TYHEE INCREASES PRIVATE PLACEMENT TO $6.5 MILLION AND REVISES TERMS

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

TSX Venture: TDC

VANCOUVER, Oct. 26 /CNW/ - Tyhee Development Corp. (TSX Venture, TDC) (the "Company") has increased the size of its private placement to $6.5 million.  It has revised the terms of the financing previously announced September 21, 2010, and instead will now issue 40 million units at $0.10 per unit to raise $4.0 million and 21 million flow through units at $0.12 per unit to raise $2.5 million.  Each unit will consist of one share and one half of a warrant.  Each full warrant and $0.125 will be exercisable into one share for a period of 24 months.

The Company will pay Loewen, Ondaatje, McCutcheon Limited ("LOM") a cash commission equal to 7% of the proceeds of the sale of the flow through units by LOM.  The Company will pay LOM a cash commission equal to 6% of the proceeds of the sale of the non-flow through units and will issue to LOM warrants to purchase such number of units as is equal to 6% of the number of non-flow through units sold in the private placement at a price of $0.10 per share, exercisable for a period of 15 months from closing.  All warrants will expire prior to 24 months if the share price closes at or above $0.20 for a period of 20 days, 30 days after notice is given.  The funds will be used for exploration purposes, further permitting, engineering studies, and general corporate purposes.  Initial closing should occur by October 29, 2010.  LOM has been granted the option to over allot the private placement by 25% to cover oversubscriptions.

Tyhee is in the process of winterizing its Clan Lake camp.  One of the two diamond drills on the property is being moved to the newly discovered Spud Zone, located 200 metres west of the Main Zone which is host to a 354,000 ounces indicated gold resource (34,000 of which are Probable Reserves). Drilling will start within a few weeks and will continue until the Christmas break.  The Clan Lake area hosts subparallel quartz veins, quartz breccias and silicified domains containing gold mineralization within a 1,200 metre wide, 7,000 km long structure.  The drill program will focus on defining additional areas of gold mineralization that occur within this structure.

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 is the largest property holder in this camp and has the largest exploration and development program underway in the region.  Its principal asset is the Yellowknife Gold Project includes the Nicholas Lake, Ormsby, Bruce, Goodwin Lake, and Clan Lake Gold Zones.  All are located on mineral claims and mining leases 50 to 90 km north of Yellowknife, NWT.

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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