Newstrike Closes Private Placement

TORONTO, ONTARIO--(Marketwire - June 1, 2011) -

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Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") announced today that it has closed its previously announced private placement pursuant to which Newstrike has issued 1 million "flow-through units" at a price of $0.25 per unit for gross proceeds of $250,000 by way of non-brokered private placement (the "Offering"). Each flow-through unit consists of one "flow-through" common share of Newstrike and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant") issued on a non-flow-through basis. Each Warrant shall entitle the holder to purchase an additional common share of Newstrike at an exercise price of $0.35 for one year from the closing of the Offering subject to early exercise. If Newstrike's common shares trade at or above $0.45 per share for 21 consecutive trading days, Newstrike may then accelerate the expiration of the Warrants upon not less than 30 days written notice.

The proceeds from the private placement are intended to be used for drilling on Newstrike's properties in Ontario. All common shares and Warrants issued pursuant to the Offering are subject to a four-month hold period ending on October 2, 2011.

About Newstrike

Newstrike is an early stage gold exploration company with property assets located primarily in the Kirkland Lake area of Ontario. Newstrike owns a 50% interest in the Commodore property and a 25% interest in the Swansea property. Newstrike's strategy is to carry out exploration on their advanced properties with the purpose of defining economic deposits.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with mineral exploration and mining activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.