Pinetree Capital Ltd.

Pinetree Capital Ltd.

May 12, 2011 16:00 ET

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three Months Ended March 31, 2011

TORONTO, ONTARIO--(Marketwire - May 12, 2011) - Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its unaudited financial results for the three months ended March 31, 2011.

This is the first quarter for which the Company has reported its operating results and financial position under International Financial Reporting Standards ("IFRS"). All comparative information contained in the March 31, 2011 interim consolidated financial statements has been restated to conform to the accounting policies under IFRS. During the first quarter of fiscal 2011, Pinetree generated a net loss of $11.2 million, as compared to a net profit of $13.5 million for the same quarter last year. Net loss generated was primarily the result of net investment losses of $12.8 million in the quarter, comprised of $72.4 million in unrealized losses on investments offset by realized gains on dispositions of investments of $59.6 million. Loss per share was $0.08, as compared to net profits of $0.10 per share in the three months ended March 31, 2010.

The composition of Pinetree's investment portfolio by sector at the end of the quarter as compared to the end of last year, is outlined in the following table:
March 31, 2011December 31, 2010
Sector($'000)% of Total($'000)% of Total
Precious Metals347,89045.3316,66739.6
Base Metals154,49520.1153,22119.2
Oil & Gas79,82010.472,2639.0
Potash, Lithium and Rare Earths68,5068.966,5248.3
Total Resources740,14096.4779,78797.5
Technology and Other27,2943.619,2352.5

As at March 31, 2011, total investments at fair value was $767.4 million, as compared to$799.0 million as at December 31, 2010.

Net asset value per share decreased 1.7% to $4.66 as at March 31, 2011,from $4.74 as at December 31, 2010.

Mr. Inwentash, Chairman and CEO of the Company stated, "we continue to see volatility in the markets in which we invest, including in the commodity prices underlying our investments. Our approach continues to be to look for opportunities for growth and seek investments capable of positive performance in spite of these challenging markets."

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: Precious Metals, Base Metals, Oil and Gas, Potash, Lithium and Rare Earths, Uranium and Coal. 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. Pinetree is recognized as a value added partner in the resource industry.

Pinetree discloses an unaudited monthly net asset value per share within 15 days after each month-end. For the latest month-end net asset value per share and for more details about Pinetree and its investments, please visit our website at

Use of Non-IFRS Measures

NAV is a non-IFRS (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies. There is no comparable IFRS measure presented in Pinetree's consolidated financial statements and thus no applicable quantitative reconciliation for such non-IFRS financial measure. The Company has calculated NAV consistently for many years and believes that NAV can provide information useful to its shareholders in understanding its performance, and may assist in the evaluation of its business relative to that of its peers.

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