August 25, 2010 11:43 ET

New Island Resources Inc. Responds to Press Release of Anaconda Mining Inc.

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Aug. 25, 2010) - On August 23, Anaconda Mining Inc. ("Anaconda") (TSX:ANX) reported that New Island Resources Inc. ("New Island") (TSX VENTURE:NIS) has made an application to the Alberta Securities Commission (the "ASC") and the Ontario Securities Commission (the "OSC") in connection with Anaconda's unsolicited share exchange take-over bid for New Island (the "Anaconda Bid").

In light of the public disclosure by Anaconda regarding New Island's recent submissions to the ASC and the OSC, New Island confirms that it has asked the ASC and the OSC to determine whether that the Anaconda Bid, and certain actions taken during the course of the Anaconda Bid, are in violation of applicable securities laws in the Provinces of Alberta and Ontario. In New Island's view, Anaconda's confirmation by press release yesterday that it has waived all conditions to its bid confirms that Anaconda's previous actions were not in compliance with law. New Island's view is that all bidders for its shares must comply with the laws and procedures that have been established to protect shareholders.

Yesterday the ASC confirmed that it will conduct a hearing on Monday, August 30, 2010 into the matters that New Island has raised in its Application submitted on August 23, 2010. New Island's Application of the same date to the OSC remains under review by the OSC.

With respect to the disclosure in Anaconda's press release of the offer submitted by it to New Island, New Island remains willing to discuss with Anaconda and any other party possible courses of action that will be in the interest of New Island and the shareholders of New Island other than Anaconda. However, Anaconda left New Island only three days to consider its revised offer and New Island was unable to complete an agreement with Anaconda in that time.

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: or from the System for Electronic Document Analysis and Retrieval (SEDAR) website at: under New Island's profile.


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"

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