SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

December 01, 2006 16:30 ET

SilverBirch Inc. Announces Partially-Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - Dec. 1, 2006) - SilverBirch Inc. (TSX VENTURE:SVB) (SilverBirch) intends to proceed with a private placement for up to $1,710,000.00. The securities are to be issued at a subscription price of $0.09 (Canadian) per Unit. Each Unit will consist of one common share in the capital of the Corporation and one common share purchase warrant. Each warrant shall entitle the holder to acquire one further common share of the Corporation at a price of $0.11 for 18 months subsequent to the closing date. The common shares and warrants issued pursuant to the private placement will be subject to resale restrictions for a period of four months following the closing date of the proposed offering. The offering is to close on or about December 8, 2006. This private placement supersedes and replaces the convertible debenture referred to in the News Releases of October 3 and 19, 2006.

The private placement will be partially brokered by D&D Securities Company and Aberdeen Gould Inc. (collectively the "Agents"), which will receive a commission equal to 10% of amounts raised by the Agents plus 10% in broker warrants. These broker warrants shall entitle the holder to acquire one further Unit of the Corporation at a price of $0.10 for 18 months after closing. Aberdeen Gould Inc. has also entered into an exclusive agreement with the Corporation to provide financial advisory services following the private placement.

The offering is being made pursuant to National Instrument 45-106 as applicable. The private placement is subject to the approval of the TSX Venture Exchange. The net proceeds of the financing will be used for working capital purposes and to fund the ongoing development of new content and applications for mobile phones and other handheld devices.

About SilverBirch Inc.

Toronto-based SilverBirch, through its SilverBirch Studios subsidiary, is a publisher, distributor and developer of wireless entertainment applications including games, ringtones, images and other content. SilverBirch's application portfolio is comprised of both original and licensed intellectual properties. For more information please, visit www.silverbirchinc.com

Forward-Looking Statements -Certain information set forth in this news release, including management's assessment of future plans, contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond management's control, including the impact of general economic conditions, industry conditions, and currency fluctuations. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.

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