08/23/2005- second quarter results

[Franko10 ™]

Wescan Goldfields Inc. announces second quarter results
Stock Symbol: WGF: TSX-V

SASKATOON, Aug. 23 /CNW/ - Wescan Goldfields Inc. ("Wescan") reports the
unaudited results of Wescan's operations for the quarter ended June 30, 2005
have been filed and may be viewed at www.sedar.com. A summary of key financial
and operating results for the quarter is as follows:

Highlights

- Completion of 1630 metre drill program on Fork Lake property on
June 2, 2005
- Completion of 1219 metre drill program on the Jojay joint venture
property on August 2, 2005
- Working capital of $2.6 million at June 30, 2005
- Issued and outstanding shares of 34,524,493 at June 30, 2005

Fork Lake Property

In early April, Wescan announced that diamond drilling commenced at the
former Jasper Gold Mine on the Company's 100% owned Fork Lake property. The
initial 1,630 metre program confirmed ore structures and grade immediately
adjacent to and below mined stopes of the former producing mine. An expanded
drill program of up to 3,600 metres is now underway to test the ore structures
further down plunge and along strike.

Jojay Joint Venture

In late June, the Company reported that a diamond-drilling program
commenced on the Jojay gold deposit, in which Wescan holds a 25% joint venture
interest. Recently, the results of that 1219 metre drill program were released
which confirmed multiple gold zones on the property. The program was
successful in adding to the confidence level of previously indicated
mineralized zones, as well as locating additional zones which warrant further
investigation.

Quarter End Results

As at June 30, 2005, Wescan's cash balance, which included cash and
short-term investments, totaled $2.6 million. For the quarter ended June 30,
2005, Wescan recorded a net loss of $179,834 ($0.01 per share), which compares
with a net loss of $91,433 ($0.02 per share) for the quarter ended June 30,
2004. The increase in expenses is predominately due to the fair-value of
stock-based compensation expensed during the second quarter of 2005 of
$102,450 compared to $0 for 2004.

Year to date Results

Wescan recorded net income of $69,920 ($0.00 per share), which compares
with a net loss of $134,714 ($0.07 per share) for the same period in 2004.
Operating expenses increased to $285,743 compared to $134,714 for the
six-month period ended June 30, 2005 and 2004, respectively. The increase in
expenses, which was predominately related to the fair value of stock-based
compensation expensed during the second quarter of 2005, was more than offset
by an income tax recovery recorded during the first quarter. The tax recovery
is due to the Company having unrecorded loss carryforwards and tax pools in
excess of the future income tax liabilities created upon the renunciation of
flow-through expenditures to investors during the first quarter.

<<
Selected financial highlights include:

-------------------------------------------------------------------------
As at As at
June 30, December 31,
Balance Sheets 2005 2004
-------------------------------------------------------------------------
Current assets $ 2,628,782 $ 2,157,888
-------------------------------------------------------------------------
Capital and other assets 599,509 287,745
-------------------------------------------------------------------------
Current liabilities 73,100 37,497
-------------------------------------------------------------------------
Share capital 3,276,864 2,685,399
-------------------------------------------------------------------------
Contributed surplus 144,960 59,290
-------------------------------------------------------------------------
Deficit (266,633) 336,553
-------------------------------------------------------------------------



-------------------------------------------------------------------------
Three months Three months Six months Six months
Ended Ended Ended Ended
Statements of June 30, June 30, June 30, June 30,
Income (Loss) 2005 2004 2005 2004
-------------------------------------------------------------------------
Interest Income $ 15,474 $ - $ 28,341 $ -
-------------------------------------------------------------------------
Operating Expenses 192,942 91,433 285,743 134,714
-------------------------------------------------------------------------
Income (loss) for
the period before
other items (177,468) (91,433) (257,402) (134,714)
-------------------------------------------------------------------------
Net income (loss)
for the period (179,834) (91,433) 69,920 (134,714)
-------------------------------------------------------------------------
Income (loss) per
share (0.01) (0.02) 0.00 (0.07)
-------------------------------------------------------------------------



-------------------------------------------------------------------------
Three months Three months Six months Six months
Ended Ended Ended Ended
Statements of June 30, June 30, June 30, June 30,
Cash Flows 2005 2004 2005 2004
-------------------------------------------------------------------------
Cash flows from
operating
activities $ (101,407) $ - $ (221,896) $ -
-------------------------------------------------------------------------
Cash flows from
investing
activities (225,077) - (243,314) -
-------------------------------------------------------------------------
Cash flows from
financing
activities 55,421 - 904,373 -
-------------------------------------------------------------------------
Net increase
(decrease) in
cash (271,063) - 439,163 -
-------------------------------------------------------------------------
Cash - beginning
of period 2,856,347 - 2,146,121 -
-------------------------------------------------------------------------
Cash - end of
period 2,585,284 - 2,585,284 -
-------------------------------------------------------------------------

Outlook

As at June 30, 2005, the Company had $2.6 million in cash and cash
equivalents that will partially be used to complete a comprehensive drill
program currently underway on the Fork Lake property as well as other drill
programs on the Company's two other gold properties. The balance of cash and
cash equivalents will be used to fund a further review of the Company's
recently acquired uranium interests, general corporate matters, and other
opportunities as they may arise.

Caution Regarding Forward-looking Information

Some of the statements contained in this report are forward-looking
statements, such as estimates that describe the Company's future plans,
objectives or goals. This includes words to the effect that the Company or
management expects a stated condition or result to occur. Since forward-
looking statements address future events or conditions, by their very nature
they involve inherent risks and uncertainties. Actual results in each case
could differ materially from those currently anticipated in such statements.

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

>>



For further information: please contact: Mr. George Sanders, President,
300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: [phone], FAX:
[phone]; OR Mr. Harvey Bay, Chief Financial Officer, 300 - 224 4th
Avenue South, Saskatoon, SK, S7K 5M5, PH: [phone], FAX: [phone]