Western Atlas Resources : Financial Statements – Third Quarter 2022

Western Atlas

Resources Inc.

Consolidated Financial Statements

For the nine months ended September 30, 2022 and 2021

(Expressed in Canadian dollars)

WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Financial Position

(Expressed in Canadian dollars)

	September 30, 2022	December 31, 2021
ASSETS
Current assets
Cash and cash equivalents (Note 3)	$	447,217	$	1,165,507
Prepaid expenses		42,438		32,594
Accounts receivable		6,630		6,689
		496,285		1,204,790
Non-current assets
Exploration and evaluation assets (Note 4)		4,913,967		4,880,938
Total assets	$	5,410,252	$	6,085,728
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	22,283	$	31,606
		22,283		31,606
Shareholders' equity
Share capital (Note 5)		9,779,716		9,660,716
Equity reserves		743,815		610,750
Deficit		(5,135,562)		(4,217,344)
		5,387,969		6,054,122
Total liabilities and shareholders' equity	$	5,410,252	$	6,085,728
Going concern (Note 1)

These consolidated financial statements were approved for issue by the Board of Directors on November 18, 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.

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WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Loss and Comprehensive Loss

(expressed in Canadian dollars)

	Three months ended	Nine months ended	Three months ended		Nine months ended
	September 30, 2022	September 30, 2022	September 30, 2021	September 30, 2021
Operating expenses
General and administrative expenses	$	16,630	$	65,476	$	34,194	$	78,560
Salaries and benefits (Note 7)		31,727		97,621		30,520		95,368
Accounting, audit and advisory services (Note 7)		49,700		263,919		48,800		179,995
Legal fees		8,314		12,812		10,895		11,111
Property investigation costs		88,652		291,820		30,984		109,717
Investor relations		23,528		52,980		9,176		20,654
Share-based payments (Note 5)		-		133,065		-		-
Foreign exchange (gain) loss		(650)		525		83		704
Net loss and comprehensive loss for the period	$	217,901	$	918,218	$	164,652	$	496,109

Weighted average Common Shares Outstanding	117,553,398	117,389,295	116,078,398	116,059,350
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.

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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, 2022	116,153,398	$	9,660,716	$	610,750	$	(4,217,344)	$	6,054,122
Net loss	-		-		-		(918,218)		(918,218)
Shares issued for RSU's	1,400,000		119,000		-		-		119,000
Share based payments	-		-		133,065		-		133,065
Balance September 30, 2022	117,553,398	$	9,779,716	$	743,815	$	(5,135,562)	$	5,387,969
Balance January 1, 2021	115,878,398	$	9,639,216	$	610,750	$	(3,549,649)	$	6,700,317
Net loss	-		-		-		(918,218)		(918,218)
Shares issued for cash	200,000		14,000		-		-		14,000
Balance September 30, 2021	116,078,398	$	9,653,216	$	610,750	$	(4,467,867)	$	5,796,099

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

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WESTERN ATLAS RESOURCES INC.

Consolidated Statements of Cash Flows

(expressed in Canadian dollars)

	Nine months ended	Nine months ended
	September 30, 2022	September 30, 2021
Cash flows provided by (used in):
Operating activities
Net loss for the period	$	(918,218)	$	(496,109)
Adjustment for non-cash items
Share- based payments		133,065		-
Shares granted from RSU		119,000		-
Changes in non-cash working capital items:
Prepaid expenses		(9,844)		57,274
Accounts receivable		59		4,349
Accounts payable and accrued liabilities		(9,323)		4,248
Net cash used by operating activities		(685,261)		(430,238)
Investing activities
Exploration and evaluation assets		(33,029)		(708,846)
Short term investment		-		-
Net cash used by investing activities		(33,029)		(708,846)
Financing activities
Share issue costs		-		14,000
Net cash provided by financing activities		-		14,000
Net cash increase (decrease) for the period		(718,290)		(1,125,084)
Cash and cash equivalents at beginning of period		1,165,507		2,459,851
Cash and cash equivalents at end of period	$	447,217	$	1,334,767

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

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