FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation (``Westaim'') today announced its financial results for the three months ended March 31, 1997. Westaim recorded a net loss of $3.4 million or $0.05 per share. As the Company commenced operations effective June 1, 1996, there are no comparative figures for prior periods.

Westaim ended the first quarter with working capital of $275.6 million and a net cash position of $179.7 million. Kevin J. Jenkins, President and Chief Executive Officer, noted that the Company's financial results in the first quarter were tracking as expected. He stated that in the first quarter the Company sold its surplus nickel inventory as planned. Westaim will receive $39.4 million for the 3,700 tonnes of nickel sold. Proceeds from the sale will be received in the second quarter.

Jenkins said, "We continue to make good progress in the development of our new business opportunities. I am pleased with the progress made in the first quarter and expect this to continue throughout 1997".

Westaim has a portfolio of development stage new business opportunities, which include: coking-resistant coatings, electroluminescent flat panel displays, biomedical coatings, electronic ceramics and structural ceramics. In addition, Westaim manufactures a wide range of other products based on its advanced industrial materials expertise.

Westaim's common shares are listed on The Alberta Stock Exchange, The Toronto Stock Exchange and the Montreal Exchange under the trading symbol WED.


For further information:
Tony Johnston,
Senior Vice President,
Corporate Affairs
(403) 234-3103