PNP Pinetree Capital Ltd

Pinetree Capital Ltd. ("Pinetree") (TSX: PNP) today announces its audited consolidated financial results for the year ended December 31, 2010.

Net asset value per share increased to $4.71 as at December 31, 2010 from $2.53 as at December 31, 2009, an 86% increase.

For the year ended December 31, 2010, Pinetree had net income of $296 million, as compared to $157 million last year. The net income was primarily from net investment gains of $383 million in the year, comprised of $341 million in unrealized gains on investments and realized gains on dispositions of investments of $43 million. Earnings per share were $2.18, as compared to $1.19 per share in the year ended December 31, 2009.

The composition of Pinetree's investment portfolio (accounted for at fair value) by sector as at December 31, 2010, as compared to the prior year, is outlined in the following table:

============================================================================
                                   December 31, 2010     December 31, 2009
                                --------------------------------------------
             Sector                ($'000)  % of Total   ($'000)  % of Total
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Resources:
  Precious Metals                  316,667        39.9   158,027        43.1
  Base Metals                      148,063        18.6    71,711        19.5
  Uranium and Coal                 171,112        21.6    49,066        13.4
  Oil & Gas                         72,263         9.1    34,404         9.4
  Potash, Lithium and Rare
   Earths                           66,524         8.4    27,103         7.4
                                --------------------------------------------
Total Resources                    774,629        97.6   340,311        92.8
                                --------------------------------------------
Technology/Other                    19,235         2.4    26.413         7.2
============================================================================

As at December 31, 2010, total investments at fair value was $794 million, as compared to $367 million as at December 31, 2009, while the total number of investments decreased to 428 from 429 as at December 31, 2009. Three hundred and ninety of the investments or 91.1% (December 31, 2009 - 383 or 89.3%) were in the resource sector, consistent with Pinetree's primary investment strategy.

During the three months ended December 31, 2010, Pinetree had unaudited net income of $229 million, as compared to $20 million for the same period last year. The net income was primarily from net investment gains of $292 million in the quarter, comprised of $265 million in unrealized gains on investments and realized gains on dispositions of investments of $27 million. Earnings per share were $1.68, as compared to $0.15 per share in the three months ended December 31, 2009.

Sheldon Inwentash, Pinetree's Chairman and CEO, stated, "2010 was a very strong year for Pinetree and the markets in which we invest, as the value of our investment portfolio more than doubled. We also expanded the portfolio in areas where we see opportunities for continued growth going forward. Our outlook for the resource sector remains positive."

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, Uranium and Coal, Base Metals, Oil and Gas, and Potash, Lithium and Rare Earths. 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 and is recognized as a value added partner in the resource industry.

Pinetree discloses an unaudited monthly net asset value per share within 15 days after a month-end. For the latest month-end net asset value per share and for more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.

Use of Non-GAAP Measures

"Net asset value per share" is a non-GAAP measure defined as total assets less total liabilities divided by the total number of common shares of Pinetree outstanding. The term net asset value per share does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. We believe that the measure provides information useful to our shareholders in understanding our performance, facilitates the comparison of the quarterly and year-end results of our ongoing operations and provides a meaningful measure to evaluate our business relative to that of our peers.

Contacts: Pinetree Capital Ltd. Sheldon Inwentash Chairman & CEO 416-941-9600 Investor Relations: Pinetree Capital Ltd. Richard Patricio Vice President, Legal and Corporate Affairs 416-941-9600 ir@pinetreecapital.com www.pinetreecapital.com