Pinetree Capital Announces Closing of $43 Million Private Placement

July 11, 2008

TORONTO, Ontario (July 11, 2008) – Pinetree Capital Ltd. (“Pinetree” or the “Company”) (TSX: PNP) is pleased to announce that its previously announced private placement has closed, raising gross proceeds of $43,193,250 though the issuance and sale of 17,277,300 units at a price of $2.50 per unit (which includes the partial exercise by the agents of their over-allotment option for an aggregate of 1,277,300 units).

Each unit is comprised of one common share (a “Common Share”) and one-half of one common share purchase warrant of Pinetree.  Each whole common share purchase warrant entitles the holder to acquire one Common Share at a price of $3.50 per share until expiry on July 11, 2013.

The units were sold through a syndicate of agents co-led by Genuity Capital Markets G.P. and PowerOne Capital Markets Limited, and including Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc.  As consideration for their services in respect of the private placement, the agents received a cash commission of $2,091,279 and compensation options exercisable for up to 722,771 Common Shares, at a price of $2.72 per share, until expiry on July 11, 2010.

Pinetree intends to use the proceeds of the private placement for future investment activities, to reduce existing debt obligations and for general corporate purposes.

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: Uranium, Oil & Gas, Molybdenum, Precious Metals, Potash and Rare Earths, and Base Metals.  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.

For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com  

Investor Relations:
Larry Goldberg, C.A.
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.

130 King Street West, Suite 2500

Toronto, Ontario, Canada, M5X 1A9
Phone: 416-941-9600
Email: ir@pinetreecapital.com 
Web Site: www.pinetreecapital.com