Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Six Months Ended June 30, 2012

Marketwired

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2012) - Pinetree Capital Ltd. ("Pinetree") (PNP.TO) today announces its unaudited financial results for the three and six months ended June 30, 2012.

During the second quarter of fiscal 2012, Pinetree had a net loss of $116 million, as compared to $145 million for the same quarter last year. Net loss generated was primarily the result of net investment losses of $115 million in the quarter, comprised of $105 million in unrealized losses on investments and realized losses on dispositions of investments of $10 million. Loss per share was $0.85, as compared to $1.06 per share in the three months ended June 30, 2011.

For the six months ended June 30, 2012, Pinetree had a net loss of $121 million, as compared to $156 million for the same period last year. Net loss generated was primarily the result of net investment losses of $116 million in the current period, comprised of $111 million in unrealized losses on investments and realized losses on dispositions of investments of $5 million. Loss per share was $0.88, as compared to $1.14 per share in the six months ended June 30, 2011.

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:

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June 30, 2012 December 31, 2011

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% of % of

Sector ($'000) Total ($'000) Total

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Resources:

Precious metals 154,653 53.3 233,771 54.7

Base metals 37,645 13.0 61,050 14.3

Oil and gas 30,571 10.5 43,125 10.1

Potash, lithium and rare earths 27,825 9.6 38,840 9.1

Uranium 24,170 8.3 28,272 6.6

Coal 5,643 1.9 5,320 1.2

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Total resources 280,507 96.6 410,378 96.0

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Technology and other 9,496 3.4 17,291 4.0

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Total investments 290,003 100.0 427,669 100.0

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As at June 30, 2012, total investments at fair value was $290 million, as compared to $428 million as at December 31, 2011, a decrease of 32%.

Net asset value per share decreased 33% to $1.74 as at June 30, 2012, from $2.61 as at December 31, 2011.

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 www.pinetreecapital.com.

Use of Non-GAAP Measures

NAV (net asset value per share) is a non-GAAP (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 GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP measure presented in Pinetree's consolidated financial statements and thus no applicable quantitative reconciliation for such non-GAAP 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.

Contact:
Sheldon Inwentash, CA.
Pinetree Capital Ltd.
Chairman & CEO
416-941-9600

Gerry Feldman, CA.
Pinetree Capital Ltd.
CFO & Vice President, Corporate Development
416-941-9600

Richard Patricio, LL.B.
Investor Relations: Pinetree Capital Ltd.
Vice President, Legal and Corporate Affairs
416-941-9600
ir@pinetreecapital.com
www.pinetreecapital.com

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