Silverwing Energy Inc.
TSX : SVW

Silverwing Energy Inc.

October 17, 2008 09:30 ET

Silverwing Announces Securityholders Approve Arrangement

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2008) -

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

Silverwing Energy Inc. (TSX:SVW) ("Silverwing" or the "Company") is pleased to announce that, further to its press release of September 18, 2008, at a special meeting held yesterday, 99.9% of the holders of the common shares, options and warrants to purchase common shares who voted at the meeting approved the proposed plan of arrangement (the "Arrangement") involving Bonterra Energy Income Trust ("Bonterra").

Pursuant to the terms of the Arrangement, on or before October 15, 2008, Silverwing shareholders were entitled to elect to receive either: (i) $0.073 in cash; or (ii) 0.002166 of a unit of the Bonterra (a "Trust Unit") for each Silverwing common share. Where no election was made by the deadline, Silverwing shareholders are deemed to have elected to receive cash. No fractional Trust Units will be issued. Any Silverwing convertible securities (consisting of options, warrants and performance warrants) that have not been exercised prior to closing of the Arrangement will be automatically cancelled upon the Arrangement becoming effective. All dollar amounts in this press release are in Canadian dollars unless otherwise stated.

Assuming that the final approval of the Court of Queen's Bench of Alberta is obtained on October 22, 2008 and subject to other conditions and approvals being met, it is expected that the Arrangement will be completed on or about November 14, 2008. Completion of the Arrangement is subject to various conditions and approvals as detailed in the joint management information circular of Bonterra Trust and Silverwing Energy Inc. dated September 17, 2008 (the "Information Circular"). A detailed description of the Arrangement is contained in the Information Circular, a copy of which is available on SEDAR at www.sedar.com.

This press release contains forward-looking statements. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. Should any of these risks or uncertainties materialize, or should assumptions underlying forward looking statements prove incorrect, actual results may vary materially from those described in this press release. Silverwing believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The forward-looking statements contained in this newsletter are expressly qualified by this cautionary statement. Silverwing does not assume any obligation to update these forward looking statements, except as required by law.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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