JayHawk Energy Provides Construction Update

Monday, August 25th 2008

JayHawk Energy, Inc. announced it has connected an additional 4 wells to its wholly-owned gathering system, which brings the total number of connected wells to 6 of 20 wells drilled to completion. These 20 wells comprise the first phase of JayHawk’s targeted 100-well Cherokee Basin Project, located in Southeast Kansas, where the Company has over 95% ownership of approximately 50,000 gross acres. The Company is currently averaging production in initial exit rates between 26-30MCF/D per well and is doubling the size of the compressor to deliver gas through the pipeline to facilitate the increased gas flow.

The Company is presently producing from only one zone per well and may later expand these wells to multi-zone producers, which should enhance production. Construction for additional connections of production behind the pipeline, as well as proving and dewatering other wells from JayHawk’s first drilling phase remain ongoing.

Additionally, JayHawk has transitioned into the post phase of acquisition of 100% ownership in a saltwater disposal well located adjacent to the Cherokee Basin Project, allowing JayHawk to fully optimize all wells and the opportunity to avoid any water handling issues in the future.

“We continue to take full advantage of every opportunity to expand and develop our infrastructure, while remaining steadfast in our devotion to facilitate these projects from their inception and development to the moment we start flowing gas through the pipeline,” Lindsay Gorrill, President & CEO of JayHawk Energy, said. “We are extremely pleased with our results as we increase daily production.”

Further information regarding the Company’s projects will be forthcoming as developments warrant.

JayHawk Energy, Inc. is a managed risk, oil and gas exploration/exploitation, development and production company with activities focused on two major projects in the Cherokee Basin, Kansas and the Williston Basin, North Dakota. For more information please visit www.jayhawkenergy.com.