Pinetree Capital Announces Status Of Convertible Debenture Debt Incurrence Covenant

TORONTO, Canada (December 2, 2014) - Pinetree Capital Ltd. (TSX: PNP; PNP.DB) announces that it is not in compliance with another of the debt covenants contained in the convertible debenture indenture dated May 17, 2011, as supplemented by the first supplemental indenture dated December 11, 2012 and the second supplemental indenture dated September 12, 2013 (the "Indenture"), in each case, between the company and Equity Financial Trust Company, as trustee, which govern Pinetree's 10% convertible unsecured subordinated debentures due May 31, 2016.

The debt covenant at issue (the "Incurrence Covenant") prohibits the company from incurring any additional debt if, after giving effect thereto, the aggregate amount of all of the company's debt would exceed 33% of the total value of its assets, as reflected on its (unaudited) consolidated balance sheet as at the last day of the immediately preceding month.   As Pinetree previously disclosed in November, the company was noted in default by the trustee under the Indenture because its debt-to-assets ratio on October 31, 2014 was 38.8%, contrary to the 33% debt maintenance covenant contained in the Indenture.  At the end of November, Pinetree incurred additional indebtedness of $3.3 million in the form of margin borrowings, contrary to the Incurrence Covenant.  The borrowed funds were used for working capital purposes, including the semi-annual interest payment due on the Debentures.

The company anticipates repaying the additional indebtedness prior to the calendar year end.

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 following sectors: Precious Metals, Technology and Uranium.  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.