<SEC-DOCUMENT>0001062993-13-005495.txt : 20131108
<SEC-HEADER>0001062993-13-005495.hdr.sgml : 20131108
<ACCEPTANCE-DATETIME>20131108163044
ACCESSION NUMBER:		0001062993-13-005495
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20130930
FILED AS OF DATE:		20131108
DATE AS OF CHANGE:		20131108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Western Copper & Gold Corp
		CENTRAL INDEX KEY:			0001364125
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35075
		FILM NUMBER:		131205130

	BUSINESS ADDRESS:	
		STREET 1:		#2050 - 1111 WEST GEORGIA STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6E4M3
		BUSINESS PHONE:		6046849497

	MAIL ADDRESS:	
		STREET 1:		#2050 - 1111 WEST GEORGIA STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6E4M3

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Western Copper CORP
		DATE OF NAME CHANGE:	20060525
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>

<HTML>
<HEAD>
<TITLE>Western Copper and Gold Corp.: Form 6-K - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<hr noshade align="center" width="100%" size=3 color="black">

<p align="center"><font size="5"><strong>UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION</strong></font><br>
  Washington, D.C. 20549</p>

<p align="center"><b><font size="5">FORM 6-K</font></b></p>
<p align="center"><b>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
  OR 15d-16 <br>
  UNDER THE SECURITIES EXCHANGE ACT OF 1934</b></p>
<p align="center">For the month of <b>November, 2013</b></p>

<p align="center">Commission File Number: <b>001-35075</b></p>

<p align="center"><b><u><font size=5>WESTERN COPPER AND GOLD CORPORATION</font></u></b><br>
  (Translation of registrant's name into English) </p>

<p align="center"><b>Suite 2050 - 1111 West Georgia Street<br>
  <u>Vancouver, BC Canada V6E 4M3</u></b><br>
  (Address of principal executive offices) </p>

<p align="center">Indicate by check mark whether the registrant files or will
  file annual reports under cover Form 20-F or Form 40-F.</p>
<p align="center">[<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
Form 20-F &nbsp;&nbsp;[ x ]&nbsp;
  Form 40-F</p>
<p align="center">Indicate by check mark if the registrant is submitting the Form
  6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]</p>



<p align="center"> Indicate by check mark if the registrant is submitting the
  Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]</p>



<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<p align="center"><img src="logo-wco.jpg" width="207" height="77"></p>
<p align="center"><b><u>SUBMITTED HEREWITH</u></b></p>

<p align="left"><u>Exhibits</u></p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td width="5%" valign="top" bgcolor="#EEEEEE"><a href="exhibit99-1.htm">99.1</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-1.htm">Condensed Interim Consolitdated Financial Statements for the Three and Nine Months Ended September 30, 2013 </a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-2.htm">99.2</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-2.htm">Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2013 </a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-3.htm">99.3</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-3.htm">Certification of Interim Filings - CEO</a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-4.htm">99.4</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-4.htm">Certification of Interim Filings - CFO</a></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<p align="center"><strong><u>SIGNATURES</u></strong></p>

<p align="justify">Pursuant to the requirements of the Securities Exchange Act
  of 1934, the registrant has duly caused this report to be signed on its behalf
  by the undersigned, thereunto duly authorized.</p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td colspan="2" valign="top"><b>Western Copper and Gold Corporation</b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">(Registrant)</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">Date: November 8, 2013</td>
    <td valign="top">By:</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" ><I>/s/ Julien Fran&ccedil;ois</I></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>Julien Fran&ccedil;ois</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td width="5%" valign="top">Title:</td>
    <td>VP Finance</td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size=5 color="Black"></BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>


<HTML>
<HEAD>
   <TITLE>Western Copper and Gold Corporation: Exhibit 99.1 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A>
<P align=center><IMG border=0
src="exhibit99-1x1x1.jpg">
</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=justify><B><FONT size=5>Western Copper and Gold
Corporation</FONT><BR></B>(An exploration stage company)</P>
<P align=justify><B><FONT size=5>Condensed Interim Consolidated Financial
Statements </FONT><BR><FONT size=5>For the three and nine months ended September
30, 2013</FONT><BR></B>(Unaudited &#150; prepared by management)<BR>(Expressed in
Canadian dollars)<BR><BR><BR></P>
<P align=justify>NOTICE TO READER:</P>
<P align=justify>These condensed interim consolidated financial statements have
not been reviewed by the Company's external auditors. These statements have been
prepared by and are the responsibility of the Company&#146;s management. This notice
is being provided in accordance with National Instrument 51-102 - Continuous
Disclosure Obligations. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_2></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation </B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Condensed Interim Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>As at and for the three and nine months ended September 30,
      2013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P align=justify><B>CONSOLIDATED BALANCE SHEETS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap>September 30, 2013 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>December 31, 2012 </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left></TD>
    <TD width="10%" align=right nowrap>$</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap></TD>
    <TD width="10%" align=right nowrap>$</TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>ASSETS </B></TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center><B>Note </B></TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp;</TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and cash equivalents </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>6,097,915 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>33,517,542 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Short-term investments </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>20,422,871 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Other assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>367,067 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>383,038 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>CURRENT ASSETS </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>26,887,853 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>33,900,580 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Property and equipment </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>27,349 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Exploration and
      evaluation assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=center>3
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>25,078,886 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>17,706,346 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>ASSETS </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>51,966,739 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>51,634,275 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>LIABILITIES </B></TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Accounts payable
      and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>2,173,285 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>1,623,669 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>LIABILITIES
    </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>2,173,285 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>1,623,669 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>SHAREHOLDERS&#146; EQUITY </B></TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share capital </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>4 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>104,620,174 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>104,603,488 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Contributed surplus </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>32,155,361 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>31,494,020 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deficit </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>(86,982,081</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>(86,086,902</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>)
</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=center>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>SHAREHOLDERS&#146;
      EQUITY </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>49,793,454 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>50,010,606 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>LIABILITIES AND
      SHAREHOLDERS&#146; EQUITY </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>51,966,739 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>51,634,275 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Commitments </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>6 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=center><B>Approved by the Board of Directors </B></TD>
    <TD width="50%" align=center>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center><I><U>/s/ Robert J. Gayton&nbsp;&nbsp; </U></I>Director
    </TD>
    <TD width="50%" align=center><I><U>/s/ Robert Byford&nbsp;&nbsp;
      </U></I>Director </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>The accompanying
      notes are an integral part of these financial statements </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="15%" align=right>- 2 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_3></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Condensed Interim Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>As at and for the three and nine months ended September 30,
      2013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P align=justify><B>CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>Three Months Ended </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>Nine Months Ended </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>September 30, </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>September 30, </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2013 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2012 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2013 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2012 </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD width="2%" align=right>&nbsp;</TD>
    <TD width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD width="2%" align=right>&nbsp;</TD>
    <TD width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD width="2%" align=right>&nbsp;</TD>
    <TD width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>CORPORATE EXPENSES</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Filing and regulatory fees </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>12,132 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>34,775 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>160,578 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>183,989 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Office and administration </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>70,851 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>50,622 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>186,535 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>158,597 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Professional fees </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>39,125 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>60,199 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>129,894 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>214,545 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Rent and utilities </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>46,568 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>30,922 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>124,681 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>77,357 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Share-based payments </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>126,744 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>417,695 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>545,049 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,594,504 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Shareholder communication and travel </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>86,398 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>91,343 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>395,044 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>268,086 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Wages and benefits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>218,127 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>212,472 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>692,898 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>621,749 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>LOSS BEFORE OTHER ITEMS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>599,945</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>898,028</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>2,234,679</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>3,118,827</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>OTHER ITEMS</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exploration tax credit </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(145,789</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(145,789</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Foreign exchange loss (gain) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>119,001 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(22</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(1,170,815</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>4,870 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest income </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(79,807</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(13,772</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(168,685</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(64,429</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Plan of arrangement costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>45,798 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>LOSS AND COMPREHENSIVE LOSS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>639,139</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>738,445</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>895,179</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>2,959,277</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Basic and diluted loss per share </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>0.01 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>0.01 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>0.01 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>0.03 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Weighted average number of common shares
      outstanding </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>93,683,937 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>93,282,503 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>93,734,497 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>93,276,372 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>The accompanying
      notes are an integral part of these financial statements </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="15%" align=right>- 3 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_4></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Condensed Interim Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>As at and for the three and nine months ended September 30,
      2013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P align=justify><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="23%" colSpan=4 align=center>Three Months Ended
</TD>
    <TD vAlign=bottom width="2%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="23%" colSpan=4 align=center>Nine Months Ended </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp; </TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="23%" colSpan=4
      align=center>September 30, </TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=center>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=center>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="23%" colSpan=4
      align=center>September 30, </TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp; </TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>2013 </TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>2012 </TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>2013 </TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>2012 </TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff vAlign=bottom align=left>Cash flows provided by (used
      in) </TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left></TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>$&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right></TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>$&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right></TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>$&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right></TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>$&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left><B>OPERATING ACTIVITIES</B>
    </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Loss for the period </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(639,139</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(738,445</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(895,179</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(2,959,277</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Items not affecting cash
      <BR>&nbsp;&nbsp;&nbsp; Share-based payments </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>126,744 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>417,695 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>545,049 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>1,594,504
</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left>Change in non-cash working capital<BR>&nbsp;&nbsp;&nbsp;
      &nbsp;items </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>(135,710</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>(19,182</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>(307,273</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>63,655 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left><B>OPERATING ACTIVITIES</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>(648,105</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>(339,932</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>(657,403</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>(1,301,118</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left><B>FINANCING ACTIVITIES</B>
    </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left>Exercise of stock options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>9,350 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>301,500 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left><B>FINANCING ACTIVITIES</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>9,350</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>301,500</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left><B>INVESTING ACTIVITIES</B>
    </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="10%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Redemption (purchase) of
      short-term <BR>&nbsp;&nbsp;&nbsp; investments </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>2,700,000
</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>2,050,000
</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%"
    align=right><BR>(20,300,000</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><BR>5,550,000
</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    align=left>Exploration and evaluation <BR>&nbsp;&nbsp;&nbsp; expenditures
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><BR>(2,733,118</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><BR>(1,396,869</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><BR>(6,471,574</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><BR>(5,048,929</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    align=left><B>INVESTING ACTIVITIES</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>(33,118</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>653,131</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>(26,771,574</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>501,071</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    align=left><B>NET INCREASE (DECREASE)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>(681,223</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>313,199</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>(27,419,627</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>(498,547</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left><B>)</B> </TD></TR>
  <TR>
    <TD bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    align=left>BEGINNING BALANCE </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right>6,779,138 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right>551,390 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right>33,517,542 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right>1,363,136 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    align=left><B>CASH AND CASH EQUIVALENTS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>6,097,915</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>864,589</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>6,097,915</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="10%" align=right><B>864,589</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>The accompanying
      notes are an integral part of these financial statements </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="15%" align=right>- 4 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_5></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Condensed Interim Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>As at and for the three and nine months ended September 30,
      2013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P align=justify><B>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS&#146; EQUITY
</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Number of </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Share </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Contributed </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Deficit </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Shareholders&#146; </TD>
  <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Shares </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Capital </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Surplus </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=left vAlign=bottom nowrap>&nbsp; </TD>
    <TD width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap>Equity </TD>
  <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="2%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD width="2%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD width="2%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD width="2%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left><B>DECEMBER 31, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>93,002,503</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>103,747,315</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>29,348,559</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>(82,173,626</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>50,922,248</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Exercise of stock options </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>280,000 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>301,500 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>301,500 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Transfer of stock option value </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>168,349 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>(168,349</TD>
    <TD vAlign=bottom width="2%" align=left>) </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Share-based payments </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>1,856,349 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>1,856,349 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>Loss
      and comprehensive loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>(2,959,277</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>(2,959,277</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD></TR>
  <TR>
    <TD bgColor=#e6efff vAlign=bottom>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><B>SEPTEMBER 30, 2012</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right><B>93,282,503</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right><B>104,217,164</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right><B>31,036,559</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right><B>(85,132,903</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right><B>50,120,820</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff vAlign=bottom>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Private placement </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>500,000 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>400,000 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>400,000 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Share issuance costs </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>(13,676</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>(13,676</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Share-based payments </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>457,461 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>457,461 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left>Loss and comprehensive loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>(953,999</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>(953,999</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left><B>DECEMBER 31, 2012</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>93,782,503</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>104,603,488</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>31,494,020</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>(86,086,902</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>50,010,606</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Cancellation and return to
      <BR>treasury (note 4) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right><BR>(115,566</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right><BR>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right><BR>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right><BR>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right><BR>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Exercise of stock options </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>17,000 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>9,350 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>9,350 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff vAlign=bottom align=left>Transfer of stock option
      value </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>7,336 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>(7,336</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Share-based payments </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>668,677 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>668,677 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left>Loss and comprehensive loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>(895,179</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>(895,179</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    align=left><B>SEPTEMBER 30, 2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>93,683,937</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>104,620,174</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>32,155,361</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>(86,982,081</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>49,793,454</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>The accompanying
      notes are an integral part of these financial statements </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="15%" align=right>- 5 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>NATURE OF OPERATIONS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Western Copper and Gold Corporation (&#147;Western&#148; or the
      &#147;Company&#148;) is an exploration stage company that is directly engaged in
      exploration and development of the Casino mineral property located in
      Yukon, Canada.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company is incorporated in British Columbia, Canada.
      Its head office is located at Suite 2050, 1111 West Georgia Street,
      Vancouver, British Columbia.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company will have to raise additional funds to
      complete the development of the Casino Project. While it has been
      successful in doing so in the past, there can be no assurance that it will
      be able to do so in the future.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>BASIS OF PRESENTATION</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a.</B> </TD>
    <TD>
      <P align=justify><B>Compliance with International Financial Reporting
      Standards (&#147;IFRS&#148;)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These condensed interim consolidated financial statements
      have been prepared in accordance with IFRS applicable to the preparation
      of interim financial statements, as issued by the International Accounting
      Standards Board (&#147;IASB&#148;), including International Accounting Standard 34 -
      Interim Financial Reporting. The condensed interim consolidated financial
      statements should be read in conjunction with the Company&#146;s annual
      consolidated financial statements for the year ended December 31, 2012,
      which have been prepared in accordance with IFRS as issued by the
    IASB.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The accounting policies applied in these condensed
      interim consolidated financial statements are based on IFRS effective for
      the year ending December 31, 2013, as issued and outstanding as of
      November 7, 2013, the date the Board of Directors approved these financial
      statements.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%"><B>b.</B> </TD>
    <TD>
      <P align=justify><B>Accounting estimates</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The preparation of financial statements in conformity
      with IFRS requires management to make judgments, estimates, and
      assumptions that affect the application of policies and reported amounts
      of assets and liabilities and disclosures of contingent assets and
      contingent liabilities at the date of the financial statements and the
      reported amounts of revenues and expenses during the reporting
    period.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Actual results could differ from those estimates.
      Significant accounts that require estimates as the basis for determining
      the stated amounts include exploration and evaluation assets, share-based
      payments, and income and mining taxes. Differences may be
  material.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The recoverability of the amounts shown for exploration
      and evaluation assets is dependent upon the existence of economically
      recoverable reserves and the Company&#146;s ability to secure and maintain
      title and beneficial interest in the properties, to obtain the necessary
      financing to continue the exploration and future development of the
      properties, or to realize the carrying amount through a sale or partial
      disposal.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 6 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD>
      <P align=justify><B>EXPLORATION AND EVALUATION
ASSETS</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s only exploration and
evaluation asset is the Casino porphyry copper-gold-molybdenum deposit is
located in Yukon, Canada (the &#147;Casino Project&#148;). The Company has 100% ownership
of the Casino Project.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Expenditures capitalized to the Casino
Project over the periods presented are detailed below:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="50%">

  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="3%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>DECEMBER 31, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right><B>42,114,531</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="3%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp; </TD>
    <TD width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Claims maintenance </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="20%" align=right>20,982 </TD>
    <TD bgColor=#e6efff width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Engineering studies </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="20%" align=right>3,338,695 </TD>
    <TD width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Exploration and camp support </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="20%" align=right>524,514 </TD>
    <TD bgColor=#e6efff width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Permitting </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="20%" align=right>2,507,395 </TD>
    <TD width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Royalty proceeds, net </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="20%" align=right>(31,406,744</TD>
    <TD bgColor=#e6efff width="3%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Salary and wages </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="20%" align=right>272,500 </TD>
    <TD width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Share-based payments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right>334,473 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="3%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp; </TD>
    <TD width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>DECEMBER 31, 2012</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right><B>17,706,346</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="3%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp; </TD>
    <TD width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Claims maintenance </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="20%" align=right>13,800 </TD>
    <TD bgColor=#e6efff width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Engineering </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="20%" align=right>1,090,138 </TD>
    <TD width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Exploration and camp support </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="20%" align=right>555,997 </TD>
    <TD bgColor=#e6efff width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Permitting </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="20%" align=right>5,304,375 </TD>
    <TD width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Salary and wages </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="20%" align=right>284,602 </TD>
    <TD bgColor=#e6efff width="3%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Share-based
      payments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%"
      align=right>123,628 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="3%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="20%">&nbsp; </TD>
    <TD bgColor=#e6efff width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>SEPTEMBER 30,
      2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%"
      align=right><B>25,078,886</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="3%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>On December 21, 2012, Western completed
a royalty sale with 8248567 Canada Limited (the &#147;Purchaser&#148;), an arms&#146; length
party, whereby the Purchaser cancelled the 5% net profits interest royalty on
all claims comprising the Casino Project, other than the Casino B claims, and
paid Western US$32 million in exchange for a 2.75% net smelter returns royalty
(the &#147;NSR Royalty&#148;) on the future sale of any metals and minerals derived from
the Casino Project, other than the Casino B claims.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Should Western maintain title to any
Casino B claims after the period covered by the existing option agreement or
reacquire the Casino B claims in any way, the 5% Net Profits Royalty in favour
of 8248567 Canada Limited will be suspended and the NSR Royalty will apply to
such claims.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Western has the option to repurchase
0.75% of the NSR Royalty (resulting in a 2.00% remaining NSR Royalty) for the
following amount:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD><ul style="TEXT-ALIGN: justify">
      <li>US$39 million if the amount is paid on or prior to December 31, 2013; or
      <li>US$59 million if the amount is paid after December 31, 2013, but on or
        before December 31, 2017. </li>
    </ul></TD>
  </TR>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>&nbsp;</TD>
  <TD style="BORDER-TOP: #000000 1px solid" width="95%" align=right>- 7 -  </TD></TR></TABLE>

<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_8></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The gross proceeds of US$32 million
($31,788,800) were recorded as a reduction in the carrying value of the Casino
Project. Associated transaction costs ($382,056) were recorded as an offsetting
increase to the carrying value.</P>
<P style="MARGIN-LEFT: 5%" align=justify>As part of a separate agreement,
Western is required to make a payment of $1 million upon making a production
decision on the Casino Project.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>SHARE CAPITAL</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>a.</B> </TD>
    <TD>
      <P align=justify><B>Authorized share capital</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Unlimited common shares without par value</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Unlimited number of preferred shares without par
    value</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>b.</B> </TD>
    <TD>
      <P align=justify><B>Share cancellation</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Pursuant to the 2006 plan of arrangement involving Glamis
      Gold Ltd., Western Silver Corp., and Western Copper Corp. (now Western
      Copper and Gold Corp.), shareholders of Western Silver Corp. were required
      to exchange their common shares in Western Silver Corp. for common shares
      of Western within six years of the plan of arrangement. The 115,566 common
      shares not exchanged in accordance with the plan of arrangement were
      cancelled and returned to treasury on May 14, 2013.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>c.</B> </TD>
    <TD>
      <P align=justify><B>Financing</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On October 4, 2012, Western completed a non-brokered
      private placement whereby the Company issued 500,000 flow-through common
      shares at a price of $0.80 per common share.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>STOCK OPTIONS AND SHARE-BASED PAYMENTS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>a.</B> </TD>
    <TD>
      <P align=justify><B>Stock options</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Based on the stock option plan approved by the Company&#146;s
      shareholders at the annual general meeting held on June 21, 2012, the
      Company may issue stock options for the purchase of up to 10% of issued
      capital. The exercise price of the stock options must be greater than, or
      equal to, the market value of the Company&#146;s common shares on the last
      trading day immediately preceding the date of grant. Stock options vest
      over a two year period from the date of grant unless otherwise determined
      by the directors. The maximum stock option term is 10 years. At September
      30, 2013, the Company could issue an additional 3,086,726 stock options
      under the terms of the plan.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 8 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_9></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>A summary of the Company&#146;s stock
options outstanding and the changes for the periods then ended, is presented
below:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Number of</B> </TD>
    <TD width="2%" align=left nowrap>&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Weighted average</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Stock options</B> </TD>
    <TD width="2%" align=left nowrap>&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>exercise price</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="12%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>DECEMBER 31, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>4,313,667</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>1.77</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Granted </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,660,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.80 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Exercised </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(280,000</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1.08 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(420,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.72 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>DECEMBER 31, 2012</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>5,273,667</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>1.50</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Granted </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,600,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.66 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Exercised </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(17,000</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>0.55 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cancelled/Forfeited </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(46,667</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.53 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(528,333</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1.21
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>SEPTEMBER 30,
      2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>6,281,667</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>1.32</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Stock options outstanding are as
follows:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left><B>Stock options outstanding,</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Number of</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Weighted average</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Average</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>by exercise price</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Stock options</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>exercise price</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>remaining</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>contractual life</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right>$</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>years </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>$0.55 - 0.60 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,945,000 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>0.59 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>3.82 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>$0.79 - 0.84 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2,311,667 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.80 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>3.20 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>$1.50 - 1.85 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>400,000 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1.67 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>2.24 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>$2.84 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>1,625,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>2.84
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>2.79
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>SEPTEMBER 30,
      2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>6,281,667</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>1.32</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>3.22</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Of the total stock options outstanding,
3,594,992 were vested and exercisable at September 30, 2013. The weighted
average exercise price of vested stock options is $1.76 and the average
remaining contractual life is 2.38 years.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 9 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>b.</B> </TD>
    <TD>
      <P align=justify><B>Share-based payments</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following is a summary of stock
options granted by the Company in 2013 and 2012 and the fair value assigned to
each grant. The fair value was calculated at the time of grant using the
Black-Scholes option pricing model and the following inputs and assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="11%" align=right>July 9, </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>January 15, </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right nowrap>September 10, </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>July 12, </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Inputs and
      assumptions </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>2013    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>2013    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>2012    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>2012    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
  <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Stock options granted </TD>
    <TD bgColor=#e6efff width="11%" align=right>1,500,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>100,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>50,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>1,610,000 </TD>
  <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Exercise price </TD>
    <TD width="11%" align=right>$0.60 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>$1.59 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>$0.84 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>$0.80 </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="11%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="11%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="11%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="11%">&nbsp; </TD>
  <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Market price </TD>
    <TD width="11%" align=right>$0.54 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>$1.59 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>$0.84 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>$0.72 </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Expected option term (years) </TD>
    <TD bgColor=#e6efff width="11%" align=right>3.0 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>3.0 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>3.0 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>3.0 </TD>
  <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Expected stock price volatility </TD>
    <TD width="11%" align=right>74.5% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>73.4% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>73.5% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>76.5% </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Average risk-free interest rate </TD>
    <TD bgColor=#e6efff width="11%" align=right>1.26% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>1.25% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>1.25% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="11%" align=right>1.01% </TD>
  <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Expected forfeiture rate </TD>
    <TD width="11%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="11%" align=right>- </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Expected dividend yield </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
  <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>FAIR VALUE ASSIGNED</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right><B>$375,630</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right><B>$77,130</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right><B>$20,390</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right><B>$548,442</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>6.</B> </TD>
    <TD width="95%" align=left><B>COMMITMENTS</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has an agreement to lease
its head office space until May 31, 2016. The total amount of payments remaining
during the course of the agreement as at September 30, 2013 is $885,000. Of this
amount, $323,000 is due within the next twelve months.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company is required to use the
proceeds received from the royalty sale for furthering the development of the
Casino Project and for general working capital purposes; provided that the
general working capital purposes of Western do not include the acquisition and
development of any mineral properties unrelated to the Casino Project.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Other commitments related to
exploration and evaluation assets are described in note 3.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>7.</B> </TD>
    <TD width="95%" align=left><B>RELATED PARTY TRANSACTIONS</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Since the Company&#146;s corporate
reorganization in October 2011, administration, accounting and other office
services have been provided by Ravenwolf Resource Group Ltd. (&#147;Ravenwolf&#148;), a
private company owned equally by Western, NorthIsle Copper and Gold Inc.
(&#147;NorthIsle&#148;), and Copper North Mining Corp. (&#147;Copper North&#148;). Ravenwolf
provided the services to its owners on a cost-recovery basis. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Effective April 1, 2013, NorthIsle and
Copper North transferred their respective Ravenwolf shares to Western and, as a
result, Ravenwolf became a wholly-owned subsidiary of the Company.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 10 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_11></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Beginning April 1, 2013, Ravenwolf&#146;s
results are consolidated with those of the Company. Prior to that date,
Ravenwolf was a related party to the Company and the amounts charged to Western
were categorized as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>Three Months Ended </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>Nine Months Ended </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>September 30, </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>September 30, </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Filing and regulatory </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,502 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Office and administration </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>27,412 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>27,826 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>96,925 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Rent and utilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>30,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>31,855 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>77,357 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Shareholder communication </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>7,412 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>11,808 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>46,764 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Wages and benefits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>204,472 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>580,026 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Other assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>1,316 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>226,358 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>1,316 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Exploration and evaluation assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>64,410 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>74,837 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>201,486 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>335,944</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>372,684</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>1,005,376</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s related parties also
include its directors and officers. The remuneration of directors and officers
during the periods presented was as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>Three Months Ended </TD>
    <TD  width="2%" align=center nowrap>&nbsp;</TD>
    <TD  width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>Nine Months Ended </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>September 30, </TD>
    <TD  width="2%" align=center nowrap>&nbsp;</TD>
    <TD  width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>September 30, </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Salaries and director fees </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>204,900 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>188,725 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>621,541 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>595,900 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Share-based
      payments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>101,559 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>326,499 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>467,957 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>1,266,794 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>306,459</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>515,224</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>1,089,498</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>1,862,694</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Share-based payments represent the fair
value of stock options previously granted to directors and officers that was
recognized during the periods presented above.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The related party transactions incurred
during the year were in the normal course of operations.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>8.</B> </TD>
    <TD width="95%" align=left><B>SEGMENTED INFORMATION</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s operations are primarily
directed towards the acquisition, exploration, and future development of
resource properties in Canada. All interest income is earned in Canada and all
assets are held in Canada.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 11 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>9.</B> </TD>
    <TD width="95%" align=left><B>CAPITAL MANAGEMENT</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Western is a mineral exploration
company with a primary focus of advancing its Casino Project towards production.
Its principal source of funds is the issuance of common shares. The Company
considers capital to be equity attributable to common shareholders, comprised of
share capital, contributed surplus, and deficit. It is the Company&#146;s objective
to safeguard its ability to continue as a going concern so that it can continue
to explore and develop its projects.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Western manages its capital structure
based on the funds available for its operations and makes adjustments for
changes in economic conditions, capital markets and the risk characteristics of
the underlying assets. To maintain its objectives, the Company may attempt to
issue new shares, seek debt financing, acquire or dispose of assets or change
the timing of its planned exploration and development projects. There is no
assurance that these initiatives will be successful.</P>
<P style="MARGIN-LEFT: 5%" align=justify>To facilitate the management of its
capital, Western prepares annual expenditure budgets and updates them as
necessary, depending on various factors, many of which are beyond the Company&#146;s
control. The Board of Directors approves all annual budgets and subsequent
updates.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company monitors its cash position
and its short-term investments on a regular basis to determine whether
sufficient funds are available to meet its short-term and long-term corporate
objectives. The Company also seeks to provide liquidity and limit credit risk by
acquiring investments that are guaranteed by Canadian governments or by a
Canadian chartered bank. </P>
<P style="MARGIN-LEFT: 5%" align=justify>There was no change in the Company&#146;s
approach to capital management during the period. Western has no debt and does
not pay dividends.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD  align=left ><STRONG>10. </STRONG></TD>
    <TD width="95%" align=left><B>FINANCIAL INSTRUMENT RISK</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Board of Directors has overall
responsibility for the establishment and oversight of the Company&#146;s risk
management framework. The Company has exposure to liquidity, credit, and
currency risk from the use of financial instruments. Financial instruments
consist of cash and cash equivalents, short-term investments, certain other
assets, and accounts payable and accrued liabilities.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left ><B>a.</B> </TD>
    <TD width="90%" align=left><B>Liquidity risk</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Liquidity risk is the risk that the
Company will be unable to meet its financial obligations as they come due. The
Company uses cash forecasts to ensure as far as possible that there is
sufficient cash on hand to meet short-term business requirements. Cash is
invested in highly liquid investments which are available to discharge
obligations when they come due. The Company does not maintain a line of credit.
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 12 -
    </TD></TR></TABLE><BR>
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width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Western Copper and Gold Corporation</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to the Condensed Interim Consolidated Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2013
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      prepared by management) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left ><B>b.</B> </TD>
    <TD width="90%" align=left><B>Credit risk</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Financial instruments that potentially
subject the Company to credit risk consist primarily of cash and cash
equivalents and short-term investments. These financial instruments are at risk
to the extent that the institutions issuing or holding them cannot redeem
amounts when they are due or requested. To limit its credit risk, the Company
uses a restrictive investment policy. It deposits cash and cash equivalents in
Canadian chartered banks and purchases short-term investments that are
guaranteed by Canadian governments or by Canadian chartered banks. The carrying
amount of financial assets recorded in the financial statements, net of any
allowance for losses, represents Western&#146;s maximum exposure to credit risk.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left ><B>c.</B> </TD>
    <TD width="90%" align=left><B>Currency risk</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Currency risk is the risk that the
Company will lose significant purchasing power to operate its business as a
result of changes in currency rates. The Company typically raises funds in
Canadian dollars. The majority of the Company&#146;s expenditures are incurred in
Canadian dollars. To limit its exposure to currency risk, the Company aims to
maintain funds in the currency that matches that of the costs incurred.
Historically, Western has not held significant amounts denominated in currencies
other than the Canadian dollar.</P>
<P style="MARGIN-LEFT: 10%" align=justify>In December 2012, the Company
completed a significant royalty transaction, the proceeds of which were
denominated in US dollars. Although Western has been decreasing its foreign
currency balance throughout 2013, the Company still had approximately US$5
million in financial instruments at September 30, 2013 (December 31, 2012 &#150;
US$32 million). As at September 30, 2013, a 1% change in the exchange rate
between the Canadian and US dollar would have resulted in an unrealized gain or
loss of approximately $56,000 (December 31, 2012 - $319,000).</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 13 -
    </TD></TR></TABLE><BR>
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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>


<HTML>
<HEAD>
   <TITLE>Western Copper and Gold Corporation: Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=center><B><FONT size=4>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS
</FONT><BR></B><B><FONT size=4>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2013</FONT></B></P>
<P align=justify>The following management discussion and analysis of Western
Copper and Gold Corporation (along with its subsidiaries, &#147;Western&#148; or the
&#147;Company&#148;) is dated November 7, 2013, and provides an analysis of the Company&#146;s
results of operations for the three and nine months ended September 30,
2013.</P>
<P align=justify>This discussion is intended to provide investors with a
reasonable basis for assessing the financial performance of the Company as well
as certain forward looking statements relating to its potential future
performance. The information should be read in conjunction with Western&#146;s
condensed interim consolidated financial statements for the three and nine
months ended September 30, 2013 and Western&#146;s audited consolidated financial
statements for the year ended December 31, 2012 and the notes thereto. The
Company&#146;s accounting policies are described in note 3 of the audited
consolidated financial statements for the year ended December 31, 2012. All of
the financial information presented herein is expressed in Canadian dollars,
unless otherwise indicated.</P>
<P align=justify>Western is listed on the Toronto Stock Exchange (&#147;TSX&#148;) and the
NYSE MKT under the symbol WRN. As at the date of this report, the Company had
93,683,937 common shares outstanding.</P>
<P align=justify>Additional information on the Company can be found in the
Company&#146;s Annual Information Form (&#147;AIF&#148;), filed with Canadian regulators on
SEDAR at <U><FONT color=#0000ff>www.sedar.com </FONT></U>and with the United
States Securities and Exchange Commission (the &#147;SEC&#148;) at <U><FONT
color=#0000ff>www.sec.gov </FONT></U>on Form 40-F.</P>
<P align=justify>The operations of the Company are speculative due to the
high-risk nature of the mining industry. Western faces risks that are generally
applicable to its industry and others that are specific to its operations.
Certain key risks affecting the Company&#146;s current and future operations are
discussed in its AIF and Form 40-F. This list is not exhaustive. Additional
risks not currently known to the Company, or that the Company currently deems
immaterial, may also impair the Company&#146;s operations. Such risk factors could
materially affect the value of the Company&#146;s assets, and future operating
results of the Company and could cause actual results to differ materially from
those described in the forward looking statements contained in this management
discussion and analysis. Reference is made to the discussion of forward-looking
statements at the end of this document. </P>
<P align=justify><B>DESCRIPTION OF BUSINESS</B></P>
<P align=justify>Western Copper and Gold Corporation is a Canadian-based
publicly-traded mineral exploration company with a primary focus of advancing
its Casino Project towards production. The Casino deposit contains significant
gold, copper, and molybdenum in greater than one billion tonnes of reserves and
a potential additional upside of 1.7 billion tonnes in an inferred resource.
Located in the Yukon, the Casino deposit is one of the largest undeveloped
copper-gold deposits in Canada. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 1 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>FINANCIAL POSITION</B></P>
<P align=justify>On December 21, 2012, Western completed a royalty sale with
8248567 Canada Limited (the &#147;Purchaser&#148;), an arms&#146; length party, whereby the
Purchaser cancelled the 5% net profits interest royalty (the &#147;NPI Royalty&#148;) on
all claims comprising the Casino Project, other than the Casino B claims, and
paid Western US$32 million in exchange for a 2.75% net smelter returns royalty
(the &#147;NSR Royalty&#148;) on the future sale of any metals and minerals derived from
the Casino Project, other than the Casino B claims (the &#147;Transaction&#148;).</P>
<P align=justify>The Purchaser had acquired the NPI Royalty, along with two
other royalty interests, on August 10, 2012 from Strategic Metals Ltd.
(&#147;Strategic&#148;) for US$30 million. An additional US$6 million is due from the
Purchaser to Strategic contingent on the Casino Project meeting certain
permitting targets by December 31, 2016 (see Strategic&#146;s news release dated
August 10, 2012, available on SEDAR, for more information).</P>
<P align=justify>Western has the option to repurchase 0.75% of the NSR Royalty
(resulting in a 2.00% remaining royalty) for the following amount:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a. </TD>
    <TD>
      <P align=justify>US$39 million if the amount is paid on or prior to
      December 31, 2013; or</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b. </TD>
    <TD>
      <P align=justify>US$59 million if the amount is paid on or after January
      1, 2014 but on or before December 31, 2017.</P></TD></TR></TABLE>
<P align=justify>The Company completed the Transaction because it required funds
to advance the Casino Project and for general working capital. The Company
believes that the NSR Royalty sale was a superior financing option to a standard
equity deal. Based on the Company&#146;s analysis, the valuation of the NSR Royalty
represented a significant premium to the market valuation of the Company. The
proceeds from the Transaction are expected to provide Western with sufficient
funds for the estimated period to permit the Casino Project without
significantly diluting current shareholders or unduly affecting the returns of
the project. Refer to the Liquidity and Capital Resources section for more
details on the Company&#146;s financial position.</P>
<P align=justify><B>CASINO PROJECT</B></P>
<P align=justify>FEASIBILITY STUDY</P>
<P align=justify><U>Summary</U></P>
<P align=justify>On January 7, 2013, the Company released the results of the
feasibility study on its Casino Project and subsequently filed the technical
report titled &#147;Casino Project, Form NI 43-101F1 Technical Report Feasibility
Study, Yukon, Canada &#150; Revision 1&#148; dated January 25, 2013 (the &#147;Feasibility
Study&#148;) on SEDAR. The Feasibility Study succeeds the pre-feasibility study dated
May 17, 2011 and incorporates an updated reserve, significant updated
engineering, particularly in the areas of energy supply, metallurgy and flow
sheet design, and brings the engineering on the project to a feasibility study
level. The following summary is qualified in its entirety by reference to the
full text of the Feasibility Study.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 2 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_3></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>The Feasibility Study establishes the Casino Project as a
robust copper-gold project with positive economics at conservative commodity
prices. Globally over the past few years, very few projects of the size of
Casino have been engineered to a feasibility study level and maintained
attractive economics.</P>
<P align=justify>The following is a summary of key financial results at each
price scenario used in the Feasibility Study. These results include the
following assumptions:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>An exchange rate of US$1:$1 was used for capital and operating cost
  estimates. The exchange rate applied to each commodity price scenario is
  indicated in the commodity price table below.
  <LI>All financial results include the NSR Royalty.
  <LI>Unless otherwise noted, all financial figures are calculated using the
  Long Term metal price scenario. </LI></UL>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>Long Term </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>SEC </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>Spot </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>NPV pre-tax (8% discount) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>$2.82 billion </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>$3.47 billion </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>$3.46 billion </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>IRR pre-tax (100% equity) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>24.0% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>26.8% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>27.1% </TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>NPV after-tax (8% discount) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>$1.83 billion </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>$2.29 billion </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>$2.28 billion </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>IRR after-tax (100% equity) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>20.1% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>22.5% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>22.7% </TD></TR>
  <TR>
    <TD
      style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;
    </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Payback period (years) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>3.0 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>2.7 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>2.6 </TD></TR>
  <TR>
    <TD
      style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;
    </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Net Smelter Return ($/t milled) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>22.59 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>24.62 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="13%" align=center>24.27 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>Copper Cash Cost (Credit)* (US$/lb) </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>(0.81) </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>(0.85) </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="13%" align=center>(0.90) </TD></TR></TABLE></DIV>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* The revenue from by-product credits is expected to exceed the
cash costs to produce copper.</P>
<P align=justify>The financial results of the Feasibility Study were calculated
using three different metal price scenarios. Long term prices ("Long Term") were
based on long term copper price projections from Wood Mackenzie, a research firm
that specializes in metals and energy, and typical analyst projections of long
term metal prices for the other metals. SEC pricing guidance uses LME three-year
historical rolling average prices from December 31, 2012. Spot prices ("Spot")
are the spot prices on December 31, 2012.</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD width="18%" align=center>Long Term </TD>
    <TD width="18%" align=center>SEC </TD>
    <TD width="18%" align=center>Spot </TD></TR>
  <TR vAlign=top>
    <TD align=left >Copper (US$/lb) <BR>Molybdenum (US$/lb)
      <BR>Gold (US$/oz) <BR>Silver (US$/oz) <BR>Exchange Rate (C$:US$) </TD>
    <TD width="18%" align=right>3.00 <BR>14.00 <BR>1,400.00 <BR>25.00 <BR>0.95
    </TD>
    <TD width="18%" align=right>3.67 <BR>14.67 <BR>1,488.00 <BR>28.80 <BR>1.00
    </TD>
    <TD width="18%" align=right>3.57 <BR>11.80 <BR>1,658.00 <BR>29.95 <BR>1.00
    </TD></TR></TABLE></DIV>
<P align=justify>The Feasibility Study financial results are most sensitive to
changes in commodity price assumptions. The Company believes that the Long Term
commodity prices used in the Feasibility Study still represent reasonable
estimates of long term prices for copper, gold, molybdenum, and silver.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 3 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_4></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>Most of the Casino Project&#146;s revenue is derived from copper
(46%), but gold is a significant contributor to the project (34%), establishing
the Casino Project as an attractive project from either a copper or gold
perspective. </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; border-style:solid; border-width: 1px;"
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp;% of Revenue, by Commodity* </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="20%" align=center>Years 1-4 </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="20%" align=center>Life of Mine </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>&nbsp;Copper </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="20%" align=center>48% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="20%" align=center>46% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp;Gold </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="20%" align=center>37% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="20%" align=center>34% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>&nbsp;Molybdenum </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="20%" align=center>12% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="20%" align=center>17% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp;Silver </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="20%" align=center>3% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="20%" align=center>3% </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 10%" align=justify>* Based on Long Term prices</P>
<P align=justify>Key processing plant metrics:</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>Years 1-4 </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>Life of Mine </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Average Annual Metal Production </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Copper (Mlbs) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>245 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>171 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Gold (kozs) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>399 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>266 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Silver (kozs) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>1,777 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>1,425 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Molybdenum (Mlbs) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>15.3 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>15.5 </TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Average Annual Mill Feed Grade </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Copper (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>0.307 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>0.204 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Gold (g/t) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>0.371 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>0.240 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Silver (g/t) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>2.103 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>1.74 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Molybdenum (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>0.025 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>0.023 </TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Recovery (Mill) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Copper (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>83.7% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>86.4% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Gold (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>67.7% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>67.1% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Silver (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>55.8% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>53.4% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Molybdenum (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>64.8% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>70.7% </TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Recovery (Heap) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Gold (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>66.0% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>66.0% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Copper (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>18.0% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>18.0% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Silver (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>26.0% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>26.0% </TD></TR>
  <TR>
    <TD
      style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;
    </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Annual Concentrate Production </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Cu (dry ktonnes) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>395 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>275 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Mo (dry ktonnes) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>12 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>13 </TD></TR>
  <TR>
    <TD
      style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;
    </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Average Concentrate Grade </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Copper Concentrate </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Cu (%) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>28.0% </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>28.0% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Au (g/t) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>27.3 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=center>25.6 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Ag (g/t) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>127.7 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>147.8 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=right>Molybdenum Concentrate </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="27%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=right>Mo (%) </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>56.0% </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="27%" align=center>56.0%
</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 4 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_5></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><U>Operational Highlights</U></P>
<P align=justify>The Feasibility Study evaluates the development of the Casino
deposit as a conventional open pit mine, concentrator complex, and heap leach
operation. The initial production will focus on the deposit's oxide cap as a
heap leach operation to recover gold and silver in dor&#233; form. The main sulphide
deposit will be processed using a conventional concentrator to produce
copper-gold-silver and molybdenum concentrates. </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="50%">

  <TR vAlign=top>
    <TD align=center>Operation <BR></TD>
    <TD width="33%" align=center>Nominal Throughput <BR>(tonnes per day) </TD>
    <TD width="33%" align=center>Life of Mine <BR>(years) </TD></TR>
  <TR vAlign=top>
    <TD align=center>Mill </TD>
    <TD width="33%" align=center>120,000 </TD>
    <TD width="33%" align=center>22 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Heap </TD>
    <TD width="33%" align=center>25,000 </TD>
    <TD width="33%" align=center>18 </TD></TR></TABLE></DIV>
<P align=justify>Higher grade ore fed to the concentrator during the first four
years of the concentrator operation, combined with a low strip ratio in these
years, result in higher yearly cash flows during this period that contribute
significantly to the project's financial performance and quick pay-back
period.</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=center>Years 1-4 </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=center>Life of Mine </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Average Annual Pre-tax Cash Flow ($millions)*
    </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=center>773 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=center>531 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>Average Annual After-tax Cash Flow ($millions)* </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=center>682 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=center>400 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Average NSR ($/t ore milled)* </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=center>31.59 </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=center>22.59 </TD></TR>
  <TR>
    <TD
      style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;
    </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%">&nbsp; </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Strip ratio </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=center>0.49 </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=center>0.59 </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 10%" align=justify>* Based on Long Term prices</P>
<P align=justify><U>Capital Costs</U></P>
<P align=justify>Total initial capital investment in the project is estimated to
be $2.46 billion, which represents the total direct and indirect cost for the
complete development of the Casino Project, including associated infrastructure
and power plant. The following table shows how the initial capital is
distributed between the various components. Sustaining capital for the project
is estimated at $362 million.</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>CAPITAL COST </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>$ millions </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>Direct Costs </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Mining Equipment &amp; Mine Development </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=right>454 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Concentrator (incl. related facilities) </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>904 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Heap Leach Operation </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=right>139 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Camp </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>70 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Subtotal Direct Costs </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=right>1,567 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>Indirect Costs </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>295 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Infrastructure Costs </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Power Plant </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>209 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Access Road </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=right>99 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Airstrip </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>24 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Subtotal Infrastructure </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=right>332 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>Contingency </TD>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>218 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff align=left>Owner's Costs </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    bgColor=#e6efff width="15%" align=right>44 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>TOTAL CAPITAL COST </TD>
    <TD
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    width="15%" align=right>2,456 </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 5 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><U>Operating Costs</U></P>
<P align=justify>Operating costs at the Casino Project are expected to be
typical for an operation of this scale. The combined mining and milling
operating costs are estimated at $8.52 per tonne ore milled. </P>
<P align=justify>The mining costs per tonne of ore delivered to the mill were
estimated at $3.05. The operating costs for the milling operation are expected
to average $5.47 per tonne of ore processed through the mill over the life of
the mine. Heap leach operating costs are expected to average $4.04 per tonne of
ore processed through the heap leach over the life of the heap leach.</P>
<P align=justify>PERMITTING AND DEVELOPMENT</P>
<P align=justify>The Company&#146;s key focus in 2013 is completing and submitting
its environmental assessment application to the Yukon Environmental and
Socioeconomic Assessment Board (&#147;YESAB&#148;).</P>
<P align=justify>Western completed its 2013 field program in September. This
marked the end of a six year engineering and baseline data collection program to
support the Yukon permitting process. The program included studies for
engineering, hydrology, and hydrogeology planning, fisheries research, wildlife
surveys and analysis, socio-economic analysis, heritage and archaeology studies
and water quality sampling for both the mine site and along the proposed access
road.</P>
<P align=justify>Preparation of the Project Proposal for review by YESAB is well
advanced. The Project Proposal is expected to be ready for submission on
schedule later this year. Once the project receives a positive recommendation
from YESAB, licenses can be issued to allow construction and operation of the
mine.</P>
<P align=justify>Western is continuing to engage First Nation governments about
the project and working to ensure that all matters of interest to stakeholders
are reflected in the Project Proposal. Meetings also continue to be held with
Yukon and Federal Government agencies to review aspects of the proposed project
that require their approval.</P>
<P align=justify>The Company has advanced project engineering since the issue of
the Feasibility Study in January 2013 in preparation for formal initiation of
basic and detailed engineering in 2014. Key aspects of the engineering work
completed include detailed planning and scheduling of the access road and
airstrip.</P>
<P align=justify>The use of liquefied natural gas (&#147;LNG&#148;) to generate electrical
energy continues to be an increasingly attractive power generation option to
supply power for the Casino Project and for the Yukon in general. Western
continues to work with existing and potential suppliers of LNG to develop the
best solution for providing LNG to the Casino Project.</P>
<P align=justify><B>CORPORATE ACTIVITIES</B></P>
<P align=justify>On April 24, 2013, Western adopted a shareholder rights plan
(the &#147;Rights Plan&#148;) to ensure, to the extent possible, that all holders of
common shares of the Company and the Board have adequate time to consider and
evaluate any unsolicited take-over bid for the common shares of the Company,
provide the Board with adequate time to identify, solicit, develop and negotiate
value-enhancing alternatives, as considered appropriate, to any unsolicited
take-over bid and encourage the fair treatment of the Company's shareholders in
connection with any unsolicited take-over bid.</P>
<P align=justify>Under the provisions of the Rights Plan, one right (a &#147;Right&#148;)
was issued for each common share outstanding as of April 24, 2013. The Rights
will initially be represented by the certificates representing the common shares
of the Company.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 6 -
  </TD></TR></TABLE><BR>
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width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>Subject to the terms of the Rights Plan and to certain
exceptions provided therein, the Rights will become exercisable in the event any
person, together with joint actors, acquires or announces its intention to
acquire 20% or more of Western's outstanding shares without complying with the
&#147;Permitted Bid&#148; provisions of the Rights Plan or where the application of the
Rights Plan is waived in accordance with its terms. If a take-over is completed
without complying with the requirements of the Rights Plan or where the
application of the Rights Plan is not waived in accordance with it terms, the
Rights holders (other than the acquiring person and its joint actors) will be
entitled to purchase additional common shares of the Company at one-half the
prevailing market price at that time.</P>
<P align=justify>The Rights Plan is not intended to prevent take-over bids.
Under the Rights Plan, a bid that, among other things, is made to all
shareholders on identical terms and conditions and that is open for at least 60
days may constitute a &#147;Permitted Bid&#148;.</P>
<P align=justify>The adoption of the Rights Plan was not in response to a
proposal to acquire control of Western. At this time the Company is not aware of
any such transaction that would trigger the provisions of the Rights Plan.</P>
<P align=justify>On April 24, 2013, the Company also adopted an advance notice
policy (the &#147;Policy&#148;). The Company adopted the Policy in order to facilitate an
orderly and efficient annual general or, where the need arises, special meeting,
ensure that all shareholders receive adequate notice of director nominations and
sufficient information with respect to all nominees, and allow shareholders to
register an informed vote having been afforded reasonable time for appropriate
deliberation.</P>
<P align=justify>Among other things, the Policy fixes a deadline by which
holders of record of common shares of Western must submit director nominations
to the Company prior to any annual or special meeting of shareholders and sets
forth the specific information that a shareholder must include in the notice to
the Company for an effective nomination to occur. No person will be eligible for
election as a director of the Company unless nominated in accordance with the
provisions of the Policy. </P>
<P align=justify>Both the Rights Plan and the Policy were approved by
shareholders at the Company&#146;s annual general meeting held on June 20, 2013.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 7 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>SELECTED QUARTERLY FINANCIAL INFORMATION</B></P>
<P align=justify>The following quarterly information has been extracted from the
Company&#146;s unaudited condensed interim consolidated financial statements.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>As at and for the quarter ended</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>30-Sep-13</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>30-Jun-13</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>31-Mar-13</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>31-Dec-12</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left><B></B></TD>
    <TD width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left><B></B></TD>
    <TD width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Loss and comprehensive loss </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>639,139 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>117,180 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>138,860 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>953,999 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Loss per share &#150; basic and diluted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.01 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.01 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Exploration and evaluation assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>25,078,886 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>21,939,518 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>18,973,282 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>17,706,346 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash and short-term investments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>26,520,786 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>29,831,659 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>32,488,827 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>33,517,542 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>51,966,739 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>52,126,881 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>51,723,268 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>51,634,275 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff  width="1%">&nbsp;</TD>
    <TD bgColor=#ffffff width="10%">&nbsp; </TD>
    <TD bgColor=#ffffff  width="2%">&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%">&nbsp;</TD>
    <TD bgColor=#ffffff width="10%">&nbsp; </TD>
    <TD bgColor=#ffffff  width="2%">&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%">&nbsp;</TD>
    <TD bgColor=#ffffff width="10%">&nbsp; </TD>
    <TD bgColor=#ffffff  width="2%">&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%">&nbsp;</TD>
    <TD bgColor=#ffffff width="10%">&nbsp; </TD>
    <TD bgColor=#ffffff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff align=left><B>As at and for the quarter ended</B> </TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="10%" align=right><B>30-Sep-12</B> </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="10%" align=right><B>30-Jun-12</B> </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="10%" align=right><B>31-Mar-12</B> </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="10%" align=right><B>31-Dec-11</B> </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff align=left>&nbsp; </TD>
    <TD bgColor=#ffffff  width="1%" align=left></TD>
    <TD bgColor=#ffffff width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left></TD>
    <TD bgColor=#ffffff width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left></TD>
    <TD bgColor=#ffffff width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left></TD>
    <TD bgColor=#ffffff width="10%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Loss and comprehensive loss </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>738,445 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,019,102 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,201,730 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>19,096,053 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Loss per share &#150; basic and diluted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.01 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.01 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.01 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>0.21 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Exploration and evaluation assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>47,528,131 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>45,938,009 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>43,734,281 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>42,114,531 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash and short-term investments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>3,441,580 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>5,184,195 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>7,574,938 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>9,465,568 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>51,371,026 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>51,469,800 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>51,761,289 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>52,114,445 </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><B>Items that resulted in significant differences in the
quarterly figures presented above are explained in the following
narrative.</B></P>
<P align=justify><B>Loss and comprehensive loss</B></P>
<P align=justify>The loss figures for the three months ended March 31, 2013 and
June 30, 2013 are much lower than the other loss figures presented because the
Company recognized foreign exchange gains of $752,000 and $537,000 in each
respective period as the US dollar appreciated during that time. The Company
received a significant amount of US currency in December 2012 as proceeds from
the Transaction. During the first six months of 2013, the Company has been
reducing its foreign currency balances in order to reduce its exposure to
currency risk. The foreign exchange gains are not expected to be recurring
items.</P>
<P align=justify>The loss for the three months ended December 31, 2012 is
slightly elevated compared to the loss for the three months ended September 30,
2012 as a result of bonuses paid in the fourth quarter. Promotional activities
and advertising also increased from the previous quarter in anticipation of the
release of the Feasibility Study.</P>
<P align=justify>Western reported a loss of $19.1 million for the three months
ended December 31, 2011. This quarterly loss includes a loss on distribution of
$19.7 million as a result of the distribution of assets pursuant to the plan of
arrangement completed on October 17, 2011 involving Copper North Mining Corp.
and NorthIsle Copper and Gold Inc. (the &#147;Arrangement&#148;). The impact of the loss
on distribution was somewhat offset by a deferred income tax recovery of $1.95
million. Costs related to the Arrangement also contributed $161,000 to the loss
incurred during the three months ended December 31, 2011. </P>
<P align=justify>Other than the loss on distribution discussed above, high
values assigned to stock options granted in July 2011 and the method used to
amortize that value also contributed to higher than usual quarterly loss figures
from December 31, 2011 to June 30, 2012.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 8 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_9></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>The determination of stock option value using the Black-Scholes
option pricing model is correlated to the exercise price and the volatility of
the underlying stock price. All other things being equal, the higher the
exercise price, the higher the value assigned to the stock option. Stock options
granted in July 2011 had an exercise price of $3.11. The value assigned to each
stock option was $2.13. In comparison, the stock options granted in July 2012
had an exercise price of $0.80 per share and were assigned a value of $0.34 per
stock option using the Black-Scholes option pricing model.</P>
<P align=justify>The value assigned to stock options is amortized over their
vesting period on a graded basis, as required under International Financial
Reporting Standards. This method heavily weights the amortization over the first
12 months, which explains much of the increase in loss and comprehensive loss
from July 2011 to June 2012.</P>
<P align=justify><B>Exploration and evaluation assets</B></P>
<P align=justify>Expenditures incurred by the Company relating to its mineral
properties are capitalized. As a result, the carrying value of exploration and
evaluation assets should generally increase from period to period. As most field
work relating to the Casino Project is performed from April to October due to
weather considerations, larger increases in the carrying value of exploration
and evaluation assets are expected during the second and third quarters of each
year.</P>
<P align=justify>During the quarter ended December 31, 2012, Western received
US$32 million in gross proceeds from the Transaction. The net proceeds of $31.4
million were recorded as a reduction to the carrying value of the Company&#146;s
exploration and evaluation assets.</P>
<P align=justify><B>Cash, cash equivalents, and short-term investments</B></P>
<P align=justify>For the most part, cash is used to fund ongoing operations that
increase the carrying value of the Company&#146;s exploration and evaluation assets.
Unless there is a significant financing transaction, cash, cash equivalents and
short-term investments generally decrease from one period to the next.</P>
<P align=justify>Cash increased substantially during the quarter ended December
31, 2012 as a result of US$32 million received from the Transaction.</P>
<P align=justify><B>Total assets</B></P>
<P align=justify>Because the Company capitalizes expenditures on its mineral
properties as exploration and evaluation assets, no significant impact to total
assets is expected unless Western completes a financing, distribution, or
disposal.</P>
<P align=justify>Net cash proceeds received from the Transaction reduced the
carrying value of exploration and evaluation assets. As such, there was no
significant net change to total assets as a result of the Transaction. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 9 -
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>RESULTS OF OPERATIONS</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>Three Months Ended </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>Nine Months Ended </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>September 30, </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap>September 30, </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2013 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2012 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2013 </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap>2012 </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left></TD>
    <TD width="10%" align=right nowrap>$&nbsp;</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap></TD>
    <TD width="10%" align=right nowrap>$&nbsp;</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap></TD>
    <TD width="10%" align=right nowrap>$&nbsp;</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap></TD>
    <TD width="10%" align=right nowrap>$&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>CORPORATE EXPENSES</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Filing and regulatory fees </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>12,132 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>34,775 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>160,578 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>183,989 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Office and administration </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>70,851 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>50,622 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>186,535 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>158,597 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Professional fees </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>39,125 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>60,199 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>129,894 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>214,545 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Rent and utilities </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>46,568 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>30,922 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>124,681 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>77,357 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Share-based payments </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>126,744 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>417,695 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>545,049 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,594,504 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Shareholder communication and travel </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>86,398 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>91,343 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>395,044 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>268,086 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Wages and benefits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>218,127 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>212,472 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>692,898 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>621,749 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>LOSS BEFORE OTHER ITEMS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>599,945</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>898,028</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>2,234,679</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>3,118,827</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>OTHER ITEMS</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exploration tax credit </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(145,789</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(145,789</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Foreign exchange loss (gain) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>119,001 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(22</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(1,170,815</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>4,870 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest income </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(79,807</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(13,772</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(168,685</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(64,429</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Plan of arrangement costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>45,798 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>LOSS AND COMPREHENSIVE LOSS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>639,139</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>738,445</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>895,179</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>2,959,277</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>THREE MONTHS ENDED SEPTEMBER 30, 2013</P>
<P align=justify>Western incurred a loss of $639,000 ($0.01 per common share)
for the three months ended September 30, 2013 compared to a loss of $738,000
($0.01 per common share) over the same period in 2012. The scale and nature of
the Company&#146;s administrative activity have remained consistent throughout 2012
and 2013, but a number of significant items led to the difference in the loss
figures.</P>
<P align=justify>Share-based payments were $291,000 less during the three months
ended September 30, 2013 than during the three months ended September 30, 2012.
The reason for the decrease in share-based payments is that the value attributed
to the July 2011 stock option grant was almost fully amortized prior to
September 30, 2013. For more information, refer to the discussion under Selected
Quarterly Financial Information, above.</P>
<P align=justify>During the three months ended September 30, 2012, Western
received a tax credit of $146,000 for 2011 exploration expenditures on the
previously owned Island Copper Property. There was no such tax credit received
during 2013.</P>
<P align=justify>During the three months ended September 30, 2013, the Company
experienced a foreign exchange loss of $119,000 as a result of period end
translation adjustments to Western&#146;s US denominated cash and cash equivalents.
The Company had minimal US denominated cash balances during the three and nine
months ended September 30, 2012.</P>
<P align=justify>Interest income increased during the three months ended
September 30, 2013 as compared to the same period in 2012 because the Company
had higher interest bearing balances during the 2013 period.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 10 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_11></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>NINE MONTHS ENDED SEPTEMBER 30, 2013</P>
<P align=justify>Western incurred a loss of $895,000 ($0.01 per common share)
for the nine months ended September 30, 2013 compared to a loss of $3.0 million
($0.03 per common share) over the same period in 2012. The scale and nature of
the Company&#146;s administrative activity have remained consistent throughout 2012
and 2013, but a number of significant items led to the difference in the loss
figures.</P>
<P align=justify>During the nine months ended September 30, 2013, the Company
experienced a foreign exchange gain of $1.2 million as the Company converted US
Dollars to Canadian dollars at favourable exchange rates. The sizable gain
experienced during the nine months of 2013 is not expected to be a recurring
item.</P>
<P align=justify>Share-based payments were $1.05 million less during the nine
months ended September 30, 2013 than during the nine months ended September 30,
2012. The reason for the decrease in share-based payments is that the value
attributed to the July 2011 stock option grant was almost fully amortized prior
to December 31, 2012. For more information, refer to the discussion under
Selected Quarterly Financial Information, above. </P>
<P align=justify>Shareholder communication expenses were $127,000 higher during
the nine months ended September 30, 2013 as compared to the same period in the
prior year as the Company promoted the positive results of the Feasibility Study
released in January 2013 through advertising and roadshows. The Company only
undertook minor promotional activities during the nine months ended September
30, 2012.</P>
<P align=justify>Professional fees were $85,000 less during the nine months
ended September 30, 2013 as compared to the same period in the previous year due
to a general decrease in legal and tax activity.</P>
<P align=justify>Wages and benefits increased by $71,000 during the nine months
ended September 30, 2013 compared to the nine months ended September 30, 2012
largely due to severance payments being paid to terminated employees in
2013.</P>
<P align=justify><B>LIQUIDITY AND CAPITAL RESOURCES</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap><B>Three months ended</B> </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap><B>Nine months ended</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap><B>September 30,</B> </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center nowrap><B>September 30,</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2013</B> </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2012</B> </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2013</B> </TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2012</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left><B></B></TD>
    <TD width="10%" align=right nowrap><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap><B></B></TD>
    <TD width="10%" align=right nowrap><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap></TD>
    <TD width="10%" align=right nowrap><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=right nowrap><B></B></TD>
    <TD width="10%" align=right nowrap><STRONG>$</STRONG>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>CASH PROVIDED BY (USED IN) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Operating activities </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(648,105</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(339,932</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(657,403</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(1,301,118</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Financing activities </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>9,350 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>301,500 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Investing activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>(33,118</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>653,131 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>(26,771,574</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>501,071 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>CHANGE IN CASH
      AND CASH</B> <B>EQUIVALENTS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>(681,223</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>313,199</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>(27,419,627</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>(498,547</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      align=left><B>)</B> </TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Beginning balance
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>6,779,138 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>551,390 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>33,517,542 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>1,363,136 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>CASH AND CASH
      EQUIVALENTS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>6,097,915</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>864,589</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>6,097,915</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>864,589</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>Western had $6.1 million in cash on-hand and $20.4 million in
short-term investments as at September 30, 2013. This compares with cash of
$33.5 million as at December 31, 2012.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 11 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_12></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>As at September 30, 2013, Western had $24.7 million in working
capital, which is sufficient working capital to fund the Company&#146;s anticipated
corporate expenses through 2015 and continue advancing the Casino Project
through the permitting phase. The Company will have to raise significant
additional capital in order to build the Casino Project.</P>
<P align=justify>The financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. The Company&#146;s ability to continue
as a going concern is substantially dependent on its ability to raise funds
necessary to acquire assets, perform exploration and development activities, and
conduct its corporate affairs primarily through the issuance of its common
shares. There is a risk that in the future the Company may not be able to raise
the capital required to fund operations.</P>
<P align=justify><B>Operating activities</B></P>
<P align=justify>The significant components of operating activities are
discussed in the Results of Operations section above.</P>
<P align=justify><B>Financing activities</B></P>
<P align=justify>During the nine months ended September 30, 2013, the Company
received $9,350 from the exercise of stock options. This compares with $302,000
received from stock option exercises in the previous year.</P>
<P align=justify><B>Investing activities</B></P>
<P align=justify>Investing activities include both mineral property expenditures
and purchases and redemptions of short-term investments. Because the Company
redeems its short-term investments to pay for mineral property expenditures,
these two items usually off-set to a great degree. This was not the case during
the nine months ended September 30, 2013 as Western invested $20 million of the
proceeds from the royalty sale into short-term investments and only expended
$6.5 million on mineral property activities. During the nine months ended
September 30, 2012, Western redeemed $5.6 million in short-term investments and
spent $5.0 million on exploration and evaluation activities.</P>
<P align=justify>During the three months ended September 30, 2013, the Company
redeemed $2.7 million of short-term investments and spent $2.7 million on
exploration and evaluation expenditures. During the three months ended September
30, 2012, the Company redeemed $2.0 million of short-term investments and spent
$1.4 million on exploration and evaluation expenditures.</P>
<P align=justify>The majority of the costs in both years relate to engineering
studies (e.g. pre-feasibility, feasibility) and permitting work on the Casino
Project. A summary of activities relating to the Casino Project is available
under the Casino Project section at the beginning of this report.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 12 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>CONTRACTUAL OBLIGATIONS</B></P>
<P align=justify>Western leases office space in Vancouver, British Columbia. On
October 31, 2013, the Company signed a new lease that will be effective January
1, 2014. The future minimum lease payments by calendar year are approximately as
follows:</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="50%">

  <TR vAlign=top>
    <TD align=left><B>Year</B> </TD>
    <TD width="1%" align=left><B></B></TD>
    <TD width="12%" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>2013 </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>81,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>2014 </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>222,000 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>2015 </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>222,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>2016 </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>111,000 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Thereafter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>TOTAL</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>636,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>The Company is required to use the proceeds received from the
royalty sale for furthering the development of the Casino Project and for
general working capital purposes; provided that the general working capital
purposes of Western do not include the acquisition and development of any
mineral properties unrelated to the Casino Project.</P>
<P align=justify>The Company has no off-balance sheet arrangements, no capital
lease agreements and no long term obligations other than those described above,
throughout this document, or in the description of exploration and evaluation
assets contained in the notes to the consolidated financial statements.</P>
<P align=justify><B>RELATED PARTY TRANSACTIONS</B></P>
<P align=justify>Since the Company&#146;s corporate reorganization in October 2011,
administration, accounting and other office services have been provided by
Ravenwolf Resource Group Ltd. (&#147;Ravenwolf&#148;), a private company owned equally by
Western, NorthIsle Copper and Gold Inc. (&#147;NorthIsle&#148;), and Copper North Mining
Corp. (&#147;Copper North&#148;). Ravenwolf provided the services to its owners on a
cost-recovery basis. </P>
<P align=justify>Effective April 1, 2013, NorthIsle and Copper North transferred
their respective Ravenwolf shares to Western and, as a result, Ravenwolf became
a wholly-owned subsidiary of the Company.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 13 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_14></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>Beginning April 1, 2013, Ravenwolf&#146;s results are consolidated
with those of the Company. Prior to that date, Ravenwolf was a related party to
the Company and the amounts charged to Western were categorized as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>Three Months Ended </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>Nine Months Ended </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>September 30, </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>September 30, </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Filing and regulatory </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>1,502 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Office and administration </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>27,412 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>27,826 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>96,925 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Rent and utilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>30,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>31,855 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>77,357 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Shareholder communication </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>7,412 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>11,808 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>46,764 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Wages and benefits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>204,472 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>226,358 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>580,026 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>1,316 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>1,316 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Exploration and evaluation assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>64,410 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>74,837 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>201,486 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>335,944</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>372,684</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right><B>1,005,376</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>The Company&#146;s related parties also include its directors and
officers. The remuneration of directors and officers during the periods
presented was as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>Three Months Ended </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>Nine Months Ended </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>September 30, </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="23%" colSpan=4 align=center>September 30, </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2013 </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=right>2012 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right></TD>
    <TD width="10%" align=right>$&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Salaries and director fees </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>204,900 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>188,725 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>621,541 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>595,900 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Share-based
      payments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>101,559 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>326,499 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>467,957 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>1,266,794 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>306,459</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>515,224</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>1,089,498</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>1,862,694</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>Share-based payments represent the fair value of stock options
previously granted to directors and officers that was recognized during the
periods presented above.</P>
<P align=justify>The related party transactions incurred during the year were in
the normal course of operations.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid"
    align=right>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 14 -
    </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_15></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>SIGNIFICANT ACCOUNTING ESTIMATES</B></P>
<P align=justify><B>Use of estimates</B></P>
<P align=justify>The preparation of financial statements in conformity with
International Financial Reporting Standards (&#147;IFRS&#148;) requires management to make
judgments, estimates, and assumptions that affect the application of policies
and reported amounts of assets and liabilities and disclosures of contingent
assets and contingent liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.</P>
<P align=justify>Actual results could differ from those estimates. Significant
accounts that require estimates as the basis for determining the stated amounts
include exploration and evaluation assets, share-based payments, the fair value
of assets distributed pursuant to the plan of arrangement, and income and mining
taxes. Differences may be material.</P>
<P align=justify><B>Exploration and evaluation asset</B></P>
<P align=justify>The carrying amount of the Company&#146;s exploration and evaluation
asset represents costs net of write-downs to date and does not necessarily
reflect present or future values. Recovery of capitalized costs is dependent on
successful development of economic mining operations or the disposition of the
related mineral properties.</P>
<P align=justify>The Company&#146;s asset are reviewed for indication of impairment
at each balance sheet date. If indication of impairment exists, the asset&#146;s
recoverable amount is estimated.</P>
<P align=justify><B>Environmental rehabilitation</B></P>
<P align=justify>Minimum standards for site reclamation have been established by
various governmental agencies that affect certain operations of the Company. The
determination of reclamation costs requires assumptions with respect to future
expected costs and legislation in effect at that time. Changes in these
assumptions could have a material effect on the amount required to be recognized
as an environmental rehabiliation provision.</P>
<P align=justify><B>Share-based payments</B></P>
<P align=justify>The fair value of share-based payments and warrant issuances is
calculated using the Black-Scholes option pricing model. Option pricing models
require the input of highly subjective assumptions including the expected price
volatility of the Company&#146;s shares and the expected life of the option. Changes
in the subjective input assumptions can materially affect the fair value
estimate.</P>
<P align=justify><B>DISCLOSURE CONTROLS AND PROCEDURES</B></P>
<P align=justify>Management is responsible for designing, establishing, and
maintaining a system of disclosure controls and procedures. Disclosure controls
and procedures are designed to provide reasonable assurance that material
information relating to the Company is made known to management, particularly
during the period in which the annual filings are being prepared and that
information required to be disclosed by the Company in its annual filings,
interim filings or other reports filed or submitted by it under securities
legislation is recorded, processed, summarized and reported within the time
periods specified in securities legislation.</P>
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  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify>The Chief Executive Officer and the Chief Financial Officer
evaluated the effectiveness of the Company&#146;s disclosure controls and procedures
as of December 31, 2012. As a result of the material weakness identified during
the assessment of internal control over financial reporting, as described below,
management has also concluded that its disclosure controls and procedures were
not effective as at December 31, 2012.</P>
<P align=justify><B>MANAGEMENT&#146;S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING</B></P>
<P align=justify>Management is responsible for designing, establishing, and
maintaining a system of internal control over financial reporting to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
accounting principles generally accepted in Canada.</P>
<P align=justify>The Company designed its system of internal control based on
the Internal Control-Integrated Framework established by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).</P>
<P align=justify>The Chief Executive Officer and the Chief Financial Officer
assessed the design and the operating effectiveness of the Company&#146;s internal
control over financial reporting as of December 31, 2012.</P>
<P align=justify>Based on that assessment, management concluded that, as at
December 31, 2012, the Company&#146;s internal control over financial reporting was
not effective due to the existence of a material weakness. A material weakness
existed in the design of internal control over financial reporting caused by a
lack of adequate segregation of duties in the financial close process. The Chief
Financial Officer is responsible for preparing, authorizing, and reviewing
information that is key to the preparation of financial reports. He is also
responsible for preparing and reviewing the resulting financial reports. This
weakness has the potential to result in material misstatements in the Company&#146;s
financial statements, and should also be considered a material weakness in its
disclosure controls and procedures.</P>
<P align=justify>Management has concluded, and the audit committee has agreed
that taking into account the present stage of Western&#146;s development, the Company
does not have sufficient size and scale to warrant the hiring of additional
staff to correct the weakness at this time.</P>
<P align=justify>There has been no significant change in internal control over
financial reporting or in disclosure controls and procedures from July 1 to
September 30, 2013 that has materially affected, or is reasonably likely to
affect, the Company&#146;s internal control over financial reporting or its
disclosure controls and procedures. </P>
<P align=justify><B>FINANCIAL INSTRUMENT RISK</B></P>
<P align=justify>The Board of Directors has overall responsibility for the
establishment and oversight of the Company&#146;s risk management framework. The
Company has exposure to liquidity, credit, and currency risk from the use of
financial instruments. Financial instruments consist of cash and cash
equivalents, short-term investments, certain other assets, and accounts payable
and accrued liabilities.</P>
<P align=justify><B>Liquidity risk</B></P>
<P align=justify>Liquidity risk is the risk that the Company will be unable to
meet its financial obligations as they come due. The Company uses cash forecasts
to ensure as far as possible that there is sufficient cash on hand to meet
short-term business requirements. Cash is invested in highly liquid investments
which are available to discharge obligations when they come due. The Company
does not maintain a line of credit. </P>
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  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>Credit risk</B></P>
<P align=justify>Financial instruments that potentially subject the Company to
credit risk consist primarily of cash and cash equivalents and short-term
investments. These financial instruments are at risk to the extent that the
institutions issuing or holding them cannot redeem amounts when they are due or
requested. To limit its credit risk, the Company uses a restrictive investment
policy. It deposits cash and cash equivalents in Canadian chartered banks and
purchases short-term investments that are guaranteed by Canadian governments or
by Canadian chartered banks. The carrying amount of financial assets recorded in
the financial statements, net of any allowance for losses, represents Western&#146;s
maximum exposure to credit risk.</P>
<P align=justify><B>Currency risk</B></P>
<P align=justify>Currency risk is the risk that the Company will lose
significant purchasing power to operate its business as a result of changes in
currency rates. The Company typically raises funds in Canadian dollars. The
majority of the Company&#146;s expenditures are incurred in Canadian dollars. To
limit its exposure to currency risk, the Company aims to maintain funds in the
currency that matches that of the costs incurred. Historically, Western has not
held significant amounts denominated in currencies other than the Canadian
dollar.</P>
<P align=justify>In December 2012, the Company completed a significant royalty
transaction, the proceeds of which were denominated in US dollars. Although
Western has been decreasing its foreign currency balance throughout 2013, the
Company still had approximately US$5 million in financial instruments at
September 30, 2013 (December 31, 2012 &#150; US$32 million). As at September 30,
2013, a 1% change in the exchange rate between the Canadian and US dollar would
have resulted in an unrealized gain or loss of approximately $56,000 (December
31, 2012 - $319,000).</P>
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    <TD style="BORDER-TOP: #000000 1px solid" width="50%" align=right>- 17 -
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  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>FORWARD-LOOKING STATEMENTS</B></P>
<P align=justify>This Management&#146;s Discussion and Analysis contains certain
forward-looking statements concerning anticipated developments in Western&#146;s
operations in future periods. Statements that are not historical fact are
forward-looking statements as that term is defined in the United States Private
Securities Litigation Reform Act of 1995 and forward looking information as that
term is defined in National Instrument 51-102 (&#147;NI 51-102&#148;) of the Canadian
Securities Administrators. Certain forward looking information should also be
considered future-oriented financial information (&#147;FOFI&#148;) as that term is
defined in NI 51-102. The purpose of disclosing FOFI is to provide a general
overview of management&#146;s expectations regarding the anticipated results of
operations and capital expenditures. Forward-looking statements and information
(referred to herein together as &#147;forward-looking statements&#148;) are frequently,
but not always, identified by words such as &#147;expects&#148;, &#147;anticipates&#148;,
&#147;believes&#148;, &#147;intends&#148;, &#147;estimates&#148;, &#147;potential&#148;, &#147;possible&#148; and similar
expressions, or statements that events, conditions or results &#147;will&#148;, &#147;may&#148;,
&#147;could&#148; or &#147;should&#148; occur or be achieved. These forward-looking statements are
set forth principally under the heading &#147;Casino Project&#148; and elsewhere in
Management&#146;s Discussion and Analysis and may include statements regarding
perceived merit of properties; mineral reserve and resource estimates; capital
expenditures; feasibility study results, exploration results at the Company&#146;s
property; budgets; work programs; timelines; strategic plans; market price of
precious and base metals; or other statements that are not statement of fact.
The material factors or assumptions used to develop forward-looking statements
include prevailing and projected market prices and foreign exchange rates,
exploitation and exploration estimates and results, continued availability of
capital and financing, and general economic, market or business conditions and
as more specifically disclosed throughout this document. Forward-looking
statements are statements about the future and are inherently uncertain, and
actual achievements of Western and its subsidiaries may differ materially from
those reflected in the forward-looking statements due to a variety of risks,
uncertainties and other factors. </P>
<P align=justify>Western&#146;s forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements are made, and
Western does not assume any obligation to update forward-looking statements if
circumstances or management&#146;s beliefs, expectations or opinions should change
except as required by law. For the reasons set forth above, investors should not
place undue reliance on forward-looking statements. Important factors that could
cause actual results to differ materially from Western &#146;s expectations include
uncertainties involved in fluctuations in gold, copper and other commodity
prices and currency exchange rates; uncertainties relating to interpretation of
drill results and the geology, continuity and grade of mineral deposits;
uncertainty of estimates of capital and operating costs, recovery rates,
production estimates and estimated economic return; the need for cooperation of
government agencies and First Nations in the exploration and development of the
property and the issuance of required permits; the need to obtain additional
financing to develop the property and uncertainty as to the availability and
terms of future financing; the possibility of delay in exploration or
development programs or in construction projects and uncertainty of meeting
anticipated program milestones; uncertainty as to timely availability of permits
and other governmental approvals; and other risks and uncertainties disclosed in
Western&#146;s Annual Information Form, Western&#146;s annual report on Form 40-F, and
other information released by Western and filed with the applicable regulatory
agencies.</P>
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  <TR vAlign=top>
    <TD align=left>WESTERN COPPER AND GOLD CORPORATION </TD>
    <TD width="50%" align=right>MANAGEMENT DISCUSSION AND ANALYSIS </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(an exploration
      stage company) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" align=right>Three
      and nine months ended September 30, 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in Canadian dollars, unless otherwise indicated)
    </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE>
<P align=justify><B>CAUTIONARY NOTE TO U.S. INVESTORS REGARDING RESOURCE AND
RESERVE ESTIMATES</B></P>
<P align=justify>The Company&#146;s management discussion and analysis has been
prepared in accordance with the requirements of the securities laws in effect in
Canada as of December 31, 2012, which differ in certain material respects from
the disclosure requirements of United States securities laws. The terms &#147;mineral
reserve&#148;, &#147;proven mineral reserve&#148; and &#147;probable mineral reserve&#148; are Canadian
mining terms as defined in accordance with Canadian National Instrument 43-101
Standards of Disclosure for Mineral Projects (&#147;NI 43-101&#148;) and the Canadian
Institute of Mining, Metallurgy and Petroleum (the &#147;CIM&#148;) - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as amended. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral projects. The
definitions of these terms differ from the definitions of such terms for
purposes of the disclosure requirements of the Securities and Exchange
Commission (the &#147;Commission&#148;) and contained in Industry Guide 7 of the
Commission. Under Industry Guide 7 standards, a &#147;final&#148; or &#147;bankable&#148;
feasibility study is required to report reserves, the three-year historical
average price is used in any reserve or cash flow analysis to designate reserves
and the primary environmental analysis or report must be filed with the
appropriate governmental authority.</P>
<P align=justify>In addition, the terms &#147;mineral resource&#148;, &#147;measured mineral
resource&#148;, &#147;indicated mineral resource&#148; and &#147;inferred mineral resource&#148; are
defined in NI 43-101 and required by NI 43-101 to be used for disclosure of
mineral resources. These terms, however, are not defined terms under Industry
Guide 7 and are not permitted to be used in reports and registration statements
of United States companies filed with the Commission. Investors are cautioned
not to assume that any part or all of the mineral deposits in these categories
will ever be converted into reserves. &#147;Inferred mineral resources&#148; have a great
amount of uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the basis
of feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of an inferred mineral resource
exists or is economically or legally mineable. Disclosure of &#147;contained ounces&#148;
in a resource is permitted disclosure under Canadian regulations. In contrast,
the Commission only permits U.S. companies to report mineralization that does
not constitute &#147;reserves&#148; by Commission standards as in place tonnage and grade
without reference to unit measures.</P>
<P align=justify>Accordingly, information contained and incorporated by
reference into this MD&amp;A that describes the Company&#146;s mineral deposits may
not be comparable to similar information made public by issuers subject to the
Commission&#146;s reporting and disclosure requirements applicable to domestic United
States issuers.</P>
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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>EXHIBIT 99.3
<TEXT>


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<P align=center><B>Form 52-109F2 - </B><B><I>Certification of Interim
Filings</I></B></P>
<P align=justify>I, Dale Corman, Chief Executive Officer of Western Copper and
Gold Corporation, certify the following:</P>
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  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify><B><I>Review: </I></B>I have reviewed the interim
      financial report and interim MD&amp;A (together, the &#147;interim filings&#148;) of
      Western Copper and Gold Corporation (the &#147;issuer&#148;) for the interim period
      ended September 30, 2013.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify><B><I>No misrepresentations: </I></B>Based on my
      knowledge, having exercised reasonable diligence, the interim filings do
      not contain any untrue statement of a material fact or omit to state a
      material fact required to be stated or that is necessary to make a
      statement not misleading in light of the circumstances under which it was
      made, with respect to the period covered by the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify><B><I>Fair presentation: </I></B>Based on my knowledge,
      having exercised reasonable diligence, the interim financial report
      together with the other financial information included in the interim
      filings fairly present in all material respects the financial condition,
      financial performance and cash flows of the issuer, as of the date of and
      for the periods presented in the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify><B><I>Responsibility: </I></B>The issuer&#146;s other
      certifying officer(s) and I are responsible for establishing and
      maintaining disclosure controls and procedures (DC&amp;P) and internal
      control over financial reporting (ICFR), as those terms are defined in
      National Instrument 52-109 <I>Certification of Disclosure in Issuers&#146;
      Annual and Interim Filings, </I>for the issuer.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify><B><I>Design: </I></B>Subject to the limitations, if any,
      described in paragraphs 5.2 and 5.3, the issuer&#146;s other certifying
      officer(s) and I have, as at the end of the period covered by the interim
      filings</P></TD></TR></TABLE><BR>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>designed DC&amp;P, or caused it to be designed under our
      supervision, to provide reasonable assurance that</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>material information relating to the issuer is made known
      to us by others, particularly during the period in which the interim
      filings are being prepared; and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>information required to be disclosed by the issuer in its
      annual filings, interim filings or other reports filed or submitted by it
      under securities legislation is recorded, processed, summarized and
      reported within the time periods specified in securities legislation;
      and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD colSpan=2>
      <P align=justify>designed ICFR, or caused it to be designed under our
      supervision, to provide reasonable assurance regarding the reliability of
      financial reporting and the preparation of financial statements for
      external purposes in accordance with the issuer&#146;s
GAAP.</P></TD></TR></TABLE><BR>
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  <TR>
    <TD vAlign=top width="5%">5.1 </TD>
    <TD>
      <P align=justify><B><I>Control framework: </I></B>The control framework
      the issuer&#146;s other certifying officer(s) and I used to design the issuer&#146;s
      ICFR is Internal Control-Integrated Framework established by the Committee
      of Sponsoring Organizations of the Treadway Commission
  (COSO).</P></TD></TR></TABLE>
<P align=right>1</P>
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  <TR>
    <TD vAlign=top width="5%">5.2 </TD>
    <TD colSpan=2>
      <P align=justify><B><I>ICFR &#150; material weakness relating to design:
      </I></B>The issuer has disclosed in its interim MD&amp;A for each material
      weakness relating to design existing at the end of the interim
    period</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>a description of the material weakness;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>the impact of the material weakness on the issuer&#146;s
      financial reporting and its ICFR; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>the issuer&#146;s current plans, if any, or any actions
      already undertaken, for remediating the material weakness.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">5.3 </TD>
    <TD colSpan=2>
      <P align=justify><B><I>N/A</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD colSpan=2>
      <P align=justify><B><I>Reporting changes in ICFR: </I></B>The issuer has
      disclosed in its interim MD&amp;A any change in the issuer&#146;s ICFR that
      occurred during the period beginning on July 1, 2013 and ended on
      September 30, 2013 that has materially affected, or is reasonably likely
      to materially affect, the issuer&#146;s ICFR.</P></TD></TR></TABLE>
<P align=justify>Date: November 8, 2013</P>
<P align=justify><I><U>/s/ Dale Corman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U></I></P>
<P align=justify>Dale Corman<BR>Chief Executive Officer</P>
<P align=right>2</P>
<HR align=center color=black SIZE=5 width="100%" noShade>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>EXHIBIT 99.4
<TEXT>

<HTML>
<HEAD>
   <TITLE>Western Copper and Gold Corporation: Exhibit 99.4 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<!--$$/page=--><A name=page_1></A>
<P align=center><B>Form 52-109F2 - </B><B><I>Certification of Interim
Filings</I></B></P>
<P align=justify>I, Julien Fran&#231;ois, Chief Financial Officer of Western Copper
and Gold Corporation, certify the following:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify><B><I>Review: </I></B>I have reviewed the interim
      financial report and interim MD&amp;A (together, the &#147;interim filings&#148;) of
      Western Copper and Gold Corporation (the &#147;issuer&#148;) for the interim period
      ended September 30, 2013.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify><B><I>No misrepresentations: </I></B>Based on my
      knowledge, having exercised reasonable diligence, the interim filings do
      not contain any untrue statement of a material fact or omit to state a
      material fact required to be stated or that is necessary to make a
      statement not misleading in light of the circumstances under which it was
      made, with respect to the period covered by the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify><B><I>Fair presentation: </I></B>Based on my knowledge,
      having exercised reasonable diligence, the interim financial report
      together with the other financial information included in the interim
      filings fairly present in all material respects the financial condition,
      financial performance and cash flows of the issuer, as of the date of and
      for the periods presented in the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify><B><I>Responsibility: </I></B>The issuer&#146;s other
      certifying officer(s) and I are responsible for establishing and
      maintaining disclosure controls and procedures (DC&amp;P) and internal
      control over financial reporting (ICFR), as those terms are defined in
      National Instrument 52-109 <I>Certification of Disclosure in Issuers&#146;
      Annual and Interim Filings, </I>for the issuer.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify><B><I>Design: </I></B>Subject to the limitations, if any,
      described in paragraphs 5.2 and 5.3, the issuer&#146;s other certifying
      officer(s) and I have, as at the end of the period covered by the interim
      filings</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>designed DC&amp;P, or caused it to be designed under our
      supervision, to provide reasonable assurance that</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>material information relating to the issuer is made known
      to us by others, particularly during the period in which the interim
      filings are being prepared; and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>information required to be disclosed by the issuer in its
      annual filings, interim filings or other reports filed or submitted by it
      under securities legislation is recorded, processed, summarized and
      reported within the time periods specified in securities legislation;
      and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD colSpan=2>
      <P align=justify>designed ICFR, or caused it to be designed under our
      supervision, to provide reasonable assurance regarding the reliability of
      financial reporting and the preparation of financial statements for
      external purposes in accordance with the issuer&#146;s
GAAP.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">5.1 </TD>
    <TD>
      <P align=justify><B><I>Control framework: </I></B>The control framework
      the issuer&#146;s other certifying officer(s) and I used to design the issuer&#146;s
      ICFR is Internal Control-Integrated Framework established by the Committee
      of Sponsoring Organizations of the Treadway Commission
  (COSO).</P></TD></TR></TABLE>
<P align=right>1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_2></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">5.2 </TD>
    <TD colSpan=2>
      <P align=justify><B><I>ICFR &#150; material weakness relating to design:
      </I></B>The issuer has disclosed in its interim MD&amp;A for each material
      weakness relating to design existing at the end of the interim
    period</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>a description of the material weakness;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>the impact of the material weakness on the issuer&#146;s
      financial reporting and its ICFR; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>the issuer&#146;s current plans, if any, or any actions
      already undertaken, for remediating the material weakness.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">5.3 </TD>
    <TD colSpan=2>
      <P align=justify><B><I>N/A</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD colSpan=2>
      <P align=justify><B><I>Reporting changes in ICFR: </I></B>The issuer has
      disclosed in its interim MD&amp;A any change in the issuer&#146;s ICFR that
      occurred during the period beginning on July 1, 2013 and ended on
      September 30, 2013 that has materially affected, or is reasonably likely
      to materially affect, the issuer&#146;s ICFR.</P></TD></TR></TABLE>
<P align=justify>Date: November 8, 2013</P>
<P align=justify><I><U>/s/ Julien Fran&#231;ois </U></I></P>
<P align=justify>Julien Fran&#231;ois <BR>Chief Financial Officer</P>
<P align=right>2</P>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
