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NUCRYST Announces Further Adjournment of Special Shareholder Meeting
Date:12/31/2009

PRINCETON, NJ, Dec. 31 /PRNewswire-FirstCall/ - NUCRYST Pharmaceuticals Corp. ("Nucryst") (TSX:NCS / NASDAQ:NCST) today reconvened the Special Meeting of Shareholders which was previously adjourned on Monday, December 21, 2009. The meeting was originally held to consider a special resolution (the "Amalgamation Resolution") to approve the proposed amalgamation of Nucryst with a newly formed subsidiary of The Westaim Corporation ("Westaim") to form Amalco (the "Amalgamation"). The purpose of the adjournment was to afford Nucryst additional time to allow for the completion of the United States regulatory review process associated with the Amalgamation, which is a "going private" transaction under applicable United States securities laws.

The meeting reconvened today was further adjourned until January 22, 2010 to allow additional time to complete the United States regulatory review process. Under the Amalgamation, Nucryst shareholders other than Westaim will receive for each issued and outstanding share in Nucryst one redeemable preferred share in the capital of Amalco, which will be redeemed for US$1.77 in cash upon the completion of the Amalgamation.

If the Amalgamation is ultimately approved by shareholders and completed, Nucryst intends to delist from the TSX and NASDAQ stock exchanges.

This news release is for information purposes only and is not a substitute for the definitive agreements or other disclosure in relation to the described Amalgamation. There can be no assurance that the closing conditions of the Amalgamation will be satisfied, or that the transaction will be completed as proposed or at all.

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