Newstrike Capital, Inc. Announces $24.8 Million Bought Deal Private Placement

February 24, 2012

Newstrike Capital, Inc. (TSX VENTURE:NES) (“Newstrike” or the “Company”) is pleased to announce that it has entered into an agreement with 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 Limited, (collectively the “Underwriters”) pursuant to which the Underwriters have agreed to purchase 8,000,000 common shares (“Common Shares”) of the Company on a bought deal private placement basis at a price of $3.10 per Common Share.

The Company will pay the Underwriters a cash commission equal to 5.0% of the gross proceeds of the offering.

The offering is scheduled to close on or about March 20, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The net proceeds of the Offering will be 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.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About Newstrike

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.