Peace Arch® Entertainment Announces Receipt of Notice from NYSE Amex LLC as to Its Review of Peace Arch’s Plan of Compliance

Peace Arch® Entertainment Group Inc. (AMEX:PAE) (Toronto: PAE), announced today that on May 15, 2009 it has received notice from the NYSE Amex LLC (the “Exchange”) that the Exchange has completed its review of Peace Arch’s plan of compliance (the “Plan”).

On March 5, 2009, the Company had received notice from the Exchange that it is not in compliance with Sections 134 and 1101 of the NYSE Amex LLC Company Guide as a consequence of its failure to file with the Securities and Exchange Commission its Annual Report on Form 20-F for the year ended August 31, 2008 (the “Form 20-F”). The Company was afforded the opportunity to submit a plan of compliance to the Exchange and on March 19, 2009 presented its Plan to the Exchange.

On May 15, 2009, the Exchange notified the Company that it has determined to grant an extension until June 30, 2009 for the Company to file the Form 20-F and that its listing is being continued pursuant to an extension. The Company will be subject to periodic review by Exchange Staff during the extension period. Failure to make progress consistent with the Plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Exchange initiating immediate delisting proceedings.

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 Peace Arch’s financial statements may change based upon the Audit or Special Committee’s ongoing analysis, that potential claims or proceedings may arise relating to such matters, that the Exchange will approve any plan submitted by Peace Arch, that Peace Arch will be able to remain in compliance with any plan approved by the Exchange, that the Audit or Special Committee in consultation with Peace Arch’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 Peace Arch’s periodic report filings with the Securities and Exchange Commission and with the Canadian securities regulators. By making these forward-looking statements, Peace Arch undertakes no obligation to update these statements for revisions or changes after the date of this release.