West Hawk Development Corp.

West Hawk Development Corp.

September 15, 2005 06:00 ET

West Hawk to Acquire Thermal Coal Project for $6.25 Million and Proposes a Name Change to West Hawk Energy Corp.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 15, 2005) - West Hawk Development Corp. (TSX VENTURE:WHD) ("West Hawk" the "Company") is pleased to announce that it has completed a definitive agreement for the acquisition of a 100% interest in the Australian Creek Thermal Coal Project consisting of 675 hectares of recently issued British Columbia Government Coal licenses and 450 hectares of Coal license applications.

The Historic Cariboo Coal Field, 28 Km's south of Quesnel, B.C. was discovered along the banks of Australian Creek, where an oxidized coal seam out-cropped and became known as the Rail track showing. Historic reports prepared in July 1980 for B.C. Hydro's Systems Engineering Division, by Dr. P. T. McCullough, summarized that an annual production of 290,000 tonnes of high grade thermal coal could support a 60 megawatt mine-mouth power plant.

Australian Creek has the best potential in the Cariboo Coal Field for developing significant coal reserves based on geophysics, geological mapping and drilling. Two historic drill holes intersected a 24.1 meter and an 18.7m thick coal zone.

Results from 25 drill holes and air-borne geophysics identified resources to a depth of 80 meters estimated in area "A" to be 29,462,400 tonnes and in area "B" to be 74,160,000 tonnes for a total of 103,622,400 tonnes. Area "A" was the focus of the report describing the potential to support a power plant development. The coal is sub-bituminous B to C in rank with heating values estimated at 19 400 kJ/kg on a dry basis. The relationship of ash and partings to specific gravity was considered to be similar to that of the nearby BC Hydro, Hat Creek deposit.

Management believes that the Cariboo Coal Fields project provides the company with an additional significant coal asset in the highly attractive energy sector with potential to access the international thermal coal markets via the adjacent CN Rail line and the Ridley Island Coal Terminal at Prince Rupert B.C. "There has been a spate of recent coal-plant proposals due to the rising cost of natural gas and increasing demand for energy - especially in California. According to the Edison Electric Institute, there are currently up to 26 coal plants under consideration in the Western United States."

The historical resource does not use categories stipulated in National Instrument (NI) 43-101. The company advises that it has not done the work necessary to verify this classification of the mineral resource. The company is not treating the historical resource estimate as an NI 43-101-defined resource or reserve verified by a qualified person and the historical estimate should not be relied upon. The company is not aware of any more-recent estimates or data available to the company. The company is commissioning an independent review of all the historical data in order to ascertain an inferred mineral resource estimate compliant with the National Instrument 43-101 guidelines. This news release contains definitions ascribed by the Geological Survey of Canada Paper 88-21 "A standardized Coal Resource Reserve Reporting System for Canada". The information contained in this news release, has been reviewed, approved and deemed reliable by Michael Sandidge P Geo., the qualified person.

The details of the $3,250,000 property purchase agreement are as follows; West Hawk has advanced Clive Brookes, an arms length Vendor, $15,000.00CDN. The Company agrees to issue 500,000 common shares of the issuer. A further $235,000.00 is due over six years at such time entitling West Hawk to a 75% ownership position fully carrying the vendor's 25% share. The Company can elect to purchase the remaining 25% from the vendor for $3,000,000.00. An underlying, mine gate, royalty payment of $1.00/tonne or 2% whichever is greater is due annually and may be reduced to $0.50/tonne or 1% upon receipt by the Vendor of a $3,000,000.00. The agreement is not subject to any work commitments, there is no finder's fee payable, and the agreement is subject to TSX Venture Exchange approval.

On another matter the company has been advised by The Ministry of Energy Mines and Resources that the Coal License's for majority of the Company's "Ground Hog Coal Field" holdings and specifically the core tenures being the focus of a forthcoming National Instrument 43-101 compliant report are expected in 2 weeks time.

The company also announces the appointment of Dusan Berka, P.Eng., M. Sc. to the technical advisory board Mr. Berka is a graduate electrical engineer from the Slovak Technical University, Bratislava, Slovakia (1968) and a member of the Association of Professional Engineers and Geoscientists of B.C. since 1977. Mr. Berka's more than 36 years of professional experience includes senior management positions at BC Hydro, Power Smart Inc and Saskatchewan Power Corporation.

The Company also announces that pending approval of its stock option plan at the AGM on October 14, 2005, the company has granted incentive stock options to its directors, officers and consultants to purchase up to a total of 350,000 common shares in the capital stock of the company, exercisable for a period of two years, at a price of $0.20 cents per share. The company will also be seeking approval at the AGM for a name change from West Hawk Development Corp. to West Hawk Energy Corp.

About the Company - West Hawk is a mineral exploration and development company building shareholder value through the acquisition and development of projects focused on industrial commodities currently in heavy demand by China.


Michael Townsend, President and CEO

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

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.

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