SilverBirch Inc.

SilverBirch Inc.

August 15, 2007 12:28 ET

SilverBirch Inc. Closes Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2007) - SilverBirch Inc. (TSX VENTURE:SVB) (SilverBirch) announced today that it had successfully closed its previously announced private placement. As a result of the completion of the private placement, 7,272,900 Units were issued, raising gross proceeds of $1,309,122.

The securities were issued at a subscription price of $0.18 per Unit. Each Unit consisted of one Common Share and one Common Share Purchase Warrant. Each Warrant entitles the holder thereof to purchase one Common Share of the Corporation at a price of $0.22 per share for a period of twenty-four months following the Closing Date.

Both the warrants and the Finder's Warrants below are subject to an acceleration at the instance of the Corporation if the closing price of the Common Shares on the TSX Venture Exchange is equal to or greater than $0.35 per Common Share for a period of 20 consecutive trading days any time after the Closing Date.

SilverBirch now has a total of 57,416,809 Common Shares issued and outstanding. The Common Shares and Warrants issued pursuant to the private placement are subject to resale restrictions for a period of four months following the Closing Date.

The private placement was administered by the Corporation's financial consultant, Aberdeen Gould Inc. In addition, MGI Securities Inc. assisted in the financing. Total cash commissions of $120,112 plus 727,290 Finder's Warrants were paid and allocated to Aberdeen Gould Inc. and MGI Securities Inc. Each Finder's Warrant entitles the holder to acquire one further Unit of the Corporation at a price of $0.18 exercisable up to 24 months after closing.

The net proceeds of the financing are to be used for working capital purposes, to fund the growth of the Corporation, and to retire debt assumed in recent acquisitions.

In other news, further to our press release of July 30, 2007, the Company is pleased to announce that the agreement with Electron Jump Inc. has now been closed, subject to Exchange approval. The 763,359 common shares issued to Electron Jump are to be held in escrow during a five year earnout of the $300,000 cash portion of the purchase price. If for any reason the earnout is not completed, the Company and Electron Jump each have the right to unwind the transaction, retain cash received to date, and return the common shares to Company treasury.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its SilverBirch Mobile division, provides mobile marketing and direct-to-consumer mobile content to its media partners. In addition, the company is a multi-platform video game developer and plans to launch an English-language MMORPG game (massive multiplayer online role-playing game) called Metin 2 (see this summer. For more information, please visit and

About Aberdeen Gould Inc.

Aberdeen Gould Inc. is a Toronto, Ontario based investment bank that provides equity and debt financing, as well as merger and acquisition services to small and mid-market private and public companies. It is a Registered Limited Market Dealer with the Ontario Securities Commission.

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

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