Earlier today we posted that Alden Penner of The Unicorns said a reunion is being discussed, but since then, his ex-bandmate Nick Thorburn (also of Islands) told SPIN it's all talk:

Don't get your hopes up. We are talking right now but that's as far as it's gotten. We've talked about this kind of thing many times over the years and while it's true that this is the furthest along it's gotten, conceptually, it's still just talk.

Reissues are still said to be in the works though, and we still have our hopes up for the reunion shows even if Nick says not to.