Cypress Hills Resource Corp.

Cypress Hills Resource Corp.

July 18, 2005 09:00 ET

Cypress Hills Announces Private Placement of Up to $1,500,000 and Appointment of New Director

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 18, 2005) - Cypress Hills Resource Corp. (the "Company") (TSX VENTURE:CHS) is pleased to announce that it has arranged a non-brokered private placement of up to 7,500,000 units at $0.20 per unit for proceeds of $1,500,000.

Each unit shall consist of one common share and one-half of a non-transferable common share purchase warrant of the Company. Subject to the Company's acceleration right described below, each whole warrant will entitle the holder to purchase one additional common share at a price of $0.25 per share, for a period of twenty-four months from the date of issue. If, at any time following expiry of the four month hold period, the closing price of the Company's common shares is above $0.50 for 10 or more consecutive trading days, the Company has the right, on notice to the warrant holders, to accelerate the expiry date of the warrants to 20 days following the date of such notice.

The proceeds of the private placement will be used to fund the initial drilling of the first test well in the recently announced Chittim Ranch Project in Maverick and Zaval Counties, Texas and for working capital. Completion of the private placement is subject to regulatory approval.

A finder's fee of 5% is payable in respect of this placement.

The Company is also pleased to announce the appointment of Mr. C.W. (Bill) Chemerinski, P. Eng. as a director and Vice President, US Operations. Pursuant to the Company's stock option plan, the Company has granted an option to each of Mr. Chemerinski and Mr. Fostey for 250,000 shares at the exercise price of $0.21 each for a period of five years.

Please refer to the Company's press release of June 30, 2005 for further details of the Company's drilling commitment at Chittim Ranch project and the experience of Mr. Chemerinski.

Additional information on the Company and its projects can be viewed at

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

Contact Information

  • Cypress Hills Resource Corp.
    Ted J. Fostey
    (403) 691-7736
    Cypress Hills Resource Corp.
    Brian E. Bayley
    (604) 689-1428