Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

August 08, 2008 13:40 ET

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Six Months Ended June 30, 2008

TORONTO, ONTARIO--(Marketwire - Aug. 8, 2008) - Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its unaudited financial results for the three and six months ended June 30, 2008.

During the second quarter, Pinetree generated net income of $4.8 million, as compared to a net loss of $44.3 million in the same quarter last year. The net income was primarily due to net investment gains of $13.9 million in the quarter, comprised of realized gains on dispositions of investments of $1.2 million, $11.0 million in unrealized gains on investments and $1.7 million in income from an equity accounted investment. Earnings per common share were $0.04 as compared to loss per share of $0.47 in the three months ended June 30, 2007.

For the six months ended June 30, 2008, Pinetree generated a net loss of $51.6 million, as compared to net income of $2.9 million in the same period last year. The net loss was primarily due to net investment losses of $68.2 million in the period, comprised of realized losses on dispositions of investments of $6.8 million, $61.2 million in unrealized losses on investments and $218,000 in loss from an equity accounted investment. Loss per common share was $0.45 as compared to earnings per share of $0.03 in the six months ended June 30, 2007.

The composition of Pinetree's investment portfolio (accounted for at fair value) by sector as at June 30, 2008, as compared to the end of the prior quarter and last year end is outlined in the following table:



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June 30, 2008 March 31, 2008 December 31, 2007
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% of % of % of
Sector ($'000) Total ($'000) Total ($'000) Total
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Resources:
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Precious Metals 157,129 32.0 190,416 35.2 240,479 40.6
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Base Metals 92,422 18.8 126,450 23.4 72,874 12.3
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Uranium 108,610 22.1 81,174 15.0 118,384 20.0
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Oil & Gas 38,204 7.8 38,187 7.1 45,543 7.7
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Molybdenum 28,400 5.8 32,439 6.0 50,506 8.5
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Potash and Rare Earths 19,203 3.9 18,132 3.4 17,052 2.9
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Total Resources 443,968 90.4 486,798 90.1 544,838 92.0
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Technology/Other 28,064 5.7 29,522 5.5 23,805 4.0
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Biotechnology 11,519 2.2 12,388 2.2 11,400 2.0
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Energy Related Technology 8,161 1.7 12,159 2.2 11,996 2.0
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Total investments at June 30, 2008, including investments accounted for at fair value stood at $491.7 million as compared to $592.0 million as at December 31, 2007. The number of investments decreased to 429 from 487 at the end of the last year. Of the 429 investments, 373 or 86.9% (December 31, 2007 - 88.7%), were in the resource sector, reflecting Pinetree's continued focus on resources.

Net asset value per share decreased to $3.79 as at June 30, 2008 from $4.20 as at December 31, 2007.

Sheldon Inwentash, Chairman and CEO of Pinetree stated, "We continue to find ourselves in a period where valuations reflect short-term market sentiments rather than long-term fundamentals in the resource sector. Following our July financing, we continue to have the wherewithal to invest and remain focused on those longer term trends. We remain cautiously optimistic with our many investments in key growth areas and diversification over the entire resource sector."

About Pinetree

Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the Province of Ontario and its shares are publicly-traded on the Toronto Stock Exchange ("TSX") under the symbol "PNP". Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree's investments are primarily in the resources sector: Uranium, Oil & Gas, Molybdenum, Precious Metals, Potash and Rare Earths, and Base Metals. Pinetree's investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities.

For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.

Use of Non-GAAP Measures

"Net asset value per share" is a non-GAAP measure defined as shareholders' equity divided by the total number of common shares of Pinetree outstanding. The term net asset value per share does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. We believe that the measure provides information useful to our shareholders in understanding our performance, facilitates the comparison of the quarterly and year-end results of our ongoing operations and provides a meaningful measure to evaluate our business relative to that of our peers.

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