Wescan Goldfields Inc. announces year end results



    Stock Symbol: WGF: TSX-V

    SASKATOON, SK, April 23 /CNW/ - Wescan Goldfields Inc. ("Wescan") reports
the audited results of Wescan's operations for the year ended December 31,
2006 have been filed and may be viewed at www.sedar.com. A summary of key
financial and operating results for the year follows:

    
    Highlights

    -   Acquisition of Jojay gold property
    -   A 50% interest in a portfolio of five additional uranium properties
        was acquired
    -   Establishment of a wholly owned subsidiary
    -   Successful completion of one financing that raised in excess of
        $2.0 million
    -   Working capital of $5.2 million at year end
    -   Issued and outstanding shares of 59,045,166 at December 31, 2006

    Jojay Property

    The Jojay gold property was first discovered by Cominco in the 1960's and
then explored by SMDC and Claude Resources in the 1980's. Little exploration
has been done since then and the property eventually came to be owned jointly
by Wescan (25%) and Claude Resources (75%). In the fourth quarter of this year
Wescan acquired Claude's 75% interest to bring the Company's position to 100%
of the property. Under the terms of the transaction, Wescan acquired Claude's
interest by the issuance of 3.5 million Wescan shares valued at $1,365,000 on
the transaction close date of October 24, 2006. This acquisition further
enhances the Company's stated strategy to consolidate and develop its gold
holdings in northern Saskatchewan. Jojay is an advanced stage exploration
project located in the Greenstone Belt of northern Saskatchewan and
approximately 11 road kilometers from an existing licensed gold processing
plant. The acquisition allows the Company to aggressively progress to the next
phase of exploration to commence in 2007, conceptually including; upgrading
the existing access road to permit all weather access, additional surface
drilling, a scoping study to evaluate an underground exploration program and
commencing environmental baseline work leading to permitting an underground
exploration program.

    Athabasca Basin Properties

    In early 2006, Wescan acquired an additional 50% interest in five claims
in the same area as the Company's previously acquired uranium interests in the
Athabasca Basin region. These additions brought the total land package in the
area to 159,965 hectares. During the second quarter of 2006, the Wescan-Santoy
Joint Venture completed a helicopter-borne time domain electromagnetic survey
of the Black Lake block (Fir Island project) and an airborne magnetic and
MEGATEM survey of the Hozempa Lake, Pattyson Lake-Umpherville Lake, Dowler
Lake and Richards Lake blocks. Late in the third quarter of 2006,
interpretation and evaluation of the geophysical results were carried out by
Santoy Resources Ltd. (the Operator) and formed the basis for developing a
2007 follow-up exploration program. The program is expected to include staking
the exploration permits to convert to claims, carrying out line-cutting and
follow-up ground based geophysical surveys and some drilling of identified
anomalies.

    Fork Lake Property

    During the first quarter of 2006, Wescan spent approximately $1.0 million
advancing a drill program at the Jasper site on the Fork Lake Property. The
results showed that the previously discovered Deep Jasper Zone (DJ) had a
strike length of over 250 meters and a vertical extent of approximately
250 meters. The Company was encouraged by the drilling and as a result planned
an additional 9,500 meter drill program. The focus of this phase of program
was to continue to outline the Deep Jasper ("DJ") Zone to the north-east and
to further evaluate the JN Footwall, the JN East Zone (footwall zones of the
DJ Zone), the Roxy Zone and certain targets of the Transect Zone. During the
third quarter of 2006, Wescan drill-tested the continuation of the Boulder
zone, intersected earlier this year by drill hole DL-06-03 which contained
encouraging results of 12.07 grams/tonne over 1 meter down hole. Extensive
soil sampling programs were conducted over 1.4 x 3.4 km and 0.8 x 1.3 km grids
in areas southwest of the Boulder and Jasper zones to identify continuity of
these zones and the potential for new zones. The preliminary results from this
soil sampling program were very encouraging and indicated there were at least
eleven new areas that require drilling. The focus of the 2007 exploration
program will be developing a resource model and evaluating the next steps for
exploration of the Jasper DJ Zone, the follow-up of the drill targets
identified and further soil sampling to identify additional anomalies.

    Establishment of Subsidiary Company

    In 2006 the Company created a wholly owned Mexican subsidiary, Minera
Abundancia, which has been registered in the Mexican state of Chihuahua.
Establishment of this subsidiary is a step in achieving Wescan's strategic
plan of establishing itself in the international mining community. The
creation of the Mexican subsidiary allows Wescan to pursue and potentially
acquire advanced exploration projects in Mexico. In 2006 Wescan reviewed
several opportunities to acquire properties in Mexico but to date a suitable
acquisition target has not been found.

    Financing

    During the year ended December 31, 2006, the Company completed one private
placement for 5,916,428 units at a price of $0.35 per unit for gross proceeds
of $2,070,749. Each unit consisted of one common share and one half of one
common share purchase warrant. Each whole warrant entitles the holder to
acquire an additional common share in the capital of Company for a period of
12 months from closing at a price of $0.45 per share. The Company paid
finders' fees equal to 5% of the gross proceeds and issued 66,194 finders'
warrants equal to 5% of the gross proceeds sold by such a finder pursuant to
the offering. The finders' warrants have the same rights attached to them as
the other warrants in this placement. Proceeds from this placement will be
applied to further exploration including drilling on Wescan's 100% owned Jojay
and Fork Lake properties, for further exploration of the Company's 50% owned
uranium prospecting permits in the Athabasca Basin, for exploration on the
Company's other properties in Northern Saskatchewan, and for general working
capital purposes.

    Year End Results

    For the year ended December 31, 2006, the Company had a net loss of
$575,517 ($0.01 per share) compared to a net loss of $85,491 ($0.00 per share)
for the same period in 2005. For the period ended December 31, 2006 the
Company generated increased interest income from investing surplus cash,
however, this increase was offset by additional administration, professional
and consulting fees incurred. The Company also had an income tax recovery from
the renunciation of flow-through expenditures. The income tax recovery results
from the impact of federal and provincial governments enacting decreased
corporate tax rates combined with the Company having unrecorded loss
carryforwards, and other tax pools not recognized that were in excess of
future tax liabilities generated from the renunciation. The Company has
recorded a future income tax recovery of $613,550 for the year-ended December
31, 2006. The Company's loss before income taxes was $1,189,067 which is
$764,576 over the 2005 loss before income taxes. The increase in loss can be
explained by the by on-going professional fees incurred by the subsidiary
company, certain due diligence expenditures on potential properties evaluated
during 2006 and increased personnel and executive compensation costs.


    Selected financial highlights include (as at December 31):

                                                2006 ($)             2005 ($)
    Balance Sheets
    Current assets                            5,333,315            6,369,236
    Property, plant and equipment             5,927,897            1,479,705
    Current liabilities                         155,034              276,716
    Future income tax liability                 402,000                    -
    Share capital                            11,205,312            7,749,253
    Contributed surplus                         496,427              245,016
    Deficit                                     997,561              422,044

    Statements of Loss
    Interest and other income                   201,800               95,085
    Operating Expenses                        1,390,867              519,576
    Loss for the period before income taxes   1,189,067              424,491
    Net loss for the period                     575,517               85,491
    Loss per share                                 0.01                 0.00

    Statements of Cash Flows
    Cash flows from operating activities       (777,079)            (232,638)
    Cash flows from investing activities     (3,266,997)          (1,168,154)
    Cash flows from financing activities      3,036,891            5,486,130
    Net increase in cash                     (1,007,185)           4,085,338
    Cash and cash equivalents
      - beginning of year                     6,231,459            2,146,121
    Cash and cash equivalents
      - end of year                           5,224,274            6,231,459
    

    Outlook

    As at April 19, 2007, the Company has $4.7 million in cash and cash
equivalents that will partially be used to continue exploration programs on
the Jojay and Fork Lake gold properties, fund its 50% share of future
exploration programs on the Company's uranium property interests, and evaluate
the potential for acquisition of more mineral properties in Canada and
internationally.

    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 news release, 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 venture 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.
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.

    "The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release"

    %SEDAR: 00021049E




For further information:

For further information: Mr. M.F. (Moe) Lindsay, President, 600 - 224
4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2422, FAX: (306)
667-3557; OR Mr. Lorne Green, Chief Financial Officer, 600 - 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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