Cypress Development Corp.
TSX VENTURE : CYP

Cypress Development Corp.

October 12, 2007 14:08 ET

Cypress Development Corp.: Drill Program Expands Zinc Mineralization at Cypress Development's Gunman Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2007) - Cypress Development Corp. (TSX VENTURE:CYP) today announced that a recently completed diamond drill program of 18 holes, totalling 11,516 feet (3,510 metres), has confirmed the presence of high-grade zinc-silver mineralization in the RH Zone and has identified further mineralization in a nearby step out area at the Company's Gunman Project.

"We believe there is significant potential to discover a major new geological extension to the north of the known RH Zone zinc deposit being encountered in the current drilling," said Donald Huston, President of Cypress Development. "The Company is now compiling all data from this program with the intent of returning to the Gunman property in the near future to explore the possibility that the two known zones can be connected along strike."

Gunman Project Location Map: http://www.cypressdevelopmentcorp.com/s/Image.asp?i=Maps/nevada.gif

The Gunman project is located in western White Pine County within the prolific north-central Nevada metallogenic region. Gunman's zinc-silver-copper-mercury signature is typical of large, productive districts in the region. The project is centered on a silty limestone hosted zinc-silver-copper-mercury-gold mineralization system. High-grade, replacement style, oxide zinc-silver mineralization occurs near surface within sub-vertically dipping, Permian-age carbonate and clastic rock packages. Sulfide sphalerite-pyrite-argentite mineralization occurs locally beneath the oxide mineralization at the known RH deposit zone.

The majority of the drilling was targeted at strong conductors delineated during a Titan survey completed by Quantec in the summer of 2006. These conductors occur over a two kilometre strike length along a north-south grid line positioned to pass through the previously drill delineated RH deposit and RH South zones. Chip logging of mineralization zones at RH and RH South has shown that 3% to 10% pyrite occurs with the sphalerite mineralization in non-oxidized zones.

Three holes were drilled into portions of the RH zinc-silver zone to characterize the nature of both the oxide and sulfide portions of the zinc-silver deposit. Lithologic and alteration details from this drilling lead to the targeting and drilling of an area 1200 to 1500 feet north of RH zinc-silver deposit, resulting in the discovery of a significant extension of the RH Zone or a new separate mineralized zone.

Results

Titan Conductor Targets

The majority of the drilling was targeted at strong conductors delineated during a Titan survey completed by Quantec in summer 2006. The drilling of eight of the conductors to the south of the RH Zone has determined that the Titan conductors are the result of graphite layers, fracture fills and veinlets within carbonate and clastic stratigraphy.In general, the graphitic conductors occur below the lower contact of the silty, sandy limestone unit (Gunman limestone) that hosts the known ore zones at the Gunman Project. The position and geometry of this contact was unknown prior to the 2007 diamond drill program. Scattered highly anomalous zinc and anomalous to greater than 40 ppm silver were intercepted within oxidized, strongly altered and brecciated Gunman limestone in the upper portions of the Titan conductor test holes.

RH Zone Geologic Drilling

High-grade zinc-silver assays returned from previous RC drilling at RH were supported by limited sampling of the mineralized core.

Several diamond drill holes were completed into the northern and western portion of the known RH Zone. The purpose of these holes was to improve the understanding of the structural, lithologic and mineralization style of the zinc-silver mineralized zone. An assay of 29% zinc over four feet was returned within a zone of 4% zinc over fifty-four feet in a sampled zone along the west flank of the RH Zone. While results largely confirmed previous geologic interpretations of the zone, important new lithologic and structural details were found. Most importantly, the drill results showed a clear lithologic control on mineralization. The most significant intercepts are summarized in the table below.



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Hole ID Fm (ft) To (ft) Intercept (ft) Zn (%) Ag (oz/t)
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GD-01 184 207 23 1.6 0.65
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Incl 193 198 5 5.7 2.0
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GD-01 240 331 91 4.2 1.5
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GD-02 126 147 21 0.1 1.2
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GD-03 47 57 10 - 0.5
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GD-03 459 464 5 - 2.3
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GD-09 10 42 32 0.2 1.0
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Incl 16 38 22 0.2 1.4
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Incl 29 38 9 0.5 1.8
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GD-11 32 82 50 0.2 0.2
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GD-11 97 122 25 1.2 -
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Incl 101 103 2 3.0 -
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Incl 112 117 5 2.0 -
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GD-11 173 227 54 4.0 0.4
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Incl 204 208 4 29.0 0.3
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Incl 213 215 2 16.8 0.7
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GD-11 452 457 5 0.7 0.4
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GD-13 61 62 1 3.4 1.0
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GD-13 76 91 15 5.8 0.2
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Incl 83 86 3 14.6 0.2
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GD-14 74 87 13 1.0 0.4
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Incl 74 78 4 2.4 0.4
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North Step-Out Area Drill Results

Lithologic and structural details gained from the drilling at the RH Zone were used to target a step-out area 1200 to 1500 feet north of RH. Hole GD-15 intercepted over 200 feet of zinc mineralization from 150 feet to 352 feet below surface. The most significant intercepts are summarized in the table below.



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Hole ID Fm (ft) To (ft) Intercept (ft) Zn (%) Ag (oz/t)
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GD-15 146 148 2 1.1 0.2
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GD-15 148 151 3 0.2 0.1
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GD-15 151 154 3 0.8 0.3
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GD-15 154 159 5 1.5 0.5
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GD-15 159 161 2 1.0 0.4
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GD-15 161 163 2 1.5 0.6
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GD-15 163 164 1 2.0 0.3
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GD-15 164 167 3 0.4 0.3
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GD-15 199 202 3 0.6 0.4
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GD-15 202 207 4 0.2 0.4
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GD-15 207 208 1 0.5 0.4
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GD-15 208 210 2 0.9 0.4
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GD-15 210 217 7 0.8 0.3
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GD-15 228 230 2 1.5 0.3
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GD-15 289 292 3 1.0 0.1
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GD-15 302 304 2 0.6 0.2
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GD-15 304 306 2 0.2 0.2
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While this new step-out zone is lower grade than the RH Zone, the geologic setting of the new zone is identical to that at RH. The mineralization in Hole GD-15 is localized in strongly altered Gunman limestone in a position immediately east of the fossiliferous limestone section.

Four points are important in the interpretation of the potential of this new step-out discovery;

1. The zinc and silver grades intercepted in Hole GD-15 closely match those seen at the east and west flanks of the RH Zone. The Company believes it is highly probable that higher zinc and silver grades would be found by a program of offset drilling to the north, south and east of Hole GD-15.

2. The top of the mineralized zone in Hole GD-15 is a fault zone. It is likely that the upper portion of the mineralized zone has been down-faulted to a position immediately east of the hole.

3. Very limited drilling of the 1200 feet between the RH Zone and Hole GD-15 has effectively tested the vertical zone of mineralization found in Hole GD-15. It is considered very likely that additional mineralization exists in the 1200 feet strike length between the 2 known mineralized zones.

4. The total strike length of known zinc-silver mineralization within the Gunman limestone has been increased from 800 feet to 2000 feet by step-out Hole GD-15.

David J. Busch, B.A., B.Sc., PGeo., Vice President of Explorations, is the qualified person under the meaning of National Instrument 43-101 and has reviewed the data in this News Release.

Cypress Development Corp. is a diversified precious and base metal exploration and development company with 2 gold properties in Red Lake, Ontario, Canada, and 2 gold properties, a silver-copper property and a zinc property in Nevada, U.S.A.

To find out more about Cypress Development Corp. (TSX VENTURE:CYP), visit our website at www.cypressdevelopmentcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS

DONALD C. HUSTON, President

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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