TORONTO, ONTARIO--(MARKET WIRE)--Jul 21, 2008 -- Newstrike Resources Ltd. (CDNX:NR.V - News) ("Newstrike") announces today that based upon the results of preliminary drilling conducted to date at the Swansea property located on the Larder Lake Break in northeastern Ontario, Newstrike has determined to terminate its option to acquire an additional 25% interest in this property. Newstrike currently owns a 25% interest in this property (subject to an aggregate 6.25% net proceeds of production royalty up to a maximum of $275,000), and holds an option to acquire an additional 25% interest in this property from NFX Gold Inc. ("NFX"). Newstrike may exercise this option to acquire an additional 25% interest in the property by incurring aggregate exploration expenditures of $1,000,000 on the property in tranches over a two year period, and issuing an aggregate of 100,000 common shares to NFX over a two year period, all pursuant to a letter agreement dated September 13, 2007. Of the 100,000 common shares of Newstrike to be issued to NFX pursuant to this agreement, 50,000 common shares have been issued to date.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

     Contacts:
     Newstrike Resources Ltd.
     Donald Rankin
     Director
     (416) 628-6556
     Website: http://www.newstrikeresources.com