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TSX: PNP     Last: 3.81     Change: 0.00

Pinetree Capital Ltd. Acquires Common Shares Of Uranium City Resources Inc.

April 21, 2006

TORONTO, Ontario (April 21, 2006) – Pinetree Capital Ltd. (TSX: PNP), announces that on April 21, 2006 it acquired ownership of 2,000,000 common shares (“Common Shares”) of Uranium City Resources Inc. (“Uranium City”) and 1,000,000 share purchase warrants (each, a “Warrant”) (each Warrant entitling the holder thereof to acquire one additional common share at an exercise price of $0.45 until October 20, 2007).  In the event that the Warrants are fully exercised, these holdings represent approximately 8.5% of the total issued and outstanding common shares of Uranium City as of April 21, 2006, calculated on a partially diluted basis assuming the exercise of Warrants only.  As a result of this transaction, Pinetree and its joint actors held, as at April 21, 2006, an aggregate of 2,500,000 common shares of Uranium City and rights to acquire an aggregate of 1,250,000 common shares of Uranium City upon exercise of 1,250,000 warrants, including the Warrants.  Of these totals, Pinetree holds only the 2,000,000 common shares and the 1,000,000 Warrants directly.  If Pinetree and its joint actors were to exercise all of the 1,250,000 warrants, their combined ownership would represent a total of 3,750,000 common shares of Uranium City, or approximately 10.5% of such shares outstanding as of April 21, 2006, calculated on a partially diluted basis assuming the exercise of the 1,250,000 warrants only. 

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Uranium City depending on market conditions or any other relevant factor.

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

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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