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Pinetree Capital Ltd. Acquires Common Shares Of Kilgore Minerals Ltd.

January 16, 2006

TORONTO, Ontario – Pinetree Capital Ltd. (TSX: PNP), a Canadian investment company, announces that in a number of transactions concluding on January 13, 2006, with its purchase on the TSX Venture Exchange of 171,500 common shares of Kilgore Minerals Ltd. (“Kilgore”), it acquired ownership of 537,500 common shares of Kilgore or approximately 3.0% of the total issued and outstanding common shares of Kilgore as of January 13, 2006. As a result of this transaction, Pinetree and its joint actors held, as at January 13, 2006, an aggregate of 1,532,000 common shares of Kilgore and rights to acquire an aggregate of 885,715 common shares of Kilgore upon exercise of convertible securities (the “Convertible Securities”).  Of these totals, Pinetree holds 1,532,000 common shares and 350,000 common share purchase warrants (the “Warrants”) directly, which represent 10.5% of Kilgore’s outstanding common shares as of January 13, 2006, calculated on a partially diluted basis assuming the exercise of the Warrants only.  If Pinetree and its joint actors were to exercise all of these Convertible Securities, their combined ownership would represent a total of 2,417,715 common shares of Kilgore, or approximately 12.9% of such shares outstanding as of January 13, 2006, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. 

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Kilgore 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 develops and manages a portfolio of equity securities of private and public issuers engaged in growth businesses in the following three sectors: (i) Uranium, Mining and Oil & Gas; (ii) Biotechnology; and (iii) Technology and Other.  Pinetree’s investment focus among these three sectors changes over time, depending on changing investment opportunities. As well, Pinetree takes advantage of special situations and merchant banking opportunities.

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.

Investor Relations Contact for Pinetree Capital Ltd.:

Larry Goldberg, C.A.

Executive Vice President and Chief Financial Officer

Pinetree Capital Ltd. 

130 King Street West, Suite 2810

Toronto, Ontario, Canada, M5X 1A9


Email: ir@pinetreecapital.com    Web Site: www.pinetreecapital.com

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