TSX: PNP     Last: 3.79     Change: -0.02
TSX: PNP     Last: 3.79     Change: -0.02

Pinetree Capital Announces TSX Acceptance Of Normal Course Issuer Bid For Convertible Debentures

May 16, 2012

TORONTO, Ontario (May 16, 2012) – Pinetree Capital Ltd. (TSX: “PNP”) (“Pinetree”) announces that the Toronto Stock Exchange (the “TSX”) has accepted notice of its intention to make a normal course issuer bid (the “Bid”), through the facilities of the TSX and on other alternative Canadian trading systems, to purchase up to $3,750,000 principal amount of its 8% convertible unsecured subordinated debentures due May 31, 2016 (“Debentures”) (TSX:  “PNP.DB”), representing up to 5% of the $75,000,000 principal amount of Debentures currently outstanding.

The Bid will commence on May 18, 2012 and end on May 17, 2013.  Pinetree can purchase up to a maximum of $28,293 principal amount of Debentures per day under the Bid (subject to the company’s ability to rely upon the “block purchase exception” under the TSX rules).  All purchases will be made at market prices and otherwise in accordance with the rules of the TSX, and all Debentures purchased under the Bid will be cancelled.

Pinetree believes that in view of recent trading prices of the Debentures, and depending upon prices from time to time throughout the duration of the Bid, the purchase (for cancellation) of Debentures may represent an attractive use of funds to reduce the company’s ongoing interest expense and reduce the overall debt outstanding at below issue cost, thereby contributing to the enhancement of shareholder value.

Pinetree has not purchased any Debentures during the previous twelve months. 

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 venture capital firm focused on the small cap market.  Pinetree’s investments are primarily in the resources sector: Precious Metals, Base Metals, Oil and Gas, Potash, Lithium and Rare Earths, Uranium and Coal.  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. Pinetree is recognized as a value-added partner in the resource industry. 

  Investor Relations:
Sheldon Inwentash, CA. Richard Patricio, LL.B.
Chairman & CEO Vice President, Legal and Corporate Affairs
Pinetree Capital Ltd. Pinetree Capital Ltd.
  130 King Street West, Suite 250
Gerry Feldman, CA. Toronto, Ontario, Canada, M5X 1A9
CFO & Vice President, Corporate Development Phone: 416-941-9600
Pinetree Capital Ltd. Email: ir@pinetreecapital.com
  Website: www.pinetreecapital.com

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