West Hawk Tests Coal-to-Gas with LURGI SA Pty Limited

West Hawk Tests Coal-to-Gas with LURGI SA Pty Limited

West Hawk Development Corporation (TSX VENTURE: WHD)(FWB: H5N) (the “Company”) is pleased to announce the advancement of both social processes and technical evaluation for its Mackenzie Valley Coal-to-Gas Project in Northwest Territories, Canada. Successful, preliminary meetings with Elders and Business Executives followed by public meetings with residents of Tulita and Norman Wells, NWT, have recently been conducted. Simultaneously, the Company has signed a Non-Disclosure and coal testing Agreement (NDA) with LURGI of South Africa, in order to advance negotiations on developing this historically identified coal resource.

Coal Testing Agreement and NDA with LURGI SA (Pty) Limited

West Hawk management is pleased to announce that it has arranged a reciprocal NDA with LURGI of South Africa, world leaders in coal gasification technology. The Company has shipped samples from the coal seams at its Tate Lake and Seagull Island properties to a South African laboratory for scaled gasification testing to evaluate suitability of the coal feedstock needed to produce pipeline quality gas.

Mark Otto, Chief Executive and Managing Director of Lurgi SA (Pty) Limited, said, “We are pleased with the developments between our two companies and look forward to the potential advancement of this North American project.”

Data provided by the U.S. Department of Energy affirms that the first patent granted in gasification went to LURGI in 1887. The LURGI technology is also the most widely used in the world with over 100 gasifiers currently in operation worldwide.

Northwest Territories Coal Project introduced to Sahtu Region

Face to face talks focused on advancing a coal resource definition drill program and the development potential for this significant project are progressing well with the people of the Sahtu Region, NWT, Canada.

“The leadership delegations represented a broad societal cross section of those who reside in this remote, resource rich region,” says West Hawk’s CEO, Chris Verrico. “This introduction and exploratory dialogue has given management significant confidence to proceed with the company’s assessments of the potential for this historically documented coal resource, the world’s dominant fossil fuel source.”

“In the meetings with West Hawk, good information was exchanged from both sides,” said Chief Frank Andrew.

West Hawk’s CEO, Chris Verrico, and President, Dr. Wm. Mark Hart, have expressed tremendous appreciation for the effort it took these community members to meet with us, adding, “We believe meetings such as these are invaluable for building meaningful relationships. While this project is in its infancy, the potential for open exchange of ideas is great. Capitalizing on the knowledge and expertise that the landowners and local leaders of this region possess, will be invaluable to the company as we go forward.”

“The Sahtu Region has tremendous potential and this is yet another indicator of the richness and wealth of our land,” said NWT Sahtu region MLA Norman Yakeleya. “As landowners of a world class coal resource, we are pleased with West Hawk’s direction and the respect they have shown us.”

Production Marketing Contract in Early Stages

Preliminary production volume designs are focusing on constructing four – 50 BCFY phases to a final production of 200 BCFY, (billion cubic feet per year) of pipeline quality gas. Robert Findlay, VP has been assigned responsibility to develop a 25 year off-take agreement. WHD is also diligently working to develop its CO2 sequestration plans via markets for enhanced oil recovery and other co-products.

“West Hawk’s coal gasification initiative is the technology of choice for the world today and for the next several decades,” said Dr. Wm. Mark Hart, Company President, “as one can make clean electricity, pipeline quality gas, and a variety of co-products such as fertilizer while at the same time ensuring environmentally sustainable operations through product cleansing and planned reclamation initiatives. Coal gasification is a process that provides clean energy while meeting the KYOTO protocol’s current requirements and the projected mercury, carbon dioxide, and other heavy metal limits via its chemical cleaning process technology. Coal Gasification is also cost competitive from a capital and O&M (Operations and Maintenance) basis, and it is 5 to 10% more efficient than traditional methods of electricity energy production from Pulverized Coal production.”

The Company’s Tate Lake Property is adjacent to an EnCana oil pipeline and proposed Mackenzie Valley Gas Pipeline, a $7.5 billion dollar mega-project being favored by local interests for final conciliation. Compiled data from abundant coal outcrops along with the stratigraphic studies detailed within numerous historic reports released by Luscar Ltd., Utah Mines Ltd. and Techman Ltd.’s Pre-Feasibility study for Manalta Coal Ltd in 1979, have now been verified by the Company’s geologists. Evaluation by the Company’s engineers of the coal seams and overburden geology has aided development of a drill plan including early-stage mine plans with a projected potential for over 2 billion tonnes of mineable coal. The Company believes that this NWT property has potential to produce coal to gas (“syngas”) for well beyond 50 years, providing one of the worlds cleanest fuel sources.

The company also wishes to report that James Petit a long standing member of the West Hawk Board of Directors has resigned to focus on other endeavors in the junior resource sector. The company thanks James for his service and wishes him the best in the future.

About the Company – West Hawk is an energy Company, building shareholder value through the exploration and development of its various properties in Western and Northern Canada.


Michael Townsend, Executive Chairman

Cautionary note

The above tonnage information is historical in nature and is not to be relied upon. The historical resource does not use categories stipulated in National Instrument (NI) 43-101. The company advises that it has not done all the work necessary to verify this classification of the mineral resource. The company is not treating the historical resource estimate as an NI 43-101-defined resource or reserve verified by a qualified person. The company is not aware of any more recent estimates or available data. The company is working diligently in its effort to bring the resource into compliance with the NI 43-101 requirements.

Contacts: West Hawk Development Corporation Michael Townsend Executive Chairman

(604) 669-9330

West Hawk Development Corporation Peter Dickie Vice President, Corporate Affairs (604) 669-9330 (604) 669-9335 (FAX) info@westhawkdevelopment.com


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