Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

October 20, 2010 13:31 ET

Newstrike Capital Completes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or "the Company")www.newstrikecapital.com reports that, further to its press releases dated July 22, 2010 and October 1, 2010, it has raised $2,000,000 in cash proceeds through the issuance of 5,000,000 units at a price of $0.40. Each unit is comprised of one common share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to acquire a common share of the Company at $0.80 per common shares for a period of 18 months expiring on April 19, 2012.

The Company paid cash finder's fees of $136,374 to certain brokerage firms corresponding to 7% of the proceeds raised through their efforts.

The units will be restricted from trading until February 20, 2012, in compliance with TSX Venture Exchange policies and securities legislation.

The proceeds will be used to fund near-term exploration activities on the Company's Ana Paula project in the State of Guerrero and for general working capital purposes.

About Newstrike (TSX VENTURE:NES)

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

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