SILVERBIRCH ENERGY CORPORATION PROVIDES UPDATE ON COST ESTIMATE FOR THE FRONTIER AND EQUINOX PROJECT

CALGARY, June 29, 2011 /CNW/ -- 
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
 UNITED STATES/


CALGARY, June 29, 2011 /CNW/ - SilverBirch Energy Corporation (TSXV:
 'SBE') ("SilverBirch" or the "Corporation") is providing an update on
 the Frontier and Equinox oil sands mining project (the "Frontier and
 Equinox Project") including the results of the Design Basis Memorandum
 (DBM) study and information regarding the preliminary capital cost
 estimates.


The Frontier and Equinox Project is located approximately 110 km north
 of Fort McMurray and is jointly owned by SilverBirch and Teck Resources
 Limited ("Teck").  Each company holds a 50% interest and Teck is the
 operator.  The owners are jointly proceeding with engineering and
 permitting activities to advance the project towards production.


The current capital cost estimate for Phases 1 and 2 of the Frontier
 Project is $14.5 billion on a Q4 2010 basis. Phases 1 and 2 are
 expected to have a nameplate production capacity of 159,000 barrels per
 calendar day of bitumen. These preliminary cost estimates were prepared
 by major engineering companies currently active in the oil sands
 industry, and have an expected accuracy of -10% to +30%.  These
 estimates will be subject to revision as further engineering work is
 undertaken on the project. Phases 3 and 4 are expected to bring the
 total production capacity of the Frontier and Equinox Project to
 277,000 barrels per calendar day of bitumen and will bring the total
 project cost to $22.9 billion.


Direct operating costs for bitumen production are estimated to be
 approximately $24 per barrel over the life of the Frontier and Equinox
 Project, and on average a further $2.60 per barrel will be required for
 sustaining capital.


"SilverBirch considers the estimated cost of approximately $83,000 per
 flowing barrel for the entire Frontier and Equinox Project to be well
 within the expected range of costs for oil sands mining projects and
 consistent with other operators' experience," said Howard Lutley,
 President and Chief Executive Officer of SilverBirch, "It incorporates
 recent pricing on materials, equipment and labour and reflects a
 realistic design basis."  The Corporation also notes that the design of
 the mine and tailings facilities complies with all of the latest
 requirements for tailings and water management as well as applying best
 commercially available emissions management technologies.


The owners are currently advancing the preparation of the Environmental
 Impact Assessment and regulatory application for the Frontier and
 Equinox Project.  SilverBirch expects the regulatory application will
 be submitted to the Alberta Government in the fourth quarter of 2011,
 thus initiating the formal regulatory process.  Corporate sanction of
 the Frontier and Equinox Project could occur as early as 2014/2015 with
 construction commencing in 2016 and commercial oil production obtained
 in 2020/2021.


SilverBirch is under no obligation to provide major project funding at
 this time and will not be proceeding with construction until a suitable
 partnership agreement and funding solutions are in place.  The
 Corporation continues to review alternatives to fund its share of the
 future project costs; this may include strategic or financial
 partnering, a reduction of its interest in the project, or sale of the
 project.


About SilverBirch 
SilverBirch Energy Corporation is a pre-production oil sands Corporation
 headquartered in Calgary, Alberta, Canada.  SilverBirch has a portfolio
 of mining and in situ oil sands properties, including 50% ownership of
 the Frontier and Equinox Project with Teck Resources Limited, the
 Operator.  To learn more, please visit www.silverbirchenergy.com.


ADVISORIES TO READER


Advisory Regarding Contingent Resources Estimates
This news release contains disclosure respecting SilverBirch's estimated
 contingent bitumen resources. Such disclosure is derived from a report
 of Sproule Unconventional Limited dated February 4, 2011 and effective
 December 31, 2010.  "Contingent resources" are those quantities of
 petroleum estimated, as of a given date, to be potentially recoverable
 from known accumulations using established technology or technology
 under development, but which are not currently considered to be
 commercially recoverable due to one or more contingencies.
 Contingencies may include factors such as economic, legal,
 environmental, political and regulatory matters or a lack of markets.
 It is also appropriate to classify as contingent resources the
 estimated discovered recoverable quantities associated with a project
 in the early evaluation stage.  There is no certainty that it will be
 commercially viable to produce any portion of the resources.


A thorough discussion of the contingent resources attributed to the
 assets of SilverBirch is contained in SilverBirch's annual information
 form dated April 15, 2011 for the year ended December 31, 2011 (the
 "AIF") which may be accessed through the SEDAR website at www.sedar.com.  Readers are urged to consult the AIF for further information. 


Advisory Regarding Forward-Looking Information
This news release contains forward-looking information and
 forward-looking statements within the meaning of applicable Canadian
 securities laws (collectively, "forward-looking information"). The
 words "expect", "estimate", "anticipate", "plan" and similar
 expressions, as well as future or conditional verbs such as "will" and
 "may" often identify forward-looking information.  Forward-looking
 information is only a prediction.  Undue reliance should not be placed
 on forward-looking information, as there can be no assurance that the
 plans, intentions or expectations upon which it is based will occur.
 Specific forward-looking information contained in this news release
 includes, without limitation, statements regarding: the timing and
 development of the Frontier and Equinox Project; the estimated
 operating, capital and total project costs associated with development
 of the Frontier and Equinox Project; SilverBirch's plans regarding the
 management of tailings; the expected timing of commencement of
 operations and the level of production and production capacity
 anticipated; expectations respecting external infrastructure; the
 continuance of the stakeholder consultation process; production
 methods; the timing of filing regulatory applications; resource
 estimates relating to the Frontier and Equinox Project; and the timing
 of receipt of required approvals and permits from regulatory
 authorities.


The forward-looking information set out in this news release, is based
 on certain expectations and assumptions regarding, without limitation:
 future crude oil, bitumen, natural gas and SCO prices; geological and
 engineering estimates; the geography of the areas in which SilverBirch
 will be working; and the sufficiency of budgeted capital expenditures
 in carrying out planned activities. These expectations and assumptions
 are based on certain factors and events that are not within the control
 of SilverBirch and there is no assurance they will prove to be correct.


Forward-looking information is subject to known and unknown risks and
 uncertainties and other factors which may cause actual results, levels
 of activity and achievements to differ materially from those expressed
 or implied in such forward-looking information or statements.  Such
 risks, uncertainties and factors include, among others: the early stage
 of development of SilverBirch's assets and the nature of the
 exploration and development activities on such assets; risks associated
 with contingent bitumen resources and mine pit estimates; difficulties
 encountered during the exploration for, delineation, development and
 production of bitumen; costs associated with exploration for,
 delineation, development and production and upgrading bitumen; the need
 to obtain required approvals and permits from regulatory authorities;
 compliance with and liabilities under environmental laws and
 regulations; the volatility of crude oil and natural gas prices and of
 the differential between heavy and light crude oil prices; in the
 foreign exchange rate amount between the Canadian dollar, the U.S.
 dollar and the euro; general economic conditions; changes in or the
 introduction of new government regulations; the uncertain ability of
 SilverBirch to attract capital for both debt and equity when necessary.
 Additional information and other factors that could affect SilverBirch
 are included in the documents on file with applicable securities
 regulatory authorities, including SilverBirch's AIF, and may be
 accessed through the SEDAR website at www.sedar.com.


The forward-looking information contained in this news release is made
 as of the date hereof and SilverBirch does not undertake any obligation
 to update publicly or to revise any of the included forward-looking
 information to reflect new events or circumstances, except as required
 by applicable Canadian securities laws. The forward-looking information
 contained herein is expressly qualified by this cautionary statement.  


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
 (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
 ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.



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p Howard J. Lutley, President and Chief Executive Officer, at 403-538-7030 /p 

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