New Island Resources Inc. (TSXV:NIS) of St. John�s, NL reports that it has reached an agreement with Richmont Mines Inc. (Richmont) (TSX:RIC:AMEX) to amend the Nugget Pond Option Agreement.

The Option Agreement (see New Island news release dated November 4, 2005) covers the Nugget Pond gold property located on the Baie Verte Peninsula in Newfoundland, encompassing a highly prospective land position and an operational mill. Under the terms of the agreement, which expires on October 28, 2006, Richmont holds the right to acquire or retain a 30% interest in the property should the option be exercised.

The parties have now agreed to amend the Option Agreement whereby Richmont will forego its right to acquire the 30% interest by accepting in consideration 1,000,000 common shares of New Island at a deemed price of $0.30 per share to be issued subject to the approval of regulatory authorities.

The Company advises that it is quite pleased with this amendment which will give it a 100% interest in the Nugget Pond Option and will enable it to deal more effectively with the property in the future. It further advises that drilling has recommenced on the footwall and North South Zones adjacent to the mill to further define mineralization encountered in the recently completed drilling program. Additionally, upon completion of a geophysics survey, in progress, the company plans to commence drilling other identified targets on the property.

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 .