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Hawks Shareholders Overwhelmingly Approve All Proxy Proposals

31 July 2000

Hawks Shareholders Overwhelmingly Approve All Proxy Proposals

    CASPER, Wyo. - Hawks Industries today announced that at the Special Meeting 
of Shareholders held on July 26, 2000, each of the six proposals requiring 
shareholder approval was approved by at least 94% of the votes cast.

    Among the proposals voted on by shareholders was the approval of the
private placement of up to 22,171,875 shares of Hawks common stock with
Universal Equities Consolidated, LLC., David H. Peipers, The Cornerhouse
Limited Partnership and The Winsome Limited Partnership.  This transaction is
expected to close in August, 2000.

    On June 7, 2000, Hawks and Blue Star Sustainable Technologies Corporation
announced the formation of a joint venture that will combine Hawks' existing
natural gas resources with new, state-of-the-art integrated natural gas
processing technology owned by Blue Star.  The two companies plan to work
together to bring this new, environmentally friendly energy production
technology, that combines high efficiency (and resulting lower CO2 emissions)
with low sulfur and clean fuel synthesis to commercial use.  The development
process will take place on a gradually increasing scale, with commercial
production being deemed to have been arrived at when a rate of production is
achieved of at least 1,000 barrels per day.

    "The overwhelming support given to the proposals indicates that Hawks
shareholders are excited about the future prospects of the company," said Rick
J. Turturro, chief financial officer of the joint venture.  "Hawks will be the
largest shareholder of North Star Exploration, Inc., a company with over seven
million acres of valuable mineral exploration properties in Alaska.  When
combined with Hawks' joint venture with Blue Star Sustainable Technologies
Corporation for integrated fuel cell development, we feel that the company is
well positioned for expansive growth and development," Turturro continued.

    Blue Star Sustainable Technologies Corporation, formed in 1998, is
primarily chartered with the development of proprietary technologies for
efficient, clean natural gas utilization.  These include the integration of
electricity production with fuels synthesis providing both electrical energy
and chemical energy (fuels) for new energy systems.

    Hawks Industries, Inc., formed in 1971, maintains interests in oil and gas
properties, including certain coal-bed methane reserves in Wyoming's Powder
River Basin.  Since 1994 Hawks also provides environmental services for the
energy industries.