If the method is returning true, then the file does exist.
However, you are probably not looking at the same location as the File.Exists command.
From MSDN
The path parameter is permitted to specify relative or absolute path information. Relative path information is interpreted as relative to the current working directory.
As you are not specifying the full path to the file, the current working directory is being used to determine if the file exists; and it likely does exist there.
