Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

December 11, 2007 08:30 ET

Pinetree Capital Ltd. Acquires Securities of East West Resource Corporation

TORONTO, ONTARIO--(Marketwire - Dec. 11, 2007) - Pinetree Capital Ltd. (TSX:PNP), announces that on December 6, 2007, it acquired ownership of 3,000,000 common shares ("Common Shares") of East West Resource Corporation ("East West") and 3,000,000 common share purchase warrants (the "Warrants"). Each Warrant entitles the holder thereof to acquire one additional common share until December 6, 2009, at a price of $0.17. In the event that the Warrants are fully exercised, these holdings represent approximately 4.5% of the total issued and outstanding common shares of East West as of December 6, 2007, 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 6, 2007, an aggregate of 12,359,508 common shares of East West and convertible securities exercisable into 9,188,824 common shares of East West (the "Convertible Securities"), including the Warrants. Of these totals, Pinetree directly holds 4,500,000 common shares and the Warrants. If Pinetree and its joint actors were to exercise all of the Convertible Securities, their combined ownership would represent a total of 21,548,332 common shares of East West, or approximately 15.5% of such shares outstanding as of December 6, 2007, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. If Pinetree were to exercise all of the Warrants, its direct ownership would represent a total of 7,500,000 common shares of East West, or approximately 5.7% of such shares outstanding as of December 6, 2007, 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 East West depending on market conditions or any other relevant factor.

About Pinetree

Pinetree Capital Ltd. ("Pinetree" or the "Company") was incorporated under the laws of the Province of Ontario and is 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 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.

Contact Information

  • Investor Relations:
    Pinetree Capital Ltd.
    Larry Goldberg, C.A.
    Executive Vice President and Chief Financial Officer
    (416) 941-9600
    Email: ir@pinetreecapital.com
    or
    Media Relations:
    Pinetree Capital Ltd.
    Wanda Cutler
    Director of Corporate Communications
    (416) 860-1717
    Website: www.pinetreecapital.com