Wescan Goldfields Inc. announces first quarter results

Stock Symbol: WGF: TSX-V

SASKATOON, May 27 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the "Company") reports the audited results of Wescan's operations for the quarter ended March 31, 2010 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the year follows:

Highlights

    
    -   Announced completion of Phase 1 drilling on Hudson Bay and Pinehouse
        Lake, Saskatchewan coal properties
    -   Announced completion of a National Instrument 43-101 ("NI 43-101")
        compliant Mineral Resource on its Jojay property
    -   Recently issued 3,461,539 units for gross proceeds of $450,000
    -   Issued and outstanding shares of 83,577,022 at May 27, 2010
    

Overview of activities

During the first quarter of 2010, Wescan announced the completion of Phase 1 drilling on its Hudson Bay and Pinehouse Lake coal properties in east central Saskatchewan (see Wescan News Release dated January 18, 2010) and also announced the completion of a NI 43-101 compliant gold resource for the Company's Jojay Gold Project in northern Saskatchewan (see Wescan News Release dated February 4, 2010).

Results of Operations

For the quarter ended March 31, 2010 the Company recorded a net loss of $185,561 ($0.00 per share) compared to a net loss of $155,317 ($0.00 per share) for the same period in 2009. The Company's net loss for the first 3 months of 2010 was the result of on-going general and administration expenditures while the net loss for the same period in 2009 was the result of on-going general and administration expenditures offset by the effect of future incomes taxes.

Selected financial highlights include:

    
    -------------------------------------------------------------------------
                                                        As at          As at
                                                     March 31,   December 31,
    Consolidated Balance Sheets                          2010           2009
    -------------------------------------------------------------------------
    Current assets                               $    215,203   $    416,799
    -------------------------------------------------------------------------
    Capital and other assets                        7,122,224      7,095,356
    -------------------------------------------------------------------------
    Current liabilities                               743,026        738,725
    -------------------------------------------------------------------------
    Future income tax liability                       163,336              -
    -------------------------------------------------------------------------
    Share capital and warrants                     14,924,742     15,088,078
    -------------------------------------------------------------------------
    Contributed surplus                             1,650,387      1,643,855
    -------------------------------------------------------------------------
    Deficit                                        10,144,064      9,958,503
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                      For the        For the
                                                      Quarter        Quarter
                                                        Ended          Ended
    Consolidated Statements of Loss                  March 31,      March 31,
     and Comprehensive Loss                              2010           2009
    -------------------------------------------------------------------------
    Interest and other income                    $      9,887   $      2,535
    -------------------------------------------------------------------------
    Operating expenses                                195,448        229,833
    -------------------------------------------------------------------------
    Loss for the period before other items            185,561        227,298
    -------------------------------------------------------------------------
    Net and comprehensive loss for the period         185,561        155,317
    -------------------------------------------------------------------------
    Loss per share                                       0.00           0.00
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                      For the        For the
                                                      Quarter        Quarter
                                                        Ended          Ended
                                                     March 31,      March 31,
    Consolidated Statements of Cash Flows                2010           2009
    -------------------------------------------------------------------------
    Cash flows from operating activities         $    (91,930)  $   (208,725)
    -------------------------------------------------------------------------
    Cash flows from investing activities              (47,486)         7,819
    -------------------------------------------------------------------------
    Decrease in cash and cash equivalents            (139,416)      (200,906)
    -------------------------------------------------------------------------
    Cash and cash equivalents
     - beginning of period                            289,605      2,549,435
    -------------------------------------------------------------------------
    Cash and cash equivalents - end of period         150,189      2,348,529
    -------------------------------------------------------------------------
    

Outlook

The Company is currently evaluating financing options to allow it to pursue exploration programs of its highly prospective coal properties as well as to continue exploration on its portfolio of gold properties. Wescan's focus over the next twelve months will be the continued exploration on the Hudson Bay and Pinehouse Lake coal projects. The Company will continue to evaluate the potential for the acquisition of other mineral properties that fit its strategic direction. Management is confident the Company will have sufficient access to financial markets to continue its planned activities in 2010.

Technical Information

All technical information in this report has been prepared under the supervision of Kirsten Marcia, Professional Geoscientist in the Province of Saskatchewan, and is the Company's "Qualified Person" under the definition of NI 43-101.

Caution Regarding Forward-looking Information

This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of Canadian Securities legislation and the United States Private Securities Litigation Reform Act of 1995. 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, and, in particular, statements regarding Wescan's future operations, future exploration and development activities or other development plans contain forward-looking statements. Forward-looking statements in this press release include, but are not limited to, the ability to raise funds to pursue exploration activities, the use of such funds, and the acquisition and exploration of additional properties.

These forward-looking statements are based on Wescan's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world coal and 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, 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 and operational risks and the additional risks described in Wescan's most recently filed annual and interim MD&A, news releases and technical reports. Wescan's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.

Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Wescan, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Wescan does not undertake to update any forward-looking statement that may be made.

"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."

SOURCE Wescan Goldfields Inc.

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