TSX: PNP     Last: 4.95     Change: 0.06
TSX: PNP     Last: 4.95     Change: 0.06

Pinetree Capital Ltd. Acquires Common Shares Of Aura Gold Inc.

October 6, 2006

TORONTO, Ontario (October 6, 2006) – Pinetree Capital Ltd. (TSX: PNP), announces that, though a series of transactions ending on October 6, 2006, it acquired ownership of 455,000 common shares (“Common Shares”) of Aura Gold Inc. (“Aura”) through the facilities of the Toronto Stock Exchange representing approximately 0.9% of the total issued and outstanding common shares of Aura as of October 6, 2006.  As a result of this transaction, Pinetree held, as at October 6, 2006, an aggregate of 4,128,400 common shares of Aura and convertible securities in which it can acquire an additional 668,250 common shares of Aura, or 9.0% of all issued and outstanding common shares of Aura as at October 6, 2006, calculated on a partially diluted basis assuming exercise of the convertible securities only.  In addition, Pinetree and its joint actors, together owned an aggregate of 4,828,500 common shares of Aura and convertible securities entitling the holders to acquire 918,250 common shares of Aura.  In the event that the 918,250 convertible securites are fully exercised, the holdings of the Offeror and joint actors represent approximately 10.7% of all issued and outstanding common shares as at October 6, 2006, calculated on a partially diluted basis assuming the exercise of the 918,250 convertible securities.

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

Subscribe for the latest news and updates