Western Atlas Resources : Financial Statements – First Quarter 2023

Western Atlas

Resources Inc.

Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in Canadian dollars)

WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Financial Position

(expressed in Canadian dollars)

		March 31, 2023	December 31, 2022
ASSETS
Current assets
Cash and cash equivalents (Note 3)	$	146,642	$	261,646
Prepaid expenses		21,852		24,837
Accounts receivable		20,668		24,402
		189,162		310,885
Non-current assets
Exploration and evaluation assets (Note 4)		4,919,328		4,917,612
Total assets	$	5,108,490	$	5,228,497
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	75,751	$	39,335
		75,751		39,335
Shareholders' equity
Share capital (Note 6)		9,758,716		9,758,716
Equity reserves		800,314		800,314
Deficit		(5,526,291)		(5,369,868)
		5,032,739		5,189,162
Total liabilities and shareholders' equity	$	5,108,490	$	5,228,497
Going concern (Note 1)

These consolidated financial statements were approved for issue by the Board of Directors on May 26, 2023.

They are signed on the Company's behalf by:
	"Fabio Capponi"		"Susan Rubin"
	Director	Chief Financial Officer

The accompanying notes are an integral part of these consolidated financial state

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WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Loss and Comprehensive Loss

(expressed in Canadian dollars)

	Three months ended		Three months ended
		March 31, 2023		March 31, 2022
Operating expenses
General and administrative expenses	$	23,427	$	25,353
Salaries and benefits (Note 7)		32,625		33,145
Geological consulting		35,743		33,290
Accounting, audit and advisory services (Note 7)		47,000		46,500
Legal fees		-		4,498
Property investigation costs		11,073		48,338
Investor relations		6,322		6,575
Share-based payments (Note 6)		-		231,065
Foreign exchange loss		233		79
Net Loss and comprehensive loss for the period	$	156,423	$	428,843

Weighted Average Number of Common Shares Outstanding	117,533,398	117,055,620
Loss per Common share - basic and diluted	$0.00	$0.00

The accompanying notes are an integral part of these consolidated financial statements

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WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Changes in Shareholders' Equity

(expressed in Canadian dollars)

									Total
	Total number		Total share						Shareholders'
	of shares issued		capital		Reserves		Deficit		Equity
Balance December 31, 2021	116,153,398	$	9,660,716	$	610,750	$	(4,217,344)	$	6,054,122
Net loss	-		-		-		(449,843)		(449,843)
Grating of RSU's	-		-		98,000		-		98,000
Exercise of RSU's	1,400,000		98,000		(98,000)		-		-
Share-based payments			-		133,065	#	-		133,065
Balance March 31, 2022	117,553,398	$	9,758,716	$	743,815	$	(4,667,187)	$	5,835,344
Balance December 31, 2022	117,553,398		9,758,716		800,314		(5,369,868)		5,189,162
Net loss	-		-		-		(156,423)		(156,423)
Balance March 31, 2023	117,553,398	$	9,758,716	$	800,314	$	(5,526,291)	$	5,032,739

The accompanying notes are an integral part of these consolidated financial statement

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WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Cash Flows

(expressed in Canadian dollars)

	Three months ended	Three months ended
		March 31, 2023	March 31, 2022
Cash flows provided by (used in):
Operating activities
Net loss for the year	$	(156,423)	$	(449,843)
Adjustments for non-cash items:
Shares issued for RSU's		-		98,000
Share-based payments		-		231,065
Changes in non-cash working capital items:
Prepaid expenses		2,985		4,063
Accounts receivable		3,734		368
Accounts payable and accrued liabilities		36,416		17,659
Net cash used by operating activities		(113,288)		(98,688)
Investing activities
Exploration and evaluation assets		(1,716)		(10,843)
Net cash used by investing activities		(1,716)		(10,843)
Financing activities
Shares issued for cash		-		-
Net cash provided by financing activities		-		-
Net cash decrease for the period		(115,004)		(109,531)
Cash and cash equivalents at beginning of period		261,646		1,165,507
Cash and cash equivalents at end of period	$	146,642	$	1,055,976
Supplemental cash flow information (Note 5)

The accompanying notes are an integral part of these consolidated financial statements.

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