Pinetree Capital Ltd. Acquires Securities of Arctic Star Diamond Corp.

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2008) - Pinetree Capital Ltd. (TSX:PNP), announces that on August 22, 2008, it acquired ownership of 2,500,000 common shares ("Common Shares") of Arctic Star Diamond Corp. ("Arctic Star") and 2,500,000 common share purchase warrants (the "Warrants"). Each Warrant entitles the holder thereof to acquire one additional common share until August 22, 2010, at a price of $0.15. In the event that the Warrants are fully exercised, these holdings represent approximately 2.9% of the total issued and outstanding common shares of Arctic Star as of August 22, 2008, calculated on a partially diluted basis assuming the exercise of the Warrants only. As a result of this transaction, Pinetree and its joint actors held, as at August 22, 2008, an aggregate of 18,064,091 common shares of Arctic Star, including the Common Shares, and convertible securities exercisable into 14,509,091 common shares of Arctic Star (the "Convertible Securities"), including the Warrants. Of these totals, Pinetree directly holds 12,564,091 common shares and convertible securities exercisable into 7,509,091 common shares, including the Warrants (the "Pinetree Convertible Securities") directly. If Pinetree and its joint actors were to exercise all of the Convertible Securities, their combined ownership would represent a total of 32,573,182 common shares of Arctic Star or approximately 17.4% of such shares outstanding as of August 22 2008, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. If Pinetree were to exercise all of the Pinetree Convertible Securities, its direct ownership would represent a total of 20,073,182 common shares of Arctic Star, or approximately 11.2% of such shares outstanding as of August 22, 2008, calculated on a partially diluted basis assuming the exercise of the Pinetree Convertible Securities only.

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Arctic Star depending on market conditions or any other relevant factor.