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WHD West Hawk Development Corp.

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Share Name Share Symbol Market Type
West Hawk Development Corp. TSXV:WHD TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

West Hawk Reports Results for Year Ended April 30, 2009

10/09/2009 12:18am

Marketwired Canada


West Hawk Development Corp. (TSX VENTURE:WHD) ("West Hawk" or the "Company") has
released its audited annual financial results for the year ended April 30, 2009.


Net loss for the year was $32.2 million, or $0.22 per share, resulting in an
accumulated deficit of $65.2 million. These compare with a net loss of $4.7
million, or $0.07 per share for the prior year. The net loss includes a non-cash
impairment of assets in the amount of $33.9 million. The impairment relates to a
write-down of the Figure Four Natural Gas project. As of April 30, 2009, the
Company has a working capital deficit of $17.5 million. The Company expects
losses to continue through 2010.


Mr. Gonzalo Torres Macchiavello, President and CEO, commented, "Oil and gas
prices have fallen sharply during 2008 and 2009. The worldwide financial crisis,
the low natural gas prices in the United States and the moderate reduction in
the drilling, completion and operational expenses have decreased the Company's
expectations regarding an accelerated development pace of the project. These
facts together with the shut-down of production at the Figure Four property
since December 2008 caused a reduction in the projected forecast performance as
disclosed in the independent 2009 NI 51-101 report recently filed. The Company
also took into consideration the restricted access to funding due to the current
market condition."


"The Company recently announced US$1.8 million DIP financing (Debtor in
Possession Financing) as part of its natural gas project reorganization process.
The funds will be used primarily to bring the existing 8 wells on line. We also
recently announced a $2.5 million equity financing. These funds will be used for
the development of the Groundhog project and general working capital. If these
transactions complete, we are optimistic in our ability to continue moving the
Company in the right direction," Mr. Macchiavello said.


A copy of the audited financial statements and related management's discussion
and analysis for the year ended April 30, 2009 may be obtained on SEDAR under
the Company's profile at www.sedar.com or by contacting the Company.


On behalf of the Board of Directors,

Gonzalo Torres Macchiavello, 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 and the Groundhog coal
property located in northwest British Columbia.


Cautionary Note: This news release and the documents referred to herein contain
forward looking statements. The Company's ability to continue as a going concern
is dependent upon, among other matters, the successful completion of the
proposed financings and management's ability to obtain further financing in the
future to fund operations until the Company achieves profitability and positive
cash flow from operating activities. Successful completion of the financings is
subject to a number of known and unknown risks and uncertainties beyond the
control of the Company. Completion of the equity financing is subject to, among
other matters, the ability of the agent to secure purchasers for the offering,
receipt of required regulatory approvals and satisfaction of all other
conditions precedent to completion of the offering, including completion of
satisfactory due diligence by the agent. Successful completion of the debt
financing is subject to, among other conditions, approval of the Colorado
District Bankruptcy Court and lender satisfaction with its due diligence review.
See also "Risks and Uncertainties" included in the Company's management
discussion and analysis for the year ended April 30, 2009 filed on the SEDAR
website at www.sedar.com. There is no assurance that the Company will
successfully complete these transactions or, if these transactions fail, that
alternate financing will be available on terms acceptable to the Company or at
all. A failure to successfully complete these transactions or obtain alternate
financing may result in the inability of the Company to continue as a going
concern.


The Company has filed a National Instrument 51-101 Report on its Figure Four
property. Resource estimates in this report, unless specially noted, are
considered speculative. 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 and in many
circumstances are beyond the control of the Company. Actual results may vary
depending upon, among other factors, the favorable outcome of the foregoing
risks and uncertainties, favorable results from proposed exploration and
assessment activities, industry production, commodity demand and pricing,
currency exchange rates and 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.


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