UPDATE-Newstrike Capital to Acquire 21.2% interest in Morelos Project from Goldcorp Inc.

Newstrike is pleased to announce it has entered into an agreement dated December 1, 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.

DMSL owns a 21.2% interest in the capital of Minera Media Luna S.A. de C.V., holder of the concessions comprising the Morelos Project. DMSL’s 21.2% interest is represented by 7.2034% Class A ‘participating’ shares and by 14% Class G ‘carried’ shares in the Morelos Project.

The Morelos Project is an advanced stage gold exploration property located in the state of Guerrero, approximately 180 km to the southwest of Mexico City. The Morelos Project comprises of the Los Guajes East & West and El Limon gold deposits, and additional prospects; a group of 7 claims, totalling 29,046 hectares (ha). Gleichen Resources Ltd. (“Gleichen’) recently acquired 78.8% of the project from Teck Resources Limited and is currently the operator of the Morelos Project.

Newstrike’s management team has a long history of discovery in the Guerrero Gold Belt. This acquisition represents an exciting development in Newstrike’s future and it certainly complements our 81,000 hectares of highly prospective mineral claims in the immediate area (see GUERRERO PROJECT – link to http://newstrikecapital.com/properties/guerrero-project/guerrero-gold-belt.htm

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.

In a news release dated October 7, 2009, Gleichen reported NI 43-101 compliant mineral resource estimates for the Morelos Project, prepared by internationally recognized consulting firm AMEC E&C Services Inc., of Sparks, Nevada as follows:

Morelos Project in Mexico's Guerrero state, hosts National Instrument ("NI") 43-101 compliant mineral resources, at a 0.90 g/t Au cut-off, as follows:

Mineral Resources	Tonnes (000)	Grade (Au g/t)	Gold (ounces)
Measured	2,003	3.36	217,000
Indicated	26,818	3.19	2,751,000
Total (M+I)	28,821	3.20	2,968,000
Inferred	8,671	3.20	890,000

The full text of this news release can be found at http://www.gleichenresourcesltd.com/s/NewsReleases.asp?ReportID=366677

A copy of the Morelos Gold Project NI 43-101 Technical Report is available at http://www.gleichenresourcesltd.com/s/Projects.asp

History of the Morelos Project

In 1995, the former Morelos Mineral Reserve, created in 1983, was divided into a northern and southern portion, and portions were allocated to mining companies through lottery. The Miranda Mining Development Company (“MMC”)/Teck joint venture vehicle Minera Media Luna submitted the winning bid for the Morelos Norte licence in mid-1998.

In 1998, the first year of exploration, work comprised data review, regional geological mapping, rock chip collection and silt sampling. During 1999, additional regional-scale reconnaissance work was undertaken, consisting of additional geochemical sampling and mapping. By 2000, the El Limon and Media Luna oxide mineralization had been discovered. A trenching program was followed up by reverse circulation drilling, totaling 1,888 metres.

During 2001, additional drilling, which included 11,000 metres of reverse circulation drilling and core drilling, intersected skarn-hosted gold mineralization at El Limon and Los Guajes East. A test induced polarization geophysical program was undertaken to identify the areas of sulphide mineralization. Road building, geological mapping at more detailed scales and additional rock chip sampling was completed.

From 2002, core drilling methods were used. A program of 4,265 metres of core drilling was focused on the El Limon North Oxide and Los Guajes East prospects during 2002. The same program intersected the blind Guajes West skarn. A first-pass mineral resource estimate was undertaken by Teck personnel, based on the reverse circulation drilling. A total of twenty (20) line kilometres of induced polarization survey were completed, outlining a number of highs.

Mineralization characterization studies to support metallurgical testwork were initiated. During 2003, a total of 3,781 metres of core drilling focused on El Limon and Guajes West areas, and the El Limon Sur oxide zone was discovered. Shallower mineralization in the vicinity of the GuajesWest skarn, the Limon Sur oxide zone and the Azcala, La Amarilla and El Naranjo targets were the target of some 10,111 metres of core drilling in 2004. Additional metallurgical testwork was undertaken on the drill core, and the mineral resource estimate was updated.

A total of 22,580 metres of drilling was completed in 2006 over the El Limon East, Los Mangos, and La Amarilla areas. Detailed mapping and rock and soil sampling continued at the El Querenque and Azcala areas, with encouraging results from soil sampling obtained at El Querenque. In 2007, drilling comprising 33,603 metres was undertaken at the El Limon East, Los Mangos, and La Amarilla areas. Mineral resource estimates were again updated. Additional drilling in 2008 (10,544 metres) was undertaken at the Guajes and Guajes West zones, Los Mangos and El Querenque.