New Island Resources Inc. (NIS: TSX.V) off St. John’s Newfoundland is pleased to announce it has received all assays from the first 2 holes completed at the Lunch Pond South Extension (LPSE) Zone. Core samples from Holes LPSE-28-03 (labeled 28A on the October 2, 2003 press release) and 29-03 have yielded very positive results, which significantly upgrade the potential of this gold zone.

Hole 28-03 has intersected a total of 44.32 m (145 ft) of gold mineralization, which includes a thick, 32.32 metre section from 189.28 to 221.60 m containing consistent gold grading 2.0 g/t. This mineralization is in the main target zone of highly silicified felsite and is highlighted by higher grade sections which include 7.93 m grading 3.90 g/t (0.12 oz/t) from 189.28 m to 197.21 m (first reported October 3) and 5.15 m grading 4.34 g/t (0.12 oz/t) from 201.90 m to 207.05 m.

This result significantly adds to the potential of main, felsite hosted gold zone. It shows the zone extends from surface down to a vertical depth of 200 metres and is open to greater depths. It also confirms a true thickness of 30 metres is being maintained at a dip of 70° from surface exposures in trenches established in the mid 1990’s.

This hole has also intersected a zone of brecciated, mylonitic (sheared) felsite sitting 25 m above the main zone grading 4.0 g/t (0.12 oz/t) over 12.0 m from 151.6 to 163.6 m and including a 2.2 m section grading 10.62 g/t (0.31 oz/t). Hole 28-03 has also produced another positive result with a gold assay of 3.1 g/t from 12.45 to 13.40 m. This 0.95 m sample tested a 1% pyrite section in a feldspar-quartz, porphyritic volcanic rock. Both the sheared felsite and porphyritic rocks are new gold mineralized targets at the LPSE Zone.

Hole SE-29-03 was drilled approximately 150 m east of SE-28 to test a previously untested, shallower section of the large mineralized LPSE Zone. This hole drilled at a dip of 45° also intersected the mineralized felsite from 64.90 to 103.00 m for a total intersection of 38.10 m (estimated true thickness of 30.00 m). The felsite in this hole is also consistently mineralized at 1.30 g/t gold and is also highlighted by 2 higher grade zones. A 15.25 m section from 73.75 to 89.00 m grades 2.0 g/t and includes a 6 m section at 3.0 g/t. A 3 m section at a deeper level of 97.0 m returned a grade of 3.70 g/t (0.11 oz/t). Hole SE-29-03 confirms the major dimensions and the intensity of the gold mineralization in the LPSE Zone.

New Island also reports assay results are pending from Holes SE-30-03 to SE-33-03, all of which have intersected the gold mineralized felsite. These holes have further successfully tested the strike of the LPSE Zone along a length of 900 metres and the down dip extension to a vertical depth of 200 metres. Assay results are forthcoming and will include the results from Holes LS-7 and LS-8, which also intersected the gold mineralized felsite at the Lucky Smoke Prospect, located 6 kms north.

The technical information contained in this release was collected and compiled by Project Manager, Sherry Dunsworth, M. Sc, P.Geo. who is a qualified person as defined by National Instrument 43-1.101.

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 .