November 05, 2009 12:43 ET

New Island Provides Update on Its Projects

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Nov. 5, 2009) - New Island Resources Inc. (New Island) (TSX VENTURE:NIS) of St. John's, NL reports on its projects.

Pine Cove Project

The Pine Cove property is on option to Anaconda Mining Inc. (Anaconda) which can earn a 60% interest in the property by bringing the property into commercial production. To date, Anaconda has constructed a 500 ton per day mill at the site but has experienced operating difficulties due to a design deficiency. Modifications are presently underway to correct the deficiency with an upgraded mill with planned completion for the second quarter 2010.

In the meantime, ore from the deposit is being trucked to the Nugget Pond mill some 50 kilometers away for processing under a custom milling contract. This contract commenced in July and is expected to be completed in June 2010.

To date, after deducting start-up expenditures, New Island has received a net of $75,000 which, depending on ore grades and current gold market prices, is projected to increase significantly in the coming months.

Glover Island Project

The Glover Island property is on option to Crew Gold Corporation which, under an agreement signed in October 2006, has committed to expend $5,000,000 on exploration over a 5 year period to obtain a 60% interest. Crew has expended a total of approximately $1.6 million on this commitment to date. Discussions are presently underway with Crew as to their intentions for the remainder of their commitment.

Other Properties

Certain small property holdings in Labrador and on the island of Newfoundland have had no major expenditures incurred during the current year. All these properties have sufficient work commitments made to keep title in good standing during 2010 and a portion of 2011.

Investment in Prominex Resources Corp.

New Island holds a shareholder interest of approximately eighteen percent in Prominex Resource Corp. (Prominex). Currently, Prominex has a cease trading order placed on it due to late filing of audited financial statements. Steps are being taken to have this deficiency corrected so that the company can be reinstated. Prominex holds a majority joint venture ownership of the Tulk's Hill base metal deposit some 35 kilometers distant from the historic Buchans mine site. The deposit is near surface, accessible by an existing adit and can be readily mined. Royal Roads Corporation is the minority partner in the Joint Venture. Prominex is endeavoring to obtain access to custom milling facilities.

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"

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