NIS New Island Resources

New Island Resources Inc. (New Island)(TSX VENTURE: NIS) of St. John's, NL wishes to advise that it has today initiated arbitration proceedings with Anaconda Mining Corp. concerning Anaconda's right, without New Island's consent, to process Pine Cove ore at Crew Gold's Nugget Pond facility, together with matters related thereto.

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.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contacts: New Island Resources Inc. Harold L. Wareham President (709) 576-7711 (709) 576-2236 (FAX) Email: info@newislandresources.com