Cypress Development Corp. (TSX VENTURE:CYP) and Skyharbour Resources Ltd. (TSX VENTURE:SYH) are pleased provides an update from the field regarding its ongoing drill program on their Cypress (80%) Skyharbour (20%) owned Broulan Reef property in Red Lake, Northwestern Ontario. The Broulan Reef property is situated along the prolific Red Lake trend, west of Goldcorp Inc\'s operating Red Lake and Campbell Mines, and immediately southwest of the Gold Eagle Mines recent major gold discovery in the Bruce Channel zone. Bruce Channel Red Lake, Ontario Map:
http://www.cypressdevelopmentcorp.com/s/Image.asp?i=maps/CYP-Broulan-Reef-New-Map.jpg

Cypress and Skyharbour\'s drilling indicates they have encountered mafic / ultra mafic units that are found in the Balmer Assemblage series of rocks at approximately 1450 metres. Sulphides are seen to be pervasive throughout the Balmer Assemblage, consisting of mainly phyrrotite, chalcopyrite, pyrite, and arsenopyrite is also present.

Drilling of the main hole has now been competed to 1752 metres and drilling continues with an anticipated depth of this mother hole to approximately 2200 to 2400 metres. Drilling proceeds at a cautious but steady pace. This will ensure that the main hole maintains stability to allow Cypress and Skyharbour to establish a series of wedge off holes from the main hole to properly explore the rocks of the Balmer Assemblage that are now known to host a major gold deposit in the Bruce Channel zone. The companies are pleased with the progress of the drilling over the last several weeks and look to continue with the rate of footage being attained at this time.

In common with Goldcorp\'s Red Lake mine, Campbell mine, and Cochenour-Willans mine, and the recently announced Gold Eagle Mines major discovery, the Broulan Reef property lies within the Balmer Assemblage. The structural and mineralogical characteristics are similar to the aforementioned mines. Gold can be found in both its native form, as well as within sulphide rich zones.

The plan for this drill program is to explore the southern extension of the Bruce Channel deposit which is being developed by Gold Eagle Mines. The Bruce Channel zone is inferred to extend on strike onto the Cypress and Skyharbour owned Broulan Reef property.

The past year has seen an extensive amount of activity focused on the Bruce Channel. Gold Eagle Mines has continued to drill and expand the discovery zone to the south southwest toward the Broulan Reef property. Goldcorp continues to drill on the north boundary of the Bruce Channel discovery zone near Goldcorp\'s past-producing Cochenour-Willans mine. Cypress and Skyharbour continue to drill on the southern boundary of the Bruce Channel discovery zone.

New Red Lake Gold Deposits Map: http://www.cypressdevelopmentcorp.com/s/Image.asp?i=maps/CYP-Picture2.jpg

On July 31st, Mr. Kevin McArthur, President of Goldcorp, reported that Goldcorp Inc. and Gold Eagle Mines Ltd. have signed an agreement whereby Goldcorp will acquire, through a friendly plan of arrangement, all outstanding shares of Gold Eagle Mines.

Cypress Development\'s and Skyharbour Resources\' Broulan Reef property is now the only property along the productive Bruce Channel trend that is not now controlled by Goldcorp.

David J. Busch, B.A., B.Sc., PGeo., Vice President of Explorations, is the qualified person under the meaning of National Instrument 43-101 and has reviewed the data in this News Release.

About Cypress Development Corp.:

Cypress Development Corp. is a diversified precious and base metal exploration and development company with properties in Red Lake, Ontario, Canada, and in Nevada, U.S.A.

To find out more about Cypress Development Corp. (TSX VENTURE:CYP), visit our website at www.cypressdevelopmentcorp.com.

About Skyharbour Resources Ltd.:

Skyharbour Resources Ltd. is a gold and base metal exploration company developing projects in the RED LAKE and RAINY RIVER districts of northwestern Ontario, Canada.

To find out more about Skyharbour Resources Ltd. (TSX VENTURE:SYH), visit the Company\'s website at www.skyharbourltd.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Donald C. Huston, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

For more information, please contact

Cypress Development Corp.
Donald C. Huston
President
(604) 687-3376 or Toll Free: 1-800-567-8181

or

Cypress Development Corp.
Don Myers
Director
(604) 687-3376 or Toll Free: 1-800-567-8181
(604) 687-3119 (FAX)
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.cypressdevelopmentcorp.com