Westaim commences mailing of management information circular and announces
new director

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TORONTO, March 1 /CNW/ - The Westaim Corporation (Westaim or the Company) (TSX: "WED") announces that it has distributed proxy materials to its transfer agent and intermediaries for mailing to registered and beneficial shareholders in connection with a special meeting of shareholders to be held on March 25, 2010 for the purpose of approving the issuance of up to 550 million common shares of the Corporation issuable upon the conversion of (i) 254 million class A subscription receipts and (ii) 296 million class B subscription receipts (together the Subscription Receipts). The proxy materials consist of a form of proxy and a management information circular dated as of February 26, 2010 (the Circular). The Circular contains details of, among other things, the sale of the Subscription Receipts undertaken by Westaim in order to finance the purchase price in respect of its previously announced acquisition (the Acquisition) of JEVCO Insurance Company (JEVCO), the terms of the Acquisition, the business of JEVCO and certain historical and pro forma financial information relating to JEVCO and Westaim. The form of proxy and Circular (including certain financial information and related MD&A relating to JEVCO) will be available on SEDAR (www.sedar.com) and the Corporation's web page (www.westaim.com).

Westaim also announces the appointment of Mr. Brian Gibson as a director of the Corporation. Mr. Gibson is Senior Vice President, Public Equities of the Alberta Investment Management Corporation (AIMCo). AIMCo is an Alberta crown corporation which is responsible for managing and investing funds on behalf of certain Alberta public sector pension plans, endowments and government funds. It is expected that AIMCo will identify a second nominee prior to or shortly after the completion of the Acquisition.

"We welcome Brian to the Westaim Board and look forward to working with him to complete the Acquisition and integration of JEVCO's business," said Cameron MacDonald, Westaim's President and Chief Executive Officer. "AIMCo has been instrumental in enabling Westaim to pursue the Acquisition and we expect the knowledge and experience of Mr. Gibson to be an important asset for Westaim's Board going forward."

About Westaim

Westaim invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.

Certain portions of this press release as well as other public statements by Westaim, contain forward-looking statements. Such forward-looking statements include but are not limited to statements concerning the transactions described herein; investment strategies and expected rates of return; and strategic alternatives to maximize value for shareholder. These statements are based on current expectations that are subject to risks, uncertainties and assumptions and Westaim can give no assurance that these expectations are correct. Westaim's actual results could differ materially from those anticipated by forward-looking statements for various reasons generally beyond our control, including but not limited to: (i) failure to complete the Acquisition; (ii) changes in market conditions or deterioration in underlying investments; (iii) general economic, market, financing, regulatory and industry developments and conditions; and (iv) other risk factors set forth in the Circular, Westaim's Annual Report or Annual Information Form. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise except as required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

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For further information: Jeffrey Sarfin, Chief Financial Officer, The Westaim Corporation, [phone], [email protected]