Cypress Hills Resource Corp.: Private Placement Financing and Settlement of Debt

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Cypress Hills Resource Corp. (the "Company") (TSX VENTURE:CHY) announces a
number of transactions to fund its working capital deficiency, settle all of its
outstanding debentures for shares or units and fund its on-going corporate
activities.


Firstly, the Company has agreed to complete a non-brokered private placement
(the "Offering") of up to 3,000,000 ("Units") at a price of $0.16 per Unit to
raise aggregate gross proceeds of up to $480,000. Each Unit will consist of one
common share ("Common Share") and one share purchase warrant ("Warrant") of the
Company. Each whole Warrant will entitle the holder thereof to acquire one
additional Common Share for a period of two years from the date of issuance at
an exercise price of $0.21 per Warrant. A cash commission of 5% equal to the
gross proceeds of the Offering may be payable.


Secondly, the Company has agreed to issue 1,875,000 Units in settlement of
indebtedness to arms-length parties in the amount of $300,000 (the "Debt
Settlement").


Lastly, the Company has agreed to issue a total of 3,634,375 common shares of
the Company in settlement of $581,500 of indebtedness to insiders of the Company
at a price of $0.16 per Common Share (the "Insider Debt Settlement"). Of this
amount, Ted Fostey, President and Chief Executive Officer of the Company, and a
company controlled by him, will receive 2,415,625 shares. As a result, Mr.
Fostey will hold directly and indirectly a total of 2,678,920 shares,
representing approximately 31.46% of the issued and outstanding share capital
prior to the completion of the private placement and approximately 23.26% of the
issued and outstanding share capital if the private placement is fully
subscribed. At a shareholders' meeting held on July 24, 2009, the shareholders
approved the Debt Settlement and Insider Debt Settlement with Mr. Fostey.


All securities issued under the Offering, the Debt Settlement and the Insider
Debt Settlement will be subject to a four month hold period from the date of
issue. The above transactions are subject to the finalization all of the
necessary agreements and the receipt of regulatory approvals. 


ON BEHALF OF CYPRESS HILLS RESOURCE CORP. 

Ted Fostey, President and Chief Executive Officer

Forward-looking statements:

Certain information set forth in this news release contains forward-looking
statements and information ("forward-looking statements"). More particularly,
this news release contains statements concerning the completion of the Offering,
the Debt Settlement and the Insider Debt Settlement. By their nature,
forward-looking statements are subject to numerous risks and uncertainties, some
of which are beyond the Company's control, including the impact of general
economic conditions, industry conditions, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other industry participants, the lack of availability of
qualified personnel or management, stock market volatility and ability to access
sufficient capital from internal and external sources. Readers are cautioned
that the assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise and,
as such, undue reliance should not be placed on forward-looking statements. The
Company's actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so what
benefits the Company will derive therefrom. Furthermore, the forward-looking
statements contained in this document are made as of the date of this document
and, except as required by applicable law, the Company does not undertake any
obligation to publicly update or to revise any of the included forward-looking
statements, whether as a result of new information, future events or otherwise.
The forward-looking statements contained in this document are expressly
qualified by this cautionary statement.


This news release shall not constitute an offer to sell or the solicitation of
any offer to buy securities in any jurisdiction.

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