Westchester Resources Inc.
TSX VENTURE : WSR

Westchester Resources Inc.

July 29, 2005 17:28 ET

Westchester Reports Yearend Results

TORONTO, ONTARIO--(CCNMatthews - July 29, 2005) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company"), today reported its audited financial results for the year ended March 31, 2005. For the year, Westchester reported a net loss from operations of $744, 679 ($0.02 per share) on revenue of $144,132 versus a net loss of $169,023 ($0.01 per share) on revenue of $4,000 in 2004.

The Company reported oil and gas revenue of $122,502, production and operating costs of $98,156 thousand, and depletion and depreciation of $68,180 thousand from its Sturgeon Lake properties. The properties were sold effective March 31, 2005 for $515,000. In 2005, general and administrative (G&A) expenses increased to $238,710, from $104,123 in 2004 as Westchester's activities in oil and gas exploration increased.

For the year ended March 31, 2005, Westchester reported cash and cash equivalents of $3,001,120 and working capital of $2,612,756.

Comparative summary results for the twelve-month period ended March31, 2005 are shown in the following tables:



Consolidated Audited Summary Balance Sheet as at
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Mar. 31, 2005 Mar. 31, 2004
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(audited) (audited)
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Assets
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Cash and current assets $ 3,001,120 $ 208,515
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Oil and gas properties/
mining interest 3,038,591 57,589
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Total Assets $ 6,039,711 $ 266,104
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Liabilities and Stockholders'
Equity
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Total Current Liabilities $ 388,364 $ 83,647
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Stockholders' Equity $ 5,651,347 $ 182,457
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Total Liabilities and
Stockholders' Equity $ 6,039,711 $ 266,104
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Consolidated Summary Statements of Operations
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Mar. 31, 2005 Mar. 31, 2004
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(audited) (audited)
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Revenue $ 144,132 $ 4,000
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Expenses 888,811 173,023
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Net loss per share $ 0.02 $ 0.01
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Weighted average number of shares 32,701,551 22,564,765
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Total shares outstanding 38,228,263 23,855,763
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For complete financial statements, please refer to the Company's filings with SEDAR at www.sedar.com

Westchester also announced that it had received regulatory approval from the TSX Venture Exchange and completed the sale of its interest in the Sturgeon Lake properties to Aspen Group Resources Corporation as previously disclosed in a press release dated July 22, 2005.

Westchester Resources Inc. is an independent oil and gas exploration company. Westchester's operations are focused in Western Canada and the US. The Company's shares trade on the TSX Venture Exchange under the symbol "WSR".

The TSX VENTURE EXCHANGE has neither approved nor disapproved the contents of this press release.

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