August 2009 Forward Looking Statements Certain statements contained - - PDF document

August 2009

Forward Looking Statements

Certain statements contained in this Presentation are based on, inter alia, forward- looking information that are subject to risks and uncertainties. All statements herein, other than statements of historical fact, are to be considered forward-

• looking. Such forward-looking information and statements are based on current

expectations, estimates and projections about global and regional economic conditions as well as industries that are major markets for Pinetree Capital Ltd. There can be no assurance that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. Further, to the best of management’s knowledge, the information throughout the presentation is current as of the date of the presentation, but management and the agents specifically disclaim any duty to update any forward-looking information. Factors that could cause actual results to differ from that expected include, but are t li it d t th i k f t i l d d i t d b f i th Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com not limited to, the risk factors included, or incorporated by reference, in the Company’s annual information form.

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Pinetree: A Specialized Investment Company

A publicly-traded company that invests primarily in the natural resources A publicly traded company that invests primarily in the natural resources

sector

• Focus on small cap. exploration stage companies
• Targets investments in emerging growth companies
• Discovery investing

A proven track record of outperformance

• Deep industry relationships
• Superior access to investment opportunities
• Investing ahead of cycle

Experienced team of investors

• Managed by Sheldon Inwentash

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Competitively positioned

• Not a fund so no risk of redemption

3

Investment Process

P T k Proven Track Record of Outperformance Management Interests Aligned with Unique Investment Approach to S ll C

• Demonstrated expertise advising

portfolio companies

• Track record of investing into

sectors in advance of market

• Beating all benchmarks

Shareholders Small Cap. Universe

• Access to deals below radar

screen of other investors

• Extensive network of contacts
• Reputation for “fair deals”
• Known for backing “winners”

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Sheldon Inwentash and Team Access to Deal Flow

Known for backing winners 4

Proven Track Record of Outperformance

NAV per share up 155% since June 2004 Share price up from 3.4x from June 2004 to June 2009 (5 year period)

NAV Per Share

“NAV per share” is a non- GAAP measure defined as shareholders’ equity divided by total number of common shares

• utstanding. The term

$10.20 $11.69 $9.50 $9.00 $12.00 NAV/share PNP Share Price

g NAV 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

$3.73$3.72$4.16$4.24 $4.25 $1.48 $1.87 $2.86$2.71 $3.14 $4.24 $4.84 $4.97 $4.05 4.20 3.72 3.79 2.02 1.33 1.56 1.91 $ $ $1.58 $4.48$4.33$4.40 $6.65 4.26 3.13 2.32 0 98 1.29 1.73 $3.00 $6.00 NAV/share

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

p quarterly and year-end results of our ongoing

• perations and provides a

meaningful measure to evaluate our business relative to that of our peers.

5

$ $0.51$0.44 $0.60$0.55 $0.59 $0.89 0.98 0.82 $0.00 Jun‐04 Sept.2004 Dec‐04 Mar‐05 Jun‐05 Sept.2005 Dec.2005 Mar.2006 Jun.2006 Sept.2006 Dec.2006

• Mar. 2007
• Jun. 2007
• Sept. 2007
• Dec. 2007
• Mar. 2008
• Jun. 2008
• Sept. 2008
• Dec. 2008
• Mar. 2009
• Jun. 2009

Proven Track Record of Outperformance Pinetree continues to outperform over a longer investment horizon

1 Year (June 2008 – June 2009) 5 Year Returns (June 2008 – June 2009)- CAGR

‐25.4% ‐28.3% ‐11.0% ‐28.2% ‐25.6% ‐40.0% ‐30.0% ‐20.0% ‐10.0% 0.0% 27.8% 4.0% 9.7% 9.4% 10.0% 15.0% 20.0% 25.0% 30.0% ‐40.3% ‐58.6% ‐70.0% ‐60.0% ‐50.0% 40.0% Pinetree X Composite Index apped Gold Index pped Energy Index S&P 500 DJIA e Composite Index 4.0% ‐4.2% ‐4.1% ‐7.0% ‐10.0% ‐5.0% 0.0% 5.0% Pinetree X Composite Index apped Gold Index pped Energy Index S&P 500 DJIA e Composite Index

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

S&P/TSX S&P/TSX C S&P/TSX Cap S&P/TSX Venture S&P/TSX S&P/TSX C S&P/TSX Cap S&P/TSX Venture

6

Portfolio by Sector (June 30, 2009)

Investments are currently

Portfolio Sector Breakout

(P f T l P f li F i V l d d i l d

primarily in these resource sectors:

Precious Metals, Uranium,

Oil & Gas, Base Metals, Molybdenum, and Potash and Rare Earths.

(Percentages are of T

• tal Portfolio Fair Value and does not include

Equity Accounted Investments)

Biotechnology, 7 Energy Related Technology 10

Portfolio Sector Breakout (Number of Investments in Each Sector)

Precious Metals, 150 Base Metals, 80 Uranium, 76 Oil & Gas, 41 Molybdenum, 18 Potash and Rare Earths, 7 Technology and Other, 33

• tec
• ogy,

Technology, 10

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

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Unique Investment Approach to Small Cap. Universe

We bring a unique approach to public investing: Flexibility to invest opportunistically in sectors and in companies Conduct due diligence Known for backing the winners Actively negotiate investments within portfolio companies

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Act as value-added partner to management teams In certain instances, take an active role in building portfolio companies over time

Knowing when to exit is as important as knowing what to invest in.

8

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

9

Sample Successes - Gold

Guyana Goldfields Inc. (GUY:TSX)

AfriOre Limited (AFO TSX)

(GUY:TSX)

(AFO:TSX)

Investment Summary

• Initial investment - $486,500 in late 2003
• Total investment - $2.1 million
• Lonmin makes cash offer of $441 mm ($8.75

per share)

Investment Summary

• Initial investment - $150,000 in June 2002
• Total investment - $8.5 million
• Exit Proceeds - $22.9 million (2.7 x cost)
• Exit Proceeds - $7.8 million (3.8 x cost).

Pinetree

$6.00 $8.00 $10.00 $12.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Pinetree Invests

$0.00 $2.00 $4.00 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 $0.00 $1.00 $2.00 $3.00 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06

Pinetree Invests

10

Sample Successes - Gold Aurelian Resources Inc. (ARU TSX) (ARU:TSX)

Investment Summary

• Initial investment - $450,000 in late 2003
• Total investment - $13.2 million
• Exit Proceeds - $37.5 million (2.8 x cost)

$3 00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00

Pinetree

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

$- $1.00 $2.00 $3.00 Pinetree

Invests

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Sample Successes – Uranium

Khan Resources Inc. (KRI TSX) (KRI:TSX)

Investment Summary

• Initial investment - $525,000 in 2003
• Total investment - $3.4 million
• Exit Proceeds - $15.8 million (4.6 x cost)

$2 00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00

Pinetree Invests

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

$0.00 $0.50 $1.00 $1.50 $2.00 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07

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Sample Successes – Oil & Gas

Connacher Oil & Gas Ltd. (CLL:TSX)

Petrolifera Petroleum Ltd. (PDP TSX)

(CLL:TSX)

Investment Summary

• Initial investment - $760,000 in late 2004
• Total investment - $24.1 million
• Exit Proceeds - $28.0 million (1.2 x cost)

(PDP:TSX)

Investment Summary

• Initial investment - $900,000 in late 2005
• Total investment - $7.1 million
• Exit proceeds - $19.4 million (2.7 x cost)

$10 00 $15.00 $20.00 $25.00

Pinetree Invests

$3.00 $4.00 $5.00 $6.00

Pinetree

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

$0.00 $5.00 $10.00 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 $0.00 $1.00 $2.00 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07

Pinetree Invests

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Sample Successes – Base Metals FNX Mining Co Inc. (FNX:TSX) (FNX:TSX)

Investment Summary

• Initial investment - $350,000 in mid-2001
• Total investment - $20.7 million
• Exit Proceeds - $28.5 million (1.4 x cost)

$8 00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00

Pinetree Invests

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

$0.00 $2.00 $4.00 $6.00 $8.00 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07

14

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

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Major Positions – Precious Metals

Pinetree began investing in precious metal stocks in late 2002 – when gold

was at the $300 / oz level.

Opportunistic increases in the precious metals sector have led to

• utperformance

Sector themes Investment themes Sector themes

• Weak prospects for U.S. dollar due to

increasing government debt and quantitative easing

• Low to negative real interest rates
• Declining mine supply

Investment themes

• Overweight Canada + other low political

risk regions

• Pre-production companies to benefit as

producers look for acquisitions

• Focus on profitable stages in the mining life

cycle early to advanced stage exploration

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

cycle - early to advanced stage exploration and production ramp-up

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Major Positions – Precious Metals

Queenston Mining (QMI:TSX)

Queenston Mining Inc. is focused on the exploration and development of gold deposits

• n “Proven Mine Trends”.

The company has an inventory of historic-current resources of 2.7 million ounces of

gold and has made new discoveries in the Kirkland Lake and Cadillac gold camps.

Investment Summary

• Initial investment $442 500

2 3 4 5 6

Pinetree Invests

• Initial investment - $442,500
• T
• tal investment - $12.4 mm
• Current

Value* - $22.0 mm

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

1 Nov‐… Jan‐05 Mar‐… May‐… Jul‐05 Sep‐05 Nov‐… Jan‐06 Mar‐… May‐… Jul‐06 Sep‐06 Nov‐… Jan‐07 Mar‐… May‐… Jul‐07 Sep‐07 Nov‐… Jan‐08 Mar‐… May‐… Jul‐08 Sep‐08 Nov‐… Jan‐09 Mar‐… May‐… Jul‐09 *as at June 30, 2009

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Major Positions – Precious Metals

Colossus Minerals Inc. (CSI:TSX)

Colossus is an emerging mineral exploration and development company focused on

Brazilian gold.

The company’s flagship project, Serra Pelada (Brazil), hosts the famed gold-platinum-

palladium deposit. The project is at the resource delineation stage and is being advanced toward production by a COLOSSUS-COOMIGASP joint venture.

Investment Summary

$4 50

Investment Summary

• Initial investment - $200k
• T
• tal investment - $5.7 mm
• Current

Value* - $15.6 mm Pinetree invested in Colossus Minerals through a private

$1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

g p placement in December 2006.

$0.00 $0.50 $1.00 Feb‐ 08 Mar‐ 08 Apr‐ 08 May‐ 08 Jun‐ 08 Jul‐08 Aug‐ 08 Sep‐ 08 Oct‐ 08 Nov‐ 08 Dec‐ 08 Jan‐ 09 Feb‐ 09 Mar‐ 09 Apr‐ 09 May‐ 09 Jun‐ 09 Jul‐09

*as at June 30, 2009

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Evolving Gold Corp is focused on finding multi million ounce gold deposits in proven

Major Positions – Precious Metals

Evolving Gold Corp. (EVG:TSX)

$1.80 $2.00

Evolving Gold Corp. is focused on finding multi-million ounce gold deposits in proven

gold producing areas in Western USA. Their geoscience team has over 200 years of collective experience. Evolving Gold has approximately $16 million in cash, and a discovery property with multi-million ounce potential.

Investment Summary

• Initial investment - $200k
• T
• tal investment $3 7 mm

$0 40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60

• T
• tal investment - $3.7 mm
• Current

Value* - $4.2 mm

Pinetree Invests

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

$0.00 $0.20 $0.40

Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09

*as at June 30, 2009

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Major Positions - Uranium

Early investor into uranium sector (late 2004) based on positive view of

commodity fundamentals.

Exited most positions in early 2007 following significant run-up in the

commodity and equity prices.

Re-entered sector in focused way in late 2008.

Sector themes Investment themes Sector themes

• China continues massive build out
• More supply disruptions likely
• M&A activity to continue
• Spot price largely irrelevant
• Long term prices supported by pending

Investment themes

• Overweight Australia, Europe
• Larger stakes, fewer select investments
• Look for valuation lift from permitting

advances

• Take more active role in strategic direction

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

g p pp y p g market deficit

• f investee companies

20

Mega Uranium Ltd. is a Canadian mineral resources company with a focus on uranium

Major Positions - Uranium

Mega Uranium Ltd. (MGA:TSX)

ega U a u t . s a Ca a a e a esou ces co pa y w t a ocus o u a u projects in Australia, Argentina, Bolivia, Colombia, Mongolia, Canada and Cameroon.

The company is advancing its Lake Maitland deposit in Western Australia with first

production expected in late 2011.

Joint venture with JAURD (the Japan Australia Uranium Resources Development Co.

Ltd.) and ITOCHU Corporation to advance the development of the Lake Maitland national instrument 43 101 compliant Inferred Resource of 23 7 million pounds U O

$2 00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

national instrument 43-101 compliant Inferred Resource of 23.7 million pounds U3O8.

Investment Summary

• Initial investment - $21 mm
• T
• tal investment - $65.9 mm
• Current

Value*- $20.3mm

Pinetree I

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

$- $1.00 $2.00 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09

Invests

*as at June 30, 2009

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Sheldon Inwentash

Almost 30 years of investing background from resources to

technology to resources technology to resources

Extensive network of contacts who provide investment

• pportunities and due diligence assistance

Track record of investing ahead of the market Reputation for “fair” deals and quick response Demonstrated expertise in backing winning players and building Demonstrated expertise in backing winning players and building

portfolio companies

Entire career has been focused on financially founding emerging

companies

Specializes in Discovery Investing

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Impressive Returns Leading to Shareholder Value

22

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

23

Market Overview (as at June 30, 2009)

Market Overview

Weekly Share Price (L Fi Y )

Shares Outstanding (MM) (TSX: “PNP”) as of June 30, 2009 132.3 Warrants Outstanding (MM) as of June 30, 2009 Exercisable at $15.00 expiring April 16, 2012 (TSX: “PNP.WT”) as of June 30, 2009 5.0 Exercisable at $6.50 expiring October 23, 2012 (TSX: “PNPWTA”) as of June 30 2009 6 9

Market Overview

(Last Five Years)

(TSX: PNP.WT.A ) as of June 30, 2009 6.9 Exercisable at $3.50 expiring July 11, 2013 (TSX: “PNP.WT.B”) as of June 30, 2009 8.7 Share Outstanding Fully Diluted (MM) as of June 30, 2009 152.9 Share Price as of June 30, 2009 $1.73 Market Capitalization (MM) – Basic as of June 30, 2009 $228.88

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Market Capitalization (MM) – F/D as of June 2009 $264.52

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Balance Sheet Summary (as at June 30, 2008)

Assets ($ Millions) Investments at fair value $271 4 22.0 Future income tax assets Investments at fair value $271.4 Equity accounted investments 4.0 Income Taxes receivable 7.0 Other assets 2.2 T

• tal Assets

$306.6 Liabilities *NAV Per Share

“NAV per share” is a non- GAAP measure defined as shareholders’ equity divided by total number of common shares

• utstanding. The term

NAV per share does not have any standardized meaning according to GAAP and therefore ma

Due to brokers 37.7 Accounts payable and accrued liabilities 0.6 Future tax liabilities 0.3 T

• tal Liabilities

$54.5 $252 1 Advances from officer 15.9

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

• perations and provides a

meaningful measure to

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Net Asset Value $252.1 Shares O/S (June 30, 2009) 132,258,852 NAV/Share* $1.91

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meaningful measure to evaluate our business relative to that of our peers.

Management Team Sheldon Inwentash – Chairman and CEO

C.A., over 25 years investing (resource, technology, biotech) experience

Finance, Operations & Governance Research & Investments

• Larry Goldberg – Executive

Vice President & CFO

• C.A., over 25 years
• perational/financial experience
• Jamie Levy – Head

Trader

• B.A., over 15 years experience in

trading securities, focus on Pinetree portfolio p p

• Richard Patricio –Vice President,

Legal & Corporate Affairs

• Lawyer, focus on securities, M&A

and general corporate initiatives

• Wendy Warhaft – General Counsel
• L

f t fi M&A d p

• Philip Williams – Resources Analyst
• CFA., over 10 years financial

experience, focus on managing Pinetree’s existing portfolio and analyzing new investment

• pportunities.

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

• Lawyer, focus on corporate finance, M&A and

corporate governance initiatives

• Craig Stanley – Resources Analyst

M.Sc., focus on managing Pinetree’s portfolio and analyzing new investment opportunities.

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A Brief History

1992

• Pinetree founded by Sheldon Inwentash as a venture investor in early stage, emerging technology companies – initial capitalization of

$4 million. 1994

• Genevest Inc., founded by Sheldon Inwentash as a venture investor in early stage, emerging biotechnology companies – initial

capitalization of $4 million. 2001

• Emerged intact and strong from the technology bubble.

2003

• Began to focus on resources sector

2004

• Merged Pinetree and Genevest to create an investment portfolio of over $80 million at the time.

2005

• Investment value crossed $100 million ($121 million at September 30, 2005)
• Investment value reached $176 million at December 31, 2005

2006

• Raised $65 million new equity through private placements – first significant financings since founding in 1992
• Shares split 2-for-1

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

2007

• Shares split 2-for-1
• Raised $193 million in private placements
• Generated $190 million of realized gains

2008

• Raised $43.2 million in private placement

27

Review of Accounting Policies

At each reporting period, management estimates the fair value of

i t t b d th it i b l investments based on the criteria below:

• Publicly Held Securities

Publicly traded investments – closing bid price Restricted securities (i.e. hold period generally) – Applicable discount applied In-the-money options/warrants – Difference between closing bid and exercise price Out-of-money options / warrants – nil

• Privately Held Securities

Initially recorded at cost Adjustment made when justified by evidence of general market conditions

• Other Investment Instruments

C

tibl d b t l d t d b i

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

Convertible debentures valued on a converted basis Debt instruments valued at lesser of DCF or fair value of underlying security Dividends included in fair value of each investment

28

Prudent Leverage

Our returns have been generated while employing consistent levels of

leverage leverage

• Leverage as a % of Fair

Value of Investments:

24% 26% 29% 25% 28% 27% 27% 24% 28% 31% 24% 25% 30% 35% 12% 24% 17% 15% 18% 18% 18% 24% 14% 10% 20% 18% 20% 10% 15% 20%

Pinetree Capital Ltd. Venture to Grow. www.pinetreecapital.com

0% 5% Mar‐04 Jun‐04 Sep‐04 Dec‐04 Mar‐05 Jun‐05 Sep‐05 Dec‐05 Mar‐06 Jun‐06 Sep‐06 Dec‐06 Mar‐07 Jun‐07 Sep‐07 Dec‐07 Mar‐08 Jun‐08 Sep‐08 Dec‐08 Mar‐09 Jun‐09

29