Mr. Richard Whittall reports

NEWSTRIKE CAPITAL FILES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT NI 43-101 TECHNICAL REPORT FOR ANA PAULA PROJECT

Newstrike Capital Inc. has filed on SEDAR a National Instrument 43-101-compliant technical report for its 100-per-cent-owned Ana Paula project, located in the prolific Guerrero gold belt, Mexico (all dollar amounts in this release are stated in U.S. currency).

The results of the preliminary economic assessment (PEA) were published on Sept. 15, 2014, with highlights including a robust, high-margin, rapid-payback, 8.2-year, open-pit mining project that benefits from high gold grades with a low strip ratio.

The study was independently prepared by JDS Mining and Energy Inc., and is available on SEDAR and the company's website.

PEA highlights (base case at $1,300 Au and $20 Ag per ounce):

• Pretax net present value, at 5 per cent, of $405.3-million, internal rate of return of 47.5 per cent with a 2.0-year payback;
• Aftertax NPV, at 5 per cent, of $232.1-million, IRR of 32.8 per cent with a 2.4-year payback;
• Initial capital costs of $163.9-million (total life of mine (LOM): $219.7-million includes sustaining/closure costs of $55.8-million and contingency costs of $36.2-million);
• Open-pit mine with 6,000-tonne-per-day (tpd) gravity/flotation/carbon-in-leach process plant;
• Cash costs of $527 per ounce gold, and $486 per ounce gold net of byproduct credits;
• All-in sustaining costs (AISC) of $567 per ounce gold, and $526 per ounce gold net of byproduct credits;
• Average annual production of 116,000 gold ounces and 239,000 silver ounces over an 8.2-year mine life;
• LOM average head grades of 2.24 grams per tonne gold and 6.89 g/t silver;
• LOM gold and silver recoveries of 75 per cent and 50 per cent, respectively;
• LOM strip ratio of 2.60 to 1 of waste to mineralized material.

The PEA mine plan and economic model include the use of inferred resources that are considered to be too speculative to be used in an economic analysis except as permitted by National Instrument 43-101 for use in PEAs. There is no guarantee that inferred resources can be converted to indicated or measured resources, and, as such, there is no guarantee that the project economics described herein will be achieved.

In management's view, the economics concluded by the PEA provide a strong incentive for continued geotechnical, metallurgical and engineering studies, and the company will commence a prefeasibility study with completion expected in 2015.

Qualified persons and quality assurance/quality control

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Thomas H. Bagan, 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, a qualified person under NI 43-101.

The PEA was conducted under the overall direction of Michel Creek of JDS Energy and Mining, of Tucson, Ariz. Mr. Creek is a JDS project manager and an independent qualified person under NI 43-101 who has verified the technical and scientific information, and prepared the economic analysis included in this news release. There are no known legal, political, environmental or other risks that could materially affect the potential development of the project.

Under Mr. Creek's review, the following contributed to their respective sections:

Mineral processing and recovery methods:  Kelly McLeod, PEng, JDS

Mine design:  Tony Loschiavo, PEng, associate, JDS

Environmental studies, permitting and social:  Dawn Garcia, CPG, JDS

Infrastructure and tailings:  Robert Matter, PE, JDS

The information in this release related to the independent technical report has also been approved by Michel Creek, PE; Kelly McLeod, PEng; Tony Loschiavo, PEng; Dawn Garcia, CPG; Robert Matter, PE; Dr. Craig Gibson, PhD, CPG; and Herb Welhener, SME-RM, who are independent qualified persons as defined under National Instrument 43-101.

We seek Safe Harbor.