West Hawk Development Corp.

West Hawk Development Corp.

December 22, 2008 11:48 ET

West Hawk Company Update

DENVER, COLORADO--(Marketwire - Dec. 22, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD) (the "Company"), announces that West Hawk Energy (USA) LLC ("WHE"), an indirect partially owned subsidiary of the Company, has elected to file Chapter 11 protection in the U.S. Bankruptcy Court for the District of Colorado in order to implement the restructuring of its indebtedness and permanently improve its capital structure.

WHE would implement the restructuring through a plan of reorganization that WHE shortly intends to file. WHE intends to seek Court approval of the reorganization plan as soon as possible. WHE expects business to continue as usual during the reorganization process and expects to emerge from Chapter 11 in the summer. The filing of Chapter 11 for WHE does not affect the Company's Canadian assets, specifically the British Columbia Groundhog Coal Project and the reapplication process for the Northwest Territory Coal Project licenses.

WHE has also filed a Demand for Arbitration with the American Arbitration Association against EnCana Oil and Gas (USA) Inc. ("EnCana") raising claims under the parties Drilling and Development Agreement dated May 1, 2006 (the "DD&A"). WHE has alleged that EnCana breached the DD&A by making WHE's performance thereunder more difficult.

On the same date, WHE and the Company filed an action against EnCana in the District Court for the City and County of Denver, Colorado raising various tort and other contract claims against EnCana. These claims center around allegations that EnCana interfered with the Company's and WHE's relationship with a third party to exploit the oil and gas interests held by the Plaintiffs' in the Piceance Basin, Colorado.

On behalf of the Board of Directors,

Wm. Mark Hart, Chairman 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; and the Groundhog coal property located in northwest British Columbia.

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 Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut 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 and development 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.

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