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

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Cypress Hills Resource Corp. ("Cypress" or the "Company") (TSX VENTURE:CHY) is
pleased to announce it has closed its previously announced recapitalization (the
"Transaction") involving a non-brokered private placement of $480,000 (the
"Private Placement") and the settlement of indebtedness to arm's length parties
and insiders.


Capital Restructuring and Private Placement

Pursuant to the Private Placement, 3 million units ("Units") of Cypress were
issued at a price of $0.16 per Unit for proceeds of $480,000. Each Unit consists
of one common share ("Common Share") and one Common Share purchase warrant
("Warrant") of the Company. Each Warrant entitles the holder to purchase one
Common Share at an exercise price of $0.21 per Warrant for a period of two years
from the date of issuance. The proceeds from the Private Placement will be used
initially to repay the Company's debt obligations and for general corporate
purposes. 


In addition, the Company has issued 1,875,000 Units in settlement of
indebtedness to arms-length parties in the amount of $300,000 (the "Debt
Settlement") and has issued a total of 3,634,375 Common Shares 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, received 2,415,625 shares. As a result, Mr. Fostey holds directly and
indirectly a total of 2,678,920 shares, representing approximately 23.26% of the
issued and outstanding share capital of the Company. At a shareholders' meeting
held on July 24, 2009, the shareholders approved the Debt Settlement and Insider
Debt Settlement with Mr. Fostey.


All of the Units and Common Shares issued under the Private Placement, the Debt
Settlement and the Insider Debt Settlement are subject to a hold period of 4
months pursuant to applicable securities laws and policies of the TSX Venture
Exchange. The above transactions are subject to the receipt of applicable final
regulatory approvals.


FORWARD-LOOKING INFORMATION

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 closing of the Offering,
the Debt Settlement and the Insider Debt Settlement based on the assumption that
the Transaction will be granted final approval by the TSX Venture Exchange. By
their nature, forward-looking statement s 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.