Newstrike Capital Discovers New Gold Silver Mineralization at Oaxaca Project

VANCOUVER, June 2, 2014 - Newstrike Capital Inc. ("NES" or the "Company) (TSX:NES) is pleased to announce results of a successful exploration program on its Ejutla Property ("Ejutla" or the "Property") located in Oaxaca State, Mexico. Three significant mineralized structural corridors, each host to extensive gold and silver bearing low sulphidation epithermal veins, have been identified.

"Our exploration efforts at Ejutla confirm a target-rich environment and results underpin the exciting potential for substantial extensions to known mineralized systems," commented Richard Whittall, President and CEO of Newstrike. "The Ejutla Property is located within the Taviche Mining District, an area already well known for its significant gold and silver production."

Ejutla comprises the 18,866 hectare Ejutla Fracc. 2 claim block, 100% owned by Newstrike with no royalties and located 45 kilometers south of the capital city of Oaxaca de Juarez. The Property is in the region of Fortuna Silver's producing San José-Trinidad mine 20 kilometres to the west of Ejutla and Gold Resources' El Águila mine 25 kilometres to the east, as well as several other Canadian exploration projects. The Company is completing a NI 43-101 compliant technical report on the Property that will include recommendations for drilling. The Report will be completed shortly.

Highlights from surface outcrop chip and channel samples include:

Sample 	Location 	X_W84 	Y_W84 	Type 	Width m 	Au_g/t 	Ag_g/t
19736 	Biliá vein 	770295 	1841630 	Channel 		0.605 	762
49628 	El Venado dike 	768595 	1844128 	Chip 	0.2 	0.188 	723
59092 	Mina del Horno 	768620 	1844085 	Channel 	0.6 	0.412 	701
29055 	Las Jarillas 	770080 	1843708 	Chip 	5.0 	0.013 	664
29004 	Mina Las Jarillas 	770299 	1844014 	Channel 	1.2 	0.297 	362
49294 	El Pedregal 	770296 	1842192 	Channel 	0.5 	0.488 	350
19514 	Los Charros 	769802 	1844304 	Chip-channel 	1.0 	0.882 	293
108435 	Mina el Horno 	768635 	1844096 	Channel 	0.3 	0.067 	291
19731 	Biliá 	770319 	1841623 	Channel 	1.6 	0.094 	221
29685 	La Mezcalera 	770315 	1841624 	Dump 	2.0 	0.272 	200
39714 	Duraznillo 	778473 	1841576 	Channel 	0.2 	0.190 	89.2
39466 	Beinillo 	770129 	1842818 	Channel 	1.8 	1.260 	14.0
59140 	Beinillo 	770088 	1842842 	Channel 	0.5 	1.210 	1.7
59142 	Beinillo 	770113 	1842831 	Channel 	0.5 	0.753 	2.5
59144 	Beinillo 	770127 	1842820 	Channel 	1.1 	1.000 	34.7

The three structural corridors discovered on the Property during mapping and sampling programs consist of a series of northwest trending fracture zones that display important northerly and north-easterly trending splays, each filled by mineralized felsic dikes and/or by complex sub-parallel mineralized low sulphidation banded epithermal quartz and quartz-calcite veins and vein systems typical of structures in the surrounding Taviche Mining District. Individual veins vary in thickness from a few centimetres to as much as ten metres and are separated by a host wallrock that displays extensive argillic alteration and silicification.

One of the structural corridors, "Las Casas", located in the western half of the Property, has been explored most extensively to date and mapped in detail over an eight kilometre strike length with outcrop evidence suggesting it exceeds ten kilometres along strike and is as much as three kilometres in width. Vein textures and geochemistry are typical of those encountered in the boiling zones of epithermal systems or just above the boiling zone, indicating the higher parts of the mineralized system are exposed at surface.

This location is an ideal scenario for the preservation of potential metal lodes at depth. Mapping is ongoing to advance the other two structural corridors both of which exceed several kilometres along strike and vary from one to two kilometres in width.

The Company will evaluate the recommendations in the Report in order to select the targets and scope of work for future focused exploration programs.


QA-QC:

Newstrike maintains strict QA-QC protocols for all aspects of their exploration programs that include the systematic insertion of blanks and standards into each sample batch. ALS Chemex performed assay analyses reported in this release. All samples are assayed using the laboratory's certified and industry standard assay techniques for gold and multi-element packages and for over limits; gold (Au) was analyzed by 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP. Silver assays over 100 g/t were reanalyzed by ICP methods for overlimits.


About Newstrike Capital (TSX VENTURE:NES)

Newstrike Capital Inc., www.newstrikecapital.com, is a precious metal 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.

Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the Au (Ag-Cu) skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Pb-Zn-Ag (Au-Cu) rich epithermal camp of the mining districts of Oaxaca State.

Ken Thorsen, a director of the company and a qualified person under NI43-101 has reviewed the contents of this press release. The exploration program is conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG and qualified person under NI43-101.


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

Certain of the statements made in this news release contain forward-looking information within the 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
604-605-4654
www.newstrikecapital.com
Blog: http://newstrikecapital.com/blog

Newstrike Capital Inc.
Patrick Piette, Investor Relations
416-526-9911
ppiette@minera.ca