Wescan Goldfields Inc. announces first quarter results



    Stock Symbol: WGF: TSX-V

    SASKATOON, May 29 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Company") reports the unaudited results of Wescan's operations for the
quarter ended March 31, 2009 have been filed and may be viewed at
www.sedar.com. A summary of key financial and operating results for the
quarter follows:

    
    Highlights

    -   Continued review of regional geophysics and detailed topographic data
        to define drill targets in the Hudson Bay, Saskatchewan area.
    -   Additional coal permits received near Pinehouse Lake, Saskatchewan.
    -   Working capital of $2.2 million at March 31, 2009.
    -   Issued and outstanding shares of 75,121,390 at March 31, 2009.
    

    Coal Projects

    In the first quarter of 2009, Wescan continued an extensive review of
regional geophysics and detailed topographic data to define drill targets in
the Hudson Bay, Saskatchewan area. Upon the completion of defining drill
targets the Company plans to test several anomalies within the permit areas
through a multi-hole core drilling program during the summer of 2009.
    Also in the quarter, the Company received 7 additional coal permit
certificates near Pinehouse Lake, Saskatchewan that comprised an area of 5,280
hectares. These additional permits will allow the Company to actively explore
the area for coal. Historical drilling in this region intersected Mannville
(Cretaceous) coal seams approximately 50 metres from surface in a region where
glacial till cover is limited.
    Subsequent to the end of the quarter, Wescan announced that it had
entered into an agreement with Fugro Airborne Surveys of Ottawa, Ontario to
conduct a 2,000 line-kilometre airborne geophysical survey over its Hudson
Bay, Saskatchewan coal dispositions (see Wescan News Release dated April 28,
2009).
    The survey will provide extensive magnetic and electromagnetic
geophysical data over areas believed to be highly prospective for coal. The
contract includes a Broadband GEOTEM Electromagnetic Magnetic survey as well
as specialized geophysical processing and interpretation to identify coal
bearing sub-basins. The successful drilling of GEOTEM targets on adjacent
properties has resulted in the discovery of coal intersections up to 100
metres in vertical thickness. The GEOTEM survey aims to delineate all
potential sub-basins in the Devonian basement which are favorable for the
development of coal in the overlying Cretaceous sediments.
    A total of 331 coal permits have now been issued to the Company
encompassing a total area of 190,992 hectares (1,910 square kilometres) in the
Hudson Bay, Saskatchewan region and 38,288 hectares (383 square kilometres) in
the Pinehouse Lake, Saskatchewan area. These permits cover a period of one
year with two possible six-month extensions which are convertible to a 15-year
lease thereafter.

    
    Selected financial highlights include:
    -------------------------------------------------------------------------
                                                  March 31,      December 31,
    Balance Sheets                                    2009              2008
    -------------------------------------------------------------------------
    Current assets                           $   2,494,935     $   2,724,519
    -------------------------------------------------------------------------
    Capital and other assets                     9,435,175         9,453,030
    -------------------------------------------------------------------------
    Current liabilities                            338,480           381,548
    -------------------------------------------------------------------------
    Future income tax liability                    579,000                 -
    -------------------------------------------------------------------------
    Share capital and warrants                  14,161,829        14,799,329
    -------------------------------------------------------------------------
    Contributed surplus                          1,453,563         1,444,117
    -------------------------------------------------------------------------
    Deficit                                      4,602,762         4,447,445
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                  March 31,         March 31,
    Statements of Income                              2009              2008
    -------------------------------------------------------------------------
    Interest Income                          $       2,535     $      31,120
    -------------------------------------------------------------------------
    Operating Expenses                             229,833           316,332
    -------------------------------------------------------------------------
    Loss for the period before
     income taxes                                  227,298           285,212
    -------------------------------------------------------------------------
    Net loss for the period                        155,317           259,712
    -------------------------------------------------------------------------
    Loss per share                                    0.00              0.00
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                  March 31,         March 31,
    Statements of Cash Flows                          2009              2008
    -------------------------------------------------------------------------
    Cash flows from operating activities     $    (208,725)    $     (25,705)
    -------------------------------------------------------------------------
    Cash flows from investing activities             7,819        (1,768,722)
    -------------------------------------------------------------------------
    Decrease in cash and cash equivalents         (200,906)       (1,794,427)
    -------------------------------------------------------------------------
    Cash and cash equivalents -
     beginning of period                         2,549,435         3,413,275
    -------------------------------------------------------------------------
    Cash and cash equivalents -
     end of period                               2,348,529         1,618,848
    -------------------------------------------------------------------------
    

    Outlook

    As at May 28, 2009, the Company has $2.05 million in cash and cash
equivalents that will be used to establish a drill program on the coal permit
properties as well as continue exploration programs on the Jojay, Fork Lake,
Hanson Lake and Munro properties. In addition, the Company will continue to
evaluate the potential for acquisition of more mineral properties in Canada
and internationally. Management has determined that the Company will continue
to require additional financing and believes it will have sufficient access to
financial markets to continue its planned activities.

    Caution regarding Forward-looking Statements

    From time to time, Wescan makes written or oral forward-looking
statements within the meaning of certain securities laws, including the "safe
harbour" provisions of the Ontario Securities Act. Wescan may make such
statements in this MD&A, in other filings with Canadian regulators, in reports
to shareholders or in other communications. These forward-looking statements
include, among others, statements with respect to Wescan's objectives for the
ensuing year, our medium and long-term goals, and strategies to achieve those
objectives and goals, as well as statements with respect to our beliefs,
plans, objectives, expectations, anticipations, estimates and intentions. The
words "may," "could," "should," "would," "suspect," "outlook," "believe,"
"plan," "anticipate," "estimate," "expect," "intend," and words and
expressions of similar import are intended to identify forward-looking
statements. In particular, statements regarding Wescan's future operations,
future exploration and development activities or other development plans
contain forward-looking statements.
    All forward-looking statements and information are based on Wescan's
current beliefs as well as assumptions made by and information currently
available to Wescan concerning anticipated financial performance, business
prospects, strategies, regulatory developments, development plans,
exploration, development and mining activities and commitments. Although
management considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
predictions, forecasts, projections and other forward-looking statements will
not be achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual results to
differ materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, developments in
world gold markets, risks relating to fluctuations in the Canadian dollar and
other currencies relative to the US dollar, changes in exploration,
development or mining plans due to exploration results and changing budget
priorities of Wescan or its joint operation partners; the effects of
competition in the markets in which Wescan operates; the impact of changes in
the laws and regulations regulating mining exploration and development;
judicial or regulatory judgments and legal proceedings; operational and
infrastructure risks and the additional risks described in Wescan's most
recently filed annual and interim MD&A and Wescan's anticipation of and
success in managing the foregoing risks.
    Wescan cautions that the foregoing list of factors that may affect future
results is not exhaustive. When relying on our forward-looking statements to
make decisions with respect to Wescan, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events.
Unless otherwise required by applicable securities laws, Wescan does not
undertake to update any forward-looking statement, whether written or oral,
that may be made from time to time by Wescan or on our behalf.

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





For further information:

For further information: Mr. Todd M. Grychowski, Chief Financial
Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306)
664-2422, FAX: (306) 667-3557; OR Mr. Darren Anderson, Interim President, 300
- 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306)
667-3557

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Wescan Goldfields Inc.

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