Newstrike Closes C$24.8 Million Bought Deal Private Placement

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES AND DOES NOT CONSTITUTE AN OFFER IN THE UNITED STATES OF THE SECURITIES
DESCRIBED HEREIN


Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") is
pleased to announce that it has closed its previously announced C$24.8 million
bought deal private placement of common shares. Newstrike issued a total of
8,000,000 common shares at a price of C$3.10 per common share raising gross
proceeds of C$24.8 million (the "Private Placement"). The private placement
financing was placed by a syndicate of underwriters led by Cormark Securities
Inc. and including GMP Securities L.P., Scotia Capital Inc., Euro Pacific Canada
Inc., Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and
Raymond James Ltd. (collectively, the "Underwriters"). 


The net proceeds of the Private Placement will be used for continued exploration
of the Company's Ana Paula project as well as other exploration activities
within the Guerrero Gold Belt and for general corporate purposes and working
capital.


In connection with the offering, the Underwriters were paid a cash commission in
an amount equal to 5.0% of the gross proceeds of the financing. 


The common shares issued pursuant to the private placement will be subject to a
4-month hold period expiring on July 21, 2012.


This news release does not constitute an offer to sell or solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws and may not be
offered or sold within the United States unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such
registration is available.


About Newstrike 

Newstrike is a gold-silver focused explorer, targeting known and historic mining
districts in Mexico. Current management and directors co-discovered Goldcorp's
and Teck's significant discoveries in Guerrero Gold Belt in Guerrero State,
currently in advanced stages of exploration and production. 


Newstrike holds a 100% interest in certain exploration properties in Mexico
located within two established mining districts; the gold bearing oxidized iron
skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu
rich epithermal camp of the mining districts of Oaxaca State, and is increasing
its position as strategic opportunities present themselves.


Blogsite: http://newstrikecapital.com/blog

Forward-looking statements

This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, including the expected completion of the
offering and the timing thereof, and the expected use of proceeds are
forward-looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include, changes in market conditions,
unsuccessful exploration results, changes in the price of gold, unanticipated
changes in key management personnel and general economic conditions. Mining
exploration and development is an inherently risky business. Accordingly the
actual events may differ materially from those projected in the forward-looking
statements. This list is not exhaustive of the factors that may affect any of
the Company's forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. The Company does not undertake to update
any forward-looking statement that may be made from time to time by the Company
or on its behalf, except in accordance with applicable securities laws.