Cypress Hills Reports Net Productive Sands at Armstrong Ranch, Texas

Cypress Hills Resource reported that Cypress Hills (USA) Resource Corp., its wholly owned subsidiary, and its partners have successfully drilled the initial test well on the Armstrong Ranch Project in Kenedy County, Texas with the Patterson-UTI rig 21 to total depth. The Tobin Armstrong No. 2 well was logged by Schlumberger this past weekend and based upon the analysis by the Company's partner in the well, this log shows in excess of 100 feet of net productive sands in the well. The partners are presently casing and preparing a completion program to test and bring this well on production. The completion program and testing should be done within 6 weeks. The Company has a 10% BPO (7.5% APO) working interest in this first well on a 1,477 acre lease.

The Company has a number of follow-up locations on the lease and also has a right of first refusal on additional leases totalling approximately 3,000 acres in the immediate area.