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Press release from Marketwire

Pinetree Capital Announces Update on Convertible Debenture Debt Covenant

Tuesday, July 16, 2013

Pinetree Capital Announces Update on Convertible Debenture Debt Covenant

09:56 EDT Tuesday, July 16, 2013

TORONTO, CANADA--(Marketwired - July 16, 2013) - Pinetree Capital Ltd. (TSX:PNP) ("Pinetree") announces that further to its July 12, 2013 press release, Equity Financial Trust Company, as trustee under the convertible debenture indenture dated May 17, 2011, as supplemented by the first supplemental indenture dated December 11, 2012 (together, the "Indenture"), in each case, between the company and Equity Financial, which govern Pinetree's 8% convertible unsecured subordinated debentures due May 31, 2016 ("Debentures") (TSX:PNP.DB), has given notice to Pinetree pursuant to the Indenture that the company is in default of the debt covenant which prohibits Pinetree's debt-to-assets ratio from exceeding 33% as at the end of each month. As at June 30, 2013, Pinetree's debt-to-assets ratio was 36%. In accordance with the Indenture, Pinetree is required to cure or obtain a waiver for the default by September 13, 2013. Failure to obtain a waiver or to cure will constitute an event of default under the Indenture.

Pinetree will continue to monitor its debt ratio, which currently remains at a similar level to the June figure, and will consider the alternatives available to the company to cure the default or obtain a waiver of the default from the holders of the Debentures.

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.


Contact Information:
Sheldon Inwentash, CPA, CA.
Chairman & CEO
Pinetree Capital Ltd.

Gerry Feldman, CPA, CA.
CFO & Vice President, Corporate Development
Pinetree Capital Ltd.

Investor Relations:
Richard Patricio, LL.B.
Vice President, Legal and Corporate Affairs
Pinetree Capital Ltd.

Pinetree Capital Ltd.
130 King Street West, Suite 250
Toronto, Ontario, Canada, M5X 2A2

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