Cypress Development Corp.
TSX VENTURE : CYP

Cypress Development Corp.

October 16, 2006 12:19 ET

Cypress Development Corp.: Drilling Resumes on Broulan Reef Gold Project, Red Lake, Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Cypress Development Corp. (TSX VENTURE:CYP) announces that drilling has resumed on the Company's 80% owned Broulan Reef project located in the Red Lake gold camp of northwestern Ontario. After a 15 day shutdown of the rig for maintenance and repairs, drilling has resumed on the #2 hole (BR7-06) at a depth of 4,060 feet. The location of the Broulan Reef property is well positioned to explore for the continuation of the known north -- south trending geology that hosts the new high-grade gold discovery on the Gold Eagle property of Southern Star Resources and Exall Resources, adjacent to the north of the Broulan Reef property.

Location Map: http://www.cypressdevelopmentcorp.com/s/Image.asp?i=maps/CYP-McKenzie-Island-New-Map.jpg

(Due to the length of this link, you may be required to copy and paste it to view this map).

The first hole (BR6-06) was completed in the middle of August. The #1 hole was drilled to the east out under the Bruce Channel from the shore of McKenzie Island and achieved a depth of 5,107 feet (1,557 metres). The hole was collared at a 65 degree angle and drilled at a direction of 10 degrees north of east. The vertical depth at the end of this first hole is approximately 4,000 feet from surface. The core recovered from BR6-06 has been logged in detail and the majority of the core has then been sent to an assay laboratory for analysis (TSL Labs, Saskatoon, Sask.).

The second hole (BR7-06) was started on August 25. The #2 hole is collared at the same location as BR6-06, but is drilling approx. east 40 degrees south (130 degrees SE). The dip of this hole is also at 65 degrees from horizontal. The #2 hole is drilling into a projected nose folding and will continue until the hole has crossed the geological sequence (Iron formations / sediments).

A third hole is anticipated to be also collared and drilled out under the Bruce Channel from the existing site on McKenzie Island immediately upon completion of BR7-06.

Cypress also announces it has contracted Rodren Drilling to carry out a Phase 3 winter deep drill program on the ice portion of the Broulan Reef property. It is anticipated that the winter drill program will commence mid January 2007 and continue through to break-up of ice conditions at the beginning of April.

The drill programs being conducted by Cypress Development at this time are the first attempt of a serious mineral exploration program ever undertaken on the Broulan Reef property. Present theories as to structure and geology are limited due to the fact there has been absolutely no historical data on the Broulan Reef property itself upon which to rely. The summer / fall drilling that is currently underway is continuing to supply Cypress Development with a great amount of new and invaluable geological data. This never before seen data from under the Broulan Reef property is allowing the Company a serious insight into the potential for the discovery of gold bearing structures on Broulan Reef similar to what is being discovered immediately to the north of the Broulan Reef boundary.

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 precious and base metal exploration company developing 2 gold projects in Red Lake, Ontario, Canada, and 2 gold projects, a silver/copper project, and a zinc project in Nevada, U.S.A.

To find out more about Cypress Development Corp. (TSX.V: CYP), visit the Company's 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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