NEW ISLAND RESOURCES INC.
TSX VENTURE : NIS

NEW ISLAND RESOURCES INC.

May 06, 2009 10:51 ET

New Island Exercises Its Right of First Offer on the Nugget Pond Mill Facilities

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - May 6, 2009) - New Island Resources Inc. (New Island)(TSX VENTURE:NIS) of St. John's, NL announces that it has exercised its right of first offer from Crew Gold Corporation (Crew) to acquire the Nugget Pond mill facilities situated on the Baie Verte Peninsula in Newfoundland.

The offering price is $3,500,000 and the assumption of reclamation bonding of $1,500,000. Closing is to take place within 90 days. At closing, subject to negotiation between New Island and Crew of satisfactory terms and conditions, Crew will enter into an agreement (the Milling Agreement) with New Island that will provide that during the period from closing to June 30, 2010, Crew will have use of the facility, including custom milling ore for third parties.

New Island is pleased to reacquire the Nugget Pond facilities which it originally acquired from Richmont Mines Inc. and subsequently sold to Crew in 2006. The mill and related tailings facilities are in excellent condition and well positioned to undertake custom milling for various gold deposits in the area. Additionally, New Island holds several highly prospective properties adjacent to the mill.

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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