Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

March 27, 2006 09:23 ET

Pinetree Capital Ltd. Acquires Common Shares Of Pele Mountain Resources Inc.

TORONTO, ONTARIO--(CCNMatthews - March 27, 2006) - Pinetree Capital Ltd. (TSX:PNP), a Canadian investment company, announces that on March 24, 2006, it acquired ownership of 500,000 units common shares ("Common Shares") of Pele Mountain Resources Inc. ("Pele") and 250,000 share purchase warrants (each, a "Warrant") (each Warrant entitling the holder thereof to acquire one additional common share at an exercise price of $0.45 until March 24, 2008). In the event that the Warrants are fully exercised, these holdings represent approximately 1.4% of the total issued and outstanding common shares of Pele as of March 27, 2006, calculated on a partially diluted basis assuming the exercise of Warrants only. As a result of this transaction, Pinetree and its joint actors held, as at March 27, 2006, an aggregate of 4,897,000 common shares of Pele and rights to acquire an aggregate of 1,025,000 common shares of Pele upon exercise of convertible securities, including the Warrants (collectively, the "Convertible Securities"). Of these totals, Pinetree holds 4,297,000 common shares and the 825,000 Warrants directly. If Pinetree and its joint actors were to exercise all of these Convertible Securities, their combined ownership would represent a total of 5,872,000 common shares of Pele, or approximately 10.6% of such shares outstanding as of March 27, 2006, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. In the event that only the Warrants are fully exercised, the direct holdings of Pinetree represent approximately 9.2% of all issued and outstanding common shares of Pele as of March 27, 2006, calculated on a partially diluted basis assuming the exercise of the Warrants only.

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Pele depending on market conditions or any other relevant factor.

About Pinetree

Pinetree Capital Ltd. ("Pinetree" or the "Company"), which is publicly traded on the Toronto Stock Exchange ("TSX") under the symbol "PNP", is a diversified investment, financial advisory and merchant banking firm focused on the small cap market. Pinetree's investments are primarily in the resources sector: Oil & Gas, Uranium, Precious Metals and Base Metals.

Pinetree's investment approach is to build a macro position in a sector, find the micro-cap opportunities in that sector and work with those companies to build them to commercial production and create an exit.

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

This news release contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Pinetree's results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. Pinetree disclaims any intent or obligation to update these forward-looking statements.

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