Target Information

Pinetree Capital Ltd. has acquired securities from War Eagle Mining Company Inc. This acquisition, completed on December 21, 2012, consisted of 1,403,509 common shares and 1,403,509 common share purchase warrants, which allow Pinetree to purchase additional common shares at a price of $0.10 until December 21, 2014. If the warrants are fully exercised, Pinetree will own approximately 21.3% of War Eagle's total issued and outstanding common shares, based on a partially diluted basis accounting for only the warrants.

As of December 21, 2012, Pinetree's total holdings in War Eagle include an aggregate of 1,898,484 common shares and rights to acquire an additional 1,698,509 common shares through various convertible securities, including the recent warrant acquisition. Consequently, if all convertible securities were exercised, Pinetree's ownership in War Eagle would rise to approximately 26.7% of all issued and outstanding common shares.

Industry Overview

War Eagle Mining Company is situated within the Canadian mining industry, which has been a significant contributor to the national economy. Canada is rich in natural resources, including precious and base metals, making it a vital player in the global mining sector. As of 2012, the mining industry in Canada faced both opportunities and challenges due to fluctuating global commodity prices and evolving governmental regulations.

In recent years, investments in mining have been subject to scrutiny as environmental concerns and community relations have taken center stage. Canadian mining companies are increasingly required to navigate complex legal frameworks designed to protect the environment while attempting to capitalize on resource extraction opportunities. The industry has seen a trend towards more sustainable practices, which could affect future investment decisions.

Within this context, junior mining companies like War Eagle face the challenge of securing funding and partnerships to advance exploration and development projects. These smaller entities often rely on larger investment firms and strategic partnerships to reach their potential, particularly in uncertain market conditions.

Overall, the Canadian mining industry remains resilient, driven by innovation and adaptation to market demands. Investors continue to seek lucrative opportunities in this dynamic sector, balancing risk and reward while pursuing growth in resource extraction.

Rationale Behind the Deal

Pinetree Capital’s acquisition of War Eagle's securities is primarily for investment purposes, indicating a calculated bet on the junior mining sector's potential growth. By securing a significant ownership stake, Pinetree aims to leverage possible future gains from War Eagle's operations, particularly if market conditions favor resource extraction and commodity prices rise.

This strategic investment also positions Pinetree to influence War Eagle's development trajectory. Holding a substantial portion of the company's shares can facilitate an active role in corporate governance, enabling Pinetree to align War Eagle's operations with broader market trends and opportunities.

Information About the Investor

Pinetree Capital Ltd. is a diversified investment and venture capital firm based in Ontario and listed on the Toronto Stock Exchange under the ticker symbol

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