9th October 2008

SilverBirch Signs Red Mile Merger Agreement

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Latest addition will create one of Canada’s leading video game companies

Toronto – SilverBirch Inc. (TSX-V: SVB), a leading digital media company, today announced that it has signed its merger agreement with Red Mile Entertainment, Inc. Red Mile is a California-based video game publisher with worldwide rights to established brands and intellectual properties including the “Heroes” flight combat franchise. Heroes of the Pacific sold over 600,000 copies and the sequel, Heroes Over Europe is expected to ship in March of 2009.

“We are on track in building a multi-platform world-wide video game publishing presence,” commented Derek van der Plaat, CEO of SilverBirch. “Red Mile is expected to contribute meaningful revenues and cashflow in this fiscal year.”

The boards of directors of both companies have approved the merger agreement; however the transaction is still subject to TSX-V exchange approval, US regulatory and Red Mile shareholder approval and is expected to close in January of 2009.

In other news, the Company is pleased to announce that the book of orders for the $500,000 financing at $0.08 per unit is completed and expected to close on or about October 10, 2008. In addition, pursuant to employment agreements arising from the Lighthouse Interactive acquisition, the Board of Directors have now approved grants of Stock Options to the former principals of Lighthouse, totalling 300,000 options to acquire shares of the corporation at a strike price of $0.28. The options expire on July 8, 2013 and are granted in accordance with the Employee Incentive Stock Option plan approved by shareholders on May 27, 2008.

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