West Hawk Development Corp.

West Hawk Development Corp.

January 18, 2007 12:02 ET

West Hawk Announces Deal With Lu'an Mining Group

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - West Hawk Development Corp. (the "Company") (TSX VENTURE:WHD)(FWB:H5N) is pleased to announce that it has successfully concluded negotiations with the Shanxi Lu'An Mining Industry (Group) Company ("Lu'An") who have agreed to purchase a 25% interest in the Company's subsidiary, West Hawk Energy (USA) LLC for US $7.5 million dollars. The Agreement provides that funds will be remitted to the Company within 30 days. The aforesaid 30 days allows Lu'An and the Company to complete their outstanding per-functionary due diligence.

Dr. John Reeves, Jr., CEO of West Hawk Energy (USA) LLC, stated, "...that foregoing financings will provide the necessary capital to develop West Hawk's Figure Four Ranch project to a sustainable operation level." Furthermore, Dr. Reeves commented, "That due to the recent record breaking freezing weather, minus 28 deg C, operations at Figure Four site were impacted, but have now returned to normal. Completion on the first well should still be late January or early February."

The Shanxi Lu'An Mining Industry (Group) Company is a multi-billion dollar energy producer in China, operating coal mines, power plants, and chemical plants. Lu'An is currently building a C $1.5 billion IGCC and coal to liquids plant. There is a synergistic relationship between the two companies, given their shared vision of coal gasification. Dr. Wm Mark Hart, President and CEO of West Hawk Development Corp. commented, "The strategic alliance formed between Lu'An and the Company, provides West Hawk with the additional resources to develop its coal gasification, and other energy assets."

On behalf of the Board of Directors,

Chris Verrico, Co-Chairman

Dr. Mark Hart, Co-Chairman

About the Company: West Hawk Development Corp. is focused on exploring for and developing valuable, high-demand energy products from a variety of sources. Assets include the 500 billion cubic feet (estimated resources as per NI51-101 report) Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.; the Fort Norman coal deposit in the Northwest Territories; the Groundhog coal deposit located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. A National Instrument 43-101 report has been filed on the Groundhog 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 activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US 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 Information