Newstrike Signs Definitive Agreement to Acquire Ana Paula Project from Goldcorp.

Vancouver, B.C., May 14, 2010 – Newstrike Capital Inc. (“Newstrike” or the “Company”) - www.newstrikecapital.com - is pleased to announce it has entered into a definitive agreement dated May 11, 2010 to acquire 100% of the “Ana Paula Project” from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG).

Ana Paula is an advanced exploration stage gold project, located in the northcentral part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike's existing land position. Newstrike’s entire land position in the Guerrero Gold Belt (“GGB”) now covers just over 88,952 contiguous hectares.

Beginning in 2004, Goldcorp conducted exploration programs on Ana Paula including geophysics, mapping and geochemistry, resulting in the discovery of a 1.0 kilometre by 2.0 kilometre wide area of gold mineralization at surface. A portion of this large mineralized area was drill tested in 2005 with a 3,689 meter, 11-hole diamond drill program that has confirmed the gold mineralization potential of the area.

Richard Whittall, President & CEO of Newstrike commented: “Newstrike is pleased and excited by the acquisition of the Ana Paula Project, an advanced exploration project that we look forward to developing through aggressive exploration and drilling. Our management team has a long history formulating and developing the original GGB concept. Today, it is gratifying to see published NI43-101 compliant inventories of over 15 million ounces of gold in all categories, including from Goldcorp’s Los Filos gold mine and the El Limon deposit currently under development by Torex Gold Resources Inc. The GGB is now a firmly established gold camp where new discoveries are being actively pursued by Newstrike, Goldcorp, Torex and La Camera Mining Inc. Newstrike continues to hold a dominant strategic land position within the GGB that we will continue to advance towards discovery.”

As consideration for the acquisition of the Ana Paula Project, Newstrike will pay to DMSL $1.5 million in cash and a number of common shares in Newstrike having a value of $600,000, such shares to be issued at a price that is based on the higher of the volume weighted average trading price of the shares of Newstrike on the TSX Venture Exchange for the 20 consecutive trading days ending on the trading date prior closing or the closing price of Newstrike’s common shares on the date the transaction was approved. The TSX Venture Exchange approved the transaction on April 28, 2010 and closing of the transaction is expected on or before June 30, 2010.

About Newstrike (TSX-V: NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors codiscovered Goldcorp’s and Teck’s significant discoveries in Guerrero Gold Belt in Guerrero State, currently in production, development and advanced stages of exploration.

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 contact:

Richard O’C. Whittall
Chief Executive Officer
Phone: 604.604.4654

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.