Battery Metals

Cypress Development Corp. ( TSX-V: CYP ) ( OTCQB: CYDVF ) ( Frankfurt: C1Z1 ) ("Cypress" or "the Company") is pleased to announce that it has entered into a Letter Of Intent ("LOI") with Intor Resources Corp. ("Intor"), a wholly owned subsidiary of Nevada Sunrise Gold Corp. ("Nevada Sunrise"), for the purchase of Intor's water rights in Clayton Valley, Nevada (the "Transaction"). The Transaction is subject to the terms of the LOI and is a major milestone towards the fulfillment of the water supply requirements of Cypress' Clayton Valley Lithium Project.

Terms of the LOI

The Transaction is subject to the satisfactory outcome of a due diligence by Cypress, the parties entering into a definitive agreement, settlement of the US$3 million purchase price to be paid in a combination of cash and Cypress shares (the "Purchase Price") and terms customary for a transaction of this nature. The Purchase Price is payable as to $25,000 non-refundable payment on entering the LOI, $125,000 non-refundable payment upon completion of a 45-day due diligence period, unless notice of termination by Cypress is served prior to expiry of the 45-day period, and US$2.85 million on receipt of all necessary approvals and transfer of the water rights to Cypress. This closing payment will comprise US$2 million in cash and the issue of Cypress common shares to the value of US$850,000. The Transaction is subject to TSXV acceptance and is expected to close during the third quarter of 2021.

About the Water Rights

Nevada Sunrise, through its U.S. subsidiary, Intor Resources Corp., acquired the water rights in 2016 under Permit 44411. The permit allows for 1,770 acre-feet of water for mining, milling and domestic use per year. This amount represents the largest volume of permitted water available in Clayton Valley, which is a fully appropriated hydrogeographic basin. With the exception of a single limited use permit, the Nevada Division of Water Resources has maintained that no new permits will be made available for water appropriation within the Clayton Valley basin. Nevada Sunrise has successfully defended its water rights in recent years, including a 2019 settlement agreement with another party.

"Groundwater in the southwest U.S. is a limited resource, and it was known early on that acquiring water rights would be a sensitive and critical step for Cypress' lithium project" said Cypress CEO Bill Willoughby. "We believe the timing is right to enter into this agreement given the advanced stage of our project."

"The water under this permit will provide a significant portion of the fresh water supply called for under our project's Prefeasibility Study . We are very conscious, however, of the possible impacts and resources needed to support a new mine and are actively pursuing ways to conserve water. The data collected from our recent testing using a chloride leaching approach, for example. shows a large reduction in water use is possible. This LOI is a major step for Cypress in securing the water needs of the project."

About Cypress Development Corp.:

Cypress Development Corp. is a publicly traded exploration company focused on developing the Company's 100%-owned Clayton Valley Lithium Project in Nevada. Exploration and development by Cypress discovered a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. The size of the resource makes the Clayton Valley Project a premier American source that has the potential to impact the supply of lithium for the fast-growing energy storage battery market.

Clayton Valley Lithium Project, Nevada Claims Map:
https://www.cypressdevelopmentcorp.com/site/assets/files/3573/cyp_cypress_-_albemarle_properties_map.jpg

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

CYPRESS DEVELOPMENT CORP.

"Dr. Bill Willoughby"

______________________________
WILLIAM WILLOUGHBY, PhD., PE
Chief Executive Officer

For further information contact myself or:
Don Myers
Cypress Development Corp.
Director, Corporate Communications
Telephone: 604-639-3851
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@cypressdevelopmentcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.


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Cypress Development

Cypress Development

Overview

Electric vehicles aren’t just the hottest trend in Silicon Valley anymore. With wider cultural acceptance in green power alternatives, more accessible technologies and increasingly supportive legislative action, analysts expect this market and the demand for metals that supply it to climb to exponential highs.

In the United States, the government has named lithium a vital component in electric vehicle batteries and a strategic metal of importance. In 2021, President Joe Biden announced a US$2.3 trillion Infrastructure Plan, which outlines the intent to bring electric cars fully to the mainstream with investments of US$174 billion to promote this technology and construct necessary charging stations. This significant spending demonstrates exciting early-mover investment opportunities for lithium production companies and electric industries alike.

Cypress Development (TSXV:CYP, OTCQX:CYDVF) is an advanced-stage mineral exploration company focused on developing its 100 percent owned Clayton Valley lithium project in Nevada, USA. The company’s extensive exploration and development have led to discovering a world-class lithium-bearing claystone resource adjacent to the Albemarle (NYSE: ALB) Silver Peak mine, North America’s only lithium brine operation.

The company’s discovery of the massive resource made Clayton Valley a premium American source of lithium that has the potential to impact the supply of lithium for the fast-growing energy storage battery market.

“We’re in Nevada and we’re in a country that badly needs lithium. We would be the most environmentally friendly project, and the lowest acid consumer. We’re able to eliminate sulfuric acid in our process and that would make us an extremely environmentally friendly, large, inexpensive low cost producer in the heart of the United States.” said Cypress Development CEO Dr. Bill Willoughby.

Clayton Valley Lithium Project, Nevada claims map

The company is using environment-friendly mining alternatives through saltwater and hydrochloric acid instead of the traditional fresh water and sulfuric acid method. This significant proposal could mean Cypress will no longer compete for Nevada’s scarce fresh water supply for Nevada’s freshwater resources for project advancement when it comes time for mining.

In August 2020, Cypress released the results of its pre-feasibility report, which provided a positive snapshot of Clayton Valley’s prospective production scope. Probable reserves stand at 213 million tonnes at 1,129ppm lithium with an average annual production of 27,400 tonnes Lithium Carbonate Equivalent (LCE) and a mine life of over 40 years. After-tax IRR stands at 25.8 percent with a CAPEX of CAD$493 million.

“This PFS is a major milestone for Cypress. These positive results take us closer to our goal of developing a world-class lithium deposit. Cypress’ land position and resources afford us the opportunity for a long-life project with low operating costs and potential to be a significant source of lithium for the United States,” Dr. Willoughby said.

Lithium enriched claystone on surface at Clayton Valley Project, Nevada

The company recently initiated the selection and purchasing of materials to commission a pilot plant and extraction facility for the lithium-bearing claystone from its Clayton Valley Lithium Project in Nevada. The pilot plant is planned to operate at a rate of one tonne/day and will be designed for correct interaction and testing of the major components within the extraction process and assessment of the resulting lithium products.

Company Highlights

  • Cypress Development is one of a handful of companies that are post-pre-feasibility, advancing towards production. The company is well advanced to become a long-term, low-cost lithium producer with potential expansive international reach.
  • The Clayton Valley lithium project in Nevada has an extensive surface deposit in a unique setting adjoining Albemarle’s Silver Peak brine operation.
  • Operating out of the prolific Nevada state provides the company with world-class exploration opportunities, mineral-rich geological resources and proximity to the Tesla gigafactory.
  • In 2020, the company released strong economic standing with its pre-feasibility study, including a probable reserve estimate of 213 million tonnes at 1,129ppm lithium, IRR of 25.8 percent and CAPEX of CAD$493 million.
  • Cypress possesses very favorable economic and geographic positioning in leveraging a present strong demand for lithium, world-class mining jurisdiction and an advanced stage operation in their flagship Clayton Valley lithium project.
  • 2021 plans include the commissioning of the Clayton Valley lithium project’s pilot plant, which could see significant tonnage in lithium and clay production. Cypress is also looking to complete its feasibility study based on the data from this pilot plant operation.
  • Cypress has acquired 24 unpatented mining claims in Clayton Valley, Nevada bringing the Company’s land holdings to 6558 acres in total.

Key Project

Clayton Valley Lithium Project

The 100 percent owned Clayton Valley lithium project spans 5,430 acres in southwest Nevada and sits immediately east of the Albemarle’s Silver Peak mine, North America’s only lithium brine operation. The asset hosts tremendous potential with Cypress’ discovery of a world-class resource of lithium-bearing claystone adjacent to the brine field to the east and south of Angel Island.

Lithium enriched drill core from Clayton Valley Project, Nevada

Lithium mineralization occurs on the property within montmorillonite clays throughout the sediments to a depth of at least 150 meters. Metallurgical testing has indicated low-cost processing possibilities through leaching with low acid consumption of 126 kg/t and high lithium recovery over 85 percent lithium. This lithium claystone deposit’s unique large flat-lying nature allows for mining with a low strip ratio due to minimal overburden and no interbedded waste, which is hugely economically advantageous for Cypress.

Future plans for the Clayton Valley lithium project include commissioning of the pilot plant, which Cypress proposes could process one tonne a day continuously in 2021. The company also intends to use the data from the pilot plant towards the completion of the project’s feasibility study. Cypress also has the acquisition of water rights for Clayton Valley in the works, which pushes significant advancement in the 2021 and 2022 seasons.

Management Team

William Willoughby, PhD, PE

President, Chief Executive Officer & Director

Dr. Willoughby is a mining engineer with 38 years of experience in all aspects of natural resources development. Since 2014, he has been principal and owner of consulting firm Willoughby & Associates, PLLC. Prior to that, he was President and COO of International Enexco Ltd., which was acquired by Denison Mines in 2014. He previously held various positions with Teck (Cominco). Dr. Willoughby has been a Professional Engineer since 1985 and received his Doctorate in Mining Engineering & Metallurgy from the University of Idaho in 1989.

Abraham (Braam) Jonker, CPA, CA

Chief Financial Officer

Mr. Jonker is an accomplished financial leader in the mining industry with almost 30 years of experience. Mr. Jonker has played a pivotal role in several business recoveries and restructurings, was a key team member in management and at the board level in the strategic growth of a number of public companies and has participated, raised and overseen the raising of more than $750 million in the form of equity and debt instruments in the mining industry. He is a registered Chartered Accountant in British Columbia, (Canada), England, Wales and South Africa. He is also a member of the Chartered Institute of Management Accountants in the United Kingdom and holds a Master’s degree in South African and International Tax from the Rand Afrikaans University, South Africa.

Spiros Cacos, MA

Vice President, Investor Relations

Mr. Cacos has over 20 years of investor relations experience working with public mining companies, ranging from early-stage exploration and development to production. Most recently, Mr. Cacos served as Vice President, Investor Relations for First Mining Gold, a Canadian gold development company listed on the TSX and OTCQX, focused on the development and permitting of the Springpole Gold Project, one of the largest undeveloped gold projects in Canada. His prior roles include serving as Vice President, Investor Relations for Group Eleven Resources Corp., a mineral exploration company focused on advanced stage zinc exploration in Ireland, and as Director of Investor Relations for Great Panther Mining Limited (formerly Great Panther Silver Limited), a primary silver mining company listed on the TSX and the NYSE with two mining operations in Mexico. Mr. Cacos holds a Master’s degree in International Relations and Diplomacy, from the Schiller International University in Paris, France, and a Bachelor of Arts Degree from Simon Fraser University in British Columbia, Canada.

Corby G. Anderson, PhD, CEng, FIMMM, FIChemE

Technical Advisor, Metallurgy

Dr. Anderson is a registered engineer with nearly 40 years of global experience in industrial operations, corporate level management, consulting, engineering design, research and education and is an expert in the fields of extractive metallurgy, mineral processing, waste minimization and recycling. He holds degrees of BSc in Chemical Engineering from Montana State University, MSc in Metallurgical…

Adam Knight, PE

Project Manager

Mr. Knight is a professional mining engineer, active in the mining industry since 1994. Before joining Cypress, he worked as a consultant and project manager for Practical Mining LLC of Elko, Nevada. He was Vice President Operations for EMC Metals Corp. until 2015. Prior to that, Mr. Knight worked in various operational capacities for Teranga Gold, Premier Magnesia, and AngloGold. He has experience…

Daniel W. Kalmbach, CPG

Manager, Geology

Mr. Kalmbach has practiced geology for over 21 years and has held various positions with private and public companies in the field of geology, including greenfield and generative exploration, development, mining, and environmental science. He has supported and/or authored multiple technical reports on mineral properties. Mr. Kalmbach began his career at Barrick Gold Corp. as a production geologist…

Todd S. Fayram

Technical Advisor, Metallurgy

Mr. Fayram brings over 30 years of metallurgical engineering experience to his role which include extensive diversified experience in the consulting and operating fields of various mining and milling operations across the globe. His industrial experience includes project and construction management; planning, design and engineering of precious and base metal heap leach and milling operations; industrial mineral development and operations, project evaluation for prefeasibility, feasibility and bankable documents; and metallurgical testing and interpretation of numerous mineral deposits. Mr. Fayram has also held positions in mine and process development, construction, expansion, start-up, and operation of numerous mines to include Minefinders-Dolores, American Bonanza Copperstone, Americas Silver-Cosala, Middle Tennessee Zinc-Gordonsville, Getty Copper Getty Project and others. Mr Fayram is a MMSA Qualified Professional in Metallurgy and holds a degree of Bachelor of Science degree in Mineral Processing Engineering and a Master of Science in Metallurgical Engineering from Montana Tech of the University of Montana.

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