Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

December 12, 2006 09:21 ET

Pinetree Capital Ltd. Acquires Common Shares of Trigon Exploration Canada Ltd.

TORONTO, ONTARIO--(CCNMatthews - Dec. 12, 2006) - Pinetree Capital Ltd. (TSX:PNP), announces that on December 12, 2006 it acquired ownership of 625,000 common shares ("Common Shares") of Trigon Exploration Canada Ltd. ("Trigon") and 312,500 share purchase warrants (each, a "Warrant") (each Warrant entitling the holder thereof to acquire one additional common share at an exercise price of $0.50 until December 11, 2008). In the event that the Warrants are fully exercised, these holdings represent approximately 2.0% of the total issued and outstanding common shares of Trigon as of December 12, 2006, calculated on a partially diluted basis assuming the exercise of the Warrants only. As a result of this transaction, Pinetree and its joint actors held, as at December 12, 2006, an aggregate of 3,912,134 common shares of Trigon and rights to acquire an aggregate of 1,185,000 common shares of Trigon upon exercise of 1,185,000 convertible securities, including the Warrants. Of these totals, Pinetree holds the 2,625,000 common shares and 562,500 warrants, including the 312,500 Warrants, directly. If Pinetree were to exercise all of its 562,500 warrants, its holdings would represent a total of 3,187,500 common shares of Trigon, or approximately 6.6% of such shares outstanding as of December 12, 2006, calculated on a partially diluted basis assuming the exercise of the 562,500 warrants only. If Pinetree and its joint actors were to exercise all of the 1,185,000 convertible securities, their combined ownership would represent a total of 5,097,134 common shares of Trigon, or approximately 10.5% of such shares outstanding as of December 12, 2006, calculated on a partially diluted basis assuming the exercise of the 1,185,000 convertible securities only.

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Trigon 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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