Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

November 14, 2006 14:42 ET

Pinetree Capital Ltd. Announces Unaudited Results for the Three and Nine Months Ended September 30, 2006

- Fair Value of Investments increased 138.8% to $420.7 million from $176.1 million as at December 31, 2005 and increased 33.7% from $314.7 million as at June 30, 2006; - Net Asset Value Per Share increased 68.1% to $6.27 'basic' from $3.73 'basic' as at December 31, 2005 and 15.7% from $5.42 'basic' as at June 30, 2006; - Earnings Per Share of $2.23 in the nine months ended September 30, 2006 vs. $0.92 in same period of 2005;

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2006) - Pinetree Capital Ltd. (TSX:PNP) ("Pinetree"), today announced its unaudited results for the three and nine months ended September 30, 2006.

On July 31, 2006, the Company effected a two-for-one stock split and paid a stock dividend of one common share for every share owned on the close of business on July 19, 2006. All figures and comparative figures reflect the stock split.

Investments at Fair Value stood at $420.7 million as at September 30, 2006 as compared to $176.1 million as at December 31, 2005 (a 138.9% increase in the current year) and $314.7 million as at June 30, 2006 (a 33.7% increase in the current quarter).

Net Asset Value per share (basic) was $6.27. This is an increase of 68.1% over the Net Asset Value per share of $3.73 as at December 31, 2005 and an increase of 15.7% over the Net Asset Value per share of $5.42 as at June 30, 2006.

The composition of Pinetree's investment portfolio as at September 30, 2006 compared to last quarter and December 31, 2005, is outlined in the following table.



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September 30, 2006 June 30, 2006 December 31, 2005
Fair Value % of Fair Value % of Fair Value % of
Sector ($) Total ($) Total ($) Total
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Resources:
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Uranium 92,252,000 21.9 66,923,000 21.3 28,937,000 16.4
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Oil & Gas 80,322,000 19.2 69,322,000 22.0 40,169,000 22.8
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Precious Metals 154,537,000 36.7 115,208,000 36.6 38,239,000 21.7
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Base Metals 24,303,000 5.8 10,636,000 3.4 15,231,000 8.7
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Total Resources 351,414,000 83.6 262,089,000 83.3 122,576,000 69.6
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Biotechnology 5,956,000 1.4 7,006,000 2.2 5,938,000 3.4
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Energy Related
Technology 25,396,000 6.0 19,683,000 6.3 19,372,000 11.0
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Technology/Other 37,897,000 9.0 25,912,000 8.2 28,256,000 16.0
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In terms of Fair Value, the largest increases since the last fiscal year end were in the Precious Metals and Uranium sectors. Overall, the Fair Value of Pinetree's Resource investments grew by 186.7% during the nine months ended September 30, 2006.

During the third quarter, Pinetree had $54.4 million of net investment gains as compared to $29.2 million in net investment gains during the third quarter of fiscal 2005. The net investment gains during the period were comprised of $14.8 million of realized gains and $39.6 million of unrealized gains.

Net income in the third quarter was $37.4 million, versus $22.8 million earned in the third quarter of 2005. Earnings Per Share (basic) in the quarter was $0.87 as compared to Earnings Per Share of $0.82 in the same quarter last year.

During the nine months ended September 30, 2006, Pinetree generated $134.8 million of net investment gains as compared to $32.9 million during the same period in fiscal 2005. Of the net investment gains during the period, $53.9 million were realized gains while $80.9 million were unrealized.

Net income in the nine months ended September 30, 2006 was $85.4 million, versus $25.6 million earned in the same period last year. Earnings Per Share (basic) in the nine months ended September 30, 2006 was $2.23 as compared to Earnings Per Share of $0.92 in the same period last year.

"We are very pleased with Pinetree's performance during the quarter", commented Mr. Inwentash. "Despite being a challenging quarter in the resource sector, we experienced substantial growth in our 3 key focus areas of Uranium, Precious metals and Oil & Gas. In addition, we continued to target the uranium sector for new investing activities."

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 and merchant banking firm focused on the small cap market. Pinetree's investments are primarily in the resources sector: Uranium, Oil & Gas, 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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