Newstrike Capital signs definitive agreement to acquire 21.2% interest in Morelos project from Goldcorp Inc.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Vancouver, B.C., December 31, 2009 – Newstrike Capital Inc. (“Newstrike” or the “Company”) - www.newstrikecapital.com - is pleased to announce it has entered into a definitive share purchase agreement dated December 31, 2009 to acquire 21.2% of the Morelos Project from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG) for a purchase price of not less than $52 million comprised of $44.5 million in cash and 15 million common shares in Newstrike.

Closing of the transaction is expected in early 2010 and is subject to receipt of all required shareholder, regulatory and third party consents, satisfaction of customary closing conditions and the completion by Newstrike of a financing to raise net proceeds of $50 million. In addition, Gleichen Resources Ltd. has a right of first refusal in respect of DMSL’s interest in the Morelos Project, exercisable for 90 days from the date it is advised of the terms of the Newstrike agreement.

Further particulars regarding the transaction are disclosed in the Company’s December 1, 2009 press release.

About Newstrike (TSX-V NEX:NES.H)

Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.

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

For further information, please contact:

Newstrike Capital Inc.

Richard Whittall
Director, President & CEO
Phone: 604-605-4654
website: www.newstrikecapital.com
blogsite: http://newstrikecapital.com/blog

Neither the TSX Venture Exchange (the “TSXV”) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.