St. John’s, NL Further to the press release of New Island Resources Inc. (“New Island”) (TSX Venture: NIS) on October 25, 2005, in relation to New Island’s proposed issuance by way of a private placement of up to 6,500,000 units (the “Units”) at a price of $0.11 per Unit, for gross proceeds of $715,000, New Island announces that it has entered into an engagement letter with Research Capital Corporation and has amended certain terms of the proposed private placement referred to above.

Subject to entering into a formal agreement between New Island and Research Capital Corporation (“Research”), Research has agreed to act as agent on a “commercially reasonable best efforts” basis in connection with the proposed private placement. Up to 7,000,000 Units at a price of $0.11 per Unit will be offered in the provinces of Alberta, British Columbia and Ontario for gross proceeds of up to $770,000. Each Unit will consist of one Common Share of the Corporation and one Common Share purchase warrant (“Warrant”), with each Warrant entitling the holder thereof to acquire one Common Share of the Corporation at an exercise price of $0.15 per share for a period of 18 months from the closing date. New Island will grant Research an over-allotment option for the purpose of covering over-allotments, if any, which over-allotment option will entitle Research to sell up to the number of Units as is equal to 15% of the aggregate number of Units sold under the offering. The over-allotment option will be exercisable at a price of $0.11 per Unit for a period of 60 days after the closing date.

Research will be paid a sales commission of 10% of the gross proceeds of the private placement and will be granted an option to purchase up to that number of Units as is equal to 10% of the aggregate number of Units sold under the private placement. Research will be paid a corporate finance fee of $25,000, of which $5,060 is payable by 46,000 Units at $0.11 per Unit.

Certain directors of New Island have sold a total of approximately 2,000,000 Common Shares at a price of $0.115 per share and the proceeds of such sale, after deduction of costs, will be used by the selling shareholders to purchase approximately 2,000,000 Units under the private placement.

The proceeds of the private placement will be used to fund the continued exploration and development of New Island’s mineral properties and for general working capital.

About New Island

New Island is a mineral exploration company holding properties in Newfoundland. Information on New Island 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 .