Mega Silver (MSR-TSXv) commenced trading last year after completing a change of business to a mining company with the TSX Venture Exchange. In September 2007 the company announced that it had entered into agreements to acquire options to earn interests in several prospective silver exploration properties located in Mexico, British Columbia and the Yukon Territories. Mega Silver was a shell company controlled by Pinetree Capital whose chairman and CEO is Sheldon Inwentash. Pinetree sponsored Mega Silver’s reorganization.

Pinetree Capital (PNP-TSX) is a Toronto-based high-profile financial advisory and merchant banking firm focused on the small cap market. Pinetree brands its approach using the slogan “venture to grow”. It maintains a diversified investment portfolio primarily in the resources sector, primarily Oil & Gas, Uranium, Precious Metals and Base Metals. Their investment approach is to build a macro position in a sector, find the micro-cap opportunities within that sector and work with those companies to build them to commercial production, and to create an exit. They tend to be ahead of the crowd and position into secular trends via well-positioned well-structured public companies. For more details about Pinetree and its investments, please visit their website at www.pinetreecapital.com.

Recent Events
On February 5th Mega Silver Inc. and Skybridge Development Corp. (SBD-TSXv) announced entering into a binding letter agreement to combine the companies through an all-share transaction. Skybridge will become a wholly-owned subsidiary of Mega.

Skybridge owns the Blue Caribou properties in Nunavut. The Blue Caribou properties include a high-grade copper deposit, with significant molybdenum and rhenium credits, and an appreciable gold zone. Skybridge also recently announced an agreement on the historical Laverty claims in the Red Lake gold camp and initiated geological and geophysical compilation work ahead of an upcoming drill program in Red Lake.

Mega Silver holds interests in the promising Spidermann, Fisher and Eagle claims in the historic Keno Hill silver camp in Keno Hill, Yukon. Mega Silver has identified several under-explored vein structures on its claims that form a continuous block immediately south of the historic Hector Calumet mine. Hector Calumet, the largest single producer in the Keno Hill camp, produced 96 million ounces of silver at a grade of 34 ounces per tonne.

Shareholders of Skybridge will receive one Mega common share in exchange for each 2.5 Skybridge common shares held. Upon completion of the transaction, Mega will issue approximately 8.3 million Mega common shares to Skybridge shareholders, approximately 23% of the 35.2 million outstanding Mega common shares following the transaction.

Mega has a cash position of approximately $11.0 million as of Jan. 31, 2009. Each share in the combined company will have approximately 34 cents per share in cash upon closing of the transaction.

This transaction is a good fit strategically for both companies, combining Mega with Skybridge's strong management team and chairman, Ewan Downie. Mega also acquires a significant project in the Blue Caribou project, in addition to an excellent entry into the Red Lake gold camp in Ontario.


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