New Island Resources Inc. (New Island)(TSXV:NIS) of St. John�s, NL is pleased to announce that it has granted an exclusivity period until July 3, 2006 to a public company to enable that company to conclude its due diligence and to negotiate and complete definitive documentation relating to a possible acquisition by that company of all of the outstanding shares of New Island.

New Island has agreed that during the exclusivity period it will not directly or indirectly, solicit, initiate or participate in any other offers or proposals in relation to competing transactions.

Negotiations regarding the proposed transaction are preliminary and non-binding. The terms of any such transaction, including price, have not yet been agreed upon. New Island can give no assurances as to the final terms of any such transaction or that any such transaction will occur at all.

New Island will be providing further information as it becomes available.

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 .