New Island Resources Inc. (The "Company") (TSXV:NIS) announces, subject to acceptance by regulatory authorities, it will issue 3,500,000 common shares at a price of $0.175 per share for conversion of debt in the amount of $612,500. Of this amount, Newfoundland Goldbar Resources Inc. (TSXV:YFB), an associated company, will be issued 2,500,000 common shares to settle debt in the amount of $437,500.

Approval for the debt conversion was given by a majority of disinterested shareholders at the annual meeting held December 17, 2002

For further information, please contact:

Harold Wareham, President, Telephone: (709) 576-7711   Fax: (709) 576-2236 Email: info@newislandresources.com www.newislandresources.com

Statements contained in this release that are not historical facts are forward-looking statements, which involve known and unknown risks and uncertainties not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements .