Category: Uncategorized
June 6th

West Hawk Announces $10.65 Million Brokered Private Placement

West Hawk Development Corp. (TSX VENTURE:WHD)(FRANKFURT:H5N) (\"West Hawk\" or the \"Company\") is pleased to announce that it has entered into an agreement with Union-Securities Ltd. (the \"Agent\") to act as the Company\'s exclusive agent in connection with a private placement (the \"Offering\") of up to 15,000,000 flow-through common shares (the \"Flow-Through Shares\") and up to 18,000,000 non flow-through units (the \"Units\") for aggregate gross proceeds of up to $10,650,000.

The Flow-Through Shares will be issued at $0.35 per share. Each Unit will be issued at $0.30 per Unit, and consist of one non flow-through common share of the Company (a \"Unit Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant is exercisable into one non flow-through common share (a \"Warrant Share\") of the Company at an exercise price of $0.50 per Warrant Share for a period of 24 months from the date of closing of the Offering.

The Agent will receive a cash commission equal to 7% of the aggregate gross proceeds of the Offering. The Agent will also receive compensation options equal to 7% of the aggregate number of Flow-Through Shares and Units sold under the Offering. Each compensation option will entitle the holder to acquire one Unit at a price of $0.30 for a period of 24 months from the date of closing of the Offering.

The Company will grant to the Agent an over-allotment option (the \"Over-Allotment Option\") to purchase up to 15% of the Flow-Through Shares issued and up to 15% of the Units issued pursuant to the Offering at a price equal to the respective issue price per Flow-Through Share or Unit, as applicable. If exercised, the Over-Allotment Option must be executed within 15 business days of the final closing date and completed within 30 business days of the final closing date of the Offering.

The Offering is scheduled to close within approximately 30 days and is subject to the Company receiving all TSX Venture Exchange approvals. Proceeds from the Offering will be used to fund exploration programs in Canada, development expenditures for the Company\'s coal gasification and coal-to-liquids (CTL) plans, its Natural Gas project in the Piceance Basin, Colorado, and for general working capital purposes. The Company has filed NI 43-101 reports on its Canadian coal properties located in British Columbia, Northwest Territories, and Nunavut Territory.

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 Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.

Cautionary Note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. 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.

SOURCE: West Hawk Development Corp.

West Hawk Development Corp. Dr. Wm. Mark Hart President and Chief Executive Officer (303) 524-1424 (303) 524-1285 (FAX) Website: www.westhawkdevelopment.com