New Island Resources Inc. (TSXV:NIS) (New Island) of St. John’s, NL is pleased to announce that later this month it will commence drilling of the “footwall zone” at the site of the former producing Nugget Pond Gold Mine located in north-western Newfoundland. The “footwall zone” is estimated to contain pre-National Instrument 43-101 proven and probable reserves outlined by Richmont Mines Inc., who operated the mine between 1997 – 2001 (the mine yielded 168,745 ounces of gold at a cash cost of Can.$220 per ounce).

Initially the company is targeting 4 holes to further test a previously drilled section of the “footwall zone” containing 43,000 tonnes at an undiluted grade of 9.0 grams/tonne for the purpose of upgrading to National Instrument 43-101 standards. This zone, located stratographically below the sediments contains significant intersections which range between 4.08 g/t over 2.8 meters and 5.27 g/t over 11.1 meters. Other intersections included a 4.8 meter section grading 12.57 g/t and a 3.4 meter section grading 22.63 g/t. This new drilling will determine whether the mineralization represents the up-dip projection of the “footwall zone” or a previously undetected zone separate from the main ore body.

Upon completion of the initial drilling, 6 additional holes will be drilled to further test a “new zone” of gold mineralization, intersected in 15 holes drilled by Richmont Mines, trending north/south (Mine Grid) and located approximately 75 meters northwest of the main ore body. These holes, drilled during the last year of operation in 2001, yielded anomalous values in all holes that were drilled from west to east to test the north/south trending zone of mineralization including 4.16 g/t/0.4m, 1.33 g/t/3.9m, 5.37 g/t/0.4m, with economic to sub-economic grades of 7.4g/t/1.6m and 4.8 g/t/3.2m returned for two holes. This cross-cutting zone of mineralization has only been tested to 50 meters below surface. It should be noted that the main ore zone at Nugget Pond extended down to 200 meters below surface and its surface exposure was limited to a relatively short strike of 75 meters east of the north/south Zone.

An Induced Polarization Survey will be completed prior to the drilling to determine the relationship of the 2001 discovery to the ore body, and to assist in positioning the 6 new drill holes along the zone.

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 .