Mr. Ted Fostey reports

CYPRESS HILLS RESOURCE CORP. ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Cypress Hills Resource Corp. has closed its previously announced non-brokered private placement of 10 million common shares in the capital of the corporation at a purchase price of seven cents per common share for gross proceeds of $700,000. The gross proceeds of the offering will be used for asset evaluations, debt repayment and general working capital.

No commissions, finders' fees or similar payments (whether in the form of cash, securities or an interest in assets) were paid by the corporation in connection with the offering. The common shares issued in connection with the offering are subject to a statutory hold period of four months plus one day from the date of completion of the offering, in accordance with applicable securities legislation.

In connection with closing of the offering, 493,250 common shares were issued to insiders of the corporation (as such term is defined under the policies of the TSX Venture Exchange). The participation of the insiders in the offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Securityholders in Special Transactions. The corporation is relying upon exemptions from the formal valuation and minority approval requirements of MI 61-101 based on a determination that the fair market value of the offering is not more $2.5-million and the fact the corporation is not listed on a specified market set out in Section 5.5(b) of MI 61-101. The corporation was not in a position to file a material change report more than 21 days in advance of the closing of the offering as the participation of the related party was not confirmed at that time.

The offering was approved by the corporation's board of directors by means of a unanimous resolution. In connection with the closing of the offering, Ted. J Fostey subscribed for 309,125 common shares (3.09 per cent of the common shares issued under the offering) and Brian E. Bayley subscribed for 184,125 common shares (1.84 per cent of the common shares issued under the offering).

We seek Safe Harbor.