Cypress Development Corp.
TSX VENTURE : CYP

Cypress Development Corp.
Skyharbour Resources Ltd.
TSX VENTURE : SYH

Skyharbour Resources Ltd.

December 11, 2006 09:00 ET

Cypress Development Corp.: Summer Program Results From Drilling on the Broulan Reef, Red Lake, Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 11, 2006) - Cypress Development Corp. (TSX VENTURE:CYP) and Skyharbour Resources Ltd. (TSX VENTURE:SYH) announce their summer program of drilling on the Broulan Reef property, Cypress 80% / Skyharbour 20%, has been completed. This drilling investigated several key structures and completed evaluation of targets within the Bruce Channel rocks. The drilling identified a relatively shallow dip to the underlying Balmer assemblage and established that targets within the Balmer assemblage are still within drill range.

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

Low but widespread gold values were identified within structural features in the Bruce Channel rocks. This is most evident within iron formation lithologies. One of the major structural features would appear to have roots within the Balmer assemblage and has been selected for further drill testing.

Drill hole BR06-6 was drilled to the east at -65 degrees. The hole drilled through the Bruce Channel rocks and entered Balmer assemblage rocks at 1,540 metres in the hole at a vertical depth of 1,350 metres. This hole identified a veined and fractured zone in Arkose that returned values of .2 to 1.36 grams per tonne between 256.5 and 260.4 metres in the hole. A number of scattered short intercepts of between .2 and 1.07 grams per tonne were also encountered in the hole.

Drill hole BR06-7 was drilled to the southeast to test the interpreted regional nose closure and several structural settings. Gold values averaging 2.35 grams per tonne were encountered between 212 and 214 metres in the hole. The zone was marked by irregular veinlets in weakly chloritic pebble conglomerate. These values, as well as those encountered in drill hole BR06-6, are believed to lay within the same northeast trending structural zone parallel to the regional fold axis. Gold values averaging 0.45 grams per tonne were encountered between 1,256 and 1,269 metres in the hole. The rock was a highly bleached and structurally disturbed silicate iron formation. This structure corresponds to a north south trending structure interpreted from the magnetic data and is believed to be rooted at depth in Balmer assemblage rocks.

Although no economic mineralization was located during this round of drilling, the information gained is deemed critical to evaluating deeper targets within favorable Balmer assemblage rocks. One of the identified targets may have structural links to gold bearing zones being reported from Balmer assemblage rocks immediately north on Southern Star / Exall Resources (SSR / EXL) Gold Eagle property. Southern Star / Exall continue to extend southward a gold zone on their property towards the Broulan Reef property.

3D Broulan Reef Exploration Video: www.cypressdevelopmentcorp.com/s/RedLake.asp?ReportID=162302

The Company will now proceed with an immediate deeper drilling program to depths in excess of 2000 metres with the focus being on the northern claims of the Broulan Reef property adjoining SSR / EXL acreage now being drilled. All data accumulated to date has given the Company a better understanding of the geological features (incl. Balmer Assemblage) that exist on the Broulan Reef property.

The Broulan Reef property has never had any detailed exploration conducted as it is 95% overlain by the waters of the Bruce Channel of Red Lake until Cypress and Skyharbour acquired the ground in January 2006. Cypress has been aggressive in its exploration approach to the Broulan Reef property through the winter and summer of 2006. The Company believes the Broulan Reef property, adjacent to and on strike to Southern Star Resources / Exall Resources major gold discovery to the north, is ideally located for the potential extension of this newly developed gold zone onto the Broulan Reef ground.

The following table lists all intercepts above 0.2 gram from the recent drilling by Cypress / Skyharbour on their Broulan Reef property. All samples containing over 500ppb gold were analyzed using total metallic assays. For samples below 500ppb the grams per tonne value was calculated.



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grams/tonne
Hole No. From metre To metre Length metre Au
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BR06-6 12.7 16.8 4.1 0.42
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BR06-6 161 162 1 0.26
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BR06-6 162 163 1 0.23
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BR06-6 166.6 170.9 4.3 0.26
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BR06-6 256.5 257.4 0.9 0.51
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BR06-6 257.4 258.4 1 0.22
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BR06-6 259.4 260.4 1 1.36
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BR06-6 438.6 440.5 1.9 0.22
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BR06-6 460.1 464.4 4.3 0.28
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BR06-6 933.4 934.4 1 0.68
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BR06-6 1148 1148.4 0.4 0.26
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BR06-6 1155.8 1156.6 0.8 1.07
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BR06-6 1161.5 1165.5 4 0.28
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BR06-6 1547.5 1547.8 0.3 0.85
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BR06-7 111.2 115.3 4.1 0.33
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BR06-7 212 213 1 1.47
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BR06-7 213 214 1 3.22
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BR06-7 283.6 284.2 0.6 0.26
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BR06-7 288 288.5 0.5 1.11
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BR06-7 1092.6 1093.2 0.6 0.29
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BR06-7 1093.6 1094.2 0.6 0.34
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BR06-7 1094.2 1094.8 0.6 0.31
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BR06-7 1095 1096 1 0.37
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BR06-7 1096 1097 1 0.37
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BR06-7 1097 1097.5 0.5 0.21
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BR06-7 1124.8 1125 0.2 2.19
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BR06-7 1256.6 1257.6 1 2.30
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BR06-7 1257.6 1258.6 1 0.51
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BR06-7 1258.6 1259.6 1 0.48
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BR06-7 1259.6 1260.6 1 0.36
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BR06-7 1260.6 1261.6 1 0.37
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BR06-7 1262.6 1263.6 1 0.36
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BR06-7 1263.6 1264.6 1 0.32
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BR06-7 1264.6 1265.6 1 0.33
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BR06-7 1266.6 1267.6 1 0.34
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BR06-7 1268.6 1269.6 1 0.23
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BR06-7 1338.5 1339.5 1 0.29
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BR06-7 1383.1 1384.1 1 0.32
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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 VENTURE:CYP), visit the Company's website at www.cypressdevelopmentcorp.com.

About Skyharbour Resources Ltd.:

Skyharbour Resources is a mineral exploration company that focuses on the acquisition and exploration of projects in Northwestern, Ontario. The Company has options or interests in 10 gold or base metal properties located in the Red Lake greenstone belt.

To find out more about Skyharbour Resources Ltd. (TSX VENTURE:SYH), visit the Company's website at www.skyharbourltd.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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