St. John’s, NL New Island Resources Inc. (“New Island”) (TSX Venture: NIS) announces that it has entered into an engagement letter with Research Capital Corporation (“Research”), pursuant to which Research has agreed, subject to entering into of a formal agreement, to act as agent on a “commercially reasonable best efforts” basis in connection with a proposed private placement of common shares, to be issued on a flow-through basis (“Flow-Through Shares”), and units (“Units”). Up to 3,400,000 Flow-Through Shares at a price of $0.45 per Flow-Through Share, for gross proceeds of up to $1,530,000; and up to 1,250,000 Units at a price of $0.40 per Unit, for gross proceeds of up to $500,000, will be offered in the provinces of Alberta, British Columbia, Ontario and Newfoundland. 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 $0.70 per share for a period of 24 months from 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 Flow-Through Shares and Units sold under the private placement. Research will be paid a due diligence and administrative fee of $25,000 (plus gst), of which $5,060 may be payable by the issuance of 12,500 Units at $0.40 per Unit. In addition, a third party will be paid a finder’s fee equal to 2% of the gross proceeds raised on 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 .