Announcement • Jul 27
Wescan Goldfields Inc. Stakes New Lindsay Lake Gold Project Within the Emerging La Ronge Gold Belt Wescan Goldfields Inc. has staked a new 1,852-hectare gold claim, the Lindsay Lake Project (the "Property"), in Saskatchewan's historic La Ronge Gold Belt. The Property lies only 7.1 kilometres south of the past-producing Komis Gold Mine. The La Ronge Gold Belt is one of Saskatchewan's most prospective gold districts, host to numerous past-producing gold mines and gold deposits. The Lindsay Lake Project adds to Wescan's existing land package within the belt, which includes the Company's Fork Lake and Jojay Lake properties. The metavolcanic rocks of the La Ronge Gold Belt host the majority of the gold mineralization identified within the belt. The Property covers these same La Ronge metavolcanic rocks, which also host the gold mineralization at the Komis Gold Mine. In addition, the claim covers a prospective geological contact where the metavolcanic rocks meet a large granodiorite intrusive body. Gold-bearing veins in the La Ronge Gold Belt are commonly emplaced along this type of contact, which marks a significant rheological contrast, or plane of weakness, that can focus mineralizing fluids and localize gold deposition. The Company intends to prospect the Property going forward. A forest fire burned through the area last summer, removing vegetation and ground cover, and the Company anticipates significant rock exposure that will aid prospecting and geological mapping across the claim. The Property also benefits from excellent access, located only 1.8 kilometres from the Komis Mine access road and approximately 4 kilometres from Highway 102. The combination of favourable host rocks, a prospective intrusive contact, enhanced rock exposure and excellent access leads the Company to consider the Property to be highly prospective for gold mineralization. New Risk • Jul 21
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: CA$10.8m (US$7.66m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Negative equity (-CA$85k). Earnings have declined by 29% per year over the past 5 years. Shareholders have been substantially diluted in the past year (44% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$10.8m market cap, or US$7.66m). New Risk • Jun 25
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 44% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Negative equity (-CA$85k). Earnings have declined by 29% per year over the past 5 years. Shareholders have been substantially diluted in the past year (44% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Market cap is less than US$100m (CA$18.5m market cap, or US$13.0m). 
