November 28, 2007 14:07 ET

New Island Reports Option Agreement and Further Drilling at Nugget Pond

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Nov. 28, 2007) - New Island Resources Inc. (New Island) (TSX VENTURE:NIS) of St. John's, NL reports that a five hole drill program on the Tilt Cove-Castle Rock area of its Nugget Pond claim blocks situated on the Baie Verte Peninsula in Newfoundland and approximately 10 kilometers northeast of the former Nugget Pond gold mine has been completed and it is currently awaiting results from samples submitted for assay.

The Company is pleased to advise that it has signed an option agreement with South Coast Ventures Inc. (South Coast) on two licences totaling nine claims in the Nugget Pond area. These claims are located 800 metres northeast along strike from the former Nugget Pond mine and bordered to the east and south by New Island claims.

The Nugget Pond gold deposit contained 537,672 tonnes of ore grading 0.32 ounces per tonne and produced 168,745 ounces of gold from 1997 - 2001. The gold bearing 'Nugget Pond Sedimentary Horizon', host to the Nugget Pond mine, underlies these newly acquired claims and is characterized by IP and magnetic geophysical anomalies, as well as associated anomalous gold in till. A cross-cutting structure characterized by a magnetic break also cuts the Nugget Pond Horizon in this area. The Nugget Pond Horizon containing the coincident IP and magnetic anomalies in the area of the cross structure will be tested with an initial two hole diamond-drill program commencing immediately.

Under the terms of the agreement with South Coast, the Company can earn 100% interest in the property by providing:

- $20,000 plus 100,000 shares upon execution of the agreement

- $15,000 plus 35,000 shares within 12 months

- $20,000 plus 65,000 shares within 24 months

- $25,000 plus 100,000 shares within 36 months

- a commitment to incur at least $100,000 in exploration expenditures on the project within 12 months, a total of $150,000 within 24 months and a total of $200,000 within 36 months for a total exploration expenditure of $200,000 over 36 months

- a commitment to pay South Coast a net smelter return royalty of 2% on any commercial production.

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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