Each unit co warrant, in t price of $0.

Newc castle Minerals Ltd.

Pres ss Release

NEWCA ASTLE A ANNOUNCES PRIVATE PLACEME ENT

VICTORIA, BC, Januar ry 7, 2011 – Newcastle M Minerals Ltd

d. (TSXV:NC CM) is pleased to a announce tha at it has nego otiated, subject to regula atory accepta ance, a non-brokere ed private pla acement of 1 1,250,000 un nits at a price e of $0.08 pe er unit. e-half of one warrant. Each full Each unit co onsists of one common sh hare and one n additional common sha warrant, in t turn, entitles the holder to

• purchase an are at a

price of $0.12 for a perio od of one yea ar from the c closing of the e offering.

Aumerco L apital Corp., is the Limited, a wh holly owned subsidiary o of Augen Ca sole subscri iber. Based i in Toronto, O Ontario, Aug gen Capital C Corp. is a me erchant bank specia alizing in the e financing o of, and inves stment in, re esource com mpanies and projects. Augen’s principals an nd advisors have many y years of coll lective experience and expertis se in capital market trans sactions, as w well as ident tifying properties w with substant tial mineraliz zation. Auge en has an out tstanding trac ck rechant banking investments in the ord in sourc cing, structur ring and exec cuting merch natural reso ource field. In addition, , Augen acts s as a consu ultant to issu uers of mineral reso ource tax-advantaged flo ow-through p partnerships i in Canada. A Augen Capital Cor rp. owns 11% % of Augen G Gold Corp.

The proceed ds from the p private placem ment will be used for gen neral working g capital. Newca astle will pay y a cash finde er’s fee of 8% % of the sub bscription pro oceeds in respect of the offering g.

exploration compa- Newcastle M Minerals Ltd

d. is a Canadi ian gold and base metal e ny trading o on the TSX V Venture Exch hange (TSX Venture: NC CM). The com mpany ctare Carscallen Property in the is advancing g its three ke ey properties s: its 120-hec ctare Pickle Lake Prope West Timm mins area of f Ontario, its s 11,100-hec erty in operty located in the Swayze northwester rn Ontario a and its 6,600 0-hectare pro oration Inc.'s Chesgreenstone b belt of Ontar rio near Trela awney Minin ng and Explo ter Project.

ON BEHAL LF OF THE B BOARD

Signed “Mi ichael Roman nik”

Michael Ro omanik, Presi ident Direct line: (204) 724-06

Neither TSX X Venture Exc change nor its s Regulation S Services Provider (as that t term is defined in th he policies of the TSX Ven nture Exchan nge) accepts re esponsibility f for the adequacy or accuracy of th his release.