Mr. Brian Bayley reports

CYPRESS HILLS RESOURCE CORP. ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Cypress Hills Resource Corp. has arranged a non-brokered private placement of five million common shares in the capital of the company, at a purchase price of five cents each, for gross proceeds of $250,000. The proceeds of the private placement will be used for general corporate and working capital purposes.

In connection with closing of the private placement, 800,000 common shares were issued to an insider of the corporation (as such term is defined under the policies of the TSX Venture Exchange). The participation of the insider in the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company 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 private placement is not more $2.5-million and the fact the company is not listed on a specified market set out in Section 5.5(b) of MI 61-101.

All securities issued under the private placement will be subject to a four-month hold period in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws.

We seek Safe Harbor.