DENVER, COLORADO--(Marketwire - June 24, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; FRANKFURT:H5N - News; the "Company") is pleased to provide this update on the Company's Canadian Exploration Projects: Groundhog in British Columbia, Tulita in Northwest Territories, and Ellesmere Island, Nunavut. The primary objective of the upcoming work programs will be to define potential coal resources on all three coal prospects in Canada. A qualified person has been hired from WEIR International Inc. ("WEIR") to perform sufficient work to classify the historical estimates as current mineral resources or mineral reserves. Tom A. Tveten, Chief Geologist of WEIR is an Independent Qualified Person (the "Qualified Person") as defined in NI 43-101 Standards of Disclosure for Mineral Projects for all 3 projects and is the author behind all 3 reports.
Work Summary of the past 14 months
- NI 43-101 Technical Reports prepared by WEIR have been filed for each project
- Coal Sampling and testing by Sasol for gasification; results show coal is suitable for gasification
- Talks with potential partners for new opportunities and partnerships
- Traditional Knowledge Study in NWT
- Preliminary Environmental assessment
- Discussions for offtake/future sales agreements
Groundhog (British Columbia)
West Hawk has an option to acquire a 100% interest of the Groundhog Coal Property and holds coal exploration licenses for 8,887 hectares in British Columbia, Canada. The coal quality ranges from low volatile bituminous to anthracite coal. The potential exploration target estimate within West Hawk's coal exploration licenses is 275-300 million in-place tonnes. The Groundhog Coalfields have been explored by Coastal Coal, National Joint Venture, B.C. Hydro, L.G. Scott, Groundhog Coal, Suncor, and Gulf beginning in the early 1960s and continuing until the mid 1980s. National Joint Venture and Imperial drilled a total of 12 holes, totaling approximately 2,051 metres, in the Discovery Creek and Evans Creek areas. In 1970 National Joint Venture drilled six holes, totaling approximately 1,034 metres, and in 1981 Imperial drilled six holes, totaling approximately 1,017 metres.
The Company has 100% interest in exploration licenses covering 229,150 acres. The Tulita Report reveals that the Tulita Prospect contains approximately 1.544 billion in-place tonnes of historical resources with quality ranging from lignite to sub-bituminous coal. The coal samples have been successfully tested by Sasol-Lurgi for gasification. There are three prospect areas within the exploration licenses, referenced as Fort Norman, Seagull Island and Tate Lake. The Tate Lake Prospect Area is divided into three blocks; Northeast, Central and Plateau. The Seagull Island Prospect Area is divided into the North and South Blocks. Majority of the coal samples sent and tested by Sasol-Lurgi were taken from the Tate Lake Prospect area.
A two phase exploration program is proposed. Phase One of the drilling program would be conducted in the Seagull Island Prospect Area North Block, Seagull Island Prospect Area South Block and Tate Lake Prospect Area Northeast Block. Phase Two of the drilling program would be conducted in the Tate Lake Prospect Area Central and Plateau blocks.
The Company acquired 100% of the right, title and interest in coal exploration licenses for areas located southeast of Eureka, Nunavut Territory. The licenses contain a total of 245,915 acres (99,518.26 hectares). Based on the Company's exploration licenses encompassing approximately 55 percent of Gulf's exploration licenses, the Nunavut Report reveals that the Nunavut Prospect contains a potential exploration target of approximately 3.025 to 3.162 billion in-place tonnes, with quality ranking from sub-bituminous B to lignite.
Eureka, the nearest community is located along Slidre Fiord, eight kilometers northwest of the coal prospect. The Nunavut Prospect consists of two properties, the North Fosheim Peninsula Property located on the east side of Eureka Sound on Ellesmere Island and the May Point Property located on the west side of Eureka Sound on Axel Heiberg Island.
Currently, all exploration potential is conceptual in nature including quantity and grade. Insufficient exploration work has been done on the properties and all estimates are historical. It is uncertain if further exploration will result in discovery of a mineral resource.
Financing Update
West Hawk has finalized a fiscal agency agreement ("Agreement") with Union, to help the Company finance its growth plans in Canada and internationally.
Under the terms of the Agreement, Union will help the Company review corporate finance options and provide guidance with respect to proposed public and private debt or equity financings and act as a sponsor, should the Company apply for listing on the Toronto Stock Exchange (TSX). Union has committed to helping the Company maximize assets value through numerous methods. Furthermore, Union will assist the Company using its extensive contacts in the coal sector to bring expertise where required.
Clarification of May 15th, 2008 News Release
"West Hawk also announced today that its May 15, 2008 news release announcing an aggregate 4,250,000 options granted to directors and officers inadvertently stated the expiry date of the options as March 18, 2010. The correct expiry date of the options is March 18, 2013. There are no changes to the number of options granted or the exercise price."
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut coal property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.
Contact: Wm. Mark Hart West Hawk Development Corp. President and Chief Executive Officer (303) 524-1424 (303) 524-1285 (FAX) Website: www.westhawkdevelopment.com
-------------------------------------------------------------------------------- Source: West Hawk Development Corp.
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