SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

December 20, 2006 17:57 ET

SilverBirch Inc. Closes Private Placement and Announces Option Grants

TORONTO, ONTARIO--(CCNMatthews - Dec. 20, 2006) - SilverBirch Inc. (TSX VENTURE:SVB) confirmed today that the partially brokered Private Placement previously announced on December 1, 2006, having received regulatory approval, has closed in the amount of $1,708,725. This results in the issue of 18,985,833 common shares in the Corporation, at a price of $0.09 per share, together with an equal number of warrants, priced at 11 cents, exercisable over the next eighteen months. The Company will now have a total of 38,148,362 Common shares issued and outstanding. The brokered portion of the financing was completed by D&D Securities Company and Aberdeen Gould Inc. Compensation paid to the brokers amounted to an aggregate fee equal to 10% of the gross proceeds from the sale of the Units through the brokered portion of the financing, as well as 1,341,933 brokers warrants, with each such brokers warrant exercisable at 10 cents, expiring June 19, 2008, and comprised of one common share and one common share purchase warrant, also priced at 11 cents exercisable over the next eighteen months.

The Company is please to announce that the "gypsy swap" transaction that was undertaken commensurate with the closing of the private placement reported above was also closed successfully. The party purchasing the 2,215,500 common shares pursuant to the "gypsy swap" will receive one-half of the warrants which comprise part of the Units subscribed for by the three shareholders in the private placement, being 1,107,750 warrants.

The Company has also announced that it has publicly released copies of its Corporate Governance Policies and Audit Committee Charter, which documents may now be viewed under the SilverBirch Inc. company profile filings at www.SEDAR.com.

In a further statement, a spokesperson for the Company indicated that an earlier Press Release dated October 19, 2006 which had referred to the cancellation of the Employee Stock Option grants, originally made on July 19, 2006, was made in error. Grant retractions were made but are limited to a small number of individuals who failed to meet eligibility requirements of the original grants. All other option grants made July 19, 2006 remain in full force and effect, at the strike price of 22 cents.

Additionally, the Board of Directors today granted further stock options totaling 1,620,000 shares, at a price of 10 cents per common share, to Aberdeen Gould Inc., for consulting services (760,000), to Timothy Gallagher, for Investor Relations services (560,000), and to DVP Capital Management Inc, under the terms of a consulting agreement (300,000). The options are granted under the terms of the Option Plan approved by the shareholders on March 29, 2006, and are subject to approval of the TSX Venture Exchange.

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.

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

Contact Information