Cypress Hills Resource Corp.

Cypress Hills Resource Corp.

August 29, 2005 09:00 ET

Cypress Hills Closes $1.62 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 29, 2005) - Cypress Resource Corp. (the "Company") (TSX VENTURE:CHS) is pleased to announce it has closed its non-brokered private placement of 8,100,000 units at $0.20 per unit for proceeds of $1,620,000.

Each unit consisted of one common share and one-half of a non-transferable common share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share for $0.25 until August 25, 2007. The shares issued and any shares issued on the exercise of the warrants are subject to restrictions on resale until December 26, 2005. If the closing price of the Company's common shares after December 25, 2005 exceeds $0.50 per share for 10 or more consecutive trading days, the Company has the right to accelerate the expiry date of the warrants, by notice to the warrant holders, to the 20th day following such notice. A finder's fee of $24,350 (5%) was paid in respect of a portion of this placement.

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.

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. 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
    (604) 681-4692 (FAX)