Cypress Hills Resource Corp.
TSX VENTURE : CHS

Cypress Hills Resource Corp.

August 12, 2005 16:11 ET

Cypress Hills Resource Corp. Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 12, 2005) - Cypress Hills Resource Corp. ("Cypress Hills") (TSX VENTURE:CHS) reports that two directors of Cypress Hills (as to 1,700,000 shares) and one consultant to Cypress Hills (as to 900,000 shares) have arranged a sale of 2,600,000 shares of Cypress Hills at a price of $0.22 per share through the facilities of the TSX Venture Exchange. The proceeds from this sale will be used to subscribe for a total of 3,421,800 units of the previously announced private placement of 7,500,000 units of Cypress Hills at a price of $0.20 per unit, each such unit being comprised of one common share of Cypress Hills and one half non-transferable share purchase warrant entitling the purchase of an additional common share of Cypress Hills for a period of two years at a price of $0.25. Cypress Hills has increased the size of the private placement by 600,000 units to 8,100,000 units.

Proceeds from the private placement will be used to fund the first well in Cypress Hills Chittim Ranch drilling project in Maverick and Zaval counties, Texas. The private placement is subject to regulatory approval.

On behalf of the Board of Directors of

CYPRESS HILLS RESOURCE CORP.

Additional information on the Company and its projects can be viewed at www.sedar.com.

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
    President
    (403) 691-7736
    or
    Cypress Hills Resource Corp.
    Brian E. Bayley
    Director
    (604) 689-1428
    (604) 681-4692 (FAX)