Wescan Goldfields Inc. Announces Third Quarter Results

    




 Stock Symbol: WGF: TSX-V 

 SASKATOON, Nov. 24, 2011 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the  "Company") reports that the unaudited results of Wescan's operations  for the quarter ended September 30, 2011 will be filed today on SEDAR  and may be viewed at www.sedar.com once posted. A summary of key financial and operating results for the  quarter is as follows: 

 Highlights 




        --  Recently announced results of Jojay gold property summer drill
            program
        --  Issued and outstanding shares of 112,452,121 at September 30,
            2011




 Overview of activities 

 During the first part of 2011, Wescan focused on reviewing historical  drill, geological and geotechnical data in order to plan the 2011  exploration activities on its portfolio of gold and coal properties.   Based on this review, the Company undertook the raising of sufficient  capital during the first quarter in order to finance a significant  portion of the planned 2011 exploration programs. Following the  completion of a $1.6 million financing on February 24, 2011, Wescan  announced certain exploration programs for the year.  The programs  commenced in June of 2011 on the Company's portfolio of gold properties  in the La Ronge Gold Belt in northern Saskatchewan.  The significant  intercepts for the Jojay Exploration program were recently released  (see Wescan News Release dated November 18, 2011), with the remainder  of the results for the Jasper program expected to follow once final  assays have been received. 

 Following a review of the Company's coal properties, it was decided that  all coal permits will be allowed to lapse as opposed to converting them  into more expensive leases.  This decision allows the Company to focus  its financial resources on its portfolio of gold properties, which the  Company believes has the greatest potential given the current and  long-term forecasts for the price of gold. 

 Quarterly Results 

 For the quarter ended September 30, 2011 the Company recorded a net and  comprehensive loss of $2,776,477 ($0.02 per share) compared to a net  and comprehensive loss of $105,081 ($0.00 per share) for the same  period in 2010.  The difference between the quarter ended September 30,  2011 and 2010 is primarily due to the impairment of its coal evaluation  and exploration assets as a result of the Company's decision to focus  on gold properties and allow its coal permits to lapse. 

 Year to Date Results 

 For the nine months ended September 30, 2011, the Company recorded a net  and comprehensive loss of $3,613,612 ($0.03 per share) compared to a  net and comprehensive loss of $582,495 ($0.01 per share) for the same  period in 2010.  The difference from 2011 to 2010 is primarily the  result of the impairment of the Company's coal exploration and  evaluation assets. 

 Selected financial highlights include: 




     _____________________________________________________________________
    |                                         |    As at    |    As at    |
    |                                         |September 30,|December 31, |
    |Condensed Consolidated Balance Sheets    |    2011     |    2010     |
    |_________________________________________|_____________|_____________|
    |                                         |             |       $     |
    |Current assets                           | $    606,117|      517,599|
    |_________________________________________|_____________|_____________|
    |Capital and other assets                 |    4,781,798|    7,077,897|
    |_________________________________________|_____________|_____________|
    |Current liabilities                      |      379,916|      145,786|
    |_________________________________________|_____________|_____________|
    |Other liabilities                        |       94,199|       75,520|
    |_________________________________________|_____________|_____________|
    |Future income tax liability              |            -|      163,336|
    |_________________________________________|_____________|_____________|
    |Shareholders' equity                     |    4,913,800|    7,210,854|
    |_________________________________________|_____________|_____________|
    |                                                                     |
    |_____________________________________________________________________|
    |Condensed    |             |             |    Nine     |    Nine     |
    |Consolidated |             |             | MonthsEnded | MonthsEnded |
    |Statements of|    Three    |    Three    |September 30,|September 30,|
    |Loss and     | MonthsEnded | MonthsEnded |    2011     |    2010     |
    |Comprehensive|September 30,|September 30,|             |             |
    |Loss         |    2011     |    2010     |             |             |
    |_____________|_____________|_____________|_____________|_____________|
    |Interest and |     $       |   $         |      $      |      $      |
    |other income |       10,679|        9,809|       34,912|       29,630|
    |_____________|_____________|_____________|_____________|_____________|
    |Operating    |             |             |             |             |
    |expenses     |      108,063|      114,890|      387,171|      612,125|
    |_____________|_____________|_____________|_____________|_____________|
    |Loss before  |             |             |             |             |
    |other items  |     (97,384)|    (105,081)|    (352,259)|    (582,495)|
    |_____________|_____________|_____________|_____________|_____________|
    |Impairment of|             |             |             |             |
    |exploration  |             |             |             |             |
    |and          |             |             |             |             |
    |evaluation   |             |             |             |             |
    |assets       |  (2,806,995)|            -|  (3,507,260)|            -|
    |_____________|_____________|_____________|_____________|_____________|
    |Flow-through |             |             |             |             |
    |share premium|             |             |             |             |
    |recovery     |       69,654|            -|       82,571|            -|
    |_____________|_____________|_____________|_____________|_____________|
    |Deferred     |             |             |             |             |
    |income tax   |             |             |             |             |
    |recovery     |       58,248|            -|      163,336|            -|
    |_____________|_____________|_____________|_____________|_____________|
    |Net and      |             |             |             |             |
    |comprehensive|             |             |             |             |
    |loss for the |             |             |             |             |
    |period       |  (2,776,477)|    (105,081)|  (3,613,612)|    (582,495)|
    |_____________|_____________|_____________|_____________|_____________|
    |Net and      |             |             |             |             |
    |comprehensive|             |             |             |             |
    |loss per     |             |             |             |             |
    |share        |       (0.02)|       (0.00)|       (0.03)|       (0.01)|
    |_____________|_____________|_____________|_____________|_____________|





  




     _____________________________________________________________________
    |                                  |Nine MonthsEnded|Nine Months Ended|
    |Condensed Consolidated Statements | September 30,  |  September 30,  |
    |of Cash Flows                     |      2011      |      2010       |
    |__________________________________|________________|_________________|
    |Cash flows from operating         |                |                 |
    |activities                        |$      (155,001)|    $   (587,575)|
    |__________________________________|________________|_________________|
    |Cash flows from investing         |                |                 |
    |activities                        |     (1,266,756)|         (62,566)|
    |__________________________________|________________|_________________|
    |Cash flows from financing         |                |                 |
    |activities                        |       1,416,524|          442,619|
    |__________________________________|________________|_________________|
    |Decrease in cash and cash         |                |                 |
    |equivalents                       |         (5,233)|        (207,522)|
    |__________________________________|________________|_________________|
    |Cash and cash equivalents -       |                |                 |
    |beginning of period               |         499,115|          289,605|
    |__________________________________|________________|_________________|
    |Cash and cash equivalents - end of|                |                 |
    |period                            |         493,882|           82,083|
    |__________________________________|________________|_________________|





 Outlook 

 With the significant escalation in the price of gold, the Company  believes the timing is right to focus exploration efforts on properties  with known gold mineralization.  The Company's success in raising  additional flow-through financing during the first quarter of 2011 has  allowed it to begin exploration programs on this portfolio of gold  properties in the La Ronge Gold Belt in northern Saskatchewan.  This  focus on gold properties has included exploration work on the Jojay,  Jasper and Munro Lake properties.  The positive results from these  programs thus far will require further evaluation and most likely  additional exploration programs.  The Company anticipates the results  from its Jasper summer drill program to be released in the near term as  it is currently awaiting final assay results.  With the lapsing of the  Company's coal permits, management is able to focus on its current gold  properties.  The Company will also 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 future plans. 

 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 timing of the  release of the Jasper summer drill program results, the ability to  raise funds to pursue exploration activities, the use of such funds,  future plans for the Jojay, Jasper and Munro Lake properties 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 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." 

   

   

Wescan Goldfields Inc.


CONTACT:                     Mr. Darren S. Anderson, PresidentorMr. Harvey J. Bay, Chief Financial Officer300 - 224 4th Avenue SouthSaskatoon, SK S7K 5M5PH: [phone]FAX: [phone] 


    

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