Cypress Development Corp. reported a successful pilot plant start-up for extraction testing of lithium-bearing claystone from the Company's 100% owned Clayton Valley Lithium Project in Nevada. The first full test was completed with 72 hours of continuous operation. The Company expects testing to continue as it awaits final results from assays. During this first test, sampling was conducted at six-hour intervals. Analyses of solution samples at various points throughout the plant were conducted using the ICP unit on-site. These preliminary results are encouraging, with expected to better-than-expected values. Final results are pending assays of these solution samples along with the samples of residues and precipitates, which have been sent to ALS Global. Performance within areas of the Pilot Plant: Leaching performed as expected, yielding solution grades of 350 to 700 ppm lithium. Lithium grades increased and decreased based on material addition to leach. The Lionex Direct Lithium Extraction (DLE) process appears to be functioning well, yielding a return solution back to leach of less than 10 ppm lithium. The primary and secondary impurity removal stages were combined to improve efficiency and are delivering low impurity solutions to the DLE process. Solids-liquid separation and washing of the tailings appears to be performing very well. Operating improvements are being implemented.