West Hawk Development Corp.

West Hawk Development Corp.

January 29, 2008 12:14 ET

West Hawk Development Corp.: Figure Four Suppliers, Contractors & Vendors to Acquire Equity Positions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - West Hawk Development Corp. ("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the "Company") announces that some suppliers, contractors and vendors have decided to invest in the company by settling outstanding accounts payable owed for goods and services on the Figure Four project. The Company proposes to issue up to 7,500,000 units at a price of $0.20 per unit, for an aggregate value of $1,500,000.

Each unit is comprised of one common share of the Company and one warrant to acquire an additional share at $0.40 for a period of two years. The warrants will be subject to early expiry if, following the date that is four months following the Closing, the daily volume-weighted average trading price of the Company's common shares on the TSX Venture Exchange over a period of 10 consecutive trading days is equal to or greater than $0.60.

Dr. Wm. Mark Hart, President and CEO of West Hawk, will also participate in the transaction for approximately $76,000, or 380,000 shares, for outstanding compensation and expenses. Dr. Hart's settlement will be in common shares, and will not include the issuance of any warrants.

"This transaction is very important to West Hawk because it shows that our closest vendors, contractors and suppliers have confidence in the future growth of the company," said Roger A. Baer, CFO of West Hawk Development.

Completion of this transaction is subject to the approval of the TSX Venture Exchange.

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