NEW ISLAND RESOURCES INC.
TSX VENTURE : NIS

NEW ISLAND RESOURCES INC.

October 05, 2010 14:13 ET

New Island Resources Inc. Announces Default of Filing Requirements

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Oct. 5, 2010) - New Island Resources Inc. ("New Island") (TSX VENTURE:NIS) reports that the Company has determined that it will not be able to meet the deadline of October 28, 2010 for the filing of its annual audited financial statements for the year ended June 30, 2010 together with the related financial disclosure documents as required in accordance with Parts 4 and 5 of National Instrument 51-102 and with National Instrument 52-109.

New Island announced on August 30, 2010 that it had entered into an agreement with Anaconda Mining Inc. ("Anaconda") on a friendly transaction to be structured as a Plan of Arrangement for the acquisition of New Island's interest in the Pine Cove Mine and Mill. 

The disposition of New Island's interest in the Pine Cove Mine and Mill is a material transaction that would have a significant impact on the financial disclosures of the Company. Due to ongoing negotiations with Anaconda in relation to the proposed Plan of Arrangement and the scheduling of a special shareholders meeting for approval of the transaction, it has been determined that full and accurate financial disclosure for the year ended June 30, 2010 cannot be achieved until the Plan of Arrangement is finalized and the result of the shareholder vote has been determined. 

The audit for the year ended June 30, 2010 has been partially completed being temporarily halted pending the outcome of the special shareholders meeting currently scheduled for October 29, 2010 after which, final preparation of the financial statements will begin and the audit will resume. The Company anticipates the filing default to be rectified within 60 days following the special meeting of shareholders held to consider the Plan of Arrangement.

New Island intends to satisfy the provisions of the alternative information guidelines in accordance with section 4.4 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults (NP 12-203) by the issuance of bi-weekly default status reports for the duration of default period.

New Island has made application to the Alberta Securities Commission as principal regulator, for a Management Cease Trade Order (MCTO) as an alternative to a general Cease Trade Order (CTO) in accordance with NP 12-203.

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 agreements for the sale of its interest in the gold mine and mill project at Pine Cove in central Newfoundland and for the sale of the Glover Island exploration property in western Newfoundland. Additional information concerning these sales and New Island may be obtained on New Island's website at: www.newislandresources.com or from the System for Electronic Document Analysis and Retrieval (SEDAR) website at: www.sedar.com under New Island's profile.

ON BEHALF OF THE BOARD OF DIRECTORS

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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