May 06, 2008 09:38 ET

New Island Resources Inc.: Gold Production Commences at Pine Cove

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - May 6, 2008) - New Island Resources Inc. (New Island)(TSX VENTURE:NIS) of St. John's, NL is pleased to report that production has now commenced at the Pine Cove gold mine located near Baie Verte, Newfoundland where Anaconda Mining Inc. (Anaconda) (TSX VENTURE:ANX) is earning a 60% interest in the Joint Venture project - see Anaconda News Release of May 5, 2008.

Apart from earning a 60% interest in the property, Anaconda has operator status and will receive a management fee. The agreement also provides that net cash flow will be first applied to repayment of financing costs before profit distribution to the Joint Venture partners.

The mill is projected to produce 13,000 ounces of gold in 2008 and the property holds the promise for increased reserves and grades to extend the life of the mine.

Harold Wareham, President and CEO of New Island states that the company is quite pleased and gratified that the property which it has held for more than 20 years is now coming into production in a period of high gold prices auguring well for an early repayment of capital debt and distribution of profits.

About New Island:

New Island is a mineral exploration and development company having properties on the island of Newfoundland and in Labrador. In addition to the Pine Cove gold mine, it holds the large advanced Glover Island gold property in Newfoundland currently on option to Crew Gold Corporation which has committed to expend $5,000,000 in exploration expenditures over five years to earn a 60% interest. The Company also holds gold mineral claims adjacent to the Nugget Pond mill on the Baie Verte Peninsula and significant land holdings in the Sims Basin area of Labrador which are prospective for uranium. Through its investment in Prominex Resource Corp. it holds an interest in the advanced Tulks Hill base metal property south of Buchans in central Newfoundland.

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.

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