New Island Resources Inc. (New Island)(TSXV:NIS) of St. John�s, NL is pleased to advise that discussions with the TSX listed company, announced in its news release of June 7, are continuing.

The company also advises that Anaconda Gold (TSXV:ANX) has filed documentation with the Province of Newfoundland and Labrador in support of its application to obtain the necessary permits for the commencement of mining operations at the company�s Pine Cove gold property near Baie Verte, Newfoundland. Receipt of these permits is expected shortly.

The company further advises that drilling has recommenced on the Nugget Pond property which the company holds under option from Richmont Mines Inc. (TSX:RIC:AMEX).

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 .