TORONTO, ONTARIO--(Marketwired - May 19, 2017) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") is pleased to announce that it has filed a filing statement (the "Filing Statement") regarding its proposed business combination with HPI Holdings Ltd. ("HPI"), as previously announced in Newstrike's press release dated February 8, 2017 (the "Transaction").

The Transaction will be structured as a three-cornered amalgamation pursuant to which HPI will amalgamate with a wholly-owned subsidiary of Newstrike to form an amalgamated entity, which will continue as a wholly owned subsidiary of Newstrike. For further information, please see the Filing Statement, which is available under Newstrike's issuer profile on SEDAR at Closing of the Transaction is expected to occur on or about May 26, 2017, or such other date as Newstrike and HPI may determine.

The completion of the Transaction is subject to a number of conditions, including but not limited to receipt of all required regulatory consents, including final TSX Venture Exchange ("TSXV") acceptance, and satisfaction of other customary closing conditions. Trading in the common shares of Newstrike will remain halted pending further filings with the TSXV. The common shares of Newstrike will resume trading following publication of the Final Exchange Bulletin by the TSXV in respect of the closing of the Transaction.

There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Filing Statement, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.

Forward-Looking Information

This press release contains "forward-looking information" for the purposes of applicable securities laws, which is based upon Newstrike's on current expectations. Statements about the closing of the Transaction and the parties' ability to satisfy closing conditions and receive necessary approvals are statements containing forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the Transaction will be completed or that, if the Transaction is completed, it will be completed on the terms anticipated. Newstrike assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.

Neither 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.

Contact Information:

Newstrike Resources Ltd.
Scott Kelly
President and CEO