Cypress Development Corp.
TSX VENTURE : CYP

Cypress Development Corp.

September 08, 2005 08:30 ET

Cypress Development Corp.: Work Program Planned For McKenzie Island Property, Red Lake, Ontario; Non-Brokered Private Placement Announced

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 8, 2005) - Cypress Development Corp. (TSX VENTURE:CYP) is pleased to announce its planned continuation of its Red Lake gold exploration program for the fall / winter of 2005.

Drill testing of a prospective target area on the east portion of the Company's 80% owned and Skyharbour Resources Ltd. (TSX.V: SYH) 20% owned 5,100-acre McKenzie Island claim group, Red Lake, Ontario is being proposed for the winter of 2005-2006.

Drilling is planned in an area where a significant angular unconformity is projected. This unconformity appears to exert a strong regional influence on gold deposition including past gold produced from the McKenzie Red Lake Gold Mine and the Gold Eagle Mine east of the Cypress Development property. The geologic corridor flanking this known unconformity is considered to be very prospective for gold deposition in the Red Lake gold camp.

An extensive and ongoing diamond drill program adjacent to the east on the Gold Eagle property being carried out by Southern Star Resources Inc. and Exall Resources Ltd. continues to develop a significant gold resource. (See their news release (TSX.V: SSR) / (TSX: EXL) August 29,2005) The Western Discovery Zone (See their news release May 11, 2005) that has now been established by the Southern Star / Exall joint venture is situated in a strike length of over 1 kilometre in a east - west direction and has a width of 350 metres from north to south. The Cypress Development / Skyharbour Resources joint venture is of the opinion that there is potential for the extension of the Western Discovery Zone onto the McKenzie Island property.

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

Cypress Development and Skyharbour Resources will be initiating a field program including additional detailed till sampling, rock geochemical analysis, etc. on the east section of their McKenzie Island property in the fall of 2005 to help further define their drill targets.

The Board Of Directors of Cypress Development Corp. (the "Company") wish to announce a non-brokered private placement of up to 5,000,000 units (the "units") at a price of $0.10 per unit. Each unit will consist of one flow-through share (the "flow-through share") and one non flow-through share (the "non flow-through share") and one share purchase warrant entitling the holder to purchase an additional non flow-through share at a price of $0.10 for a period of one year.

The Company intends to utilize the proceeds from the private placement for general working capital purposes and to be expended on work programs to be carried out on the Company's Nevada and McKenzie Island, Red Lake Ontario properties.

Cypress Development Corp. announces that Robert J. Paul has resigned as a Director of the Company. The Company is pleased to announce that Donald Myers of Vancouver, BC, has consented to act as a Director of the Company. Mr. Myers has over twenty years of experience in public company management and corporate communications, and his background includes holding the position of an Officer and Director of several junior public companies.

Cypress Development Corp. is a Canadian precious and base metal exploration company developing a gold property in Red Lake, Ontario, Canada and gold-silver property in Stewart, BC, and 2 gold properties 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

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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