Newstrike to Purchase Surface Rights

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

Vancouver, B.C., January 17, 2011 - Newstrike Capital Inc. (TSX-V: NES) ("Newstrike" or "the Company") - www.newstrikecapital.com - reports that it has reached an agreement with Desarrollos Mineros San Luis, S.A. de C.V. ("DMSL"), a wholly-owned subsidiary of Goldcorp Inc. (TSX: G), for the purchase of certain parcels of land within the Company's Ana Paula mineral project.

The Company has agreed to issue DMSL 83,320 common shares of the Company in full settlement of this acquisition valued at $75,675.

The transaction is subject to regulatory approval.

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 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
Phone: 604.604.4654

website: www.newstrikecapital.com
blogsite: http://blog.newstrikecapital.com/

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.