New Island Resources Inc. (TSXV:NIS) of St. John’s, NL reports that it has signed a 12-month option agreement with Richmont Mines Inc. (Richmont)(TSX:RIC:AMEX) to acquire Richmont’s Nugget Pond gold property and mill on the Baie Verte Peninsula in Newfoundland.

To earn this option, New Island must make a non-refundable deposit of $250,000 by November 7 and undertake a $1,000,000 exploration program on the property. Upon exercise of the option, New Island will pay Richmont $2,500,000 and assume reclamation liabilities. Richmont will have the right to retain a 30% interest in the property by payment of $1,000,000 to New Island or reducing the purchase price by an equivalent amount. During the option period, Richmont will retain full control and responsibility for the operation and maintenance of the mill.

H.L. Wareham, President of New Island states that the acquisition of this option provides an attractive opportunity for the company. The Nugget Pond property is quite prospective for the discovery of additional reserves and the mill, which is in excellent condition and operates to high environmental standards, is positioned to provide custom milling for proven small deposits in the area. Mr. Wareham further states that Richmont has a proven and highly respected record of mining operations and that should the option be exercised, Richmont’s continued participation in and association with Nugget Pond would be welcomed and highly valued.

Part of the proceeds from the private placement of shares announced on October 25 will be utilized for this transaction.

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 .