Wescan Goldfields : 2021 Third Quarter Report

3rd Quarter Report September 30, 2021

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

The following discussion and analysis is prepared by Management as of November 25, 2021 and should be read in conjunction with the unaudited condensed interim consolidated financial statements for the quarter ended September 30, 2021 ("financial statements for the quarter ended September 30, 2021"), as well as the audited consolidated financial statements and annual MD&A for the year ended December 31, 2020 available on SEDAR at www.sedar.com. Wescan Goldfields Inc. ("Wescan" or "the Company") prepared its financial statements for the period ended September 30, 2021 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 nine months ended September 30, 2021. The Company will also continue to evaluate the potential for the acquisition of other mineral properties that fit the Company's strategic direction.

Due to the global COVID-19 pandemic, during 2020 the Government of Saskatchewan waived expenditure requirements for the current term and subsequent twelve months for active mineral claims and leases. As a result, the Company is not required to incur expenditures on certain of the Company's mineral properties during 2021 to keep certain claims in good standing.

Financial Highlights

Selected financial information of the Company for the three and nine months ended September 30, 2021 and 2020 is summarized as follows:

	Three Months	Three Months	Nine Months	Nine Months
	Ended	Ended	Ended	Ended
	September 30,	September 30,	September 30,	September 30,
	2021	2020	2021	2020
	$	$	$	$
Interest and other income	-	-	-	11
Net loss	10,237	7,268	47,720	44,294
Net loss per share (1)	0.00	0.00	0.00	0.00
Total assets	10,278	74,091	10,278	74,091
Working capital (deficit)	(3,092)	58,472	(3,092)	58,472

(1) Basic and diluted.

Results of Operations

For the quarter ended September 30, 2021 the Company recorded a net loss of $10,237 ($0.00 per share) compared to $7,268 ($0.00 per share) for the same period in 2020.

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September 30, 2021 - MD&A

Expenses

Total operating expenses for the quarter ended September 30, 2021 were $10,237 compared to $7,268 for the same period of 2020. This increase of $314 is primarily due to slightly higher expenditures incurred relating to regulatory requirements during the quarter ended September 30, 2021 compared to the same period in 2020.

Administration expenses incurred for the quarter ended September 30, 2021 were $10,237 compared to $7,268 for the same period in 2020. Costs in the administration category relate to amortization, office and equipment rent, regulatory requirements and other office related expenses.

During the quarters ended September 30, 2021 and 2020, the Company did not incur exploration and evaluation expenditures or corporate development costs.

Financing

No financing activities occurred during the quarters ended September 30, 2021 and September 30, 2020.

Year to Date

Results of Operations

For the nine months ended September 30, 2021, the Company recorded a net loss of $47,720 ($0.00 per share) compared to a net loss of $44,294 ($0.00 per share) for the same period in 2020.

Expenses

Total expenditures for the nine months ended September 30, 2021 were $47,720 compared to $44,305 for the same period of 2020. This increase of $536 is primarily due to higher expenditures incurred relating to regulatory requirements during the nine months ended September 30, 2021 compared to the same period in 2020.

During the nine months ended September 30, 2021, the Company did not incur exploration and evaluation expenditures, compared to $200 incurred during the same period in 2020.

Administration expense increased to $47,720 for the nine months ended September 30, 2021 compared to $43,569 for the same period in 2020. Costs in the administration category also relate to amortization, office and equipment rent, regulatory requirements and other office related expenses.

Corporate development costs decreased to $0 for the nine months ended September 30, 2021 compared to $536 for the same period of 2020.

Financing

No financing activities occurred during the nine months ended September 30, 2021 and September 30, 2020.

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September 30, 2021 - MD&A

Summary of Quarterly Results

		2021			2020		2019
	Qtr 3	Qtr 2	Qtr 1	Qtr 4	Qtr 3	Qtr 2	Qtr 1	Qtr 4
Net income (loss)(1) ($)	(10,237)	(20,475)	(17,008)	(14,262)	(7,268)	(20,161)	(16,865)	(51,973)
Net income (loss) /	(0.00)	(0.00)	(0.00)	(0.00)	0.00	(0.00)	(0.00)	(0.00)
share (2) ($)
Shares outstanding	45,084,320	45,084,320	45,084,320	45,084,320	45,084,320	45,084,320	45,084,320	45,084,320

1. Net loss for the fourth quarter of 2019 was higher due to higher exploration and evaluation expenditures incurred. The remaining quarters reflect normal operations of the Company.
2. Basic and diluted.

Related Party Transactions

During the nine months ended September 30, 2021, 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 $0 (2020 - $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.

As at September 30, 2021, the Company had a working capital deficit of $3,092 compared to working capital of $44,333 at December 31, 2020. Included in the working capital deficit at September 30, 2021 are payables and accrued liabilities of $11,707 (December 31, 2020 - $17,360).

Working capital as at September 30, 2021 is not sufficient to fund the minimum expenditures the Company must incur to sustain its operations through 2021 and beyond. As such, there is a material uncertainty that casts significant doubt about the Company's ability to continue as a going concern.

Capital Resources and Outstanding Share Data

As at September 30, 2021 the Company had 45,084,320 shares outstanding and 4,190,000 options with a weighted average exercise price of $0.06. As at November 25, 2021, the Company's issued and outstanding shares and outstanding options remain unchanged from September 30, 2021. During the quarter ended June 30, 2021, the Company extended the expiry date of an aggregate of 2,100,000 stock options (collectively, the "Options") issued during the month of May 2016 with exercise prices of $0.05 per option share, to the date that is seven years from grant date of the Options (see News Release dated May 7, 2021).

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September 30, 2021 - MD&A

Financial Instruments

As at September 30, 2021, 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 September 30, 2021 relating to cash and cash equivalents and receivables of $6,007 (December 31, 2020 - $61,693).

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 September 30, 2021, the Company is committed to current liabilities of $11,707 (December 31, 2020 - $17,360) with a working capital deficiency of $3,092 (December 31, 2020 - working capital of $44,333). The Company has assessed that working capital may not be sufficient to fund the minimum expenditures the Company must incur to sustain its operations through 2021 and beyond.

Due to the global COVID-19 pandemic, the Government of Saskatchewan waived expenditure requirements for the current term and subsequent twelve months for active mineral claims and leases. As a result, as at September 30, 2021, all of the Company's mineral property claims are in good standing with no requirement to incur expenditures on the Company's mineral properties in 2021.

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 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: foreign currency risk, commodity price risk, interest rate risk and equity risk. The Company currently does not have significant exposure to any market risks.

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September 30, 2021 - MD&A