JayHawk Energy Provides Construction Update

Business Wire, August 25, 2008

POST FALLS, Idaho -- JayHawk Energy, Inc. (OTCBB: JYHW) ("JayHawk") announced today 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.

About JayHawk Energy, Inc.

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.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.

Management hopes these transactions will bring additional value to the shareholders of JayHawk Energy. There is no guarantee that the projects that JayHawk has recently acquired will increase the value of its shares of common stock, or that JayHawk will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of JayHawk's common stock.

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions, availability of capital, unfavorable geologic conditions, the complexity of coal bed methane exploration and production, and prevailing prices for natural gas and general regional economic conditions. JayHawk assumes no obligation to update the information contained in this press release.