August 07, 2009 14:55 ET

New Island Not Proceeding With the Nugget Pond Acquisition

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Aug. 7, 2009) - New Island Resources Inc. (New Island) (TSX VENTURE:NIS) of St. John's, NL advises that as a result of being unable to reach satisfactory terms and conditions with Crew Gold Corp. (Crew) relating to a 'milling agreement' covering the use of the facility by Crew for custom milling ore for third parties during the period from closing to June 2010, it will not be proceeding with the acquisition of the Nugget Pond facility as originally set out in the news release of May 6, 2009.

New Island further advises that failure to proceed with the purchase of the mill should in no way affect Crew's existing contract with Anaconda Mining Inc. for custom milling of Pine Cove ore which is now in process and in which New Island has an interest.

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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