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Wescan Goldfields Inc. Announces Year End Results

April 28, 2006

Wescan Goldfields Inc. (“Wescan”) reports the audited results of Wescan’s operations for the year ended December 31, 2005 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the year follows:

Highlights

•     Successful exploration programs on both the Fork Lake (100% interest) and Jojay (25% interest) properties
•     A 50% interest in a portfolio of uranium properties was acquired
•     Successful completion of three financings that raised in excess of $5.2 million
•     Working capital of $6.1 million at year end
•     Issued and outstanding shares of 46,802,464 at December 31, 2005

Exploration

Wescan’s 2005 year was a period of intense exploration activity for the Company.   A multiple phase drill program was initiated at the former Jasper Gold Mine (Fork Lake) and another drill program was completed on the Jojay Joint Venture property. 

Drilling at Jasper has outlined a new gold mineralized zone that represents a potentially mineable extension of the ore body that was mined during 1990-1991. This drilling also intersected several parallel, near surface, footwall zones that represent future exploration targets. Drilling at the Jojay Joint Venture confirmed the continuity of the Jojay structure down plunge in the top 100 meters of the deposit. 

The total cost of the programs for 2005 was approximately $1.1 million.

Uranium Properties

On March 2, 2005, Wescan acquired a 50% working interest in seven prospecting permits in northern Saskatchewan.  These properties total 139,000 hectares and are situated in and around the Athabasca Basin and cover a range of geologic settings normally prospective for uranium mineralization.  In early 2006, Wescan acquired an additional 50% interest in five claims in this same region, bringing the total land package to 159,965 hectares. 

Company officials have begun planning exploration programs with Santoy Resources Inc., the operator of Wescan’s uranium interests and in early 2006, a helicopter-borne geophysical survey was completed in the area, the results of which are pending.  The survey will provide focus for future exploration programs on these properties.

Financing

During the year ended December 31, 2005, the Company completed three private placements for an aggregate of 8,687,628 units ranging in price from $0.27 to $0.35 per unit for gross proceeds of $2,780,670.  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 prices ranging from $0.32 to $0.45 per share.  As part of the latter two financings, the Company also issued 5,385,680 flow-through shares at prices ranging from $0.43 to $0.72 per share for gross proceeds of $2,517,231.  The financings raised a total of $5,297,901 in gross proceeds for the Company and will be spent on advancing the Company’s exploration properties.

Year End Results

As at December 31, 2005, Wescan’s cash balance, which included cash, cash-in-trust, and short-term investments totaled $6.2 million compared to $2.1 million at December 31, 2004.  Wescan recorded a loss of $85,491 ($0.00 per share), which compares with a loss of $228,400 ($0.02 per share) for the year ended December 31, 2004.  Operating expenses increased to $519,576 compared to $236,026 for the year ended December 31, 2004.  The increase was predominately related to increased administration costs as a result of Wescan completing its first full year of operations as a public entity.

Selected financial highlights include (as at December 31):

Balance Sheets
2005 ($)
2006 ($)
Current assets
6,369,236
2,157,888
Capital and other assets
1,479,705
287,745
Current liabilities
276,716
37,497
Share capital
7,749,253
2,682,614
Contributed surplus
245,016
62,075
Deficit
422,044
336,553

 

Statements of Loss    
Interest and other income
95,085
7,629
Operating Expenses
519,576
236,029
Loss for the period before income taxes
424,491
228,400
Net loss for the period
85,491
228,400
Loss per share
0.00
0.02

 

Statements of Cash Flows    
Cash flows from operating activities
(232,638)
(251,533)
Cash flows from investing activities
(1,168,154)
(16,682)
Cash flows from financing activities
5,486,130
2,414,336
Net increase in cash
4,085,338
2,146,121
Cash - beginning of period
2,146,121
-
Cash - end of period
6,231,459
2,146,121

Outlook

As at April 26, 2006, the Company has $5.6 million in cash and cash equivalents that will partially be used to complete future drill programs on the Fork Lake property as well as other drill programs on the Company’s three other gold properties.  The balance of cash and cash equivalents will be used to fund its 50% share of future airborne surveys on the Company’s recently acquired uranium interests.  The Company will spend a minimum of $2.0 million and $0.5 million on exploration programs on the Company’s gold and uranium properties, respectively, to fulfill its flow-through expenditure requirements.  Surplus cash will be used for future drill programs, general corporate matters and other opportunities as they may arise.

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.

For further information please contact:

Mr. Ken MacNeill
Chief Executive Officer
300 – 224 4th Avenue South
Saskatoon, SK 
S7K 5M5
PH: (306) 664-2422
FAX: (306) 664-7181
OR Mr. Harvey Bay
Chief Financial Officer
300 – 224 4th Avenue South
Saskatoon, SK 
S7K 5M5
PH: (306) 664-2422
FAX: (306) 664-7181

 
 
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