West Mountain Capital Corp. (TSXV: WMT) –Initiating Coverage – Thermal treatment of soil, sludge and other waste streams

Highlights:

• West Mountain Capital, through its wholly owned subsidiary, Phase Separation Solutions (PS2), is in the business of thermal treatment of soil, sludge and other waste streams.

• The company has exclusive rights (until the expiry of the patents) to use the patented Thermal Phase Separation (TPS) technology for hazardous waste decontamination treatment services in Canada, China and the U.S.

• The TPS is a “green” technology that helps reduce/eliminate environmental liability caused by contaminated waste, while recovering hydrocarbons (oil/natural gas) from the waste streams for reuse/resale.

• TPS treatment produces significantly less greenhouse gas emissions compared to traditional methods of waste management, such as incineration.

• The company is an established player in the PCB soil treatment market in Canada.

• Posted record revenues of $5.88 million, and net profits of $2.51 million, in 2009.

• Strong management team with extensive industry experience.

• Although we believe the recent regulatory changes in Canada with regard to PCBs will give near-term momentum, we believe the company’s major upside potential should come from its two new focus areas -a) the PCB soil treatment market in China, and b) the industrial sludge market in Canada. Risks

• The Canadian PCB soil treatment market is a declining market as PCB production has been banned since the 1970’s.

• Revenues for the PCB soil remediation industry in Canada have been highly volatile in the past.

• The company has yet to break into the Chinese PCB market and the industrial sludge market in Canada.

• Regulations encouraging environmental protection/cleanup are key for the company’s long-term growth.

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