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Message: New Island Resources Inc.: Response to Anaconda's Press Release of February 18,
| February 19, 2009 |
| New Island Resources Inc.: Response to Anaconda's Press Release of February 18, 2009 |
| ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Feb. 19, 2009) - New Island Resources Inc. (New Island)(TSX VENTURE:NIS) of St. John's wishes to clarify its position on the Press Release issued yesterday February 18, 2009 by Anaconda Mining Inc. (Anaconda) concerning the LOI between Anaconda and Crew Gold Corporation (Crew). Anaconda states that New Island has challenged, among other things, Anaconda's right to pursue the toll milling processing arrangement with Crew. The press release, as presented, was not approved by New Island. Anaconda presently holds a 30% interest in the Pine Cove property in Newfoundland. They have not met the terms and conditions under the Option and Joint Venture Agreement signed November 2003, that would allow them to earn an extra 30% in the property by bringing a 500 tons per day mill into full commercial production, which up to now, they have been unable to achieve. Anaconda unilaterally negotiated a non-binding LOI with Crew without any input from New Island. New Island was not privy to any negotiations until the LOI was signed and, upon request, presented to New Island on February 4, 2009. New Island has been in discussions with Anaconda since then on the legitimacy of the agreement signed with Crew. While New Island believes that custom milling at Nugget Pond is beneficial and is prepared to negotiate a fair sharing of revenue in good faith, it has determined that the LOI, as presented, was not in compliance with the Option and Joint Venture Agreement and has notified Anaconda of such. New Island intends to hold Anaconda to the terms and conditions of the Option and Joint Venture Agreement and will use these same terms and conditions to assure that the rights of New Island's 70% interest and its shareholders are fully protected. New Island regrets the release by Anaconda of incomplete internal discussions without its approval and wishes to ensure its shareholders that it will act vigorously in their best interest in bringing this issue to a successful conclusion. |
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