Wescan Goldfields Inc. announces second quarter results



    Stock Symbol: WGF: TSX-V

    SASKATOON, Aug. 28 /CNW/ - Wescan Goldfields Inc. ("Wescan"or the
"Company") reports the unaudited results of Wescan's operations for the
quarter ended June 30, 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

    -   Initiated airborne geophysical survey over its highly prospective
        Hudson Bay, Saskatchewan coal permits.
    -   Working capital of $1.6 million at June 30, 2009.
    -   Issued and outstanding shares of 75,121,390 at June 30, 2009.
    

    Coal Projects

    In the second quarter of 2009, Wescan initiated a 2,000 line-kilometre
GEOTEM Electromagnetic Magnetic airborne geophysical survey over its highly
prospective Hudson Bay, Saskatchewan coal permits. 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 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.
Subsequent to the quarter the Company announced the completion of the survey.
(See Wescan news release dated April 28, 2009).
    As a result of the completion of the GEOTEM survey, the Company commenced
drilling on certain targets identified on the Hudson Bay property. Due to the
potential shallow depth to coal within this northern block, Wescan will
initially explore a large block of coal permits, approximately 86 kilometres
wide lying north of the Pasquia Hills. As well a number of priority
geophysical anomalies have been identified within this northern block. These
geophysical anomalies are interpreted to be very large, with some in excess of
15 kilometres in diameter. Wescan will also explore for coal on two of its
southern coal permit blocks, which have also been identified to potentially
host numerous coal bearing sub-basins. The first phase of drilling will be
extensive and will utilize helicopter support to maximize efficiency and
reduce the impact to the environment. (See Wescan news release dated July 29,
2009).

    
    Selected financial highlights include:
    -------------------------------------------------------------------------
                                                      As at         As at
                                                     June 30,    December 31,
    Consolidated Balance Sheets                        2009          2008
    -------------------------------------------------------------------------
    Current assets                                 $ 2,145,009   $ 2,724,519
    -------------------------------------------------------------------------
    Capital and other assets                         9,803,874     9,453,030
    -------------------------------------------------------------------------
    Current liabilities                                539,137       381,548
    -------------------------------------------------------------------------
    Future income tax liability                        498,000             -
    -------------------------------------------------------------------------
    Share capital and warrants                      14,161,829    14,799,329
    -------------------------------------------------------------------------
    Contributed surplus                              1,567,924     1,444,117
    -------------------------------------------------------------------------
    Deficit                                         (4,818,007)   (4,447,445)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                       Three months  Three months   Six months    Six months
    Consolidated          Ended         Ended         Ended         Ended
     Statements of       June 30,      June 30,      June 30,      June 30,
     Income (Loss)         2009          2008          2009          2008
    -------------------------------------------------------------------------
    Interest and Other
     Income            $     6,840   $    16,280   $     9,375   $    47,400
    -------------------------------------------------------------------------
    Operating Expenses     316,391       670,593       546,225       986,925
    -------------------------------------------------------------------------
    Loss for the period
     before other item    (309,551)     (654,313)     (536,850)     (939,525)
    -------------------------------------------------------------------------
    Net loss for the
     period               (215,444)     (545,313)     (370,562)     (805,025)
    -------------------------------------------------------------------------
    Loss per share           (0.00)        (0.01)        (0.00)        (0.01)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                       Three months  Three months   Six months    Six months
    Consolidated          Ended         Ended         Ended         Ended
     Statements of       June 30,      June 30,      June 30,      June 30,
     Cash Flows            2009          2008          2009          2008
    -------------------------------------------------------------------------
    Cash flows from
     (used in) operating
     activities        $    72,334   $  (444,065)  $  (136,391)  $  (469,771)
    -------------------------------------------------------------------------
    Cash flows from
     investing
     activities           (376,110)     (909,111)     (368,291)   (2,677,832)
    -------------------------------------------------------------------------
    Cash flows from
     financing activities        -         4,790             -         4,790
    -------------------------------------------------------------------------
    Decrease in cash and
     cash equivalents     (303,776)   (1,348,386)     (504,682)   (3,142,813)
    -------------------------------------------------------------------------
    Cash and cash
     equivalents -
     beginning of
     period              2,348,529     1,618,848     2,549,435     3,413,275
    -------------------------------------------------------------------------
    Cash and cash
     equivalents - end
     of period           2,044,753       270,462     2,044,753       270,462
    -------------------------------------------------------------------------
    

    Outlook

    As at August 27, 2009, the Company has $2.05 million in cash and cash
equivalents that will be used to fund drill programs 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 Information

    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
OR Mr. Darren Anderson, 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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