New Island Resources Inc. Updates on Status of Anaconda Mining Inc. Take-Over Bid

The Board of Directors (the "Board") of New Island Resources Inc. ("New Island")
(TSX VENTURE:NIS) remains of the view that the hostile take-over bid (the
"Anaconda Offer") by Anaconda Mining Inc. ("Anaconda") (TSX:ANX) is not in the
best interests of New Island or shareholders of New Island. 


Anaconda reported earlier today that as of 5:00 p.m. (Toronto time) on August 9,
2010, Anaconda had received tenders of 17,935,274 New Island Shares representing
approximately 35.7% of the issued and outstanding shares of New Island. A strong
majority of New Island shareholders did not tender their shares to the Anaconda
Offer. 


The Anaconda Offer has been extended to 5:00 p.m. (Toronto time) August 20,
2010. The Board of New Island continues to consider strategies that have greater
potential than the Anaconda Offer to create value for New Island and its
shareholders. 


Included in the shares tendered to Anaconda were 6,205,000 New Island shares
owned or controlled by Navina Asset Management ("Navina") of Toronto, Ontario,
which represent approximately 12.35% of the issued and outstanding shares of New
Island. On June 18, 2010, Navina issued a public statement saying that it
supported the Anaconda Offer. On July 12, 2010 Navina objected to a proposed
private placement of New Island shares for the purpose of raising needed
capital, which objections included threats of legal action and other action
against New Island and its directors. Navina offered to purchase 3,000,000
common shares of New Island for $0.10 per share on a private placement basis
(the "Navina Placement"), which was announced on July 19, 2010. On the morning
of August 5, 2010 New Island issued a press release announcing the closing of
the Navina Placement, including a confirmation by Navina that it had not
tendered any New Island shares to the Anaconda Offer and did not have any
agreement with any concerned party with regarding a disposition of its shares of
New Island. On the afternoon of August 5, 2010, Anaconda published a news
release that Navina had entered into an agreement with Anaconda to tender all of
its New Island shares to the Anaconda Offer. 


For the reasons contained in Directors' Circular (the "Directors' Circular")
filed with Canadian securities regulators on July 23, 2010 as updated by the
Notice of Change to Directors' Circular dated August 6, 2010, the Board
continues to recommend that shareholders of NIS not tender their New Island
shares to the Anaconda Offer. 


The Board of New Island affirms its conclusion that the Anaconda Offer does not
provide shareholders of New Island with adequate consideration for the
underlying value of their shares in New Island. Furthermore, the Board is
concerned that the value of New Island's claims against Anaconda for Anaconda's
performance as operator of New Island's Pine Cove, NL property have not been
adequately priced in to the Anaconda Offer, and New Island's ability to recover
on such claims will be lost in the event that Anaconda acquires control of New
Island. Based on Anaconda's record of mismanagement as operator of the Pine
Cove, NL gold project since making a production decision in January 2004, and
the fact that the gold mine has still not entered into commercial production,
the interests of New Island shareholders will not be served by having their
stake in New Island's most significant asset converted into Anaconda stock as
provided under the terms of the Anaconda Offer.


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.

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