West Hawk Development Corp.

West Hawk Development Corp.

January 07, 2008 16:27 ET

West Hawk Terminates LOI on Colorado East Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 7, 2008) - West Hawk Development Corp. ("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the "Company") has terminated the Letter of Intent ("LOI") with Radar Acquisitions Corp. ("Radar") for the initial testing and joint development of the coal property in eastern Colorado as a potential coal gasification project ("Colorado East", also known as the "Buick Coal Project").

Over the last several months, Radar has been updating and revising the NI 43-101 report on the property, as required by the British Columbia Securities Commission. The updated report filed in November 2007 (www.sedar.com) contained several significant revisions from the report that the Company initially evaluated: (1) the coal resources which were previously classified as "measured" were reclassified as "indicated"; (2) the average Btu content of the coal resource was reduced by approximately 400 Btu per pound; and (3) several of the site's proposed mining areas are located on federal lands not currently under lease.

As a result of the above revisions to Radar's NI 43-101 report, the Company decided that the underlying economic value of the property did not warrant further development and financial commitments under the terms and conditions of the LOI. The Company intends to pursue other potential sites for a coal gasification project in Colorado, as well as other sites in North America and China. "The Company is extremely optimistic that coal gasification technology, combined with solid strategic partnerships and a strong coal asset base, will enable the Company to continue to implement its coal gasification objectives in 2008," commented Dr. Wm. Mark Hart, President and CEO.

On behalf of the Board of Directors,

Dr. 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 Tulita coal property in the Northwest Territories; the Groundhog coal property located in northwest British Columbia; 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 Tulita coal property in the Northwest Territories, the Nunavut Coal property and the Groundhog 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 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 Information

  • West Hawk Development Corp.
    Dr. Wm. Mark Hart
    President and Chief Executive Officer
    (303) 357-4720
    (303) 357-4726 (FAX)
    Website: www.westhawkdevelopment.com