UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of January, 2006

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20F or Form 40-F.

Form 20-F

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Form 40-F

o

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes

o

No

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(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  82-_______________

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January 9, 2006 - Toronto    

Peace Arch Preferred Shareholders Exercise Warrants

TORONTO, ONT. - Peace Arch Entertainment Group Inc. (AMEX: PAE, TSX: PAE.LV) today announced that Series I Preferred Shareholders have exercised a total of 1,435,897 preferred share purchase warrants to purchase 1,435,897 Series II Preference Shares at a price of US$0.50 per share resulting in proceeds to the Company of US $717,948.

On July 29, 2005, the Company closed an arm's length private placement of 4,347,827 Preference Share Units of the Company for US $2,000,000 with entertainment industry leaders Jeff Sagansky, Kerry McCluggage and Drew Craig.

Each Unit of the placement consisted of one convertible preference share and one preferred share purchase warrant.  Each warrant is exercisable into one Series II Preference Share of the Company at an exercise price of US$0.50 per share at any time up to July 29, 2009.  

The net proceeds of the warrant exercise will be used by the Company to fund working capital requirements and for general corporate purposes.

Since the private placement in July, the Company has substantially increased the size of its feature and television sales force and initiated a broad slate of new productions.  Upcoming titles include:

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“Delirious,” a romantic comedy starring Steve Buscemi, Michael Pitt, Alison Lohman and Gina Gershon, which recently completed filming in New York City.

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 “Chapter 27,” starring Jared Leto and Lindsay Lohan in a drama exploring the 1980 murder of John Lennon. Filming begins in New York on January 9.

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“Arritmia,” starring Rupert Evans, Sir Derek Jacobi and Natalie Verbeke, and “The Veteran,” starring Ally Sheedy, Michael Ironside and Bobby Hosea, each of which the Company acquired for worldwide distribution.

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Four new horror films - “Heartstopper” starring Robert Englund, “Warriors of Terra” starring Edward Furlong, “The Last Sect” with David Carradine and “5ive Girls” with Ron Perlman - all of which have been produced for the Company’s new genre division, Archetype Films.

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, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making

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these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of the release.

Contacts: Nicole Spracklin Peace Arch Entertainment Group Inc. Tel: (416) 487-0377 (ext. 237) nspracklin@peacearch.com	Robert Rinderman Jaffoni & Collins Incorporated Tel: (212) 835-8500 PAE@jcir.com #   #   #

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

					Peace Arch Entertainment Group Inc.
					(Registrant)
Date	January 9, 2006		By		“Mara Di Pasquale”
					(Signature)*
					Mara Di Pasquale, Chief Financial Officer

*Print the name and title under the signature of the signing officer.

GENERAL INSTRUCTIONS

A.

Rule as to Use of Form 6-K,

This form shall be used by foreign private issuers which are required to furnish reports pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934.

B.

Information and Document required to be Furnished,

Subject to General Instruction D herein, an issuer furnishing a report on this form shall furnish whatever information, not required to be furnished on Form 40-F or previously furnished, such issuer (I) makes or is required to make public pursuant to the law of the jurisdiction of its domicile or in which it is incorporated or organized, or (ii) files or is required to file with a stock exchange on which its securities are traded and which was ;made public by that exchange, or (iii) distributes or is required to distribute to its security holders.

The information required to be furnished pursuant to (I), (ii) or (iii) above is that which is material with respect to the issuer and its subsidiaries concerning: changes in business; changes in management or control; acquisitions or dispositions of assets; bankruptcy or receivership; changes in registrant’s certifying accountants; the financial condition and results of operations; material legal proceedings; changes in securities or in the security for registered securities; defaults upon senior securities; material increases or decreases in the amount outstanding of securities or indebtedness; the results of the sub­mission of matters to a vote of security holders; transactions with directors, officers or principal security holders; the granting of options or payment of other compensation to directors or officers; and any other information which the registrant deems of material importance to security holders.

This report is required to be furnished promptly after the material contained in the report is made public as described above.  The information and documents furnished in this report shall not be deemed to be “filed” for the purpose of Section 18 of the Act or otherwise subject to the liabilities of that section.

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C.

Preparation and Filing of Report

This report shall consist of a cover page, the document or report furnished by the issuer, and a signature page.  Eight com­plete copies of each report on this form shall be deposited with the Commission.  At least one complete copy shall be filed with each United States stock exchange on which any security of the registrant is listed and registered under Section 12(b) of the Act.  At least one of the copies deposited with the Commission and one filed with each such exchange shall be manu­ally signed.  Unsigned copies shall be conformed.

D.

Translations of Papers and Documents into English

Reference is made to Rule 12b-12(d) [17 CFR 240.12b-12(d)].  Information required to be furnished pursuant to General Instruction B in the form of press releases and all communications or materials distributed directly to security holders of each class of securities to which any reporting obligation under Section 13(a) or 15(d) of the Act relates shall be in the English language.  English versions or adequate summaries in the English language of such materials may be furnished in lieu of original English translations.

Notwithstanding General Instruction B, no other documents or reports, including prospectuses or offering circulars relating to entirely foreign offerings, need be furnished unless the issuer otherwise has prepared or caused to be prepared English translations, English versions or summaries in English thereof.  If no such English translations, versions or summary have been prepared, it will be sufficient to provide a brief description in English of any such documents or reports.  In no event are copies of original language documents or reports required to be furnished.