Document:

Agreement Respective Closing Date

    AGREEMENT
      RESPECTING CLOSING DATE

    

    

    THIS
      AGREEMENT
      made
      effective the 20th day of November, 2006.

     

    BETWEEN:

    

    

    RED
      MILE ENTERTAINMENT, INC.,
      a body
      corporate incorporated under the laws of the State of Delaware (the
      "Corporation")

    

    -and-

    

    J.F.
      MACKIE & COMPANY LTD.,
      an a
      body corporate incorporated under the laws of the Province of Alberta (the
      "Agent")

    

    

    WHEREAS
      the
      Corporation and the Agent entered into an agency agreement (the "Agency
      Agreement") dated October 19, 2006 with respect to the issuance by the
      Corporation of senior secured convertible debentures ("Debentures") having
      an
      aggregate principal amount of up to US$10,000,000.

     

    AND
      WHEREAS the
      Agency Agreement provides that closings in respect of the issuance of debentures
      thereunder shall occur on October 19, 2006 and such other dates as may be agreed
      to in writing by the Corporation and the Agents.

     

    AND
      WHEREAS
      the
      Corporation and the Agent wish to hold a closing on November 20, 2006 with
      respect to the issuance of Debentures having a face value of US$2,420,000 (the
      "Second Closing");

     

    NOW
      THEREFORE
      this
      agreement witnesses that in consideration of the covenants, agreements,
      warranties and payments hereinafter contained and other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged
      by
      each of the parties hereto, the parties hereto do hereby covenant and agree
      as
      follows:

     

    ARTICLE
      1  

     

    INTERPRETATION

     

    	1.01  	
            Definitions

          

     

    All
      capitalized terms used in this agreement shall have the same meaning as ascribed
      to them in the Agency Agreement unless otherwise defined herein.

     

    ARTICLE
      2  

     

    CLOSING
      DATE

     

    	2.01  	
            The
              parties agree that for the purposes of the Second Closing the term
              "Closing Date" when used in the Agency Agreement and in all documents
              to
              be delivered pursuant to the Agency Agreement shall be November 20,
              2006.

          

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
      3  

    GENERAL

     

    	3.01  	
            Both
              parties hereto covenant and agree that each will, respectively at all
              times hereafter upon any reasonable request of the other, or their
              respective successors and assigns, and without further consideration,
              do
              and perform or cause to be done or perform all such other acts and
              things
              and execute or cause to be executed all such further deeds, documents,
              writings or other instruments and give all such further assurances
              as may
              be required by the other party to effectively carry out the intent
              and
              meaning hereof.

          

     

    	3.02  	
            This
              agreement shall be governed by and construed in accordance with the
              laws
              of the Province of Alberta, and the federal laws of Canada applicable
              therein excluding reference to conflicts of laws
              principles.

          

     

    	3.03  	
            This
              agreement shall enure to the benefit of and be binding upon the parties
              hereto and their respective successors and permitted assigns.
              

          

     

    	3.04  	
            This
              agreement may be executed by facsimile and in several counterparts,
              each
              of which so executed shall be deemed to be an original and such
              counterparts together shall constitute one and the same
              agreement.

          

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this agreement as of the day and year first written
      above.

     

    

    RED
      MILE ENTERTAINMENT, INC.

    

    

    Per:
      _________________________      

    Name:

    Title:

    

    

    

    J.F.
      MACKIE & COMPANY LTD.

    

    

    Per:_________________________      

    Name:

    Title:Press release

     

     

     

     

    Red
      Mile Entertainment Raises $8.2 Million in Senior Secured Convertible Debt
      Financing

     

     

    SAUSALITO,
      Calif., Nov. 22, 2006
      - Red
      Mile Entertainment, a worldwide developer and publisher of interactive
      entertainment software, today announced it has completed private placements
      totaling $8.2 million in 5.5% Senior Secured Convertible Debentures to
      institutional and private investors. The Company intends to use the offerings’
proceeds for general corporate purposes, including the ongoing development
      of
      new interactive video games. 

     

    "Our
      continued ability to raise capital is a clear validation of our business model,
      which is focused on creating interactive game franchises from the intellectual
      property we have incubated,” said Chester Aldridge, Chairman and CEO of Red
      Mile. “This funding enables us to build upon the success of our initial ‘Heroes
      of the Pacific’ game franchise and to continue executing our growth strategy.
      New gaming platforms are driving continued momentum within the interactive
      software industry, and with exciting upcoming titles such as ‘Jackass: The
      Game,’ Red Mile is well-poised to take advantage of this trend.”

     

    Having
      raised nearly $18 million since being founded in August 2004, Red Mile has
      developed a number of innovative titles. In 2005, the Company successfully
      launched its first franchise game, “Heroes of the Pacific,” for multiple
      platforms including the PlayStation®2 computer entertainment system, Xbox®
videogame system from Microsoft and the PC. The popular game is also being
      developed for the PSP® portable entertainment system, and a sequel to the
      franchise is being developed for the next generation of consoles and PC
      platforms. Red Mile’s most highly anticipated title, “Jackass: The Game,” which
      is based on the extremely successful MTV series, is expected to be published
      in
      March 2007. The Company also recently announced an agreement with Navarre
      Corporation as the exclusive distributor for all video game titles
      self-published by Red Mile throughout North America.

     

    The
      Debentures, a portion of which mature on Oct. 19, 2008, and a portion of which
      mature on Nov. 20, 2008, carry a non-compounded coupon rate of 5.5%, and are
      convertible into shares of the Common Stock of the Company at a ratio of $1.75
      (with proportional adjustments for stock splits) per Common Share. J.F. Mackie
      & Company, Ltd. of Calgary, Alberta, Canada, served as the placement agent
      for the transactions. Additional information relating to the Senior Secured
      Convertible Debentures may be found in Red Mile’s Current Reports on Form 8-K
      recently filed with the Securities and Exchange Commission.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      securities have not been registered under the Securities Act of 1933, as amended
      (the "US Securities Act"), and may not be offered or sold within the United
      States or to, or for the account or benefit of, "US persons," as such term
      in
      defined in Regulation S, promulgated under the Securities Act, except in certain
      transactions exempt from the registration requirements of the US Securities
      Act.
      This news release shall not constitute an offer to sell or an offer to buy
      the
      securities in any jurisdiction. 

     

    Red
      Mile’s registration statement on Form SB-2 with the U.S. Securities and Exchange
      Commission (SEC) covering the resale of 27,098,742 shares by certain
      stockholders was declared effective by the SEC on August 11, 2006. The Company
      is also working towards the listing of its common shares for trading on the
      OTC
      Bulletin Board and the TSX Venture Exchange in Canada.

     

    This
      news
      release contains forward-looking statements within the meaning of Section 27A
      of
      the Securities Act of 1933, as amended, and Section 21E of the Securities
      Exchange Act of 1934, as amended. The forward-looking statements are based
      on
      current expectations, estimates and projections made by management. The Company
      intends for the forward-looking statements to be covered by the safe harbor
      provisions for forward-looking statements. Words such as "anticipates,"
      "expects," "intends," "plans," "believes," "seeks," "estimates," or variations
      of such words are intended to identify such forward-looking statements. All
      statements in this release regarding executing on our growth strategy,
      publication of “Jackass: The Game” in March 2007, use of proceeds, listings on
      the OTC Bulletin Board and TSX Venture Exchange, and the outcome of any
      contingencies are forward-looking statements. All forward-looking statements
      made in this press release are made as of the date hereof, and the Company
      assumes no obligation to update the forward-looking statements included in
      this
      news release whether as a result of new information, future events, or
      otherwise. The forward-looking statements are subject to risks and uncertainties
      that could cause actual results to differ materially from those set forth or
      implied by any forward- looking statements. Please refer to the Company's Form
      10-KSB and other filings with the SEC for additional information regarding
      risks
      and uncertainties, including, but not limited to, the risk factors listed from
      time to time in such SEC reports.

     

    About
      Red Mile Entertainment

     

    Red
      Mile
      Entertainment, Inc. is a worldwide developer and publisher of interactive
      entertainment software. Headquartered in Sausalito, California, the company
      creates, incubates and licenses premier intellectual properties and develops
      products for console video game systems, personal computers and other
      interactive entertainment platforms. www.redmileentertainment.com.

     

    ©Red
      Mile
      Entertainment, Inc. All rights reserved. Red Mile Entertainment and the Red
      Mile
      Entertainment logo are trademarks of Red Mile Entertainment, Inc. Microsoft,
      Xbox and the Xbox 360 are either registered trademarks or trademarks of
      Microsoft Corporation in the United States and/or other countries. PlayStation
      and PSP are registered trademarks of Sony Computer Entertainment Inc. Memory
      Stick DuoTM may be required (sold separately).

     

    

      
        	
                Investor
                  Contact

              	 	
                Media
                  Contact

              
	
                Jennifer
                  Jarman

              	 	
                Greg
                  Jones

              
	
                The
                  Blueshirt Group

              	 	
                The
                  Blueshirt Group

              
	
                415-217-5866

              	 	
                415-217-4964

              
	
                jennifer@blueshirtgroup.com

              	 	
                greg@blueshirtgroup.com

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