CALGARY, ALBERTA, – August 25, 2006. West High Yield (W.H.Y.) Resources Ltd. (“West High Yield” or the “Company”) is pleased to announce its financial (unaudited) results for the second quarter ended June 30, 2006 and the Management‘s Discussion and Analysis (“MD&A”) dated August 25, 2006. On July 27, 2006, the Company completed its initial public offering of securities (the “Offering”) which was fully subscribed for gross proceeds of $2,000,000. The following summarizes key information contained in the interim financial statements and MD&A both of which can be found on the SEDAR website at http://www.sedar.com.
On June 30, 2006 and prior to the Offering, the Company had a net loss of $373,124 and a working capital deficiency of $1,964,459. The major component that caused the deficiency was an amount due to a company under common control that funded the operations of the Company to date. On the date the Company completed the Offering, the Company exchanged 5,090,144 units for $2,036,057.59 of debt outstanding at that date. Each unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the purchaser to acquire one common share at an exercise price of $0.50 for a period of six months from closing of the offering and at a price of $0.60 for six months thereafter. As a result of the Offering and the share exchange, the Company is in a positive working capital position as of the date of completion of the Offering.
The Company also announces that it is proceeding with its previously announced Diamond Drill Program on its Midnight and IXL Properties located on the western outskirts of Rossland in southeastern British Columbia. To date, nine core holes have been completed and cores have been sent to an independent laboratory for analysis. Results will be released once they have been received by the Company.
West High Yield (W.H.Y.) Resources is a junior mining exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada with a primary objective to locate and develop economic gold properties.
For further information please contact:
President and Chief Executive Officer West High Yield (W.H.Y.) Resources Ltd. 28 Arbour Lake Drive N.W.,
Calgary, Alberta T3G 3N8 Telephone: (403) 660-3488
Facsimile: (403) 206-7159
Email: [email protected]
Craig G. Robson
Vice President, Corporate Development and Investor Relations
West High Yield (W.H.Y.) Resources Ltd. Suite 620, 800 West Pender Street Vancouver, B.C. V6C 2V6
Telephone: (604) 868-7961
Facsimile: (604) 274-1431
Email: [email protected] or [email protected]
ADVISORY: Certain information regarding the Company including management’s assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
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