TORONTO–(Business Wire)–
Peace Arch® Entertainment Group Inc. (AMEX:PAE) (TSX:PAE), today provided an
update with respect to the Company`s SEDAR filing of its financial statements
for its second quarter period ending February 28, 2009.

As announced on November 28, 2008 and as updated on December 1, 2008, the
Company has not filed its annual financial statements for the year ended August
31, 2008. The Company announced on January 14, 2009 that its financial
statements for the first quarter ended November 30, 2008 would not be timely
filed as well. As a result of not filing its year end financial statements and
its first quarter financial statements, it has yet to file its financial
statements for the second quarter ended February 28, 2009. The late filing of
the year end financial statements is due to management`s re-evaluation of the
Company`s investment in thirteen movie titles and its participation in their
production during fiscal 2006 and possible restatement of its consolidated
financial statements for fiscal 2006 and fiscal 2007.

As previously announced, a Notice of Temporary Order and Hearing was issued by
the Ontario Securities Commission on December 4, 2008, halting trading in the
Company`s shares in Canada for a period of 15 days from the date of the Order.
On December 18, 2008, the Ontario Securities Commission issued a cease trade
order for all shares in Canada.

About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature films, television and
home entertainment content for distribution to worldwide markets. Peace Arch
owns one of the largest libraries of top quality independent feature films in
the world, featuring more than 2,000 classic and contemporary titles. For
additional information, please visit www.peacearch.com.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking
statements, usually containing the words “believe,” “estimate,” “project,”
“expect,” or similar expressions. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking statements.
Factors that would cause or contribute to such differences include, but are not
limited to, that the corresponding restatement of the Company`s financial
statements may change based upon the Audit or Special Committee`s ongoing
analysis, that the Company`s ability to file required reports timely with the
Securities and Exchange Commission and Canadian securities regulators will be
impaired, that potential claims or proceedings may arise relating to such
matters, that the Audit or Special Committee in consultation with the Company`s
independent auditors will determine that the proper accounting differs from the
accounting treatment upon which the assumptions and forward looking statements
in this release are based and other risks detailed in the Company`s periodic
report filings with the Securities and Exchange Commission and with the Canadian
securities regulators. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or changes
after the date of this release.

Peace Arch Entertainment Group Inc.
John Flock, 310-776-7200
President
jflock@peacearch.com

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