Newcastle Options Pickle Lake Gold Prospect

  Newcastle Minerals Ltd. (TSX VENTURE: NCM) is pleased to announce that it has, subject to regulatory acceptance, negotiated an option to purchase up to a 100% interest in Mhakari Gold Corp.'s Pickle Lake Property, which comprises 19 mineral claims covering approximately 9,600 acres in Ontario's Connell, Dona Lake and Ponsford Townships.

The Pickle Lake Property is located in the Pickle Lake Greenstone Belt where over 2.2 million ounces of gold were extracted from three mines between 1934 and 1996. The property adjoins the past-producing Central Patricia Mine property (650,000 ounces of gold) and extends to the past-producing Dona Lake Mine property (225,000 ounces of gold). The property hosts several gold showings identified by previous exploration.

Mhakari Gold Corp.'s public relations consultant, Mr. Ari Todd, stated, "We are very pleased to have entered into an option agreement with Newcastle Minerals Ltd. We share Newcastle's vision for the Pickle Lake area and we are excited to be partnering with them in this very promising camp."

To exercise its option and acquire an 80% undivided interest in the property, Newcastle must pay the optionor a total of $40,000 and issue a total of 1,000,000 shares over one year, and grant the optionor a 3% net smelter returns royalty. In addition, Newcastle may acquire the remaining 20% interest by paying or issuing an additional $12,000, 350,000 shares, and warrants to purchase a further 350,000 shares exercisable during the succeeding two years at a price equal to 110% of the then-current market price.

Mhakari Gold Corp. is a private Ontario-based exploration company with gold and silver properties located in Northern Ontario and Nevada. Mhakari's properties are located in the Timmins, Kirkland Lake, Matachawen and Pickle Lake areas of Northern Ontario, and on Mineral Ridge, Walker Lane District in Nevada. All of its properties are near or adjacent to historic gold and silver producers, and are exposed to excellent infrastructure with year-round accessibility.

ON BEHALF OF THE BOARD

Michael Romanik, President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Newcastle Minerals Ltd. Michael Romanik President Direct line: [phone] [e-mail] www.newcastleminerals.com