TORONTO, Canada (December 20, 2010) Pinetree
Capital Ltd. (TSX: PNP), announces that on December 17,
2010, it acquired ownership of 2,000,000 common shares (�Common Shares�) and
2,000,000 common share purchase warrants (the �Warrants�) of Southern
Andes Energy Inc. (�Southern Andes�). Each Warrant entitles the holder
thereof to acquire one additional common share at a price of $0.55 until
December 17, 2011 and at a price of $0.60 until December 17, 2012. In
the event that the Warrants are fully exercised, these holdings represent
approximately 5.3% of the total issued and outstanding common shares of
Southern Andes as of December 17, 2010, calculated on a partially diluted
basis assuming the exercise of the Warrants only. As a result of this
transaction, Pinetree held, as at December 17,
2010, an aggregate of 6,052,683 common shares of Southern Andes, including
the Common Shares, and rights to acquire an additional 3,458,333 common
shares of Southern Andes upon exercise of certain convertible securities,
including the Warrants (the �Convertible Securities�). In the
event that the Convertible Securities are fully exercised, the holdings of Pinetree represents a total of 9,511,016 common shares of
Southern Andes, or approximately 12.3% of all issued and outstanding common
shares as at December 17, 2010, calculated on a partially diluted basis
assuming the exercise of the Convertible Securities only.
This transaction was made for investment purposes and Pinetree could increase or decrease its investment in
Southern Andes depending on market conditions or any other relevant factor.
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 and Coal, Oil & Gas, Precious Metals, Base Metals 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.