NIS New Island Resources

The Board of Directors (the "Board") of New Island Resources Inc. ("New Island") (TSX VENTURE: NIS) today released its recommendation to shareholders to reject the hostile take-over bid (the "Anaconda Offer") by Anaconda Mining Inc. ("Anaconda") (TSX: ANX) contained in the take-over bid circular filed by Anaconda with Canadian securities regulators on June 11, 2010. In a Directors' Circular (the "Directors' Circular") filed with Canadian securities regulators today, the Board recommends that shareholders of NIS not tender their New Island shares to the Anaconda Offer, or, if they have already tendered shares, to take the requisite steps to withdraw their New Island shares as permitted by the terms of the Anaconda Offer.

In making its recommendation, the Board considered numerous factors, including the recommendation of New Island's independent directors and the opinion of Salman Partners Inc. of Toronto, Ontario, the financial advisors retained by New Island, based on their evaluation of the Anaconda Offer. The opinion of Salman Partners Inc. is that the consideration offered by Anaconda under the Anaconda Offer is inadequate, from a financial point of view, to New Island shareholders. The full text of the opinion of Salman Partners Inc. is included as Schedule 'B' to the Directors' Circular, along with a detailed discussion of the Board's reasons for recommending that shareholders reject the Anaconda Offer. New Island shareholders are urged to read the Directors' Circular in its entirety. It is available from the System for Electronic Document Analysis and Retrieval (SEDAR) website at: www.sedar.com under New Island's profile.

Reasons for Recommendation

The New Island Board believes that Anaconda's offer of one (1) Anaconda common share for 3.33 New Island common shares fails to provide full value for New Island's assets and is an attempt by Anaconda to acquire New Island without offering adequate consideration to New Island shareholders. The Directors' Circular sets out a number of reasons for this recommendation, including the following:

--  the Anaconda Offer fails to adequately compensate New Island
    shareholders for the strategic value of New Island's assets.

--  the timing of the Anaconda Offer is opportunistic and disadvantageous to
    New Island shareholders.

--  delays caused by Anaconda, as operator, in developing the Pine Cove
    project have significantly impaired New Island's operating cash flow,
    and contributed to New Island's cash flow requirements and depressed
    share price. In making the Anaconda Offer, Anaconda is taking advantage
    of the depressed share price which it helped bring about.

--  Anaconda does not have a strategy focused on gold exploration and
    development.

--  the Anaconda Offer does not reflect an adequate premium for control of
    New Island.

--  the Anaconda Offer is below the premiums typically paid in Canadian
    takeovers.

--  the consideration offered under the Anaconda Offer represents a discount
    to the current trading price of New Island Shares.

--  the value of the consideration offered under the Anaconda Offer is
    uncertain and entirely dependent on the value of Anaconda Shares, which
    are subject to significant fluctuations.

--  as announced in a press release earlier today, New Island has negotiated
    a superior deal with Mountain Lake Resources Inc. ("Mountain Lake"). The
    Mountain Lake proposal involves an exchange of one Mountain Lake share
    for every 4.25 New Island Shares, which represents an implied premium of
    35.71% rather than a discount of 7.44% as proposed by the Anaconda
    Offer.

--  The Anaconda Offer is highly conditional and not a firm offer.

--  Anaconda has engaged in a course of conduct aimed at preventing the
    Board and the shareholders of New Island from having access to the
    information necessary to evaluate the Anaconda Offer.

The Board recommends that New Island shareholders who have already tendered their New Island shares to the Anaconda Offer should contact their broker or dealer, or contact New Island directly for information on how to withdraw any New Island shares already tendered.

About New Island Resources Inc.

New Island is a diversified junior exploration company holding gold and base metal properties in the Province of Newfoundland and Labrador. Additional information concerning New Island may be obtained on New Island's website at: www.newislandresources.com or from the System for Electronic Document Analysis and Retrieval (SEDAR) website at: www.sedar.com under New Island's profile.

ON BEHALF OF THE BOARD OF DIRECTORS

Harold Wareham, President and CEO

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 Wareham President (709) 576-7711 info@newislandressources.com