Cypress Development Corp.
TSX VENTURE : CYP

Cypress Development Corp.

March 31, 2006 08:30 ET

Cypress Development Corp.: Phase 1 Drill Program Completed on Broulan Reef Project, More Drilling Planned, Red Lake, Northwestern Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Cypress Development Corp. (TSX VENTURE:CYP) is pleased to announce that the drilling of the Phase 1 Broulan Reef property has been completed on the ice of Red Lake, Ontario. Drilling of the Broulan Reef project started February 15, 2006. To date, the Cypress Development / Skyharbour Resources Ltd. (TSX VENTURE:SYH) joint venture has drilled a total of 5 holes consisting of approx. 2400 metres. Assays are pending and expected before the end of April.

Map: http://www.cypressdevelopmentcorp.com/i/maps/CYP-McKenzie-Island-New-Map.jpg

The companies announce that they will to continue drilling on the Broulan Reef project as soon as spring breakup is completed. It is anticipated that the Phase 2 drilling will commence the beginning of June, 2006. The companies have made arrangements with the contractor, Rodren Drilling, to supply a larger drill capable of up to plus/minus 4000 foot holes.

The CYP / SYH joint venture has been very pleased with the geological information provided from the drill program so far. The companies started an aggressive Phase 1 exploration program on a completely unexplored property situated in the heart of the Red Lake gold camp. The location of this unique property is within sight and on trend of several world class gold deposits, most notably the prolific gold producers of the Goldcorp and Placer Dome mines. The only geological knowledge that Cypress and Skyharbour had of the property was from inferences drawn from the adjacent property rock exposures and regional geophysics, being that the Broulan Reef property is almost all under the waters of Red Lake. The strategy of the companies this winter has been to acquire and develop broad based data on the entire property. A detailed ground magnetometer survey was completed on the property in January 2006. First and second derivative maps were constructed and inversion modeling performed on the data. Drilling has been planned to maximize coverage of the property and to build a reliable geological model while maintaining flexibility of drill hole locations to capitalize on opportunities.

The companies believe that the property covers a major fold closure situated in prospective lithilogies. Shears and faults have been expected to be encountered in the drill holes based on the detailed magnetometre data as well as data from the adjoining properties. Drilling to date has in fact delineated the major folding based on a distinctive rhyolite horizon that occurs within the Bruce Channel sediments. The rhyolite horizon is found to be 200 to 300 metres thick and is typically sheared with sericite alteration. This major fold appears to indicate an antiform with dips and tops to the west. The east or inside margin of the rhyolite is marked by several zones of silicification with varying degrees of sulfides present (Chalco pyrite, pyrite, pyrrhotite, and fine arsenopyrite are evident within these sediments). Some of these siicifiedzones appear to have continuity even between the wide spaced reconnaissances holes drilled to date. Sediments including sandstone, argillite, wacke and pebble conglomerate beds mark the west or outside margin of the rhyolite. Again diffuse zones of silicification with arsenopyrite are evident within the sediments.

Mr. Don Huston, President of Cypress Development stated: "The Company is encouraged with the alteration zones consisting of silicification and arsenopyrite as the most distinctive components. The alteration occurs in similar lithologies and has a similar alteration style as to the Wolfden's "Folansbee property" to the east of the Broulan Reef property."

In other news, Cypress Development has negotiated the use of a Reverse Circulation (RC) drill rig for its Verde silver / copper and Scorpion gold projects in Nevada. Work is expected to begin Mid May 2006. A further News Release detailing this program will be provided before drilling commences. Cypress Development also intends to issue a News Release shortly regarding exploration plans for its high grade zinc oxide / sulphide project located in northeastern Nevada.

Cypress Development Corp. is a precious and base metal exploration company developing 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.V: CYP), visit the Company's website at www.cypressdevelopmentcorp.com.



ON BEHALF OF THE BOARD OF DIRECTORS

"Don Huston"

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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