Please replace the release dated February 6, 2023 with the following corrected version due to multiple revisions.

The updated release reads:

WESTERN ASSET MORTGAGE CAPITAL CORPORATION ANNOUNCES UPDATED TAX CHARACTERISTICS OF 2022 DIVIDENDS

Western Asset Mortgage Capital Corporation (the “Company”) (NYSE: WMC) announced today updated tax treatment of its common stock dividends declared in 2022. The update relates to the $0.40 distribution paid on January 26, 2023 to stockholders of record as of January 3, 2023. Previously, the Company announced that this distribution would be treated as received on December 31, 2022 and taxable in calendar year 2022. This distribution will instead be treated as received on January 26, 2023 and taxable in calendar year 2023.

The below information is provided to assist the Company’s stockholders with tax reporting requirements related to dividend distribution of taxable income by the Company. Stockholders should receive IRS Form 1099-DIV containing this information from their brokers, transfer agents or other institutions. These tax statements should be reviewed to ensure that they agree with the information provided below.

Tax Treatment of Distributions

The Federal Income Tax classification of the 2022 dividend distributions on the Company’s common stock, as it is expected to be reported on Form 1099-DIV, is set forth in the following table:

Consult Your Tax Advisor

Stockholders may have additional reporting obligations to the Internal Revenue Service and/or other tax authorities.

The U.S. federal income tax treatment of holding the Company’s common stock to any particular stockholder will depend on the stockholder’s particular tax circumstances. You are urged to consult your tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to you, in light of your particular investment or tax circumstances, of acquiring, holding and disposing of the Company’s common stock.

The Company does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your advisor as to any tax, accounting or legal statements made herein.

ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION

Western Asset Mortgage Capital Corporation is a real estate investment trust that invests in, acquires and manages a diverse portfolio of assets, with a focus on residential real estate related investments, including non-qualified mortgage loans, non-agency RMBS and other related investments. The Company’s investment strategy may change, subject to the Company’s stated investment guidelines, and is based on its manager Western Asset Management Company, LLC's perspective of which mix of portfolio assets it believes provide the Company with the best risk-reward opportunities at any given time. The Company is externally managed and advised by Western Asset Management Company, LLC, an investment advisor registered with the Securities and Exchange Commission and a wholly-owned subsidiary of Franklin Resources, Inc. Please visit the Company’s website at www.westernassetmcc.com.

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