New Island Resources Inc. Shareholders Approve Plan of Arrangement with Anaconda Mining Inc.

TORONTO AND ST. JOHN'S, Jan. 11 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) and New Island Resources Inc. ("New Island") (TSXV: NIS) are pleased to announce that New Island shareholders (the "Shareholders") have voted in favour of the previously announced plan of arrangement between Anaconda and New Island pursuant to which Anaconda will acquire New Island's interest in the Pine Cove Mine and Mill (the "Arrangement") at a special meeting of Shareholders held today in St. John's, Newfoundland and Labrador. The resolution approving the Arrangement was approved by two-thirds of the votes cast by the Shareholders voting in person or by proxy at the meeting as well as a majority of the minority Shareholders of New Island.

The Arrangement remains subject to applicable regulatory approval as well as a final hearing by the Court of Queen's Bench in the Province of Alberta, currently expected to take place on January 13, 2011, with closing of the Arrangement expected to occur shortly thereafter.


ABOUT ANACONDA

Anaconda is a Toronto, Canada-based mining and exploration company focused on operating the Pine Cove gold mine located near Baie Verte in Newfoundland, Canada and, with its joint venture partner, Inversiones SBX Limitada, advancing the development and exploration of its iron ore portfolio in Chile.


ABOUT NEW ISLAND

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: www.newislandresources.com or from the System for Electronic Document Analysis and Retrieval (SEDAR) website at: www.sedar.com under New Island's profile.



FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the proposed plan of arrangement between Anaconda and New Island and matters relating thereto. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include, without limitation, that all required third party regulatory and governmental approvals to the transaction will be obtained and that the required court approval of the transaction will be obtained and all other conditions to completion of the transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Anaconda or New Island and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore grade or recovery rates, fluctuating metal prices, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated as well as those risk factors discussed in Anaconda's Annual Information Form for the year ended May 31, 2010 and New Island's Management Information Circular dated December 15, 2010, available at www.sedar.com. Although Anaconda and New Island have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information Anaconda and New Island undertake no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

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.



For further information:

Anaconda Mining Inc.
Dustin Angelo
President and CEO
Tel: (647) 260-1248
Email: dangelo@anacondamining.com
Website: www.anacondamining.com

New Island Resources Inc.
Harold Wareham
President
Tel: (709) 576-7711
Email: info@newislandresources.com
Website: www.newislandresources.com