West Hawk Development Corp.
TSX VENTURE : WHD

West Hawk Development Corp.

November 03, 2005 17:30 ET

West Hawk Closes $2,062,500 First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) - West Hawk Development Corp. (the "Company") (TSX VENTURE:WHD)(FWB:H5N) is pleased to announce that it has closed a $2,062,500 first tranche, of its Brokered Private Placement announced October 07, 05 with Max Capital Corp. of Toronto, Ontario ("the Underwriter").

The Company will issue 4,650,000 non flow through units at a price of $0.40 per unit for gross proceeds of $1,860,000. Each unit will consist of one share and one share purchase warrant allowing the holder to purchase an additional share in the capital stock of the Company at $0.55 for a period of two years.

In addition, the Company will also issue 450,000 flow through units at a price of $0.45 per unit for gross proceeds of $202,500. Each unit will consist of one share and one half share purchase warrant. Each whole warrant will allow the holder to purchase an additional share in the capital stock of the Company at $0.55 for a period of two years.

The 2nd tranche of the Brokered Private Placement is anticipated to close on Nov. 11, 05.

The proceeds of the placement will be used to advance the Company's coal resource definitions and general working capital purposes.

It is anticipated the existing National Instrument 43-101 speculative category resource of 980,968,085 tonnes at the Groundhog Coal Fields Project will increase by approximately 240 million tonnes when including the intermediate and deeper seams identified at the Lower Discovery - Evans Ck. properties within the numerous historic reports.

Additionally the planned Cdn$900,000.00 winter drill program is expected to advance a portion or all of this additional 240 Mt potential to inferred categories along with advancing the presently inferred 48,187,685 tonnes to Measured and Indicated categories.

The Company will also initiate background environmental studies on its British
Columbian Coal properties while advancing its Coal Creek Project, Smithers B.C., where potentials exist for an annual export of 250,000 tonnes of a bendable coking coal product via a small mines permit by Q3 2006. Further, the Company will commence a Preliminary Feasibility Evaluation of Liquids Production via Gasification of coal and wood waste while facilitating industry partnerships around the implementation of this clean coal to liquid technology for the production of very low sulfur (green) diesel and low emission (green) electric power at its Australian Creek Project 28 Km's south of the city of Quesnel in central B.C. Canada.

The contents of this news release has been reviewed on behalf of the Company by Don Wedman, P.Eng. of Edmonton, AB. Mr. Wedman is a qualified person as described in the National Instrument 43-101 guidelines.

The above financing is subject to TSX Venture Exchange approval.

About the Company - West Hawk is a mineral exploration and Development Company committed to building shareholder value through the development of its three Coal properties in Northern British Columbia.

ON BEHALF OF THE BOARD OF DIRECTORS

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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