FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation announced today that it has signed an agreement with Casa da Moeda do Brasil, the Brazilian Mint, for the production of coin blanks.

In addition, Westaim has been contracted to supply Elmactron of Brazil with engineering and technology for a new coin plating facility being built for the Brazilian Mint. The new facility will have a capacity of 3,000 tonnes of coin blanks per year, and is expected to open late in 1998.

The total value of both contracts is approximately C$17 million.

"This contract reinforces Westaim's worldwide reputation for superior coinage products and technology," said Dr. Michael Raymont, Executive Vice President, Operations. "It is our first contract with Brazil, and it is an integral part of Brazil's plan to introduce vending machine compatible coins that are economical, durable and attractive."

The agreement with Brazil to supply 2,500 tonnes of copper-bonded steel and aureate-bonded steel coin blanks will be filled at the Fort Saskatchewan operation during the next nine months. Currently the coinage division employs 100 people and manufactures coin blanks for many countries including Canada, China, the Philippines, Ecuador, El Salvador, the Netherlands and the Czech Republic.

Since 1961, Westaim's facilities have manufactured superior, low cost coinage products for domestic and international markets. The company has developed technology to coat a wide range of core materials to meet market demand for white, yellow, red and bi-colour coins. In Canada, Westaim supplies nickel strip for the 10 cent, 25 cent, 50 cent and two dollar coins and aureate-bonded nickel blanks for one dollar coins. With an annual production exceeding 7,000 tonnes, Westaim's coinage products have been used in 37 countries for over 100 denominations.

Westaim has a portfolio of new business opportunities consisting of biomedical coatings, electroluminescent flat panel displays and surface engineered products. Westaim also manufactures aerospace materials, chemicals and coin blanks. Westaim is a TSE 300 company listed on The Toronto Stock Exchange, The Alberta Stock Exchange and the Montreal Exchange under the trading symbol "WED."

For further information please contact:
Tony Johnston
Senior Vice President, Corporate Affairs
(403) 234-3103
tjohnsto@westaim.com