New Island Resources Inc. (TSXV:NIS) of St. John’s, NL is pleased to report progress on its properties and projects.

Pine Cove Gold Property

Anaconda Gold Corp. (TSXV:ANX) (Anaconda) reports that Dowding, Reynard & Associates Americas (DRAA), a subsidiary of South African-based DRA International, has been retained by Anaconda to complete detailed plant engineering and a turn key price for the Pine Cove gold property near Baie Verte, Newfoundland, which is near finalization.

Anaconda has earned a 30% interest in the property from New Island and can earn a further 30% interest by financing and bringing the property into production. It anticipates having the DRAA mandate completed shortly and having the Pine Cove deposit brought into commercial production by the fourth quarter of 2006.

Following the completion of a positive feasibility study in December 2004, Anaconda made a decision to bring Pine Cove into production based on indicated resources of 2,635,000 tonnes grading 2.93 grams per tonne for 248,000 ounces of gold and inferred resources of 254,000 tonnes grading 2.11 grams per tonne for 17,000 ounces of gold. Mine planning and project economics are based on probable reserves of 2,333,000 tonnes grading 2.76 grams with a cut-off grade of 0.95 grams. Resource and reserve estimates were prepared by Eugene Purtich, P.Eng. and Dr. Wayne Ewert, P.Geo. Qualified Persons as defined by NI 43-101.

Prior to the completion of the plant at Pine Cove, the parties have agreed, in the interim, to commence the processing of 75,000 tonnes of Pine Cove ore at Richmont Mines Inc.’s Nugget Pond facilities approximately 50 kilometers to the east. During October and November of 2004 a 7,000 tonne bulk sample of Pine Cove ore was successfully processed at Nugget Pond with a head grade of approximately 5 grams and a recovery rate of 96%. It is anticipated that the 75,000 tonnes will yield approximately 12,000 ounces of gold and an attractive cash flow, which will be shared 70% New Island and 30% Anaconda.

The Development Plan for both projects has been submitted to Government and the necessary permits to proceed are expected within the current month.

Apart from the Pine Cove deposit, the property holds additional targets including the high-grade Romeo & Juliet zones approximately 1500 meters north of the deposit where a small bulk sample of 8 tonnes in 1998 assayed 1.1 ounce per tonne (non NI 43-101 compliant).

Glover Island Property – Mining Lease

The company advises that it has now commenced a boundary survey on a significant portion of its 100% owned Glover Island gold and base metal property in Western Newfoundland. This survey will comply with regulations specified by the Department of Natural Resources in the granting of a mining lease. This large designated mining lease entails a 27-kilometer survey encompassing 4,832 acres covering extensive gold mineralization up to 355 g/t, intermittingly exposed by trenching at 17 prospects along a 10 km long northeast trending zone.

It also contains Volcanogenic Massive Sulphide (up to 12.9% zinc, 1.6% copper, 1.16% lead, 66 g/t silver and 1.2 g/t gold) and PGE (up to 0.30 g/t platinum, 0.34 g/t palladium, 0.83 g/t gold, 2.0% copper and 0.26% nickel) prospects.

Readers are cautioned that the foregoing and following figures pre-exist and are non-compliant with National Instrument 43-101.

During the period 1990 – 2003 sixty (60) holes drilled to test 6 of the 17 gold prospects were successful in encountering significant intersections hosted in felsite sheets, quartz veins, mylonite (shear zones) and conglomerate. Only the Lunch Pond South Extension (LPSE) and Lunch Pond South Zones at the south end of the 10-kilometre long trend have been drilled in detail. Inferred gold resources are indicated at both zones and 33 holes at the LPSE Zone show multiple, gold mineralized felsite sheets open at both ends of a 1.5 km strike length and open down dip at 270 metres.

At the LPSE Zone a large tonnage gold resource grading between 2.0 and 3.0 g/t can be visualized with thick intersections up to 53 metres, however higher grade sections, e.g. 5.0 g/t over 18.5 metres and 6.5 g/t over 10 metres, are recorded. High-grade mineralization was also intersected at other prospects. For example, drilling at the Lucky Smoke Prospect, 7 km northeast of the LPSE Zone, intersected 12.7 g/t gold over 8 metres. All prospects drilled to date remain open along strike and at depth.

New Island also reports it has asked Watts, Griffis and McOuat (WGM) of Toronto, ON to conduct a detailed review and 3-D modeling of the drill results from the LPSE Zone. The purpose of this work is to determine the resource potential and to project a detailed plan of future drill requirements for establishing a reserve at this zone, just 1 of 17 gold zones identified to date on the property.

The results from the WGM review will be incorporated into the compilation of a 43-101 report on the Glover Island Property which also includes 2 other Mineral Licenses covering 7,154 acres containing untested gold, base metals and PGE prospects which extend the strike length of the gold trend to 16 km.

Based on the $3 Million dollars expended since 1990, a gold resource in the range of 2 – 5 million ounces can be visualized and the company predicts a further $2-3 million dollars of drilling will be required to validate this potential and identify an economic resource. New Island will aggressively focus it’s efforts over the upcoming months on the world class potential of this project.

The Nugget Pond Option

The company is pleased to announce that it is continuing its review and compilation of geological and drilling data from the Nugget Pond property located in north-west Newfoundland and is preparing to aggressively drill identified targets.

During the period 1997-2001 the Nugget Pond mine produced 537,672 tons of ore at an average grade of .32 ounces per ton with a mill recovery rate of 97.96%, yielding 168,745 ounces at a cash cost of Can. $220 per ounce.

The main interest defined to date is the “footwall zone”, on which Richmont Mines Inc. (TSX:RIC:AMEX) (Richmont) calculated a proven and probable reserve of 43,000 tons at an undiluted grade of 9 grams (non NI 43-101 compliant). Within the zone, located 40 meters into the footwall below the ore zones mined by Richmont, are diamond drill hole intersections ranging from 3.62 g/t over 2.4 meters to 17.25 g/t over 5 meters. These figures pre-exist and are non-compliant with National Instrument 43-101 but give an indication of the ore potential in the immediate mine area.

On November 4, 2005, New Island announced that it had obtained a 12-month option to purchase the Nugget Pond mill and property from Richmont at a price of $2,500,000, plus the assumption of reclamation liabilities. Under the terms of the agreement, New Island has made a non-refundable deposit of $250,000 and must complete $1,000,000 in exploration on the property. Should the option be exercised, Richmont has the right to retain a 30% interest by payment of $1,000,000 to New Island or reducing the purchase price by an equivalent amount. During the term of the option, Richmont will remain the owner and operator of the facilities and will undertake the processing of the 75,000 tons of Pine Cove ore.

Compilation of the Richmont and other data on the Richmont claim holdings continues. The company is optimistic that other significant targets, worthy of drilling, will be defined by this work. New Island considers the Nugget Pond assets to be of significant value and highly prospective for the discovery of additional reserves. The existence of an operational mill on site positions the company to realize immediate production and cash flow.

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 .