New Island Resources Inc. (TSXV:NIS) of St. John’s, NL is pleased to announce that Anaconda Gold Corp. (TSXV:ANX) has provided a positive feasibility study and production decision on the company’s 2816 hectare gold property near Baie Verte, Newfoundland and that, pending finalization of financing, production is planned for the current year.

Anaconda has now earned a 30% interest in the property and has the right to earn a further 30% interest and operator status by arranging the financing and bringing the property into commercial production. Under the terms of an underlying agreement 100% of the cash flow will be first used for capital payback.

New Island is optimistic that Pine Cove will be in commercial production this year and will enhance shareholder value.

New Island also holds a 100% interest in the large 4,852 hectare Glover Island gold property located in Western Newfoundland and situated midway along the same major structural zone which hosts Pine Cove 175 kilometers to the north and other gold deposits such as the Cape Ray deposit to the south. Drilling and trenching along a 12-kilometer section of the mineralized structure on Glover Island have identified 17 gold showings and zones. These results suggest there is the potential to outline large tonnages in the 1.5 to 3 grams/tonne range with shoots of high to bonanza grade gold (up to 156 g/t) in quartz veins and felsite sheets.

Industry Consultant Dr. Derek Wilton, P.Geo. is finalizing a NI 43-101 report on the Glover Island property. The information in this document will assist the company in applying for a mining lease to commence later this year and also in attracting a partner to proceed with development of this other important gold project.

Information on the company and its properties can be viewed at www.newislandresources.com.

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 .