Western Atlas Resources : Financial Statements – Second Quarter 2022

Western Atlas

Resources Inc.

Consolidated Financial Statements

For the six months ended June 30, 2022 and 2021

(Expressed in Canadian dollars)

WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Financial Position

(expressed in Canadian dollars)

		June 30, 2022	December 31, 2021
ASSETS
Current assets
Cash and cash equivalents (Note 3)	$	693,658	$	1,165,507
Prepaid expenses		25,546		32,594
Accounts receivable		7,051		6,689
		726,255		1,204,790
Non-current assets
Exploration and evaluation assets (Note 4)		4,904,680		4,880,938
Total assets	$	5,630,935	$	6,085,728
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities (Note 7)	$	25,065	$	31,606
		25,065		31,606
Shareholders' equity
Share capital (Note 5)		9,779,716		9,660,716
Equity reserves		743,815		610,750
Deficit		(4,917,661)		(4,217,344)
		5,605,870		6,054,122
Total liabilities and shareholders' equity	$	5,630,935	$	6,085,728
Going concern (Note 1)

These consolidated financial statements were approved for issue by the Board of Directors on August 19, 2022.

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 statements.

2

WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Loss and Comprehensive Loss

(expressed in Canadian dollars)

	Three months ended		Six months ended		Three months ended		Six months ended
		June 30, 2022		June 30, 2022		June 30, 2021		June 30, 2021
Operating expenses
General and administrative expenses	$	23,493	$	48,847	$	19,473	$	44,367
Salaries and benefits (Note 7)		32,749		65,894		32,442		64,848
Accounting, audit and advisory services (Note 7)		48,720		214,220		56,195		131,195
Legal fees		-		4,498		-		216
Property investigation costs		121,539		203,167		41,868		78,789
Investor relations		22,877		29,452		5,356		11,478
Share based payments		-		133,065		-		-
Foreign exchange loss		1,096		1,174		353		621
Loss and comprehensive loss for the period	$	250,474	$	700,317	$	155,687	$	331,514
Weighted Average Common Shares Outstanding		117,553,398		117,305,884		116,078,398		116,222,842
Loss per Common share - basic and diluted		$0.00		$0.01		$0.00		$0.00

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

3

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 January 1, 2022	116,153,398	$	9,660,716	$	610,750	$	(4,217,344)	$	6,054,122
Net loss	-		-		-		(700,317)		(700,317)
Shares issued for RSU's	1,400,000		119,000		-		-		119,000
Share-based payments	-		-		133,065		-		133,065
Balance June 30, 2022	117,553,398	$	9,779,716	$	743,815	$	(4,917,661)	$	5,605,870
Balance January 1, 2021	115,878,398	$	9,639,216	$	610,750	$	(3,549,649)	$	6,700,317
Net loss	-		-		-		(331,514)		(331,514)
Shares issued for cash	200,000		14,000		-		-		14,000
Balance June 30, 2021	116,078,398	$	9,653,216	$	610,750	$	(3,881,163)	$	6,382,803

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

4

WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Cash Flows

(expressed in Canadian dollars)

	Six months ended	Six months ended
		June 30, 2022		June 30, 2021
Cash flows provided by(used in):
Operating activities
Net loss for the period	$	(700,317)	$	(331,514)
Adjusment for non-cash items:
Shares issued for RSUs		119,000		-
Share-based payments		133,065		-
Changes in non-cash working capital items:
Prepaid expenses		7,048		64,336
Accounts receivable		(362)		(165,292)
Accounts payable and accrued liabilities		(6,541)		64,919
Net cash used by operating activities		(448,107)		(367,551)
Investing activities
Exploration and evaluation assets		(23,742)		(666,815)
Net cash used by investing activities		(23,742)		(666,815)
Financing activities
Shares issued for cash		-		14,000
Net cash provided by financing activities		-		14,000
Net cash decrease for the period		(471,849)		(1,020,366)
Cash and cash equivalents at beginning of period		1,165,507		2,459,851
Cash and cash equivalents at end of period	$	693,658	$	1,439,485

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

5