West Hawk Development Corp.

West Hawk Development Corp.

April 04, 2006 03:05 ET

West Hawk Adds New Strategic Resources to Coal Portfolio

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2006) - West Hawk Development Corp. (the "Company") (TSX VENTURE:WHD)(FWB:H5N) is pleased to announce it has acquired an additional 3.3 billion tons of thermal coal resources contained within 245,519 acres of contiguous coal holdings known as the Fosheim Peninsula property on the east banks and the May Point property on the west banks of Eureka Sound in the West Central region of Ellesmere Island Nunavut Territories.

The Coal Licenses cover areas examined between 1981 and 1983 where more than $2.25 million in exploration was performed on the Ellesmere and Axel Heiberg islands Eureka Sound Formations. Reports by Petro-Canada Exploration Inc. in general and specifically a 1982 report by E. Swanbergson for Gulf Canada Resources Inc. covering the Foshiem Peninsula and a 1982 report by P.S. Cowley for Utah Mines Ltd. covered the May Point holdings providing data on the resource potentials. 20 km's S.E. of the Eureka weather station the Fosheim Peninsula coal seams consist of Lignite, Sub Bituminous A to high volatile Bituminous and lower ranking metallurgical coals ranging from 1 to 10 meters in thickness. The areas covered by West Hawk Coal Licenses contained inferred resources of 3,318,480,000 tonnes (see cautionary note) within seams greater than 1 meter in thickness and within 200 meters of surface using a specific gravity of 1.3 and having a continuous length of over 15 km's. The tonnage estimate at May Point was not available but a 7m thick seam was traced for 16 km's paralleling the west shoreline of Eureka Sound. Both properties are adjacent to tide water where an ice free window will allow an 8-month shipping season.

"We are particularly enthusiastic about the latest acquisition due to the coal deposits close proximity to tide water, opening the potential for mine mouth direct ship loading, alleviating the cost of rail transportation. This low cost production will make us price competitive in the global market for seaborne coal," stated company CEO Chris Verrico.

With regards to the previously announced (March 2, 2006) N.W.T. coal licenses, a report has recently been made available "Coal Index for the District of Mackenzie, Northwest Territories" by B.D. Ricketts, open file 1115 report where historic speculative resources were summarized as follows; Tate Lake Lignite, Sub Bituminous A to high volatile Bituminous coals were estimated to have speculative resource of 1.61 billion tonnes. The area north of Tate Lake through Seagull Island north to include the Ft. Norman coal holdings contain a historic speculative resource of Lignite, Sub Bituminous A to high volatile Bituminous coals being 8.02 billion tonnes (see cautionary note). These estimates were based on the assumptions that seam thickness remains constant throughout the area.

Details of the purchase agreement for a 100% interest in the previously described coal licenses are as follows. The Company will within five business days of TSX Venture Exchange approval pay $C25,000 and issue common shares of West Hawk Development Corp. on the following schedule: 200,000 shares within five business days of Exchange approval, 200,000 shares by August 15, 2006, 200,000 shares by February 15, 2007 and 200,000 shares by August 15, 2007. The agreement also stipulates a royalty of $C0.10 per ton. The agreement is not subject to any work commitments, is with an arms length vendor and is subject to a finder's fee in accordance with TSX Venture Exchange policies.

Cautionary note

The above information is historical in nature and is not to be relied upon. 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. The company is not aware of any more recent estimates or available data.

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 relevant by Michael Sandidge P Geo., the qualified person.

The Company has also granted incentive stock options to directors, officers and consultants to purchase up to a total of 500,000 common shares in the capital stock of the Company, exercisable for a period of two years, at a price of $0.70 cents per share.

About the Company - West Hawk is a mineral exploration and Development Company committed to building shareholder value through the acquisition of known Coal Resources in Western and Northern Canada.


Michael Townsend, Chairman of the Board

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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