Newstrike Capital Inc.

Newstrike Capital Inc.

December 15, 2009 20:07 ET

Newstrike Capital Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Newstrike Capital Inc. (TSX VENTURE:NES.H) ("Newstrike" or "the Company") – is pleased to announce a non-brokered private placement of up to 5,000,000 units at a price of $0.40 per unit for cash proceeds of up to $2,000,000. Each unit is comprised of 0.3 of a common share and 0.7 of a subscription receipt. Each whole subscription receipt will entitle the holder to acquire, for no additional consideration, one common share of the Company, without further action or payment on the part of the holder, concurrently with the reactivation of the Company as a Tier 2 company on the TSX Venture Exchange (the "Reactivation"). The proceeds from the sale of the subscription receipts will be held in escrow until the Reactivation is completed. In the event that the Reactivation does not occur on or before February 26, 2009, the subscription receipts shall be automatically redeemed by the Company at a price equal to the price paid by the holder plus accrued interest. A 5% finders' fee may be payable on all or a portion of the offering.

The proceeds will be used to pay down existing debt, for general working capital and, after the Reactivation, for exploration expenses. This private placement is subject to regulatory approval, and the shares will be restricted from trading for a period of four months from the date of issuance in compliance with TSX Venture Exchange policies and securities legislation.

About Newstrike (TSX VENTURE:NES.H)

Newstrike Capital Inc. 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.

The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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