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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 40-F
 [Check one]
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended: December 31, 2006
    
    Commission File Number: 0-30600
 The Westaim Corporation
  Alberta
 (Province or other jurisdiction of incorporation or organization)
 3674
 (Primary Standard Industrial Classification Code Number (if applicable)
 Not Applicable
 (I.R.S. Employer Identification Number (if applicable))
 1010
Sun Life Plaza I, West Tower, 144  4th Avenue S.W., Calgary, Alberta T2P 3N4 Canada, Telephone (403) 234-3100
  Scott Gillis, Nucryst Pharmaceuticals Inc., 50 Audubon Road, Wakefield, MA 01880, Telephone (781) 246-6010
   Title of each class
    
    Name of each exchange on which registeredNone
    
    The Nasdaq Stock Market
  Common Shares, without par value
   None
 (Title of Class)
  þ     Annual information form
    
    þ     Audited annual financial statements
  93,978,758 Common Shares, without par value
  Yes     o
    
    No     þ
  Yes     þ
    
    No     o




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DISCLOSURE CONTROLS AND PROCEDURES
 A. Evaluation of Disclosure Controls and Procedures
 As of the end of the Registrants fiscal year ended December 31, 2006, an evaluation
of the effectiveness of the Registrants disclosure controls and procedures (as such term
is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as
amended (the Exchange Act)) was carried out by the Registrants chief executive officer
and chief financial officer. Based upon that evaluation, the Registrants chief executive
officer and chief financial officer have concluded that as of the end of that fiscal year,
the Registrants disclosure controls and procedures are effective to ensure that the
information required to be disclosed by the Registrant in reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within the time
periods specified in Securities and Exchange Commission rules and forms.
 B. Changes in Internal Control Over Financial Reporting
 There was no change in the Registrants internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is
reasonably likely to materially affect, its internal control over financial reporting.
 AUDIT COMMITTEE FINANCIAL EXPERT
 See page 18 of Exhibit 1 to this report.
 CODE OF ETHICS
 The Registrant has adopted a Finance Code of Conduct for Chief Executive and Senior
Financial Officers (the Code of Conduct). The Code of Conduct has been filed on and is
accessible through EDGAR at www.edgar-online.com. The Code of Conduct has also
been posted on the Registrants Internet website at www.westaim.com.
 PRINCIPAL ACCOUNTANT FEES AND SERVICES
 See page 19 of Exhibit 1 to this report.
 AUDIT COMMITTEES PRE-APPROVAL POLICIES AND PROCEDURES
 See page 19 of Exhibit 1 to this report.
 IDENTIFICATION OF THE AUDIT COMMITTEE
 See page 18 of Exhibit 1 to this report.
 OFF-BALANCE SHEET ARRANGEMENTS
 As at December 31, 2006, the Registrant has not entered into any off-balance sheet
arrangements.
 TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
 See page 16 of Exhibit 2 to this report.
 MANAGEMENTS
ANNUAL REPORT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING
 See page 16 of
Exhibit 2 to this report.
 EXEMPTION FROM NASDAQ CORPORATE GOVERNANCE REQUIREMENTS
 Marketplace Rule 4460(f) requires each Nasdaq National Market issuer to establish a
quorum for any meeting of the holders of common stock of no less than 33 1/3% of the
outstanding shares. On June 5, 2000, pursuant to Marketplace Rule 4460(a), Nasdaq granted
to the Registrant an exemption from Nasdaqs corporate governance rules. The Registrants
by-laws state that a quorum for the transaction of business at any meeting of shareholders
shall be two persons present in person, each being a shareholder entitled to vote thereat
or a duly appointed proxyholder or representative for a shareholder so entitled.
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UNDERTAKING AND CONSENT TO SERVICE OF PROCESS
 A. Undertaking
  B. Consent to Service of Process
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SIGNATURES
  Registrant:THE WESTAIM CORPORATIONBy:
    /s/Brian D. HeckName:
    Brian D. HeckTitle:
    Vice President, General Counsel and
Corporate Secretary  -4-




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EXHIBIT INDEX
 99.1
    
    
    Annual Information Form dated March 19, 2007 for the year ended December 31, 200699.2
    
    
    Managements Discussion and Analysis for the year ended December 31, 2006 is incorporated by
reference to Exhibit 2 to our Report of Foreign Issuer on Form 6-K for the month of February,
2007, filed on March 1, 2007 (Commission File No. 000-30600).99.3
    
    
    Audited Financial Statements for the year ended December 31, 2006 are incorporated by
reference to Exhibit 1 to our Report of Foreign Issuer on Form 6-K for the month of February,
2007, filed on March 1, 2007 (Commission File No. 000-30600).99.4
    
    
    Consent of Deloitte & Touche LLP99.5
    
    
    Section 906 Certification of Chief Executive Officer and Chief Financial Officer99.6
    
    
    Section 302 Certification of Chief Executive Officer99.7
    
    
    Section 302 Certification of Chief Financial Officer
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