Mr. Brian Bayley reports

CYPRESS HILLS RESOURCE CORP. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Cypress Hills Resource Corp. has arranged a non-brokered private placement to raise aggregate gross proceeds of up to $1.5-million through the sale of units at a price of 10 cents per unit. Each unit will comprise one common share of the company and one-half of one share purchase warrant. Each warrant will entitle the holder thereof to acquire one common share at an exercise price of 15 cents for a period of 12 months from the date of issuance.

The proceeds from the units issued under the offering will be used for general corporate purposes and working capital, including to identify and consider transactions which would result in the company carrying on an active business.

The securities to be issued in connection with the offering will be subject to a hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws. The company may pay finders' fees and/or issue finders' warrants on a portion of the offering to eligible finders, subject to compliance with the policies of the NEX board of the TSX Venture Exchange and applicable securities legislation. Closing of the offering remains subject to the receipt of all applicable regulatory and board approvals.

Insiders of the company may participate in the offering. Any participation by insiders of the company in the offering will constitute a related party transaction under applicable Canadian securities laws. However, the company anticipates relying on exemptions from the formal valuation and minority shareholder approval requirements applicable to related party transactions under applicable Canadian securities laws.

Adviser

Cassels Brock & Blackwell LLP is acting as legal adviser to Cypress Hills in connection with the offering.

About Cypress Hills Resource Corp.

Cypress Hills is a Canadian company listed on the NEX tier of the TSX Venture Exchange. The company currently has no commercial operations and seeks new business assets, or an operating entity for a reverse take-over or similar transaction.

We seek Safe Harbor.