Westaim completes second tranche of private placement of subscription
receipts

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN./

TORONTO, Feb. 19 /CNW/ - The Westaim Corporation (Westaim or the Company) (TSX: "WED") announced that it has completed the second and final tranche of its private placement of subscription receipts (Subscription Receipts) with the sale today of 3,255,000 Subscription Receipts at a purchase price of $0.50 each for gross proceeds of $1,627,500 bringing the aggregate gross proceeds of the Subscription Receipt financing to $275,000,000. The terms of the Subscription Receipts and details regarding the initial tranche can be found in the Company's press release dated February 9, 2010.

The aggregate proceeds from the private placement will be used to fund the Company's previously announced acquisition of JEVCO Insurance Company, further details of which are available in Westaim's press release dated January 25, 2010.

This press release is not an offering of securities for sale in the United States. The Subscription Receipts, Common Shares and Non-Voting Shares described herein and in the summary of key terms attached to this press release have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

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 Jevco 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 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: J. Cameron MacDonald, President and Chief Executive Officer, The Westaim Corporation, [phone], [email protected]