NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES
Vancouver, B.C., March 3rd, 2010 - Newstrike Capital Inc. ("Newstrike" or the "Company") - www.newstrikecapital.com - is pleased to announce it has entered into an agreement dated February 11th, 2010 to acquire a 100% interest in certain mining concessions situated in Guerrero State, Mexico, referred to as the "Ana Paula Properties" from Desarrollos Mineros San Luis, S.A. de C.V. ("DMSL"), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG).
As consideration for the Ana Paula Properties, Newstrike will pay to DMSL the amount of CAD$1.5 million in cash and a number of common shares in Newstrike that is equal to CAD$600,000, such shares to be issued at a price that is based on 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 to the issue date.
Located within the Guerrero Gold Belt, the Ana Paula Properties consist of four claims that in total aggregate 7,622 hectares (ha). The most advanced of these claims has been subject to 3,689 metres of drilling by Goldcorp.
Richard Whittall, President & CEO of Newstrike, commented: "We are pleased to extend our strategic footprint within the Guerrero Gold Belt. The acquisition of Ana Paula certainly complements our 81,000 hectares of highly prospective mineral claims in the immediate area. Our management team is very familiar with Ana Paula's geological setting and we look forward to advancing the work conducted by Goldcorp to date."
Closing of the transaction is expected in April 2010 and is subject to receipt of all required shareholder, regulatory and third party consents, satisfaction of customary closing conditions.
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 contact:
Richard O'C. Whittall
Chief Executive Officer
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.