September 20, 2010 11:50 ET

West Mountain Capital's Subsidiary Executes Joint Venture Contract With Zhoushan Nahai for Chinese Oily Sludge Market

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2010) - Phase Separation Solutions Inc. ("PS2"), a Saskatchewan-based clean technology subsidiary of West Mountain Capital Corp. (TSX VENTURE:WMT), is pleased to announce the execution of the Joint Venture Contract with Zhoushan Nahai Solid Waste Central Disposal Co. Ltd. ("Nahai") of Zhoushan, Zhejiang Province, China. 

"This satisfies a major step in the process of doing business in China" said Paul Antle, President and CEO, "the Joint Venture Contract is the legal document that outlines, in significant detail, how PS2 and Nahai will operate the business." The Joint Venture Contract is similar to a shareholder's agreement that must be registered with the state and local governments for the issuance of a Business License.

PS2 and Nahai agreed to become equal equity partners in a Sino-foreign joint venture company in August 2010. The joint venture will design, engineer, construct and operate an oily sludge waste treatment facility to be located in Zhoushan, Zhejiang Province to receive, process and recover oil from oily sludge waste generated from oil storage operations and oil tanker cleaning activities in that region. Nahai currently operates a number of waste oil related facilities and has direct access to the oily sludge market. The PS2/Nahai facility is expected to be operational in early 2011.

"Our relationship with Nahai is developing very fast and both the engineering and planning for our facility is being completed ahead of schedule" said Antle. "Nahai are responding quickly by providing the resources necessary to expedite the work. We are very pleased with the progress to date."

A growing problem in China today is the increasing volume of oily sludge waste generated from the extensive network of oil storage locations and the enormous volume of oil being transported throughout the country on a daily basis.

About Nahai:

Zhoushan Nahai Solid Waste Central Disposal Co. Ltd. is a private company and a leader in the management of hazardous waste and oily sludge based in Zhoushan, China. The company has excellent infrastructure including an oil storage facility (2,500,000 tonnes), a waste oil recovery facility (capacity of 1,000,000 tonnes per year), bilge water treatment process (20,000 tonnes per day) and a solid waste destruction facility (20 tonnes per day). Nahai possesses the only waste management processing permit in Zhoushan and is strategically located on the coast of the East China Sea with excellent accessibility to the traditional shipping lanes. Zhoushan is an island, port and tourist city newly developed in China and is in the center of the four largest fisheries in the world.

About Phase Separation Solutions:

PS2 is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. From its operations based in Wolseley, Saskatchewan it employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil, industrial sludge and waste converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. PS2's management team maintains expertise in hazardous waste management and contaminated site remediation with experience spanning North America and internationally throughout 14 countries.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements in respect of PS2 entering into a definitive joint venture agreement with Nahai in respect of carrying out oily sludge processing activities in China. The forward-looking statements and information are based on certain key expectations and assumptions made by West Mountain, including expectations and assumptions concerning the plan to remove and treat such material. Although West Mountain believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because West Mountain can give no assurance that they will prove to be correct.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the negotiation and finalization of the joint venture agreement with Nahai and the commencement of operations in China pursuant to such agreement, failure to realize the anticipated benefits of the operation, failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to environmental regulations. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.

Contact Information