Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

January 25, 2011 16:45 ET

Newstrike Drills 275.46 Meters of 1.43 g/t Gold at Ana Paula Project, Guerrero, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2011) -

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Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") (www.newstrikecapital.com) is pleased to announce assay results for three additional drill holes from the 2010 drill program at the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt, Mexico. Selected highlights from the new data include:

AP-10-20:   282.50 meters of 1.40 g/t Au and 1.7 g/t Ag;
  includes 78.00 meters of 2.88 g/t Au and 1.8 g/t Ag;
  or 63.22 meters of 3.37 g/t Au and 1.9 g/t Ag;
  and 19.73 meters of 6.46 g/t Au and 3.50 g/t Ag;
     
AP-10-21:   26.33 meters of 0.7 g/t Au and 65.3 g/t Ag;
  includes 16.33 meters of 1.10 g/t Au and 102.4 g/t Ag;
     
AP-10-22:   42.00 meters of 0.62 g/t Au and 57.5 g/t Ag;
  includes 25.04 meters of 0.93 g/t Au and 102.1 g/t Ag;
  and 10.58 meters of 1.98 g/t Au and 239.4 g/t Ag.

Drill hole AP-10-20, averaged 275.46 meters of 1.43 g/t Au and 1.7 g/t Ag; this interval also included 63 meters of 3.37 g/t gold. Drill hole AP-10-20 successfully tested the down dip continuity of mineralization in drill hole AP-10-19, which assayed 214.00 meters of 3.00 g/t Au and 5.5 g/t Ag, as reported on January 19, 2011; this data is included in the table of results available at www.newstrikecapital.com. AP-10-20 ended in mineralization with 9.5 meters grading 0.41 g/t Au and 0.09 g/t Ag at a 600 meter vertical depth from surface. New road building is underway to continue drill testing the continuity of this important new discovery.

AP-10-21 is a step out hole that extends known mineralization by 100 meters to the north. Hole AP-10-22, located up topography 200 meters south of AP-10-19, drilled east over the top of AP-10-19 and extends known mineralization by 400 meters south. A total of 4,520 meters has now been completed in eleven drill holes begun in 2010 and completed this year. An additional drill hole begun at year-end, drill hole AP-10-23, remains in progress with assay results expected in February. Results from these holes extend known drill tested gold mineralization to a 500-meter by 1000-meter area that remains open in all directions and at depth.

Drill results continue to demonstrate an important potential to host multiple gold-bearing intercepts over wide mineralized intervals that show good continuity both across and down section. Drilling is underway in 2011 with two drill rigs that started on January 12th.

Table of selected highlights from Phase 1 Drilling at Ana Paula, Guerrero
Weighted grade drill intercepts using a 0.2 g/t cutoff.

Drill Hole   From To Interval Au (g/t) Ag (g/t)
AP-10-20   1.75 12.25 10.50 0.34 16.0
    125.27 127.00 1.73 2.61 3.4
    153.50 174.50 21.00 0.54 0.8
    178.00 186.00 8.00 0.97 1.3
    190.00 194.00 4.00 2.79 1.4
    222.00 224.00 2.00 0.61 0.9
    228.00 232.96 4.96 0.65 1.3
    251.76 254.00 2.24 0.64 0.6
    260.00 262.00 2.00 0.69 0.5
    267.45 267.81 0.36 0.97 6.0
             
    275.50 558.00 282.50 1.40 1.7
  Includes 394.00 400.00 6.00 0.12 0.2
  and 282.34 285.50 3.16 0.49 1.1
  and 287.00 365.00 78.00 2.88 1.8
  and 287.00 350.22 63.22 3.37 1.9
  and 289.00 308.73 19.73 6.46 3.5
  and 295.73 308.73 13.00 8.48 3.8
  and 295.73 340.91 45.18 3.98 1.8
  and 418.00 424.00 6.00 8.56 2.5
  and 418.00 420.00 2.00 24.30 6.6
  and 448.00 451.86 3.86 1.97 18.7
  and 487.00 493.48 6.48 2.21 11.3
  and 510.00 515.00 5.00 4.14 3.4
             
  Also 594.00 603.50 9.50 0.41 0.1
             
AP-10-21            
    223.64 228.25 4.61 0.87 8.6
    243.50 249.50 6.00 0.24 4.5
    263.00 266.00 3.00 0.39 4.0
    270.17 296.50 26.33 0.77 65.3
  includes 270.17 286.50 16.33 1.10 102.4
  includes 270.17 283.45 13.28 1.03 120.5
             
AP-10-22            
    3.05 10.08 7.03 0.25 7.5
    14.46 21.34 6.88 0.29 3.3
    27.34 55.10 28.30 0.47 6.3
    83.90 125.90 42.00 0.62 57.5
  includes 89.40 114.44 25.04 0.93 102.1
  includes 98.16 108.74 10.58 1.98 239.4
    224.00 228.00 4.00 0.36 5.2
    238.00 244.00 6.00 0.31 5.8
    262.00 266.50 4.50 0.39 3.4
    275.50 280.00 4.50 0.50 11.0
    319.50 337.50 18.00 0.83 3.4
  includes 319.50 324.39 4.89 1.36 5.1

A table of all weighted grade intercepts is available on the company website together with a drill location map. Drill intercepts in holes angled at -45˚ are nearly perpendicular to the perceived strike and dip, thus are a close approximation of true width; however, true width is not accurately known at this time.

QA-QC:

The mineralized intervals in core tend to be separated by "barren" intervals that may or may not contain narrow anomalous sections and local high-grade spikes that are not included in the calculations of mineralized intervals. Unless specified otherwise, reported intercepts are calculated according to a protocol that uses a 0.2 g/t Au cutoff for bounding assays. Reported grade intervals are based on the original uncut assay certificates as received from the assay labs. They do not include check assays pending at the time of reporting.

Newstrike maintains strict QA-QC protocols for all aspects of their exploration programs that include the systematic insertion of blanks and standards into each sample batch. Analyses in this release were performed by both ALS Chemex and by SGS. All samples are assayed using the respective laboratories certified and industry standard assay techniques for gold and multi-element packages and for over limits; Au was analyzed by 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP packages. 

The drill program and all project operations are conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG and a qualified person under NI43-101. Dr. Gibson has reviewed the contents of this press release. Ken Thorsen, a director of the company and a qualified person under NI43-101 has also reviewed the contents of this press release.

About Newstrike (TSX VENTURE: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. More information is available at www.newstrikecapital.com or by e-mailing info@newstrikecapital.com.

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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.

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