West Hawk Development Corp (C:WHD)
Shares Issued 64,597,598
Last Close 10/26/2007 $0.25
Friday October 26 2007 - News Release

Dr. Mark Hart reports

WEST HAWK ANNOUNCES APPRAISAL EVALUATION OF GAS PROJECT

West Hawk Development Corp. has provided the following progress update on the company's gas project in the Piceance basin, Colorado.

The company is in receipt of an appraisal report on the Colorado gas project, completed by Gustavson Associates of Boulder, Colo. The resource basis for this valuation in the appraisal report is from a National Instrument (NI) 51-101 technical report filed by the company, Aug. 8, 2006. Gustavson has prepared this report at the request of the company in order to provide an appraised value of the project for use in negotiating a financing. While these negotiations continue, management feels the release of this information is necessary to reaffirm shareholders confidence in the company's continuing activities on the gas project.

It is important to note that the report provides an estimate of the net present value of the property when the company had only one well on-line. Since that time, additional wells have been completed and are now online.

In summary, the report provides for a net present value (undiscounted) of $216.28-million which translates to a discounted (10 per cent) net present value of $82.1-million for the project. These values are before any abandonment costs or future income tax expenses. The estimated values disclosed do not represent fair market value.

"We are extremely pleased to be able to finally release this report to the public, which has been held in confidence while financial negotiations have been ongoing. We feel strongly that the information in this report which was done July-August, when only one well was completed, confirms our belief in the long-range value of the gas project to the company," comments Dr. John Reeves Jr., president of West Hawk Energy (USA). "While we continue to negotiate financial arrangements to allow for debt, drilling and completion of additional wells, we feel this report will only further demonstrate to our shareholders the value of this asset the company is involved in, and we are confident that this evaluation will show a marked increase with each additional well completed."