CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that it has closed a previously announced equity financing for total gross proceeds of $50 million. The financing involved an offering of 10,000,000 common shares of Westaim bought by a syndicate of underwriters led by GMP Securities Ltd. and including CIBC World Markets Inc., Haywood Securities Inc. and Paradigm Capital Inc.

A total of 14,705,883 common shares, which includes the underwriters·option for an additional 4,705,833 shares, have been issued at a price of $3.40 per share as a result of the financing. Four members of Westaim's Board of Directors personally purchased $16.5 million worth of shares under the offering.

Westaim's subsidiary, iFire Technology, will use the proceeds, along with a previously announced US$10-million loan from Dai Nippon Printing Co., Ltd. (DNP), to upgrade its Toronto flat panel display facility. Currently a research and development facility best suited for development work on displays up to 17-inches in size, iFire will upgrade the plant and the tool set to create a pilot production facility for larger, mid-30-inch sized flat panel television display modules. The capital cost of this project is estimated to be approximately $46 million.

"We are very encouraged by the positive response that this offering received from investors," said Barry M. Heck, President & CEO of Westaim. "The support of the Board members who participated in this offering is a key endorsement of iFire's strategy and was instrumental in the success of the financing."

In addition to iFire Technology, The Westaim Corporation's technology investments include NUCRYST Pharmaceuticals, which researches, develops and commercializes wound care and pharmaceutical products based on its nanocrystalline silver technology. Westaim's common shares are listed on NASDAQ under the symbol WEDX and on The Toronto Stock Exchange under the trading symbol WED.
-30-

For more information contact:
David Wills
Investor Relations
(416) 504-8464

info@westaim.com
www.westaim.com

This news release may contain forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and the Corporation can give no assurance that these expectations are correct. Various factors could cause actual results to differ materially from those projected in such statements, including but not limited to financial considerations and those predicting the development or upgrading of facilities and tools, the availability of loan proceeds, product development and production, and expected capital costs. The Corporation disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement.