Western Atlas Resources : Financial Statements – Second Quarter 2023

Western Atlas

Resources Inc.

Consolidated Financial Statements

For the six months ended June 30, 2023 and 2022

(Expressed in Canadian dollars)

WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Financial Position

(expressed in Canadian dollars)

		June 30, 2023	December 31, 2022
ASSETS
Current assets
Cash and cash equivalents (Note 3)	$	104,391	$	261,646
Prepaid expenses		6,052		24,837
Accounts receivable		14,115		24,402
		124,558		310,885
Non-current assets
Exploration and evaluation assets (Note 4)		4,940,370		4,917,612
Total assets	$	5,064,928	$	5,228,497
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	76,494	$	39,335
Accrued compensation (Note 7)		123,900		-
		200,394		39,335
Shareholders' equity
Share capital (Note 6)		9,758,716		9,758,716
Equity reserves		815,041		800,314
Deficit		(5,709,223)		(5,369,868)
		4,864,534		5,189,162
Total liabilities and shareholders' equity	$	5,064,928	$	5,228,497
Going concern (Note 1)

These consolidated financial statements were approved for issue by the Board of Directors on August 25, 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		Six months ended		Three months ended		Six months ended
		June 30, 2023		June 30, 2023		June 30, 2022		June 30, 2022
Operating expenses
General and administrative expenses	$	17,995	$	26,331	$	23,493	$	48,847
Salaries and benefits (Note 7)		32,730		65,355		32,749		65,894
Geological consulting (Note 7)		30,553		66,296		33,934		67,224
Accounting, audit and advisory services (Note 7)		59,962		106,962		48,720		95,220
Legal fees		-		-		-		4,498
Property investigation costs		26,239		37,312		87,605		135,943
Investor relations		304		6,626		22,877		29,452
Share based payments		14,727		14,727		-		231,065
Foreign exchange loss		421		15,746		1,096		1,174
Loss and comprehensive loss for the period	$	182,931	$	339,355	$	250,474	$	679,317

Weighted Average Common Shares Outstanding	117,553,398	117,553,398	117,553,398	117,305,884
Loss per Common share - basic and diluted	$0.00	$0.00	$0.00	$0.01

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 January 1, 2023	117,553,398		9,758,716		800,314		(5,369,868)		5,189,162
Net loss	-		-		-		(339,355)		(339,355)
Share-based payments					14,727				14,727
Balance June 30, 2023	117,553,398	$	9,758,716	$	815,041	$	(5,709,223)	$	4,864,534
Balance January 1, 2022	116,153,398	$	9,660,716	$	610,750	$	(4,217,344)	$	6,054,122
Net loss	-		-		-		(679,317)		(679,317)
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	$	(4,896,661)	$	5,626,870

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)

		Six months ended			Six months ended
		June 30, 2023			June 30, 2022
Cash flows provided by(used in):
Operating activities
Net loss for the period	$	(339,355)		$	(700,317)
Adjusment for non-cash items:
Shares issued for RSUs		-			119,000
Share-based payments		14,727			133,065
Adjustments for non-cash items:
Changes in non-cash working capital items:
Prepaid expenses		18,785			7,048
Accounts receivable		10,287			(362)
Accounts payable and accrued liabilities		37,159			(6,541)
Accrued compensation		123,900			-
Net cash used by operating activities		(134,497)			(448,107)
Investing activities
Exploration and evaluation assets		(22,758)			(23,742)
Net cash used by investing activities		(22,758)			(23,742)
Financing activities
Shares issued for cash		-			-
Net cash provided by financing activities		-			-
Net cash decrease for the period		(157,255)			(471,849)
Cash and cash equivalents at beginning of period		261,646			1,165,507
Cash and cash equivalents at end of period	$	104,391	$		693,658

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

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