WHD West Hawk Development Corp.

West Hawk Development Corp. ("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the
"Company") has closed a financing transaction with an affiliate of Laurus Master
Fund, Ltd. The proceeds of such financing are earmarked for completing the first
four wells on the Figure Four property. The transaction was arranged by Hunter
Wise Securities, LLC.


The terms of the financing, previously announced on August 22, 2007, were
approved by the TSX Venture Exchange. West Hawk Energy (USA), LLC signed a
secured note in the face amount of US$1,875,000 that carried an original issue
discount resulting in proceeds of US$1.5 million. The note bears interest at the
WSJ prime plus 4%, subject to a minimum rate of 10% and matures on August 22,
2008. West Hawk Energy (USA), LLC may prepay the note at any time by paying 100%
of the unpaid principal amount of the note, together with accrued and unpaid
interest. There are no monthly principal amortization payments on the note until
December 1, 2007 at which time the note shall amortize in an amount equal to the
greater of (a) US$208,333 per month and (b) 80% of net monthly revenues from the
Figure Four project. The investor is also entitled to payment equivalent to a 5%
overriding royalty interest in the Figure Four project. The Company paid a
success fee of 6% of the proceeds in cash to Hunter Wise Securities, LLC and,
subject to the acceptance of the TSX Venture Exchange, will also issue common
stock of approximately 227,000 shares to Hunter Wise, representing a success fee
equal to 3% of the gross proceeds.


The Company issued 625,000 shares in its capital to an affiliate of Laurus as a
break-up fee. In addition, the Company granted the investor a share purchase
warrant to acquire up to 2,294,966 common shares of the Company at a price of
$0.24 (Cdn) per share for two years. The Company also issued the investor a
second share purchase warrant to acquire 2,175,925 shares at $0.24 (Cdn) per
share for two years. This second warrant will not be exercisable by the investor
unless and until a proposed second financing is closed.


Subject to the four completed wells meeting performance milestones and certain
other conditions, the investor has proposed to provide financing for a total of
US$9.3 million to be evidenced by a term note. The term note will bear interest
at WSJ prime plus 4%, subject to a minimum rate of 10% and will be due 36 months
from advance. The proceeds of the note will be used to repay the first note
(US$1,875,000), and to pay accounts payable and transaction expenses. The
investor will be granted a 20% equity interest in the Figure Four project,
through shares in a holding company, and a 40% equity interest in the four wells
completed with the proceeds of the first note.


Both notes are secured by general security over all of the Company's and West
Hawk Energy (USA), LLC's present and after acquired property, and a pledge of
the Company's shares in West Hawk Energy (USA), LLC, which holds the Figure Four
project.


The investor will have a right of first refusal to participate in any future
funding of the Figure Four project, and subject to conditions and the funding of
the above term notes, the investor proposes to provide additional follow-on
financing in an amount to be determined, to assist the Company in funding up to
32 new wells in the Figure Four project.


Separately, the Company also announces that the Board of Directors has granted
1,750,000 share purchase options to certain directors and officers of the
Company to purchase shares of the Company at $0.27 per share for a two year
period. Subject to the consent of the TSX Venture Exchange, the Company will
also grant 521,680 share purchase warrants at $0.27 per share as bonus
compensation to a director and officer for a personal guarantee which he
provided to the contractor conducting the well completion work.


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 Tulita coal property
in the Northwest Territories; the Groundhog coal property located in northwest
British Columbia; 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. Resource
estimates, unless specially noted, are considered speculative. The Company has
filed a National Instrument 51-101 Report on the Figure Four property. The
Company has filed National Instrument 43-101 Reports for each of the Tulita coal
property in the Northwest Territories, the Nunavut Coal property and the
Groundhog Coal property. 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. Actual results may
vary depending upon exploration activities, industry production, commodity
demand and pricing, currency exchange rates, and, but not limited to, 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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