Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

May 13, 2009 16:00 ET

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three Months Ended March 31, 2009

TORONTO, ONTARIO--(Marketwire - May 13, 2009) - Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its financial results for the three months ended March 31, 2009.

During the first quarter of 2009, Pinetree generated net income of $28.6 million, as compared to a net loss of $56.4 million in the same quarter last year. The net income was primarily due to net investment gains of $41.5 million in the quarter, comprised of unrealized gains on investments of $48.0 million offset by realized losses on dispositions of investments of $5.9 million and losses from equity accounted investments of $0.6 million. Earnings per share for the quarter was $0.22, as compared to a loss per share of $0.50 for the three months ended March 31, 2008.

The composition of Pinetree's investment portfolio (accounted for at fair value) by sector as at March 31, 2009, as compared to December 31, 2008, is outlined in the following table:



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March 31, 2009 December 31, 2008
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% of % of
Sector ($'000) Total ($'000) Total
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Resources:
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Precious Metals 78,387 42.7 50,540 37.7
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Uranium 45,094 24.6 26,953 20.1
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Base Metals 25,165 13.7 23,529 17.6
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Oil & Gas 11,943 6.5 10,066 7.5
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Molybdenum 4,522 2.5 3,159 2.4
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Potash and Rare Earths 3,605 2.0 3,658 2.7
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Total Resources 168,716 92.0 117,905 88.0
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Technology/Other 8,053 4.4 8,205 6.1
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Biotechnology 3,930 2.1 5,493 4.1
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Energy Related Technology 2,757 1.5 2,366 1.8
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As at March 31, 2009, total investments at fair value stood at $183.5 million, as compared to $134.0 million as at December 31, 2008, and the aggregate number of investments decreased to 426 from 427 at the end of the last year. 375 of the total investments or 88.0% (December 31, 2008 - 87.5%), were in the resource sector, reflecting Pinetree's continued focus on resources.

Net asset value per share increased to $1.56 as at March 31, 2009, from $1.33 as at December 31, 2008.

"We are pleased with the strength of the market for junior resources stocks in the first quarter which is reflected in our unrealized gains of $48 million", said Sheldon Inwentash, Chairman and CEO of Pinetree. "We have maintained our positive long term outlook on the commodity space and have used the recent market downturn to take best advantage of investment opportunities."

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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