Queen Street Entertainment Capital Inc. announces private placement of units consisting of common shares and share purchase warrants for up to US$1.1 million



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
    NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES
    DESCRIBED HEREIN/

    TORONTO, March 7 /CNW/ - Queen Street Entertainment Capital Inc. (TSXV:
QE) ("Queen Street") is pleased to announce that it has commenced the closing
of a private placement (the "Offering") of up to 3,333,333 units ("Units") at
a purchase price of US$0.33 per Unit. Each Unit consists of one common share
in the capital of Queen Street and one-half of one common share purchase
warrant ("Warrants"), with each whole Warrant entitling the holder thereof to
acquire one common share in the capital of Queen Street at an exercise price
of (i) US$0.43 per common share for the period commencing upon closing and
ending upon the first anniversary of closing, and (ii) US$0.50 per common
share for the period commencing upon the first business day following the
first anniversary of closing and ending on the second anniversary of closing..
The closing of the private placement will continue on a "rolling" basis until
such time as Queen Street obtains subscriptions for proceeds of US$1.1 million
or at such earlier time as Queen Street determines. To date, Queen Street has
received subscriptions for approximately 30% and has completed the first
closing.
    The proceeds raised from the Offering will be used to support the
expansion of Queen Street's film and television distribution capacity as well
as for its general working capital requirements.
    Gilford Securities Incorporated ("Gilford") of New York is acting as
non-exclusive agent in connection with the private placement and will receive
success fees of 7% of transaction proceeds plus "broker warrants" entitling
Gilford to receive up to such number of common shares of Queen Street as is
equal to 7% of the common shares issued in connection with the transaction.
Gilford's fees are payable only in respect of those parties solicited directly
by Gilford.
    In addition, Queen Street is pleased to announce that on January 16, 2007
warrant holders holding warrants acquired under a private placement described
in a press release dated March 22, 2006, elected to exercise their right to
purchase an aggregate of 150,000 common shares of Queen Street at the exercise
price of $0.30 per common share. There remain common share purchase warrants
outstanding with rights to acquire a further 150,000 common shares at the same
exercise price.
    The private placement is subject to regulatory approval, including the
approval of the TSX Venture Exchange. Queen Street trades on the TSX Venture
Exchange under the ticker symbol QE, has 14,618,558 common shares outstanding
and will have 15,368,558 common shares outstanding after completion of the
first closing. Additional information regarding the business of Queen Street
may be found filed on SEDAR at www.sedar.com.

    These securities have not been registered under the U.S. Securities Act
of 1933, as amended, and may not be offered, sold or resold in the United
States or to a U.S. person absent registration or an applicable exemption from
the registration requirements.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release or the
    information contained herein.





For further information:

For further information: Queen Street Entertainment Capital Inc., Leif
Bristow, President and Chief Executive Officer, (tel) (416) 691-6655 ext 222

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