In June of 2007, Wescan Goldfields Inc. entered into an option agreement with Alto Ventures Ltd. (Alto), (ATV: TSX-V).  Under the terms of the agreement, Wescan has an exclusive and irrevocable option to acquire an undivided 50% interest in Alto’s Mud Lake Project by making $600,000 in exploration expenditures and issuing 150,000 Wescan shares to Alto over a two year period.  Upon exercising the option by Wescan at the completion of the two year term, the parties will enter into a 50:50 joint venture agreement to carry out on-going exploration and or development.  Alto will remain the project operator until the completion of a positive pre-feasibility study, at which time Wescan will have the option to assume the role of operator. 

The Mud Lake Project consists of 2,592 hectares (ha) and is located 25 kilometers (km’s) northeast of Beardmore, Ontario, in the Beardmore-Geraldton gold belt where historical production has exceeded 4.0 million ounces of gold at an average grade of about 0.4 ounces per ton.  A major auriferous shear extends for over 6.0 kilometers on the property but was never drilled prior to a winter drill program carried out by Alto in early 2007.  This drilling program tested three of twelve surface gold showings and confirmed the existence of the strong shear system, the Mud Lake Shear, which contains gold-bearing quartz veins at each of the three showings that were drilled.  Gold values up to 13.9 grams/tones (g/t) across 1.0 meter (m) were intersected within a wider zone of gold mineralization that assays 3.39 g/t across 6.1 m. (See Alto news releases dated March 6 and March 20, 2007.)

In August 2007, Wescan approved a program and budget proposed by Alto to carry out the next phase of exploration. Surface trenching, washing and sampling programs were completed in September in two areas along the MLS to fill gaps along strike between previously discovered gold showings.  Samples from the trenched areas were delivered for analyses and results are expected within the next four to six weeks.

A drill contract has been awarded with 18 to 20 holes planned to test the gold mineralization previously discovered and is expected to commence in November 2007. The November drilling will, in part, follow-up on gold mineralization intersected at two of the three occurrences drilled previously and test for the first time, another three occurrences along the MLS which have yet to be drill tested.  This work is part of a longer term strategy to evaluate each of the surface occurrences with diamond drilling and start to delineate in detail those that display continuity of mineralization and grade and show potential for the concentration of economic mineralization.

The Mud Lake property lies adjacent to the Hercules Property where Kodiak Exploration Ltd. recently reported drilling results confirming significant gold mineralization, including 38.47 g/t gold across 1.6 m in drill core and 32.96 g/t gold across 11.6 m in surface channel samples (see Kodiak Exploration news release dated October 1, 2007).

The December 2007 drilling continued to test drill targets along the Mud Lake Shear Zone (“MLS”) where previous work identified twelve surface gold occurrences along a six kilometer (km) segment of the MLS ( see Wescan news releases dated November 22, 2007). The holes reported here tested one km. of the MLS near the northeast end, drilling three of the occurrences not drilled previously.

Significant amounts of gold, up to 6.34 grams per ton (g/t) across0.5 meters (m), were intersected in four of the nine holes. Shearing and quartz veining were also intersected in the other holes although the gold values were lower.

To view the table of significant assay results from the December, 2007 Mud Lake Drilling Program, please see the Wescan news release dated January 30, 2008.

Intersecting gold in the shear hosted quartz veins under these surface showings is encouraging as it corroborates the strength of the gold system along the MLS. The drill holes completed in March and December of 2007 have tested the MLS intermittently for almost five km’s along the strike and confirmed that the mineralization exposed in the surface trenches does have depth continuity.

An additional nine holes were drilled in January 2008, and samples from these were delivered to the laboratory on January 25, 2008. These holes follow up mineralization discovered during Alto’s program in March 2007, where gold values of up to 13.9 g/t gold across 1.0 meter were intersected within a wider zone that assays 3.39 g/t across 6.1 m.

Phases II diamond drilling found four holes which intersected significant gold mineralization including 7.25 g/t across 1.0 m this recently completed phase of drilling has greatly added to the geological knowledge of the mineralization and will be used for targeting the most prolific sections of the Mud Lake Shear Zone (“MLS”) during Phase III work that will take place this summer.

Nine holes (MUD08-22 to 30) were completed in January 2008 as part of a continuing program to evaluate the economic significance of a six kilometer (km) segment of the MLS where previous work has identified 12 gold occurrences. The results from these holes and earlier drilling clearly demonstrate the significant potential of the property. Further work is planned to test the presence of mineralization between wide spaced holes, along the MLS, and also indentified deeper targets. The Joint Venture is formulating an aggressive summer exploration program for Mud Lake to commence after the snow and ice has melted. The program will include trenching, prospecting and geological mapping to be followed by diamond drilling. For complete viewing of Phase II drilling see Wescan’s news release dated February 21, 2008.