October 03, 2007 11:28 ET

New Island Resources Inc.: Report on Current Projects

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Oct. 3, 2007) - New Island Resources Inc. (TSX VENTURE:NIS) (New Island) of St. John's, NL is pleased to report on its current projects:

Pine Cove

Construction of the mill at Pine Cove gold deposit near Baie Verte, Newfoundland is proceeding on schedule with commissioning set for late December. The initial capacity of the mill is 500 tonnes per day and is expected to yield 16,000 ounces of gold per annum over a twelve year life span. Mining will commence using open pit methods. Costs are projected to be $395 per ounce.

The Pine Cove property is on option to Anaconda Mining Inc. which has earned a 30% interest and can earn an additional 30% interest and operator status by arranging the financing and bringing the property into commercial production. Under the Joint Venture Agreement, there will be no distribution of profits until the capital cost of the project, which is estimated to be $7,000,000, is repaid in full. Given current gold prices, it is estimated that payback will occur within twenty months from commencement of operations.

The Pine Cove property is highly prospective for the discovery of additional reserves. Identified targets will be further explored following the commencement of mining operations.

Glover Island

The Glover Island property owned by New Island comprises one mining lease of 77 claims covering 1925 hectares and two mineral licences of 127 claims covering 3215 hectares. The Company has entered into a Joint Venture Agreement with Crew Gold Corporation (Crew) whereby Crew must expend C$5,000,000 in exploration expenditures over five years to earn a 60% interest in the project, of which a minimum of C$1,500,000 must be expended in the first two years from the date of the agreement of October 27, 2006.

To date, New Island has expended over C$3,000,000 in exploration and has identified at least 20 gold occurrences over a 16 kilometer zone of gold mineralization where advanced drilling has identified significant gold occurrences on the Lunch Pond South Extension (LPSE) and Kettle Pond South (KPS) zones. Crew plans a program comprising a range of detailed geophysical surveys and drilling to assess the open pit potential of LPSE and KPS zones in addition to the other prospects identified to date.

Glover Island is prospective to host a significant gold deposit within a variety of settings. Immediate open pit targets are pervasively silicified felsite with disseminated pyrite and gold-quartz stockwork mineralization in felsite.

Labrador Properties - Sims Basin

Recently an airborne survey contract was signed for the Sims Basin area of Labrador, which is considered to be highly prospective ground for potential uranium mineralization. The airborne geophysical survey will be carried out at the appropriate time comprised of time-domain electromagnetic, radiometric, and magnetometer surveys. The Sims Basin property is in excess of 80,000 hectares in size.

Nugget Pond

The company has been successful in procuring a drill rig and personnel to undertake an eight to ten hole drill program on the northeast section of the Nugget Pond claim block on the Baie Verte Peninsula in Newfoundland. Drilling is scheduled to commence during the second week of October and will test prospective areas where previous exploration programs reported up to 25.4 grams per tonne over 1.1 meters from channel samples and 15.4 grams per ton from grab samples.

Information on the company and its properties can be viewed at

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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