NEW ISLAND RESOURCES INC.
TSX VENTURE : NIS

NEW ISLAND RESOURCES INC.

January 02, 2007 15:33 ET

New Island Reports on AGM, Board Changes and Corporate Progress

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - Jan. 2, 2007) - New Island Resources Inc. (New Island)(TSX VENTURE:NIS) of St. John's, NL is pleased to announce that all resolutions submitted at the Annual General Meeting held on December 14, 2006 were approved by the shareholders. Due to personal and other business commitments, Mr. Tarik Elsaghir regretfully was unable to stand for reelection to the Board.

The Corporation is pleased to report that Mr. Leo P. Power has been appointed to the Board. Mr. Power holds a BA from Memorial University and a MBA from the Joint Kellogg-Schulich Executive MBA program at York University. During the past fifteen years, he has operated an independent consulting company with emphasis on business and government relations. During the period 1984 - 1989 he was senior assistant to the Honourable John C. Crosbie during Mr. Crosbie's tenure in the federal portfolios of Justice Minister, Minister of Transport and Minister of International Trade. He also acted as Principal Secretary to the former Premier of Newfoundland and Labrador, the Honourable Tom Rideout, during his term of office in 1989. Mr. Power continues his consulting business, has a number of business interests in the Province and has recently been appointed to the Board of Directors of Crosshair Exploration and Mining Corporation (TSX VENTURE:CXX)

In keeping with good corporate governance practices, the Corporation has separated the offices of Chairman and President. Mr. Eric K. Jerrett has been appointed Chairman of the Board and Mr. H.L. Wareham remains President and CEO of the Corporation.

Mr. Jerrett has been a long time member of the Board and supporter of the Corporation. He holds a degree in Civil Engineering from the Technical University of Nova Scotia and is a licenced architect and land surveyor. Since 1971 he has operated his own consulting firm offering design and management services, successfully completing many civil, municipal and restoration projects with a main thrust in architectural engineering. He is highly regarded for his business acumen and integrity and for his extensive community service.

Mr. Jerrett has served on many provincial and national boards and committee relating to his profession and has received many awards, not only from his professional peers, but for his many civic and community service. Amongst his many awards are: Alumni Lifetime Achievement awards from both Memorial University and the Technical University of Nova Scotia, Queen's Jubilee Medal and Order of Canada.

New Island is indeed pleased and honoured that Mr. Jerrett has assumed the role of Chairman of the Board.

The year 2006 has been a significant one for the corporation highlighted by two successful equity placements and the acquisition and subsequent sale of the Nugget Pond gold mill facilities situated on the Baie Verte peninsula in Newfoundland. In late October the Corporation exercised its option to acquire the Nugget Pond mill from Richmont Mines Inc. and entered into an attractive agreement with Crew Gold Corporation (Crew Gold) (TSX:CRU) (OSE:CRU) (FWB:KNC) (OTCBB:CRUGF). Under the terms of the agreement, Crew Gold acquired the mill from the Corporation by issuing 3,000,000 common shares, committing to incur $5,000,000 on the Corporation's Glover Island property to earn a 60% interest and agreeing to process ore at commercial rates from ore discovered on the mineral claims held by the Corporation adjacent to the Nugget Pone mill.

As a result of the foregoing, the working capital of the Corporation has been significantly enhanced, expenditure requirements to advance the Glover Island property has been assumed by Crew Gold and the Company is well positioned to assess and undertake other opportunities.

The Corporation is also pleased to advise that the Board has approved putting in place the necessary documentation, meeting regulatory requirements, to enable it to buy back up to 10% of its outstanding common shares on the market when and as deemed necessary and appropriate.

About New Island:

New Island is an exploration company having advanced gold properties on the Island of Newfoundland. Chiefly among these are the large Glover Island property, the major portion of which is now covered by a mining lease, and the Pine Cove deposit near Baie Verte which is scheduled to be brought into production by Anaconda Gold Corporation in 2007. The Corporation also holds mineral licences on two claim blocks adjacent to the Nugget Pond mill where an initial exploration drilling program is planned to commence on January 9, 2007.

Information on the company and its properties can be viewed at www.newislandresources.com.

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 does not accept responsibility for the adequacy or accuracy of this release.

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