Pinetree Capital Ltd. signs Letter Of Intent

TORONTO, July 28 /CNW/ - Pinetree Capital Ltd. ("Pinetree") announces
that on July 28, 2005 it signed a non-binding Letter Of Intent ("LOI") to make
an investment in two resource companies with property interests in the
Mackenzie Delta and Beaufort Sea. Pinetree has sixty days from the date of the
LOI to complete its due diligence, and the Parties to the LOI have the same
period of time to come to agreement on certain substantive terms, including
valuation of the property interests. The transaction is also subject to the
execution of a definitive agreement and receipt of all required regulatory
approvals.

About Pinetree

Pinetree was incorporated under the laws of the Province of Ontario and
is publicly traded on the Toronto Stock Exchange ("TSX") under the symbol
"PNP". Pinetree develops and manages a portfolio of equity securities of
private and public issuers engaged in growth businesses in the following
sectors: (i) Mining and Oil & Gas; (ii) Biotechnology; and (iii) Technology
and Other. Pinetree's investment focus among these three sectors changes over
time, depending on changing investment opportunities. As well, Pinetree takes
advantage of special situations and merchant banking opportunities.
For more details about Pinetree and its investments, please visit our
website at www.pinetreecapital.com.

This news release contains forward-looking statements within the meaning
of the "safe harbour" provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are subject to risks and
uncertainties and other factors that may cause Pinetree's results to differ
materially from expectations. These include risks relating to market
fluctuations, investee performance and other risks. These forward-looking
statements speak only as of the date hereof. Pinetree disclaims any intent or
obligation to update these forward-looking statements.