Joint Venture Agreement

GLOVER ISLAND

In October 2006 New Island exercised its option to acquire the Nugget Pond gold mill and property on the Baie Verte Peninsula from Richmont Mines Inc. It then sold the mill to Crew Gold Corporation. As part of the overall agreement, Crew Gold entered into a joint venture agreement with New Island whereby it has committed to expend $5,000,000 on the Glover Island property over a five year period to earn a 60% interest in the property. See Crew Gold’s news release of October 30, 2006.