TYHEE ANNOUNCES PRIVATE PLACEMENT

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TSX Venture: TDC

VANCOUVER, Sept. 21 /CNW/ - Tyhee Development Corp. (TSX Venture, TDC) (the "Company") has engaged Loewen, Ondaatje, McCutcheon Limited ("LOM") to act for the Company on a best efforts agency basis, to raise up to $5.0 million through the issue of up to 50,000,000 common shares at a price of $0.10 per common share.  The Company will pay LOM a cash commission equal to 6% of the proceeds of the sale of the common shares, and will issue to LOM warrants to purchase such number of common shares as is equal to 6% of the number of common shares sold in the private placement at a price of $0.135 per share, exercisable for a period of 15 months from closing.

Closing of the private placements is scheduled to take place on or about September 30, 2010, and is subject to the completion of subscription agreements with investors and the approval of the TSX Venture Exchange. All securities issued in connection with the private placement will be subject to a minimum four month hold period.  The funds from the private placements will be used for further exploration and development of the Company's mineral projects, including the advanced-stage Yellowknife Gold Project.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Tyhee Development Corp. is a gold exploration and development company working in the historic Yellowknife Gold Camp, NWT, Canada.  It hosts a Measured and Indicated Resource of 1.95 million ounces of gold, of which 811,000 ounces are classified as Proven and Probable Reserves.  It also has 269,000 ounces of gold in the Inferred Resource category.  Tyhee is the largest property holder in this camp and has the largest exploration and development program underway in the region. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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