NEWSTRIKE BRANDS LTD
Toronto, Ontario - April 17, 2008
PRESS RELEASE
Newstrike Resources Ltd. Announces Acquisition of Patented Claims in Kirkland Lake
Area
Newstrike Resources Ltd. (TSXV:NR) ("Newstrike") is pleased to announce that it has entered into an acquisition agreement with Jaques Day, Gerald F. Day, Thomas S. Day, J. David Day, Blair Day (together, the "Vendors") and certain other parties, pursuant to which Newstrike has agreed to acquire a 100% legal and beneficial interest in the property to be known as the Kirkland Lake East property, subject to a 2% net smelter royalty ("NSR"). The property is located in the Larder Lake mining division of northeastern Ontario, and was formerly held by Morris Kirkland Gold Mines Limited.
As consideration for the purchase of the property, Newstrike has agreed to make a cash payment of $75,000 and issue an aggregate of 250,000 common shares. Newstrike may also purchase 50% of the NSR at any time upon payment of $500,000. The transaction remains subject to the approval of the TSX Venture Exchange.
The property is situated approximately eight miles east of Kirkland Lake, Ontario on the Kirkland Lake-Rouyn highway (Highway 66) and consists of six patented mining claims with two shafts (#1 shaft to approximately 100 feet, and #2 shaft to approximately 1,625 feet).
The mineralization of the property identified to date is contained in bands of porphry and trachytes of the Temiskaming age following a well defined fault zone. There are two parallel porphry zones located approximately 180 feet apart.
Gold occurs with sulphides, mostly pyrite and chalcopyrite, in both the porphry and trachytes. From October, 1936 until November 15, 1941, Morris Kirkland Gold Mines Limited milled
125,300 tons of ore and recovered 16,699 ounces of gold and 29,300 ounces of silver from the property indicating a grade of 0.13 ounces per ton of recoverable gold as well as approximately
0.23 ounces per ton of recoverable silver.
On the upper level, a parallel vein was developed 180 feet east of the main ore zone. This was mined to a small extent from the 125 feet, 250 feet and 375 feet levels.
Drilling from underground below the 1,625 feet level indicates that the mineralization continues to at least 2,000 feet as three diamond drill hole intercepts assayed 0.13 ounces per ton over 17.5 feet, 0.125 ounces per ton over 28.5 feet and 0.06 ounces per ton over 12.5 feet (based upon intercepts, not true widths).
The above-noted work was completed before 1941 and the property has remained idle since such time. The above results predated National Instrument 43-101, however Newstrike considers such results to still be relevant as they indicate the potential for mineralization on the property. Newstrike considers such technical data to be reliable due to the fact that it has been derived from a report authored by Nelson Hogg, Resident Geologist, Ontario Department of Mines, Timmons, Ontario, 1950. All scientific and technical data contained in this press release has been prepared under the supervision of Len Cunningham, consulting geologist to Newstrike and a "qualified person" within the meaning of National Instrument 43-101 of the Canadian Securities
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Administrators.
In other news, Newstrike is pleased to announce that it anticipates commencing drilling activities on the Jean Property in late May or early June, 2008. The Jean Property is located within the Omineca Mining District, British Columbia. In order to acquire a 100% interest in the Jean Property, Newstrike was originally required to make cash payments totaling $340,000 over a four year period (including a payment of $50,000 (the "Cash Payment") on or prior to July 5, 2008), issue an aggregate of 500,000 common shares over a three year period (including 150,000 common shares (the "Share Issuance") to be issued on or prior to July 5, 2008), and incur aggregate exploration expenditures on the property of $1,500,000 over a four year period (of which $300,000 (the "Expenditures") were to be expended prior to July 5, 2008) (see press release of Newstrike dated April 23, 2007). Further to an addendum to the original agreement (the "Addendum") subsequently entered into amongst Ragnar U. Bruaset & Associate Ltd. and D.L. Cooke & Associates Ltd. (together, the "Optionors") and Newstrike, Newstrike agreed to issue to the Optionors an additional aggregate of 40,000 common shares in consideration of an extension of the time periods for the completion of the above-noted Cash Payment, Share Issuance and Expenditures originally due on July 5, 2008, as a result of which such Cash Payment, Share Issuance and Expenditures are now required to be completed on or prior to October 31, 2008 (subject to the approval of the TSX Venture Exchange).
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For further information please visit www.newstrikeresources.com or contact: Donald Rankin, Director
Newstrike Resources Ltd. (416) 628-6556
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
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 the uncertainty of resource and reserve estimates, 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.
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