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Cypress Hills Spuds Initial Well on Armstrong Ranch, Texas Project.

CALGARY, ALBERTA, Dec 31, 2007 (Marketwire via COMTEX) -- CYPRESS HILLS RESOURCE CORP. (TSX VENTURE:CHS) ("Cypress Hills" or the "Company") is pleased to announce that Cypress Hills (USA) Resource Corp., its wholly owned subsidiary and its partners have spud the initial test well on the Armstrong Ranch Project in Kenedy County, Texas. The Tobin Armstrong No. 2 well will be drilled to a depth of 10,500 feet to test the Frio sands. The partner's initial location has been changed in order to satisfy an offset obligation created by the drilling of a well along the northern border of our lease by the holder of the adjacent lease. The Tobin Armstrong No. 2 well will take ...

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