New Island Resources Inc. (New Island -TSXV:NIS) of St. John�s, NL is pleased to announce the results of diamond drilling on the �North-South� Footwall Zone at the former Nugget Pond Mine of Richmont Mines Inc., on the Baie Verte Peninsula of northeastern Newfoundland. Eight (8) drill holes, #�s NP06-340 and NP06-345 to 351, totaling 1315 metres, intersected the mineralized zone 50 to 100 metres vertically below previous drilling carried out in 2000.

The �North-South Zone� is a minimum 100 metre strike length gold mineralized zone hosted by mafic volcanics, that trends approximately 315� and dips approximately 60� to the west. The southern end of the zone (as drilled to date) lies within 50 metres of the northernmost mine workings of the Nugget Pond mine. Six of the eight holes intersected significant gold mineralization as described in the following table. True widths are estimated to be 60-80% of widths shown.

FOOTWALL NORTH-SOUTH ZONE SIGNIFICANT ASSAYS Hole # From(m) To(m) Width(m) Au g/t NP06-340 43.35 43.85 0.50 3.7 88.65 89.05 0.40 5.0 NP06-345 No significant assays NP06-346 66.95 67.85 0.90 3.3 NP06-347 108.69 109.54 0.85 29.2 NP06-348 65.66 67.38 1.70 4.1 incl. 66.66 67.38 0.72 7.3 NP06-349 90.35 91.30 0.95 5.3 incl. 90.85 91.30 0.45 10.7 NP06-350 72.11 72.46 0.35 5.9 74.65 75.00 0.35 8.7 NP06-351 No significant assays

Although DDH NP06-345 didn�t intersect the mineralization, subsequent work suggests that the zone has a steeper dip than first thought and the hole was not drilled far enough to intersect the zone. DDH NP06-351 intersected a thick, pyrite mineralized unit, 12 metres (core length): however gold grades were insignificant.

The mineralized, pyrite rich zone is wide and strong, with a true width estimated at over 5 metres although the gold intersections to date have been narrow. Like the Nugget Pond Mine mineralization, gold values are highly erratic and �nuggety�. Further drilling is required to evaluate this zone along strike and to depth.

Samples were assayed using a standard 1 assay tonne fire assay/AA technique at Eastern Analytical Laboratories in Springdale, NL. A selection of pulps has been sent to another laboratory for check assays using a similar technique.

Drilling will recommence shortly on the North-South Zone, and on other targets outlined in the release of June 14, 2006. In addition, linecutting is in progress on grids located just to the east of the current drilling, and also farther to the east on the property, in preparation for induced polarization (IP) surveys. In the Nugget Pond mine, gold values were associated with abundant disseminated pyrite which provide good IP responses and therefore excellent drill targets. Cross structures, similar to the one which appears to control the Nugget Pond deposit, are known to the east in the areas to be gridded. These have not been evaluated in the past.

The Qualified Person for this project under National Instrument 43-101 is Susan A. Scott, M.Sc., P.Geo.

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 .