New Island Resources Inc. Advises Shareholders Who Have Tendered to Anaconda Mining Inc. Take-Over Bid to Immediately Withdraw T

   The Board of Directors (the "Board") of New Island Resources Inc. ("New Island") (TSX VENTURE: NIS) confirms that it continues to pursue the proposed Plan of Arrangement with Mountain Lake Resources Inc. ("Mountain Lake") (TSX VENTURE: MOA) as the best option for shareholders of New Island. Today, Mountain Lake has reported very significant results from initial metallurgical work on mineralized core samples from its Leprechaun Lake, NL gold deposit. Based on these results, shares of Mountain Lake have traded as high as $0.84 per share.

New Island has a definitive agreement with Mountain Lake for a Plan of Arrangement whereby shares of New Island will be exchanged for shares of Mountain Lake at a ratio of 4.25 New Island shares for 1 share of Mountain Lake. The Plan of Arrangement is subject to shareholder approval by the shareholders of New Island prior to September 30, 2010. The transaction must be approved by at least 66.66% of the shareholders of New Island voting at the meeting.

Anaconda Mining Inc. ("Anaconda") (TSX: ANX) reported yesterday that pursuant to its take-over bid for all of the shares of New Island, Anaconda had received tenders of 17,935,274 New Island Shares representing approximately 35.7% of the issued and outstanding shares of New Island. Anaconda has notified New Island that it will not be exercising its votes in favour of the Plan of Arrangement with Mountain Lake.

New Island's preliminary assessment is that based on today's intra-day high, the implied value of New Island shares under the proposed Plan of Arrangement with Mountain Lake is $0.20 per share. This is a significantly higher implied value than that under the terms of the Anaconda Take-over bid for New Island shares, which New Island has estimated to be approximately $0.13 based on recent trading of Anaconda shares.

Shareholders who have tendered their New Island shares pursuant to the take-over bid by Anaconda may be able to withdraw their previously tendered shares pursuant to the rights of withdrawal under the Anaconda Take-over bid. New Island recommends that all shareholders who may have tendered their shares to contact their broker or investment advisor immediately prior to the expiry of such withdrawal rights.

New Island CEO Harold Wareham stated: "The results reported by Mountain Lake today confirm the wisdom of the Board of New Island in pursuing a business combination with Mountain Lake. The combined gold properties of New Island and Mountain Lake represent an opportunity for considerable growth and increases in shareholder value."

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. Additional information concerning 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"

Contacts: New Island Resources Inc. Harold Wareham President [phone] [e-mail]