Wescan Goldfields : 2023 First Quarter Report

Management's Discussion and Analysis

March 31, 2023

May 25, 2023

MANAGEMENT'S DISCUSSION & ANALYSIS ("MD&A")

The following discussion and analysis is prepared by Management as of May 25, 2023 and should be read in conjunction with the unaudited condensed interim consolidated financial statements for the quarter ended March 31, 2023 ("financial statements for the quarter ended March 31, 2023"), as well as the audited consolidated financial statements and annual MD&A for the year ended December 31, 2022 available on SEDAR at www.sedar.com. Wescan Goldfields Inc. ("Wescan" or "the Company") prepared its financial statements for the period ended March 31, 2023 in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting using accounting policies consistent with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"). All currency amounts are quoted in Canadian Dollars, unless otherwise stated.

Overview

Wescan is a growth oriented mineral exploration company based in Saskatchewan. Wescan is focused on the exploration of its current portfolio of gold properties and the acquisition of new exploration targets. The Company has previously focused exploration efforts on its northern Saskatchewan properties with known gold mineralization located in the La Ronge Gold Belt. No exploration programs were carried out during the quarter ended March 31, 2023. The Company will also continue to evaluate the potential for the acquisition of other mineral properties that fit the Company's strategic direction.

Financial Highlights

Selected financial information of the Company for the three months ended March 31, 2023 and 2022 is summarized as follows:

	Three Months Ended	Three Months Ended
	March 31, 2023	March 31, 2022
Net and comprehensive loss	$	$
52,486	20,870
Net loss per share (1)	0.00	0.00
Total assets	163,474	328,653
Working capital	142,251	307,620

1. Basic and diluted.

Results of Operations

For the quarter ended March 31, 2023 the Company recorded a net loss of $52,486 ($0.00 per share) compared to a net loss of $20,870 ($0.00 per share) for the same period in 2022.

Expenses

Total operating expenses for the quarter ended March 31, 2023 were $52,486 compared to $20,912 for the same period of 2022. Specifically the changes are as follows:

• Costs in the administration category increased $10,880 to $28,865 which relates to an increase in business activities and a change in cost sharing.

March 31, 2023 - MD&A

• Corporate development costs increased $20,038 to $22,965 which relates to corporate development wages and increased travel.

The Company is assessing future options for its portfolio of gold properties and as such no exploration and evaluation programs were carried out during the quarters ended March 31, 2023 and 2022.

Financing

During the quarter ended March 31, 2023, no financing activities occurred. During the same period for 2022, the Company completed a private placement whereby an aggregate of 5,000,000 Units were issued for proceeds of $350,000 (see News Releases dated February 25, 2022 and Mach 8, 2022). Each Unit was comprised of one common share and one warrant. Each warrant entitles the holder thereof to purchase one common share at a price of $0.10, for a period of twelve months from the closing of the private placement. The warrants expired unexercised.

Summary of Quarterly Results

	2023		2022			2021
	Qtr 1	Qtr 4	Qtr 3	Qtr 2	Qtr 1	Qtr 4	Qtr 3	Qtr 2
	$	$	$	$	$	$	$	$
Net loss(1)	52,486	26,871	40,617	45,696	20,870	14,471	10,237	91,185
Net loss/share(2)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Shares outstanding(3)	50,084,320	50,084,320	50,084,320	50,084,320	50,084,320	45,084,320	45,084,320	45,084,320

1. Net losses for the quarters reflects normal operations of the Company.
2. Basic and diluted.
3. During the quarter ended March 31, 2022, the Company completed a private placement of 5,000,000 Units. Each Unit was comprised of one common share and one warrant.

Related Party Transactions

During the quarters ended March 31, 2023 and 2022 Mr. Kenneth E. MacNeill (Chief Executive Officer) through his consulting company, waived his management fees.

Total compensation paid to key management personnel, including amounts paid or payable to related parties owned by key management personnel, executive officers and directors, was $12,482 (2022 - $0).

Liquidity

The Company currently has no ongoing source of revenue and, as such, is dependent upon the issuance of new equity to finance its ongoing obligations and to advance its exploration properties. Although the Company has been successful in the past in obtaining financing, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could result in delay or indefinite postponement of further exploration and development of its projects with the possible loss of such properties.

March 31, 2023 - MD&A

As at March 31, 2023, the Company had working capital of $142,251 compared to a working capital of $194,670 at December 31, 2022. Included in working capital at March 31, 2023 are payables and accrued liabilities of $20,038 (December 31, 2022 - $25,306).

Capital Resources and Outstanding Share Data

As at March 31, 2023, the Company had 50,084,320 common shares issued and outstanding, and 3,120,000 options (weighted average exercise price of $0.06). In March 5,000,000 warrants expired unexercised. As at May 26, 2022, the Company's outstanding common shares and warrants remained unchanged from March 31, 2022. The Company's outstanding options decreased to 3,120,000 (weighted average exercise price of $0.06) due to the expiry of 1,070,000 options.

Financial Instruments

As at March 31, 2023, the fair value of all of the Company's financial instruments approximates their carrying value. Certain financial instruments are exposed to the following financial risks:

Credit risk

Credit risk is the risk of an unexpected loss by the Company if a customer or third-party to a financial instrument fails to meet its contractual obligations. The Company's financial instruments that may have credit risk consist primarily of cash and cash equivalents and receivables. The Company's cash and cash equivalents are held by financial institutions with an A (low) credit rating. The Company may invest excess cash, if any, in guaranteed investment certificates until it is required. The Company's receivables are mainly comprised of GST receivable and therefore credit risk is minimal. The Company has gross credit exposure at March 31, 2023 relating to cash and cash equivalents and receivables of $159,416 (December 31, 2022 - $219,144).

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach is to forecast future cash flows to ensure that it will have sufficient liquidity to meet its obligations when due.

As at March 31, 2023, the Company is committed to current liabilities of $20,038 (December 31, 2022 - $25,306) with working capital of $142,251 (December 31, 2022 working capital - $194,670). As at March 31, 2023, all of the Company's mineral property claims were in good standing. The Company has assessed that the existing working capital is sufficient to fund the minimum expenditures that the Company must incur to sustain its operations through 2023.

The further exploration, evaluation and/or development of exploration and evaluation properties in which the Company holds interests or which the Company acquires may depend upon the Company's ability to obtain financing through equity issues or other forms of financing. Although the Company has been successful in the past in obtaining financing, there can be no assurance that the Company will be able to obtain adequate financing in

March 31, 2023 - MD&A

the future or that the terms of such financing will be favorable. Failure to obtain additional financing on a timely basis may cause the Company to postpone exploration plans, forfeit rights in its properties or reduce or terminate its operations.

Market risk

Market risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market prices. Market prices are comprised of four types of risk: foreign currency risk, commodity price risk, interest rate risk and equity risk. The Company currently does not have significant exposure to any market risks.

Accounting Changes

1. IFRS standards, amendments and interpretations effective during the period
   At the date of authorization of these condensed consolidated financial statements, the IASB has not issued any new standards which became effective for the reporting period that would have a material impact on the Company.
2. IFRS standards issued but not yet effective
   IAS 1 - Disclosure of Accounting Policies
   The IASB has issued amendments to IAS 1 Presentation of Financial Statements which require entities to disclose their "material" accounting policy information rather than their "significant" accounting policies. The amendments explain that accounting policy information is material if omitting, misstating or obscuring that information could reasonably be expected to influence decisions that the primary users of the financial statements make based on those financial statements. The amendments also clarify that accounting policy information may be material because of its nature, even if the related amounts are immaterial. This amendment is effective for annual periods beginning on or after January 1, 2023. Earlier application is permitted. The extent of the impact of adoption of these amendments has not yet been determined.
   IAS 8 Definition of Accounting Estimates
   The IASB has issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors which introduce a definition of accounting estimates and provide other clarifications to help entities distinguish accounting policies from accounting estimates. Under the amendments, accounting estimates are defined as "monetary amounts in financial statements that are subject to measurement uncertainty". The amendments also emphasize that a change in an accounting estimate that results from new information or new developments is not an error correction, and that changes in an input or a measurement technique used to develop an accounting estimate are considered changes in accounting estimates if those changes in an input or measurement technique are not the result of an error

March 31, 2023 - MD&A