Cypress Hills Resources Corp. Announces Consolidation of Shares, Private Placement and Debt Settlement

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THE UNITED STATES


Cypress Hills Resources Corp. (the "Company") (TSX VENTURE:CHY) intends to
consolidate its outstanding common shares on a 3:1 basis. There are currently
11,534,807 shares outstanding and, following the consolidation, there will be
approximately 3,844,936 shares outstanding.


Following the consolidation, the Company intends to:



1.  Carry out a non-brokered private placement financing of up to 1,777,777
    common shares at $0.1125 each for aggregate gross proceeds of up to
    $200,000; and

2.  Settle certain outstanding debt, including shareholder loans of $154,303
    and flow through tax related liability of $210,488, by the issuance of
    common shares at $0.1125 per share.



As further described in the management information circular of the Corporation
dated October 16, 2013, Ted J. Fostey, President and Chief Executive Officer of
the Company, is expected to directly or indirectly participate in the private
placement and debt settlement (including the settlement of approximately
$250,000 in debt held directly or indirectly by Mr. Fostey) and is as a result
of such participation anticipated to become a Control Person (as defined in the
policies of the TSX Venture Exchange) of the Company holding approximately 34%
of the then issued and outstanding common shares of the Company. 


Shareholder approval for the share consolidation as well as the private
placement and settlement of debt whereby Mr. Fostey would directly or indirectly
participate and become a Control Person were obtained at the annual and special
meeting of shareholders held on November 14, 2013. All securities issued under
the private placement and debt settlement will be subject to a four month hold
period from the date of issue. The consolidation, private placement and debt
settlement are subject to the finalization of all of the necessary documentation
and the receipt of regulatory approvals.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FORWARD-LOOKING STATEMENTS 

This press release contains forward-looking statements or information
("forward-looking statements") within the meaning of applicable securities laws.
The use of any of the words "will", "expects", "believe", "plans", "potential"
and similar expressions are intended to identify forward-looking statements.
More particularly and without limitation, this press release contains
forward-looking statements concerning the consolidation of shares, debt
settlement and private placement. 


The forward-looking statements in this press release are based on certain key
expectations and assumptions made by the Company, including the receipt of all
necessary approvals, including but not limited to: effecting the consolidation
of the Corporation's common shares on a 3:1 basis; completing the private
placement and debt settlement; and obtaining necessary regulatory approvals
including the approval of the TSX Venture Exchange. There is no assurance that
these expectations and assumptions will be met or satisfied and there is
therefore no assurance that the consolidation, private placement and debt
settlement will be completed. 


Since forward-looking statements address future events and conditions, by their
very nature they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited to the risks relating to the
failure to obtain necessary regulatory approvals required in order to proceed
with the consolidation of shares, debt settlement and private placement.
Additional information on these and other factors that could affect the
operations or financial results of the Company are included in the Company's
management's discussion and analysis and other documents filed with applicable
securities regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com). The forward-looking statements contained in this press release
are made as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, unless so required by applicable
securities laws. The forward-looking statements contained in this press release
are expressly qualified by this cautionary statement.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cypress Hills Resources Corp.
Ted J. Fostey
President & CEO
[phone]