Mr. James Pettit reports

CYPRESS DEVELOPMENT ANNOUNCES PRIVATE PLACEMENT, CANCELS PREVIOUS PRIVATE PLACEMENT

Cypress Development Corp. intends to complete a non-brokered private placement of up to five million units at a price of five cents per unit to raise proceeds of up to $250,000. Each unit consists of one common share and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one common share for a period of five years at a price of seven cents per share. Cypress intends to utilize the proceeds from this private placement to further advance its zinc and gold projects, and for general working capital purposes. A finder's fee of up to 7 per cent cash and 7 per cent non-transferable warrants may be paid in connection with part of this private placement. Each finder's warrant will entitle the finder to purchase a common share at a price of seven cents per share for a period of five years from the closing date of the private placement.

The private placement is subject to TSX Venture Exchange acceptance. The private placement announced by the company on May 19 will not be proceeding.

We seek Safe Harbor.