, Westaim's book value was $347.7 million or $2.43 (C$3.07) per share compared to December 31, 2020 book value of $320.5 million or $2.24 (C$2.85) per share 6#7Westaim Summary Quarterly Operating Results Operating result Three months ended December 31 Year ended December 31 (Amounts in millions of US$ except per share data) 2021 2020 2021 2020 Income from investment in Arena FINCOS and ASOF $0.6 $1.6 $10.1 $0.1 Income from investment in Skyward Specialty excluding unusual items* 5.0 5.9 17.2 11.3 Income (loss) from investment in Arena Investors 5.8 1.4 10.0 (0.1) Income from investments excluding unusual items* $11.4 $8.9 $37.3 $11.3 Holding company operating expenses (1.8) (1.7) (6.8) (5.9) Preferred securities interest expense (0.5) (0.5) (2.0) (1.9) Interest and fee income 0.6 0.6 2.4 2.2 Net holding company operating and interest expenses ($1.7) ($1.6) ($6.4) ($5.6) Share-based compensation recovery (expense) 0.5 (0.7) (0.5) (0.3) Foreign exchange loss (0.9) (0.9) (0.4) Site restoration recovery (expense) 1.5 (0.6) 4.1 (0.7) Derivative warrants - change in fair value gain (loss) 0.4 (0.2) 0.8 0.8 Total net holding company recovery (expenses) $0.7 ($4.0) ($2.9) ($6.2) Income tax expense (0.2) (0.2) (0.1) Adjusted profit and comprehensive income excluding unusual items* $11.9 $4.9 $34.2 $5.0 Westaim's share of unusual items* (5.2) (19.4) (5.9) GAAP profit (loss) and comprehensive income (loss) $6.7 ($14.5) $28.3 (39.5) ($34.5) GAAP earnings (loss) per share-diluted $0.04 ($0.10) $0.19 ($0.24) Adjusted earnings per share-diluted excluding unusual items* $0.08 $0.03 $0.23 $0.03 Refer to Westaim's MD&A section 3 Investments at December 31, 2021 and December 31, 2020 for details of Skyward Specialty unusual items. WESTAIM • GAAP profit and comprehensive income in Q4 2021 was $6.7 million ($0.04 earnings per share) compared to a GAAP profit and comprehensive loss of $14.5 million ($0.10 GAAP loss per share) in Q4 2020 GAAP profit and comprehensive income in FY 2021 was $28.3 million ($0.19 earnings per share) compared to a GAAP profit and comprehensive loss of $34.5 million ($0.24 GAAP loss per share) in FY 2020 Skyward Specialty reported higher underwriting income in Q4 2021 of $7.1 million vs. $4.3 million in Q4 2020 despite elevated catastrophes Skyward Specialty recorded $11.1 million of investment income in Q4 2021 vs. $13.2 million in Q4 2020 Arena FINCOs' and ASOF's diversified and uncorrelated portfolios increased Westaim's income by $0.6 million in the quarter with an approximate +0.3% net investment return vs. +0.9% in Q4 2020 Arena Investors increased fee-paying AUM to $2.4 billion at December 31, 2021 vs. $1.3 billion at December 31, 2020 resulting in higher management and service fee revenue Arena Investors also produced solid investment returns in Q4 2021, which combined with invested AUM resulted in a significant increase in incentive fee income in Q4 2021 and FY 2021 7#8Westaim Summary Statement of Financial Position As at (Amounts in millions of US$ except per share data) Assets Cash Other assets Investment in Skyward Specialty Investment in Arena FINCOS Investment in Arena Investors Investment in ASOF Total Assets December 31, 2021 September 30, 2021 December 31, 2020 $6.6 $8.7 $8.7 0.8 0.7 192.1 192.3 172.8 172.3 26.2 20.4 3.2 3.1 $401.7 $397.5 $377.3 Liabilities Accounts payable and accrued liabilities $13.2 $12.7 Preferred securities 39.5 39.5 $11.3 39.2 Derivative warrant liability 0.2 0.6 1.0 Site restoration provision 0.7 2.2 4.9 Deferred tax liability Total Liabilities Shareholders' equity Total Liabilities and Shareholders' Equity Number of common shares outstanding 0.4 0.4 $54.0 $55.4 0.4 $56.8 347.7 $401.7 342.1 $397.5 320.5 $377.3 Book value per share - in US$1 Book value per share - in C$¹ ▲WESTAIM 1.7 180.8 20.2 Book value per share increased US$0.04 (1.7%) in Q4 2021 and US$0.19 (8.5%) in FY 2021 163.0⚫ In Q4 2021, the carrying value of investments increased $6.2 million over Q3 2021 and $27.4 million over FY 2020 to $394.3 million 2.9 Skyward Specialty's valuation was stable due to strong net income excluding unusual items recorded in the Q4 2021 from underwriting and investment income (valuation multiple of 1.0x adjusted book value remained unchanged in Q4 2021 from Q4 2020) partially offset by unusual items and unrealized losses on fixed income investments Arena FINCOs' net investment return of 0.3% in Q4 2021; 6.1% net investment return in FY 2021 142,686,718 143,186,718 143,186,718 $2.43 $2.39 C$3.07 C$3.02 $2.24 C$2.85 (1) Period end exchange rates: $1.26410 at December 31, 2021, $1.26585 at September 30, 2021 and $1.27395 at December 31, 2020. 8#9Westaim Diluted Earnings per Share (US$): Three months ended December 31, 2021 WESTAIM $0.03 $0.00 $0.04 $0.00 ($0.03) Income from Skyward Specialty, excluding unusual items* Income from Arena FINCOS and ASOF Income from Arena Investors Westaim holding company Westaim share of unusual net expenses (excluding items* RSUs) * Refer to Westaim's MD&A section 3 Investments at December 31, 2021 and December 31, 2020 for details of Skyward Specialty unusual items. Any terms not defined in this document are defined in Westaim's December 31, 2021 MD&A. $0.04 Diluted EPS December 31, 2021 9#10Westaim Diluted Earnings per Share (US$): Year ended December 31, 2021 ▲WESTAIM $0.12 $0.07 $0.07 ($0.03) ($0.04) Income from Skyward Specialty, excluding unusual items* Income from Arena FINCOS and ASOF Income from Arena Investors Westaim holding company Westaim share of unusual net expenses (excluding items* RSUs) * Refer to Westaim's MD&A section 3 Investments at December 31, 2021 and December 31, 2020 for details of Skyward Specialty unusual items. Any terms not defined in this document are defined in Westaim's December 31, 2021 MD&A. $0.19 Diluted EPS December 31, 2021 10#11Westaim Book Value per Share (US$): Three months ended December 31, 2021 ▲WESTAIM $2.39 $0.03 $0.00 $0.04 $0.00 ($0.03) $2.43 BVPS September 30, 2021 Income from Skyward Specialty, excluding unusual items* Income from Arena FINCOS and ASOF Income from Arena Investors Westaim holding company net expenses (excluding RSUs) Westaim share of unusual items* BVPS December 31, 2021 * Refer to Westaim's MD&A section 3 Investments at December 31, 2021 and December 31, 2020 for details of Skyward Specialty unusual items. Any terms not defined in this document are defined in Westaim's December 31, 2021 MD&A. 11#12Westaim Book Value per Share (US$): Year ended December 31, 2021 $2.24 $0.12 $0.07 WESTAIM $0.07 ($0.03) ($0.04) $2.43 BVPS Income from Skyward December 31, 2020 Specialty, excluding unusual items* Income from Arena FINCOS and ASOF Income from Arena Investors Westaim holding company net expenses (excluding RSUs) Westaim share of unusual items* BVPS December 31, 2021 * Refer to Westaim's MD&A section 3 Investments at December 31, 2021 and December 31, 2020 for details of Skyward Specialty unusual items. Any terms not defined in this document are defined in Westaim's December 31, 2021 MD&A. 12#13SKYWARD SPECIALTY INSURANCE COMPANY UPDATE#14SKYWARD SPECIALTY AT A GLANCE Business Overview • A private, US-based specialty property and casualty insurer that writes on both an admitted and non-admitted basis . . Strategy focuses on building defensible positions in high profit niche segments to deliver consistent top quartile returns Top talent that drives disciplined and insightful underwriting, claims excellence, and efficient capital management is at the core of our strategy execution Operate in all 50 states and select international markets . Rated A- by AM Best • 395 employees as of December 31, 2021 across 12 offices Select Financial Metrics FY FY (US$ millions) 2021(1) 2020(1) Select Income Statement Metrics(3) Gross written premium Net written premium Pre-tax income Net income Combined ratio $940 $874 529 462 63 21 50 17 94.6% 96.8% Select Balance Sheet Metrics (4) Cash and invested assets Total assets $1,057 $879 2,118 1,949 Total liabilities 1,692 1,555 Adjusted stockholders' equity(2) 435 404 For more information about Skyward Specialty including its 'Rule your Niche' strategy described by Andrew Robinson, CEO of Skyward Specialty, visit westaim.com/investments/skyward- specialty-insurance-group/ and follow on LinkedIn at www.linkedin.com/company/skywardspecialty/. (1) (2) (3) (4) Does not include charges related to the Loss Portfolio Transfer ("LPT") transaction completed in Q1 2020, development subject to the LPT or other unusual items. Adjusted to conform to the presentation of the current year. Refer to Westaim's MD&A at December 31, 2021 and December 31, 2020 for further details. The adjusted stockholders' equity of Skyward Specialty reflects the Skyward Specialty stockholders' equity prepared in accordance with US GAAP adjusted for a reclassification of stock notes receivable. Refer to Westaim's MD&A at December 31, 2021 and December 31, 2020 for further details. FY2020 adjusted to conform to the presentation of the current period financial statements including restatement of comprehensive loss of $32.5 million and $67.4 million for the three months and year ended December 31, 2020, respectively, compared to the previously reported comprehensive loss of $30.4 million and $64.7 million for the three months and year ended December 31, 2020, respectively. For further details refer to the Skyward Specialty's consolidated financial statements with independent auditor's report as of and for the years ended December 31, 2021 and 2020 filed on SEDAR by the The Westaim Corporation. Adjusted to conform to the presentation of the current period and restatement of previously reported figures resulting in a decrease in total assets of $4.6 million, a decrease in total liabilities of $3.4 million and a decrease in total stockholders' equity of $1.2 million. For further details refer to the Skyward Specialty's consolidated financial statements with independent auditor's report as of and for the years ended December 31, 2021 and 2020 filed on SEDAR by the The Westaim Corporation. 14#15SKYWARD SPECIALTY - SUMMARY STATEMENTS OF OPERATIONS (1) Three months ended Year ended December 31 December 31 (Currency amounts in millions of US$) 2021 2020 2021 2020 Gross written premium (GWP) Net written premium (NWP) $224.2 141.0 $196.4 114.8 $939.9 529.1 $873.6 461.5 Net earned premium $133.8 $116.5 Commission and fee income 1.3 0.9 $499.8 3.9 $431.9 5.7 Less: Losses and LAE excluding LPT(2) (88.5) (78.4) (338.3) (302.4) Less: Policy acquisition costs (16.4) (12.8) (47.1) (37.0) Less: Other operating expenses (2) (23.1) (21.9) (91.4) (84.5) Underwriting result excluding LPT(2) $7.1 $4.3 $26.9 $13.7 Net investment income Net realized and unrealized gains Investment income 4.0 4.1 24.6 7.1 9.1 17.1 14.3 0.1 $11.1 $13.2 $41.7 $14.4 Interest expense (1.2) (1.2) (4.6) (5.5) Amortization expense (0.4) (0.2) (1.5) Income before taxes excluding unusual items $16.6 $16.1 $62.5 (1.4) $21.2 Income tax expense 3.4 3.5 13.0 Net income excluding unusual items $13.2 $12.6 $49.5 Impact of LPT, net of tax (12.7) (3.6) (12.7) Other net recovery of expenses, net of tax 0.8 3.6 3.7 1.3 Goodwill and other intangible impairment, net of tax (45.5) (2.2) Net income (loss) $1.3 ($32.9) $38.3 (45.5) ($74.6) Total other comprehensive (loss) income (2.1) 0.4 (7.6) 7.2 Comprehensive (loss) income ($0.8) ($32.5) $30.7 ($67.4) Other Select Financial Information Loss ratio excluding LPT(2) Expense ratio Combined ratio excluding LPT(2) Combined ratio excluding LPT and CAT(2) 4.4 $16.8 (47.2) 66.2% 67.3% 67.7% 28.5% 29.0% 26.9% 70.0% 26.8% 94.7% 92.8% 96.3% 95.6% 94.6% 92.2% 96.8% 95.8% Written Premium Growth Skyward Specialty is focused on being a disciplined gross line underwriter, earning an underwriting income on a gross and net basis GWP increased 14.2% in Q4 2021 vs. Q4 2020 and NWP increased 22.8% in Q4 2021 vs. Q4 2020; GWP increased 7.6% in FY 2021 vs. FY 2020 and NWP increased 14.6% in FY 2021 vs. FY 2020 GWP increase for the continuing business, which excludes business exited by the company as its portfolio was repositioned over the past two years, was 37.7% in Q4 vs Q4 2020 and 33.9% in FY 2021 vs FY 2020 We believe the growth of the continuing business, which is now 96.9% of the Q4 2021 and 92.3% of the FY 2021 GWP, are leading indicators of future margin expansion given the earnings profile of continuing business compared to those discontinued Underwriting Profitability Underwriting result excluding LPT was $7.1 million in Q4 2021 vs. $4.3 million in Q4 2020; $26.9 million in FY 2021 vs. $13.7 million in FY 2020 The combined ratio of 94.7% in Q4 2021 improved vs. to 96.3% in Q4 2020 despite higher catastrophe losses; 94.6% in FY 2021 compared to 96.8% in FY 2020 Strategic actions taken over the past year are reflected in the combined ratio excluding catastrophes of 92.8% in Q4 2021 compared to 95.6% in Q4 2020; 92.2% in FY 2021 compared to 95.8% in FY 2020 Investment Performance For Q4 2021 the investment portfolio performed solidly, generating $11.1 million of investment income in Q4 2021 and $41.7 in FY 2021 as the investment portfolio strategy has been enhanced Other Items Other comprehensive loss of $2.1 million ($7.6 million FY) relates to the after-tax change in the carrying value of the fixed income portfolio (1) FY2020 adjusted to conform to the presentation of the current period financial statements including restatement of comprehensive loss of $32.5 million and $67.4 million for the three months and year ended December 31, 2020, respectively, compared to the previously reported comprehensive loss of $30.4 million and $64.7 million for the three months and year ended December 31, 2020, respectively. For further details refer to the Skyward Specialty's consolidated financial statements with independent auditor's report as of and for the years ended December 31, 2021 and 2020 filed on SEDAR by the The Westaim Corporation. 15 (2) Does not include charges related to the Loss Portfolio Transfer ("LPT") transaction completed in Q1 2020, development subject to LPT or other unusual items. See Westaim's Q4 2021 MD&A for details.#16SKYWARD SPECIALTY - SUMMARY BALANCE SHEETS (1) As at (Currency amounts in millions of US$) December 31, 2021 December 31, 2020 50.0 78.4 $1,555.1 Adjusted stockholders' equity increased to $435.2 million or 7.6% from Q4 2020 primarily reflecting net income of $38.3 million and $7.6 million of unrealized losses on the fixed income portfolio With the investment portfolio actions taken over the past 12 months, the repositioning of Skyward Specialty's investment platform is largely complete; large cash balances being deployed following strategic changes within the investment portfolio Skyward Specialty's financial position remains strong, with a debt to capitalization of 22.8% as at December 31, 2021 positioning the company for growth Skyward Specialty engaged Ernst & Young LLP ("EY”) to complete Skyward Specialty's independent audit for the years ended December 31, 2020 and 2021 Investments Cash and restricted cash $949.4 107.3 Insurance related assets 936.5 Deferred tax asset 33.7 Goodwill and other intangible assets 91.3 Total assets $2,118.2 $765.3 113.6 944.2 41.5 84.0 $1,948.6 Insurance related liabilities Notes payable Trust preferred securities $1,563.6 $1,426.7 50.0 78.5 Total liabilities Stockholders' equity Stock notes receivable $1,692.1 $435.2 $404.3 (9.1) (10.8) Total stockholders' equity Total liabilities and stockholders' equity (1) $426.1 $2,118.2 $393.5 $1,948.6 December 31, 2020 adjusted to conform to the presentation of the current period and restatement of previously reported figures resulting in a decrease in total assets of $4.6 million, a decrease in total liabilities of $3.4 million and a decrease in total stockholders' equity of $1.2 million. For 16 further details refer to the Skyward Specialty's consolidated financial statements with independent auditor's report as of and for the years ended December 31, 2021 and 2020 filed on SEDAR by the The Westaim Corporation.#17SKYWARD SPECIALTY - ADJUSTED STOCKHOLDERS' EQUITY: FOR THE YEAR ENDED DECEMBER 31, 2021 (1) $404.3 $0.2 $41.9 ($12.7) $3.7 ($2.2) $435.2 Adjusted stockholders' equity December 31, 2020 Currency amounts in millions of US$ Employee shareholder activity and other Net comprehensive income, excluding unusual items and other Impact of LPT, net of tax Other net recoveries, net of tax Goodwill and other intangible impairment, net of tax Any terms not defined in this document are defined in Westaim's December 31, 2021 MD&A. Adjusted stockholders' equity December 31, 2021 (1) The adjusted stockholders' equity of Skyward Specialty as at December 31, 2021 reflects the Skyward Specialty stockholders' equity obtained from the audited financial statements of Skyward Specialty as at and for the three months and year ended December 31, 2021 prepared in accordance with accounting principles generally accepted in the United States of America, adjusted for a reclassification of a stock notes receivable from employees relating to their purchase of Skyward Specialty common and convertible preferred shares. 17#18SKYWARD SPECIALTY - CONSERVATIVE INVESTMENT PORTFOLIO • The total investment portfolio(1) of approximately $949 million • ⚫ Duration of ~2.8 years • The tax equivalent . annualized yield -2.9% Equity portfolio is primarily large-cap value common equities and domestic preferred securities Equities 12% Other Invested Assets 17% Fixed Income 30% · Other invested assets are comprised of mortgage loans, collateralized loans and loan collateral, limited partnership and equity interests Short-term investments 17% MBS/ABS 24% (1) Total Portfolio is equal to "Total Investments" less payables for securities sold (excludes Balance Sheet "Cash" and "Restricted cash"). A 25% BBB & Lower 17% AAA 45% AA 13% 18#19ARENA INVESTORS LP Seeing What's Possible December 31, 2021#20About Arena (1) คล (2) ABOUT ARENA INVESTORS (1) $3.4B Assets Under Management ~$200M of AUM is employee and related capital Vast Global Origination and Servicing Network Offices in New York, Jacksonville, San Francisco, Dublin, London, and Singapore (2) ~$3.6B deployed into 304 private transactions since launch in 2015 Global originator and underwriter of proprietary investments seeking to produce consistent and uncorrelated returns Institutional scale and experience with transaction sizes between $5 million $50 million, which avoids competition with global alternatives firms focusing on $100 million+ investments - Deep and experienced team Managing Directors average 20+ years of experience across the firm Global origination network built over 25+ years Robust process and proprietary infrastructure built over 15+ years High level of alignment with investors, partners, and other stakeholders Strong governance and full transparency 20 The assets under management of Arena includes employee capital, co-invest, and capital committed but not yet deployed of $957 million as of March 1, 2022. The Jacksonville and Dublin offices are used by Arena affiliates, Quaestor Advisors, LLC, and Arena Investors EF Designated Activity Company. Singapore office used by Arena Investment Management (Singapore) Pte. Ltd. and Quaestor Advisors, LLC. ARENA INVESTORS LP#21Arena Investors - Well Positioned to Accelerate Growth . Global senior staff in place Platform Fully Constructed Proven Performance Driving Third-Party Assets Under Management • · • Infrastructure and entities fully established and operational Platform of product offerings complete In process to secure appropriate financing for capital pools ~$3.6 billion deployed into 304 privately negotiated transactions 155 exited privately negotiated transactions with 141 multi-strategy investments having a realized IRR of 18.0% gross (1) The portfolio has had positive results in 68 of the 75 months since inception (2) Consistent and uncorrelated performance; stable results through COVID-19 Arena's assets under management (3) have grown at a compound annual growth rate of ~56% from December 31, 2015 to March 1, 2022 $3.4 billion in assets under management (3) and growing Well Positioned To Drive Operating Leverage · Now reaching a point where future growth will have significant operating leverage as fee-paying AUM grows Focused on driving valuable fee-related earnings and cash flow for distribution 1. Number of total private investments inclusive of Arena's multi-strategy investment vehicles as well as Stable Income - Real Estate Credit strategy investments. In addition to exited investments in Arena's multi-strategy, 139 active positions have an underwritten IRR of 17.3% and a current IRR of 9.7%. Current IRR reflects all investment activity, i.e., prior actual cash flows and future projected cash flows (which are discounted as of the reporting date), from the inception of each applicable investment through 12/31/2021. The current IRR may not be representative of the realized IRR upon exit of each investment, which may increase or decrease. 2. Through December 31, 2021 and based on composite gross performance, see net performance and relevant disclosures on slide 24. Past performance is not indicative of future performance. Actual results may vary. 3. AUM as of March 1, 2022 and includes undrawn commitments totaling $957 million for closed-end, SMA, and Excess Capacity Funds (New Zealand Real Estate Credit). 21 ARENA INVESTORS LP#22Arena Investors - Q4 2021 Quarterly Result Highlights (dollars in millions) Recurring Income Management Fees Servicing Fees Other Income Recurring Income Operating Expenses Fee Related Earnings (Loss) Incentive Income Incentive Fees Incentive Fee Compensation Net Incentive Fees Net Income EBITDA Depreciation Interest Expense Taxes (Foreign) Net Income (Loss) Q4 2021 Results: Q4 2021 Q4 2020 FY 2021 FY 2020 $ 7.2 $ 4.5 $ 24.0 $ 16.1 2.1 1.4 7.0 4.6 0.2 0.1 0.5 $9.5 $ 6.0 $ 31.5 0.3 $ 21.0 (7.0) $2.5 (6.0) ($0.0) (31.6) ($0.1) (24.0) ($ 3.0) $ 15.4 $ 4.2 $ 34.3 $ 1 (6.3) (1.1) (13.1) $9.1 $3.1 $21.2 7.8 (3.8) $4.0 $ 11.6 $3.1 $ 21.1 $ 1.0 (0.0) (0.0) (0.1) (0.1) (0.3) (0.3) (1.4) (1.1) (0.0) (0.0) (0.0) (0.0) $ 11.3 $ 2.8 $ 19.6 ($0.2) 1. Arena is under no contractual obligation (past or future) to pay Incentive Fees earned to employees. • 22 Net profit was $11.3 million for Q4 2021 and $19.6 million for FY 2021, compared to $2.8 million for Q4 2020 and a ($0.2) million loss for FY 2020. Management Fee revenue was $7.2 million for Q4 2021 and $24.0 million for FY 2021, compared to $4.5 million for Q4 2020 and $16.1 million for FY 2020. Service Fee revenue was $2.1 million for Q4 2021 and $7.0 million for FY 2021, compared to $1.4 million for Q4 2020 and $4.6 million for FY 2020. Net incentive income was $9.1 million for Q4 2021 and $21.2 million for FY 2021, compared to $3.1 million for Q4 2020 and $4.0 million for FY 2020. Recurring revenue is growing. Fee related earnings are at a break-even point for FY 2021, turning positive in Q4 2021. Arena is now reaching a point where future growth is well positioned to drive significant operating leverage given the overall platform has largely been built-out ahead of this growth. ARENA INVESTORS LP#23Arena Investors - Investment vehicles (1) ARENA FULLY DIVERSIFIED STRATEGY $2.2B $3.4B ASSETS UNDER MANAGEMENT ("AUM") (2) Permanent Capital (Arena FINCOS) . • Arena Finance • Arena Origination Company Open-ended Evergreen Funds • Arena Special Opportunities Fund, LP Arena Special Opportunities Fund (Cayman), LP Arena Special Opportunities Fund (Cayman 2), LLC Closed-Ended Drawdown Funds • Arena Special Opportunities Partners I, LP including Rated Feeder Fund for Insurance Company Investors • Arena Special Opportunities Partners (Cayman) I, LP Arena Special Opportunities Partners II, LP including Rated Feeder Fund for Insurance Company Investors Arena Special Opportunities Partners (Cayman) II, LP Separately Managed Accounts EXCESS CAPACITY OPPORTUNITIES $0.9 B New Zealand Real Estate Credit Separately Managed Accounts STABLE INCOME STRATEGIES $0.3 B Real Estate Credit Structured Finance/ABS 1. All vehicles are asset-liability matched with respect to redemptions. 2. The assets under management includes employee capital, co-invest, and capital committed but not yet deployed totaling $957 million (except where noted) as of March 1, 2022. ARENA INVESTORS LP 23#24Arena Investors - Performance (1) Arena's core investment strategy seeks to build a highly diversified and uncorrelated portfolio of investments. Consistent performance including stable performance during COVID-19. Our one-year, three-year, five-year and since inception track records have also outperformed the LSTA Leveraged Loan 100 index on a cumulative net return basis. JANUARY 2021 DECEMBER 2021 3 YEARS 10% 30% 20% 5% 10% 0% 0% Jan-21 -10% Mar-21 May-21 Jun-21 Jul-21 Sep-21 Oct-21 Dec-21 Jan-19 Jun-19 Oct-19 Feb-20 Jul-20 Nov-20 Mar-21 Jul-21 Dec-21 5 YEARS 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% -10% -10% Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 SINCE INCEPTION Oct-15 May-16 Dec-16 Jul-17 Jan-18 Aug-18 Mar-19 Sep-19 Apr-20 Oct-20 May-21 Dec-21 Arena Composite 24 LSTA Leveraged Loan 100 Index ARENA 1. This composite is comprised of one onshore open-ended fund and one offshore open-ended fund, which commenced operations on October 1, 2015 and March 1, 2016, respectively. For the period from March 1, 2016 until September 30, 2018, the offshore fund received an expense subsidy for monthly expenses in excess of 0.10% of NAV. Time-weighted monthly returns are calculated net of annual management fees of 2%, 0.5% asset servicing expense and an incentive fee of 20%, which represent the standard fees charged to Fund investors. All returns are based on the reinvestment of principal, interest and dividends received by the composite. Cumulative returns are not annualized. The LSTA Leveraged Loan 100 Index are presented gross of any expenses or fees. For the one-year, three-year, five-year, and since inception track records as indicated above, the LSTA Leveraged Loan 100 Index cumulative returns were 3.54%, 6.51%, 20.98%, and 31.13% respectively. Past performance is not indicative of future performance. Actual results may vary. INVESTORS LP#25Arena Investors - Assets Under Management Through 3/1/2022 Arena Investors' AUM (including undrawn commitments) grew $174 million in Q4, and an additional $524 million through March 1, 2022. From December 31, 2015 to March 1, 2022 AUM has grown at a CAGR of ~56%. Arena Investors - Assets Under Management Through 3/1/2022(1) $ 3,415 mm $ 3,500 mm $ 3,000 mm $ 2,500 mm $ 2,000 mm $ 1,500 mm $ 1,251 mm $ 941 mm $ 1,000 mm $ 710 mm $ 380 mm $ 500 mm $ 217 mm $ 2,041 mm $ 70 mm $ 2,649 mm -$30 mm -$4 mm $ 0 mm AUM as of 12/31/2015 AUM as of 12/31/2016 AUM as of 12/31/2017 AUM as of 12/31/2018 AUM as of 12/31/2019 AUM as of 12/31/2020 AUM as of 9/30/2021 4Q 2021 Contributions and Commitments Increase (Decrease) 1. AUM as of March 1, 2022 and includes undrawn commitments totaling $957 million for closed-end, SMA, and Excess Capacity Funds (New Zealand Real Estate Credit). 2. Foreign currency fluctuations on NAV for accounts reported in currencies other than USD. 4Q 2021 Distributions $ 139 mm $ 2,823 mm 4Q 2021 Foreign Currency Translation on Non-USD Accounts (2) 4Q 2021 Appreciation AUM as of 12/31/2021 AUM as of 3/1/2022 (Depreciation) 8 ARENA INVESTORS LP#26Arena Investors - - Deal Structure Aligns Arena Management and Westaim ▲WESTAIM . Arena Investors was founded by Dan Zwirn and Westaim in August 2015 under an arrangement designed to align Arena Investors' senior management interests very tightly with those of Westaim and its shareholders. The principal elements of the arrangement include: • . Funding: Westaim would fund the start-up expenses and operating losses of Arena Investors until profitability in order to build out an institutional quality, front and back office platform that was positioned to scale as the business grows. In 2021, the build out of the platform is largely complete, with an outstanding loan payable from Arena Investors to Westaim at Q4 2021 of $24.0 million. This loan is to be repaid before the distribution of earnings of Arena Investors to its members (i.e. Westaim and BP LLC, a holding company owned by members of Arena Investors' senior management team). Ownership and Profit Participation: A structure was developed by which BP LLC would effectively "Earn-In" to its ownership of Arena Investors over time as the business reached thresholds of: (i) Assets under Management; and (ii) Trailing Twelve Month EBITDA margin. A Profit Participation would entitle the party to participate in cash distributions from Arena Investors, while Ownership would entitle the party to actual ownership of the enterprise. The following table details possible future changes to profit participation and ownership interest agreed between Westaim and BP LLC(1): Trailing Twelve Month BP LLC Westaim Revenue (TTM) to EBITDA Margin AUM Threshold Profit Percentage Equity Ownership Profit Percentage Equity Ownership (i) <35% < $1 billion 49.0% 51.0% 100.0% (ii) >35% >$1 billion 49.0% 49.0% 51.0% 51.0% (iii) >50% >$2 billion 54.5% 54.5% 45.5% 45.5% (iv) >55% >$3 billion 60.0% 60.0% 40.0% 40.0% (v) >60% >$4 billion 67.5% 67.5% 32.5% 32.5% (vi) >60% >$5 billion 75.0% 75.0% 25.0% 25.0% • BP LLC Investment in Westaim Shares: As a further alignment of interests, BP LLC committed to invest 25% of the first $100 million of pre-tax distributions received from Arena Investors, and 12.5% thereafter to acquire Westaim common shares in the public market at the time, up to a 19.9% ownership of the outstanding Westaim common shares. Distributions are expected to commence once the outstanding loan to Westaim is repaid. (1) As at December 31, 2021, Arena Investors' TTM Revenue to EBITDA Margin was less than 35% and AUM threshold was more than $2 billion. As a result, BP LLC's profit percentage was 49.0% and equity ownership was 0% and Westaim's profit percentage was 51.0% and equity ownership was 100.0%. Refer to Section 3.02 Second Amended and Restated Limited Liability Agreement of Arena Investors. 26#27ARENA Arena FINCOS#28Arena FINCOS: Summary of Operating Results ▲WESTAIM ARENA Arena FINCOS (Currency amounts in millions of US$) Investment income Net gain (losses) on investments Three months ended December 31, 2021 Year ended December 31, 2021 2021 2020 2021 2020 $4.8 $0.2 (2.1) 3.5 $10.4 9.0 (0.9) (0.9) (3.5) $1.8 $2.8 $15.9 $5.6 0.6 (0.9) $5.3 Q4 2021 Net Income was $0.5 million (+0.3% net investment return) compared to Q4 2020 Net Income of $1.5 million (+0.9% net investment return) FY 2021 Net Income was $9.8 million (+6.1% net investment return) compared. to FY 2021 Net Loss of $0.1 million (0.0% net investment return) Interest expense Net investment income Operating expenses: Management and asset servicing fees (1.1) (1.0) (4.2) (4.2) Incentive fees (0.1) (0.9) (0.2) Other operating expenses (0.1) (0.1) (0.8) (0.7) FY 2021 Net performance of Arena FINCOS* $0.6 $1.6 $10.0 $0.2 Advisory fees paid to the Company (0.1) (0.1) (0.2) (0.2) Holding companies' expenses (0.1) Net operating results of the Arena FINCOS $0.5 $1.5 $9.8 ($0.1) Gross investment return Net investment return* 1.1% 1.7% 9.8% 3.0% 0.3% 0.9% 6.1% 0.0% was impacted by proper financing now in place, and we are very comfortable with the positioning of the FINCOS portfolio as we move into 2022 * Net investment return does not include certain corporate level advisory fees and interest paid to Westaim, and other corporate level expenses. 28#29Arena FINCOS: Summary of Net Assets ▲WESTAIM ARENA Arena FINCOS Fair Value (Currency amounts in millions of US$) Cash and cash equivalents Due from brokers, net December 31, 2021 September 30, 2021 December 31, 2020 $36.3 $9.1 $21.4 • (1.7) (25.6) (5.5) Investments: Corporate Private Credit 54.9 56.9 46.2 Real Estate Private Credit and Real Estate Assets 29.1 34.5 49.9 Commercial and Industrial Assets 38.7 43.4 30.8 Structured Finance 3.7 3.5 5.2 Consumer Assets Other Securities Total Investments 10.4 12.4 13.8 46.1 79.0 34.4 $182.9 $229.7 $180.3 Senior secured notes payable ($43.7) ($43.6) ($43.4) Revolving credit facility payable Other net assets Net assets of the Arena FINCOS Changes in Investment in Arena FINCOS Opening balance Return of capital to Westaim Dividends paid to Westaim 6.0 $172.8 FY 2021 $163.0 (7.0) 2.7 $172.3 10.2 $163.0 FY 2020 . In 2021, Arena FINCOS secured a revolving credit facililty of $21.5 million to allow for efficient treasury management, limit cash. drag and enhance returns The composition of the portfolio, with with 44% in equity/REO/hard assets (1), contributes to fair market value volatility of these invested assets through unrealized net gains (losses) $205.8 (20.0) (22.7) Net operating results of the Arena FINCOS Ending balance 9.8 $172.8 (0.1) $163.0 (1) Equity / REO / Hard Assets reflects any hard asset ownership, in which Arena FINCO has direct ownership rights of the asset, including real estate owned investments (REO), private assets, and corporate entities. 29#30Arena FINCOS: Portfolio breakdown as at December 31, 2021 ▲WESTAIM ARENA Arena FINCOS Equity / REO / Hard Assets (1) 44% Debt 56% Other Securities 25% Consumer Assets 6% Structured Finance 2% Commercial and Corporate Private Credit 30% Real Estate and Real Estate Private Credit 16% Industrial Assets 21% Arena FINCOs held 203 positions at December 31, 2021 compared to 158 positions at December 31, 2020 (1) Equity / REO/Hard Assets reflects any hard asset ownership, in which Arena FINCO has direct ownership rights of the asset, including real estate owned investments (REO), private assets, and corporate entities. 30#31Future Events: AGM: May 18, 2022 ▲WESTAIM The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]