TSX: PNP     Last: 3.67     Change: -0.14
TSX: PNP     Last: 3.67     Change: -0.14

Pinetree Capital Ltd. Acquires Common Shares Of West Africa Energy Inc.

June 29, 2006

TORONTO, Ontario (June 29, 2006) – Pinetree Capital Ltd. (TSX: PNP), announces that on June 29, 2006, it acquired ownership of 1,300,000 common shares (“Common Shares”) of West Africa Energy Inc. (“West Africa”), representing approximately 5.1% of the total issued and outstanding common shares of West Africa as of June 29, 2006.  As a result of this transaction, Pinetree and its joint actors held, as at June 29, 2006, an aggregate of 2,563,260  common shares of West Africa and rights to acquire an aggregate of 318,600 common shares of West Africa upon exercise of certain convertible securities (the “Convertible Securities”).  If Pinetree and its joint actors were to exercise all of the Convertible Securities, their combined ownership would represent a total of 2,881,860 common shares of West Africa, or approximately 11.1% of such shares outstanding as of June 29, 2006, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. Of these totals, Pinetree holds 1,963,260 common shares directly, which represents approximately 7.6% of all issued and outstanding common shares of West Africa as of June 29, 2006.

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in West Africa 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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