Newstrike Resources Ltd. and HPI Holdings Ltd. Complete Business Combination

TORONTO, ONTARIO--(Marketwired - May 29, 2017) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike" or the "Company") is pleased to announce that it has closed its previously announced business combination (the "Transaction") with HPI Holdings Ltd. ("HPI") pursuant to the master agreement entered into between Newstrike, HPI and 2559595 Ontario Inc. ("Subco") as of February 3, 2017, as amended (the "Master Agreement"). The common shares of Newstrike ("Newstrike Shares") are expected to commence trading on a post-closing basis on the TSX Venture Exchange at the open of markets on Thursday, June 1, 2017, under the new symbol "HIP".

Following the completion of the Transaction, Newstrike is well positioned to execute its strategy, which is initially focused on the (i) production and distribution of cannabis in all acceptable forms; and (ii) investment in and development of products and services for the evolving cannabis market; with a focus on the expansion of existing production space and the acquisition of complementary production and manufacturing facilities. The Company's production and operations are anchored in its state-of-the-art facility located in Brantford, Ontario.

"With this Transaction completed, Newstrike, under the leadership of our incoming CEO, Jay Wilgar, and his highly accomplished executive team, is now well-positioned to build significant value by successfully executing our growth strategy for the developing cannabis market - a market with exponential potential. Our incoming management team bring operational and strategic experience in regulated pharmaceutical manufacturing and consumer products, the cultivation of cannabis at scale and a proven track record in building value in a highly-regulated industry. This team will be complemented by an expanded and responsive shareholder-base and a board and advisory team experienced in guiding public companies and effectively responding to the requirements of the capital markets," noted Scott Kelly, the Executive Chair of Newstrike. Kelly added that, "this new chapter for Newstrike would not have been possible without the dedication and many years of stewardship provided by Mr. John Pollock and the other outgoing Directors: Tom Flynn and Barrie Hancock, who provided the guidance and tenacity that allowed us to first identify and now close this exciting and paradigm changing opportunity for Newstrike and its shareholders."