October 22, 2010 10:37 ET

New Island Resources Inc. Announces Closing of Sale of Glover Island

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Oct. 22, 2010) - New Island Resources Inc. (the "Company") (TSX VENTURE:NIS) reports that the sale of its Glover Island prospective mineral property to Mountain Lake Resources Inc. ("Mountain Lake") has closed in accordance with the terms of the Property Transfer Agreement (the "Agreement") dated September 23, 2010 between the Company and Mountain Lake. The Agreement was previously announced in a joint New Island/Mountain Lake press release dated September 24, 2010.

Pursuant to the Agreement, the Company has transferred its interest in the Glover Island property to Mountain Lake for consideration from Mountain Lake consisting of $500,000 cash; 1,000,000 common shares of Mountain Lake; share purchase warrants for the acquisition of up to another 500,000 common shares of Mountain Lake at an exercise price of $1.20 per share for a period of two years; a waiver and release of a loan to New Island of $160,000 plus accrued interest (estimated at $3,420); and a waiver and release of any break fee payable by the Company to Mountain Lake in connection with the termination of a prior arrangement agreement between the parties. Mountain Lake will also pay New Island a net smelter returns royalty of 1% of commercial production, which reduces to 0.5% after the payment of the first $1 million.

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. New Island has entered into an agreement for the sale of its interest in the gold mine and mill project at Pine Cove in central Newfoundland. Additional information concerning this sale and 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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