Newstrike Capital Reports In-Pit Heap Leach Gold Recovery at the Ana Paula Project in Guerrero, Mexico

VANCOUVER, June 26, 2014 - Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") reports a column leach metallurgical result from a composite sample supporting heap leach extraction potential within the low-grade breccia zone at Ana Paula.

Richard Whittall, CEO, commented: "Our 2013 metallurgical testing program confirmed a conventional, low-risk approach at Ana Paula with strong gold recoveries. This specific column leach result adds an extremely encouraging new dimension to the project. Heap leaching has the potential to lower processing costs and provide an additional source of revenue through the recovery of gold from our mineralized waste. We plan to investigate the size and scope of this opportunity within Ana Paula's floating cone pit and the potential for a reduction in the strip ratio and expansion of the conceptual pit. Combined with last year's testing, this new metallurgical result will provide valuable input to the Preliminary Economic Assessment currently in progress as well as for future studies."

Although sulfide mineralization at Ana Paula is not generally amenable to heap leaching, significant gold recovery at 84.1% was obtained from a representative composite sample from two drillholes, AP-11-36 and AP-13-213 selected from within the Maiden resource floating cone pit (Newstrike press release May 8, 2013). The representative composite sample was selected to test the leaching capability of the low grade breccia zone, a predominantly intrusive unit located in the southwest portion of the floating cone pit and separate from the high grade breccia zone. Composite 4 is from a sample of altered intrusion that has not been fully delineated by drilling and that displays a level of oxidation greater than compared to most of the Ana Paula deposit. The sample was prepared from 56.28 metres of drill core, weighing about 88 kilos when submitted for metallurgical testing to internationally recognized and accredited SGS Metcon/KD Engineering of Tucson, Arizona.


Summary of Results - Locked Cycle Column Testing

         Leach   Calc. Head (1)    Residue (2)          kl of                        Reagent
           Day     Assays (g/t)   Assays (g/t)   per Solution                    Consumption
                                                 tonne of Ore   Extraction (%)        (kg/t)
Test No.           Au      Ag       Au     Ag                      Au      Ag     NaCN   CaO
Composite
4          91    0.57    3.86     0.09   3.37            2.95   84.10   14.60     0.19  3.62

Remarks
(1) Calculated Head assays for columns are net content extracted plus the content in leach residue screen fractions.
(2) Residue screen assays are calculated based on weight distribution and screen assays


The Table summarizes results from the column leach test. Conclusions from this testing indicate that most of the gold was extracted in the first 10 days, and that the maximum extraction obtained was 84.1% on Composite 4. The composite sample showed the highest cyanide soluble gold content in the head assay and may be amenable to gold recovery by heap leach process.

Other conclusions from this test work indicate a low sodium cyanide consumption at 0.19 kg/tonne and moderate calcium oxide (lime) consumption at 3.62 kg/tonne. Good gold and silver extraction correlations were observed between the results from the bottle roll testing and the column leach testing. Further Bond Impact Crusher Work Index and Bond Abrasion Index studies will be conducted on Composite 4.


QA-QC:

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 ("NI 43-101) and reviewed by Mr.Ken Thorsen, a Qualified Person. The field programs and selection of the metallurgical samples from Ana Paula were carried out under the supervision of Dr. Craig Gibson, PhD, CPG, and a Qualified Person under NI 43-101.


About Newstrike (TSX VENTURE:NES)

Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Key senior members of the Company's current management and directors have participated in Guerrero Gold Belt discoveries, including Goldcorp Inc.'s producing Los Filos Mine and Torex Gold Resources advanced stage Morelos Project in Guerrero State.


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

Certain of the statements made in this news release contain forward-looking information within he meaning of applicable Canadian securities law. Material forward-looking information includes, but is not limited to statements or information with respect to the resource estimate and potential future exploration and development results and results of studies in respect of the Company's Ana Paula Project. We have made numerous assumptions about the material forward-looking information contained herein, including among other things, that prices of gold and silver will remain relatively stable, that applicable permits will be obtainable and that any required financing will be available on reasonable terms. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate.

Forward-looking information by its nature involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, among others, the following: the inherent risks and uncertainty involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in production and operations; fluctuating prices of metals and other commodities; currency fluctuations; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; regulatory restrictions, including environmental regulatory restrictions and liability; competition and loss of key employees; political instability in Mexico; the availability of key equipment; the risk of disruption from non-governmental organizations; risks relating to our common shares and the public markets. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Although we have attempted to identify factors that would cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly you should not place undue reliance on forward-looking information. Except as required by law, we do not expect to update forward-looking information as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

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Contact

Newstrike Capital Inc.
Richard Whittall, Director, President & CEO
Phone: 604-605-4654
Web site: www.newstrikecapital.com
Blog site: http://newstrikecapital.com/blog