J.P. Morgan Global High Yield & Leveraged Finance - New Gold

J.P. Morgan Global High

Yield & Leveraged

Finance Conference

February 25-27, 2013

Miami, Florida

Cautionary statement

All monetary amounts in U.S. dollars unless otherwise stated

Total cash costs shown net of by-product sales unless otherwise stated

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements

in this presentation, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements”. Forward-looking

statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget",

"scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results

"may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. All such forward-looking statements are based on the opinions and estimates

of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict.

Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual

results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation:

significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile;

price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated

production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in international, national and local government

legislation in Canada, the United States, Australia, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and

political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of

obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates,

including, but not limited to obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS

and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to foreign legal systems, which may

not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges the

company is or may become a party to,; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or

reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral

properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual

or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk

Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and

future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements.

New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance

with applicable securities laws.

2

Cautionary statement (cont’d)

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

Information concerning the properties and operations discussed in this presentation has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to

similar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this presentation are Canadian mining

terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM

Council on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations,

they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has

been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptions of

mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States

Securities and Exchange Commission. An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an

"Inferred Mineral Resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers are

cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an "Inferred Mineral

Resource" exists, or is economically or legally mineable. In addition, the definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of the

United States Securities and Exchange Commission.

TECHNICAL INFORMATION

The scientific and technical information in this presentation has been reviewed by Mark Petersen, a Qualified Person under National Instrument 43-101 and an employee of New Gold.

(1) TOTAL CASH COSTS

“Total cash costs” per ounce figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North

American gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and

the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. Total cash costs includes mine site operating costs such as

mining, processing, administration, royalties and production taxes, but is exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are reduced by any by-product revenue and are then divided

by ounces sold to arrive at the total by-product cash costs of sales. The measure, along with sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from its mining

operations. This data is furnished to provide additional information and is a non-IFRS measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparable to

similar measures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of operating

costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.

(2) ALL-IN SUSTAINING CASH COSTS

The company is working with the World Gold Council and is in the process of adopting an “all-in sustaining cash costs” measure that the company believes more fully defines the total costs associated with producing gold.

Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: by-product cash costs, corporate general and administrative expenses, exploration expense and sustaining capital. This

metric is a non-IFRS measure.

(3) PEA – ADDITIONAL CAUTIONARY NOTE

This note regarding the Preliminary Economic Assessment (“PEA”) is in addition to cautionary language already included within the news release as required under NI 43-101. The Blackwater PEA is preliminary in nature

and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no

certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

This note regarding the preliminary economic assessment (“PEA”) is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature and

includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no

certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on New

Gold’s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, updated the

mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important

indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date,

and the PEA does not reflect the latest mineral resource estimate. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the

new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may have an impact on New Gold’s plans on how it intends to develop the deposit, including pit outlines,

production rates and mine life.

3

New Gold overview

4

ESTABLISHING THE LEADING INTERMEDIATE GOLD COMPANY

Focus on Value Enhancement Established Track Record

Experienced/Invested Team Low Cost/High Margin

Growing Resources Doubling Gold Production Organically

Strong Balance Sheet Accretive ‘per share’ Growth

2012 to 2013 – The path forward

5

Notes: 1. Refer to Cautionary Statement and note on Total cash costs.

2. 2013 estimated margin per ounce based on mid-point of range of total cash costs of $275 per ounce and an assumed gold price of $1,600 per ounce.

6% gold production growth Forecasting additional 12% gold

production growth

Total cash costs(1) declined by $25

per ounce

Targeting a further ~$145 per

ounce reduction in total cash

costs(1)

Average realized margin of $1,130

per ounce

Margin expected to grow to

$1,325(2) per ounce

2012 Achievements 2013 Objectives

2012 to 2013 – The path forward (cont’d)

6

New Afton achieved full production

ahead of schedule (September

2012)

Evaluation of New Afton mill

throughput increase/C-Zone

exploration

Measured and Indicated resources

increased by 10% per share; New

Afton extended mine life by two

years

Increase resources organically at

Blackwater, New Afton C-Zone and

Peak Mines

Successfully completed Blackwater

Preliminary Economic Assessment

Focus on Feasibility Study and

Permitting

2012 Achievements 2013 Objectives

Management and Board of Directors

7

Collectively over $125 million

invested in New Gold

EXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORS

Randall Oliphant, Executive Chairman

Robert Gallagher, President & CEO

Brian Penny, Executive VP and CFO

James Estey, Former Chairman UBS Securities Canada

Robert Gallagher, President & CEO

Vahan Kololian, Founder Terra Nova Partners

Martyn Konig, Former Executive Chairman European Goldfields

Pierre Lassonde, Chairman Franco-Nevada

Randall Oliphant, Executive Chairman

Raymond Threlkeld, CEO Rainy River Resources

David Emerson, Former Canadian Cabinet Minister

Ernie Mast, VP Operations

Capitalization and liquidity

8

Notes: 1. Cash and equivalents as at December 31, 2012. The cash balance provided is an unaudited figure and may differ slightly from the final result included in the 2012 annual audited financial statements and MD&A.

2. $50 million of total $150 million currently used for Letters of Credit.

3. See Appendix 1 for detailed breakdown of components of debt.

• All corporate debt now due in 2020 or

beyond(3)

• Two senior unsecured notes offerings

during 2012 ($300 million/7.00%, $500

million/6.25%)

• Redemption of 10% senior secured

notes

• Early conversion of 5% convertible

debenture

• Total common shares outstanding of 476

million

Liquidity

Position

$688mm

$100mm

$788mm

Cash and

Equivalents(1)

Undrawn Credit

Facility(2)

Strong financial position

9

Notes: 1. Cash and equivalents as at December 31, 2012. The cash balance provided is an unaudited figure and may differ slightly from the final result included in the 2012 audited financial statements and MD&A.

2. Total Debt and Total Capitalization as at 9/30/2012 includes $300 million unsecured notes issued in April 2012, but does not include $500 million unsecured notes issued in November 2012.

• Strong credit metrics and cash position

• Continued growth in revenue and

EBITDA

• 2013 revenue and EBITDA will include

a full-year contribution from New Afton

(1)

Revenue and Adjusted EBITDA ($mm) Cash Position ($mm)

Total Debt Metrics

(2)

$218

$324

$530

$696 $718

$0

$100

$200

$300

$400

$500

$600

$700

$800

2008 2009 2010 2011 LTM(9/30/2012)

Revenue

Adjusted EBITDA

$186

$262

$491

$309

$688

$0

$100

$200

$300

$400

$500

$600

$700

$800

2008 2009 2010 2011 2012

10.4x

2.0x0.9x 0.6x 0.8x

14% 14%

18%

11%13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

2008 2009 2010 2011 LTM(9/30/2012)

Total Debt / Adjusted EBITDA

Total Debt / Total Capitalization

Bonds outstanding

10

• Initial offering of $300 million

unsecured notes in April 2012,

with an additional offering of $500

million unsecured notes in

November 2012

• Both tranches have consistently

traded at a premium to the issue

price

• Corporate debt ratings of BB- / B1

Senior Unsecured Notes

(April 2012)


(November 2012)

Face Value $300 million $500 million

Maturity April 15, 2020 November 15, 2022

Interest Rate 7.00% 6.25%

Payable Semi-annually Semi-annually

Conversion price n/a n/a

Current trading

value

~107.6 ~105.1

Yield to worst 5.3% 5.4%

Rating BB-/B2 BB-/B2

Key features • Senior unsecured

• Redeemable after

April 15, 2016 at

103.5% down to

100% of face after

2018

• Unlimited dividends if

leverage ratio below

2:1

• Senior unsecured


November 15, 2017 at

103.125% down to

100% of face after

2020


leverage ratio below

2:1

Growing resource base in solid jurisdictions

11

-

10

20

30

40

50

YE 2009 YE 2010 YE 2011 YE 2012

Operating assets

Development projects

Notes: 1. Excludes resources from Amapari which was sold in April 2010.

2. Refer to New Gold website for detailed disclosure on reserve and resource calculations. Measured and Indicated resources inclusive of reserves, and Capoose Indicated resources of 196Koz.

3. New Gold holds a fully carried 30% interest in the El Morro project.

Peak Mines

Cerro San

Pedro

El Morro(3)

New Afton

Blackwater

Mesquite

M&I Resources(2): 21.4 Moz Measured & Indicated Gold Resources per 1,000 shares

Track record of increasing M&I gold

resources on a ‘per share’ basis

(1)

Fourth quarter leads to strong 2012

12

Fourth Quarter and Full Year 2012 Gold Production (thousand ounces)

Fourth Quarter and Full Year 2012 Total Cash Costs ($/ounce)(1)

Fourth Quarter and Full Year 2012 Average Realized Margin ($/ounce)(2)

• Fourth quarter was the

strongest of 2012 and

among the best in New

Gold’s history

• New Afton started to hit

its stride

• Mining of higher grade

areas at Peak Mines

• Fourth quarter total cash

costs(1) demonstrate

company’s low costs

• Highest ever quarterly and

annual average realized

margin


2. Average realized margin per ounce calculated as average realized gold price in fourth quarter and full year 2012 less total cash costs per ounce during fourth quarter and full year 2012.

113

412

-

150

300

450

Q4'12 FY2012

$254

$421

-

$200

$400

$600

Q4'12 FY2012

$1,324

$1,130

$500

$800

$1,100

$1,400

Q4'12 FY2012

Operational execution

13

$465

$418

$446

$421

302

383 387412


2. 2009 costs shown based on Canadian GAAP and 2010 and beyond based on IFRS.

Gold production(1) (thousand ounces)

Total cash costs(1)(2) ($/ounce)

2009

Guidance

2009

Actual

2010

Guidance

2010

Actual

2011

Guidance

2011

Actual

2012

Guidance

Four year track record of delivering on guidance, production growth and lower cash costs

2012

Actual

2009

Guidance

2009

Actual

2010

Guidance

2010

Actual

2011

Guidance

2011

Actual

2012

Guidance

2012

Actual

2013 consolidated guidance

14

2012 Actual

Gold production(1)

440 - 480Koz

Total cash costs(2)

$265 - $285/oz

Notes: 1. Gold sales expected to be in same range as production.

2. Refer to Cautionary Statement and note on Total cash costs.

Gold production

412Koz

Total cash costs(2)

$421/oz

2013 Guidance

+48Koz

+ 12%

($146/oz)

(35%)

2012 actuals versus 2013 guidance

15


2. By-product price assumptions: Silver - $30.00/oz; Copper - $3.50/lb.

3. New Afton co-product cost estimates: Gold - $570-$590/oz; Copper - $1.20-$1.30/lb.

Gold Production

(Koz)

Total Cash Costs(1)(2)

($/oz)

Silver Production

(Moz)

Copper Production

(Mlbs)

Mesquite

Cerro San

Pedro

Peak Mines

New Afton

Total

2012A 2013E

142 130-140

138 140-150

96 95-105

37 75-85

412 440-480

2012A 2013E

-- --

1.9 1.4-1.6

-- --

-- --

1.9 1.4-1.6

2012A 2013E

-- --

-- --

14 12-14

28 66-74

42 78-88

2012A 2013E

$690 $830-$850

$232 $375-$395

$764 $670-$690

($1,043) ($1,410)-

($1,390)(3)

$421 $265-$285

Lower costs driving margin expansion

16

$465

$418

$446 $421

$265-$285

$478

$557

$643

$736

2009 2010 2011 2012 2013E

Notes: 1. Calculated based on Q3’2012 GFMS industry average less mid-point of New Gold 2013 cost guidance.


3. Industry data per GFMS reports calculated net of by-product credits as at Q3’2012.

$600

$400

$200

To

tal C

ash

Co

sts

(U

S$/o

z)(

2)

New Gold offers shareholders potential for over $450 per ounce(1) of incremental margin

$800

Incremental Margin to New Gold

Shareholders

(3)

2013 estimated all-in sustaining cash costs

17

Total cash costs(1)

General and administrative

Exploration expense

Sustaining capital(2)

All-in sustaining cash costs(3)

$275/oz

~$60/oz

~$70/oz

~$470/oz

~$875/oz

Notes: 1. Refer to Cautionary Statement and note on Total cash costs. $275 per ounce based on mid-point of 2013 guidance.

2. Sustaining capital based on New Gold’s total 2013 estimated capital expenditures excluding expenditures related to growth-related initiatives.

3. All-in sustaining cash costs calculated using the mid-point of New Gold’s estimated 2013 production range.

Mesquite

18

• Located in Imperial County, California

• 70km northwest of Yuma

• Open pit, run-of-mine heap leach operation

• Mine acquired in 2009 through successful business combination with Western Goldfields

• Mesquite recommenced production in January 2008

• 2012 performance – 142Koz gold production at total cash costs(2) of $690 per ounce

• 2012 capital expenditures $11 million

Notes: 1. Refer to Appendix 7 for detailed disclosure on Reserve and Resource calculations.

2. Refer to Cautionary Statement and note on Total cash cost.

Measured and Indicated Gold Resource(1)

5.7 Moz

Location United States

Mine type Open Pit

Reserves1 – Gold (Moz) 2.3

Resources1 – Gold (Moz) 5.7

2013E production/yr (Au koz) 130-140k

2013E cash cost/oz by-product2 $830-$850

2013E capital expenditures ($mm) $20

Cerro San Pedro

19

• Located in the state of San Luis Potosi in central Mexico

• Gold-silver, open pit, run-of-mine heap leach operation

• 2012 performance – 138Koz gold production, 1.9 million ounces of silver production at total by-product cash costs(2) of $232 per ounce





1.7 Moz

Measured and Indicated Silver Resource(1)

58.0 Moz

Location Mexico

Mine type Open Pit

Reserves1 – Gold/Silver (Moz/Moz) 0.7/26.4

Resources1 – Gold/Silver (Moz/Moz) 1.7/58.0

2013E production/yr (Au koz/Ag Moz) 140-150k/1.4-1.6m



Peak Mines

20

• Located in Cobar, New South Wales,

Australia

• Gold-copper underground mine

• Track record of continually replacing annual

resources mined

• 2012 performance – 96Koz gold production,

14.4 million pounds of copper production at

total by-product cash costs(2) of $764 per

ounce





880 Koz

Measured and Indicated Copper Resource(1)

146 Mlbs

Location Australia

Mine type Underground

Reserves1 – Gold/Copper (Moz/Mlbs) 0.6/101

Resources1 – Gold/Copper (Moz/Mlbs) 0.9/146

2013E production/yr (Au koz/Cu Mlbs) 95-105k/12-14m



New Afton – Successfully commissioned

21

• Located 10 kilometres from Kamloops, British Columbia

• Dedicated labour force

• Commercial and full production achieved ahead of schedule

• Potential to double New Gold’s cash flow at today’s prices




3. Co-product cash cost calculated based on relative percentage of gold and copper revenue, respectively.

1.1 Moz

Gold Reserve(1)

1.1 Blbs

Copper Reserve(1)

Location Canada

Mine type Underground

Reserves1 – Gold/Copper (Moz/Mlbs) 1.1/1,080

Resources1 – Gold/Copper (Moz/Mlbs) 2.0/1,818

2013E production/yr (Au koz/Cu Mlbs) 75-85k/66-74m

2013E cash cost/oz by-product2 ($1,390)-($1,410)

2013E cash cost/oz co-product (Au/Cu)3 $570-$590/$1.20-$1.30


Overview of New Afton mill start-up

22

3,799

7,428

9,734

11,66112,252

11,68211,183

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jun Jul Aug Sep Oct Nov Dec

Daily average throughput by month (tonnes per day)

• Successful mill start-up

• June 28, 2012 – first ore through mill meeting targeted

start date

• July 31, 2012 – achieved commercial production ahead

of schedule

• September 21, 2012 – achieved full production (11,000

tonne per day design capacity) over one month ahead

of schedule

• November/December 2012 – scheduled throughput

decrease to manage stockpile/feed inventory in

advance of permanent crusher installation in January

2013

• Throughput averages 11,706 tonnes per day in fourth

quarter 2012

• Record daily throughput of 13,840 tonnes

Nameplate Capacity

2012 Mill Ramp-Up

New Afton – Looking to unlock additional value

23

• Exploration work starting mid-2012 led to two year mine life extension

• Additional positive results from C-Zone drilling

• Mill throughput averaged 11,706 tonnes per day in fourth quarter 2012

• Daily record – 13,840 tonnes

• 65 drawbells targeted by mid-2013 to increase ore access points

• Excess capacity – Gyratory crusher (20,000 tonnes per day); Conveyor (14,500 tonnes per day)

• Working to optimize mill for sustained higher throughput

• First step – Targeting sustainable 12,000 tonnes per day by end of 2013

Simultaneously evaluating additional resource potential of C-Zone and optimizing mill for

throughput increases with goal of extending 14-year mine life at higher production rates

New Afton C-Zone exploration program

24

* Holes completed - Assays pending

* * * * *

EA-2

EA-9

EA-11

EA-19

EA-21

EA-24

EA-2

EA-24

EA-19

EA-11 EA-21

EA-9

C-Zone

B-Zone

A-Zone

C-Zone

4,900m 4,900m

A-Zone

B-Zone

5,400m 5,400m

East Extension

Historic “Deep C-Zone” Intercepts

AF-125: 122m @ 1.01 g/t Au, 1.23% Cu

AF-139: 92m @ 1.09 g/t Au, 1.36% Cu

Fourth Quarter 2012 C-Zone Drilling Highlights

Drill Hole From (m) To (m) Interval (m) Au g/t Cu %

EA12-7 424 494 70 1.23 1.19

EA12-9 286 444 158 0.88 0.94

EA12-11 418 528 110 1.05 0.90

EA12-19 460 626 166 1.23 1.28

EA12-21 488 597 109 1.06 0.95

EA12-24 574 730 156 1.01 1.02

Drilling highlights not

included in 2012 year

end resource update

El Morro (30%)

25

• Goldcorp – 70% partner and project operator

• New Gold’s 30% share of capital fully-funded by

Goldcorp

• Current resource entirely within La Fortuna deposit

• Neighbouring El Morro deposit underexplored

• 2012 year end update added 0.4 million ounces of

gold and 229 million pounds of copper to reserves(1)

• Addressing recent temporary suspension of

environmental permit

• Resolution targeted prior to end of 2013

• Chile evaluating various alternatives for a power

source to northern Chilean development projects

2.1 Blbs

Copper Reserve(1)

2.9 Moz

Gold Reserve(1)

Notes: 1. New Gold’s attributable 30% share. Refer to Appendix 7 for detailed disclosure on reserve and resource calculations.

2. Refer to Cautionary Statements.

3. Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs estimated at $550/oz gold and $1.45/lb copper at commodity price assumptions of $1,200/oz gold and $2.75/lb

copper.

Location Chile

Mine type Open Pit

Reserves1 – Gold/Copper (Moz/Mlbs) 2.9/2,097

Resources1 – Gold/Copper (Moz/Mlbs) 2.9/2,097

Estimate mine life 17 years

LOM production/yr (Au koz/Cu Mlbs)2 90/85

LOM cash cost/oz by-product3 ($700)

Blackwater – A robust project

26

Measured and Indicated

Gold Resources(1)

8.1 Moz

• Central British Columbia near infrastructure

• Year-round accessibility for drilling/

development

• Total 2012 drilling over 270,000 metres project

wide

• Ability to fund continued exploration/development

internally

• Tax synergies with New Afton

• PEA completed September 2012

• Targeting annual gold production of

~500,000 ounces

• Targeting completion of Feasibility Study by late

2013

• Targeting production in 2017

• Consolidated significant land position – 1,000km2


2. Blackwater start date based on indicative timeline which is dependent on permit approvals and the determination that the deposit is economically viable.

Location Canada

Proposed mine type Open Pit

M&I Resources1 – Gold/Silver (Moz) 8.1/56.2

Inferred Resources1 – Gold/Silver (Moz) 0.3/5.8

Targeted production2 2017

Blackwater – Indicative timeline

27

Notes: 1. Indicative timeline is dependent on permit approvals. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage.

Development activity

First Nations & Public Consultation

Preliminary Economic Assessment

Base Line Environmental Studies

Feasibility Study

Engineering Procurement

Production Target

Drilling

Project Description/Terms of Reference

Environmental Assessment Reports

Provincial Approval

Federal Approval

Construction

H1 H2 H1 H2 H1 H2H1 H2 H1 H2 H1 H2

2012 2013 2014 2015 2016 2017

Reflects critical path in timeline

Blackwater – Area map

28

~160km to

Prince George

~112km to

Vanderhoof

Blackwater

Project

50km

80km

Capoose

Resource

Blackwater

Resource

Blackwater 2013 exploration objectives

29

>1000 ppb Au

500-1000 ppb Au

250-500 ppb Au

50-250 ppb Au

Blackwater

Auro

Fawnie Van Tine

Capoose

• Blackwater: Explore for satellite deposits and test

potential extensions to known resource

• Capoose: Expand and upgrade resource with special

focus on potential to extend gold-rich zones

• Regional targets: Identify specific drill targets and

complete first pass reconnaissance drilling

Plan for four to six drills to be active during primary field season

10 km

A future of growth

30

Go

ld P

rod

ucti

on

(th

ou

san

d o

un

ces)

Peer leading growth with targeted doubling of production by 2017

387412

~440 - 480

200

400

600

800

1,000

2011A 2012A 2013E 2017E

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

1-J

un-0

9

29

-Oct-

09

28

-Mar-

10

25

-Au

g-1

0

22

-Jan

-11

21

-Jun

-11

18

-Nov-1

1

16

-Apr-

12

13

-Sep

-12

10

-Fe

b-1

3

NGD Gold PriceS&P/TSX Gold Index FTSE Gold Mines IndexHUI Index

Completed $1.2bn business

combination with Western Goldfields

Closing of Richfield

acquisition

15-F

eb-1

3

Net asset value and relative performance

31

Source: Broker Reports, Company Estimates and Announcements, Bloomberg, all amounts in USD.

Notes: 1. Street consensus NAV.

2. Current street consensus NAV for El Morro; Includes $50 million cash payment received from Goldcorp as part of transaction consideration.

3. New Gold purchased Richfield and Silver Quest with the deals closing on June 1, 2011 and December 23, 2011, respectively.

4. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production.

5. FTSE Gold Mines Index includes 26 gold producing companies.

6. HUI Index includes 15 of the major global gold producers.

6/1/09 Today

Mesquite, Cerro San Pedro, Peak Mines

New Afton

El Morro(2)

~ $875 $1,561

~ $120 $1,612

~ $40 $696

Net Asset Value(1)

Blackwater(3)

$-- $1,358

+221%

(16%)

(20%)

+65%

(5%)

2013 catalysts

32

2013 guidance – increased resources, production growth and lower costs

Blackwater regional exploration update

New Afton C-Zone exploration update

Completion of Blackwater Feasibility Study

New Afton mill to reach 12,000 tonnes per day

Resolution of El Morro temporary permit suspension

Results of New Afton throughput increase evaluation

33

EXPERIENCED BOARD AND MANAGEMENT

FULLY FUNDED COMPANY WITH STRONG BALANCE SHEET

DIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS

ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY

PRODUCTION GROWTH/MARGIN EXPANSION

INCREASING UNDERLYING ASSET VALUE

MULTIPLE CATALYSTS

COMPELLING INVESTMENT PROPOSITION

The New Gold investment thesis

Appendix

34

Appendices

Page

1. Financial information 35

2. Consolidated operating performance 40

3. Mesquite, Cerro San Pedro, Peak Mines 45

4. New Afton 49

5. El Morro 56

6. Blackwater 62

7. Reserves and resource notes 66

8. Commodity price/foreign exchange assumptions 71

Appendix 1

Summary of debt

35

Undrawn Credit

Facility


(April 2012)


(November 2012)

El Morro

Funding Loan

Face Value $150 million(1) $300 million $500 million $65 million

Maturity 1 year with annual

extensions permitted

April 15, 2020 November 15, 2022 n/a

Interest Rate See ‘Key features’ 7.00% 6.25% 4.58%

Payable Revolving credit Semi-annually Semi-annually Upon start of

production

Conversion price n/a n/a n/a n/a

Current trading

value

n/a ~108 ~105 n/a

Key features Normal financial

covenants

Interest Rate

• 3.00-4.25% over

LIBOR based on

ratios

• Standby fee of

0.75-1.06%


• Redeemable after April

15, 2016 at 103.5%

down to 100% of face

after 2018


leverage ratio below 2:1



November 15, 2017 at

103.125% down to

100% of face after 2020


leverage ratio below 2:1

New Gold to

repay Goldcorp

out of 80% of its

30% share of

cash flow once El

Morro starts

production

Notes: 1. $50 million currently allocated for Letters of Credit.

Appendix 1

2012 and 2013 capital expenditures by site

36

• New Gold’s 2013 estimated capital expenditures of $290 million are down 42% from 2012

• Capital includes costs related to ongoing annual sustaining capital as well as investments for future

production

• Capital estimates by site are shown below:

Total 2013 Capital Expenditure Estimate: $290 million

New Afton

$110mm

Peak Mines

$60mm

Cerro San

Pedro

$40mm

Mesquite

$20mm

Blackwater

$60mm

Total 2012 Actual Capital Expenditures: $497 million

New Afton

$297mm

Peak Mines

$47mm

Cerro San Pedro

$15mm

Mesquite

$11mm

Blackwater

$127mm

Appendix 1

2013 capital expenditures by category

37

Direct investment for future production

• The below breaks down capital expenditures at each site into two categories – annual sustaining capital

and direct investments for future production growth and mine life extension

New Afton - $110 million

Blackwater - $60 million

Peak Mines - $60 million

Annual sustaining capital

82%

18%

100%

50% 50%

• $90 million – continued cave and drawbell development as well as related

technical services

• Total of ~90 drawbells expected to be completed by end of 2013

• Annual drawbell development to decrease over mine life with commensurate

decrease in capital

• $15 million – capitalized exploration

• $45 million – Feasibility and related engineering studies, permitting, camp

facilities/operation

• $30 million – underground development and capitalized exploration

• $30 million – equipment, mine and mill projects/maintenance

Appendix 1

2013 capital expenditures by category (cont’d)

38

Direct investment for future production

Cerro San Pedro - $40 million

Mesquite - $20 million

Annual sustaining capital

75%

25%

60%

40%

• $30 million – final leach pad expansion and capitalized stripping for phase 5

development

• $10 million – site maintenance/processing improvements

• $12 million – two additional trucks and construction of new welding and tire shops

• $8 million – equipment components/site maintenance

New Gold’s 30% share of estimated El Morro capital cost of $23 million fully carried by

Goldcorp Inc.

Appendix 1

2013 exploration program overview

39

• New Gold’s estimated exploration budget for 2013 is $50 million

• Capitalized: $20 million

• Expensed: $30 million

New Afton

40,000 metres

Peak Mines

33,000 metres Blackwater

40,000 metres

Capitalized: $15 million

Expensed: $15 million


Capitalized: $5 million


Appendix 2

Fourth quarter and full year 2012 operating asset overview

40

Q4'12 2012 Q4'12 2012 Q4'12 2012 Q4'12 2012 Q4'12 2012

Gold production (Koz) 29 142 32 138 29 96 23 37 113 412

Gold sales (Koz) 30 142 31 134 26 89 23 30 110 396

Silver production (Koz) -- -- 401 1,939 -- -- -- -- 401 1,939

Silver sales (Koz) -- -- 420 1,926 -- -- -- -- 420 1,926

Copper production (Mlbs) -- -- -- -- 3.6 14.4 17.3 28.5 20.9 42.8

Copper sales (Mlbs) -- -- -- -- 3.0 13.0 16.8 22.6 19.8 35.6

Total cash costs(1) ($/oz) $787 $690 $320 $232 $743 $764 ($1,067) ($1,043) $254 $421

Mesquite Cerro San Pedro Peak Mines TotalNew Afton


$566

$465$428 $446 $421

$297

$522

$766

$1,014

$1,130

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2008A 2009A 2010A 2011A 2012A

Appendix 2

Trend of expanding margins continues

41

Note: 1. Refer to Cautionary Statement and note on Total cash cost.

Realized gold price

(US$/oz)

$863

Cash Cost(1)

(US$/oz)

Margin

(US$/oz)

$987

$1,194

$1,460

US

$/o

z

$1,551

Appendix 2

2013 guidance

42

• Gold production growth through full year of

production at New Afton and increased

throughput and recoveries at Peak Mines

• Copper production forecast to double to 78 to 88

million pounds

• Copper and silver by-products continue to act as

natural hedge to industry-wide cost pressures

• By-product price assumptions (consistent with

2012):

• Copper $3.50 per pound

• Silver $30.00 per ounce

Gold production(1)

440 - 480Koz

Total cash costs(2)

$265 - $285/oz

Notes: 1. Gold sales range forecast to be 440,000 to 480,000 ounces.


• By-product sensitivities:

• $0.25 per pound change in copper impacts

consolidated cash costs by ~$45 per ounce

• $1.00 per ounce change in silver impacts

consolidated cash costs by ~$3 per ounce

• At spot commodity prices and foreign exchange

rates, total cash costs(2) would be below $250

per ounce

Appendix 2

2012 actuals versus 2013 guidance

43

$421

2012A 2013E

412

2012A 2013E


2. By-product price assumptions: Silver - $30.00/oz; Copper - $3.50/lb.

3. New Afton co-product cost estimates: Gold - $570-$590/oz; Copper - $1.20-$1.30/lb.

Gold Production (Koz) Total Cash Costs(1) ($/oz)

2013 Guidance Summary

480

440

+ 48Koz

+ 12%

($146/oz)

(35%)

$285

$265

Gold production (Koz)

Silver production (Moz)

Copper production (Mlbs)

Total cash costs(1)(2)

($/oz)

Mesquite 130 - 140 -- -- $830 - $850

Cerro San Pedro 140 - 150 1.4 - 1.6 -- $375 - $395

Peak Mines 95 - 105 -- 12 - 14 $670 - $690

New Afton 75 - 85 -- 66 - 74 ($1,410) - ($1,390)(3)

Total 440 - 480 1.4 - 1.6 78 - 88 $265 - $285

Appendix 2

Detailed operating results/assumptions

44

Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides.

2. Cerro San Pedro life-of-mine recovery: Gold – ~60%; Silver – ~25%.

2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E

Tonnes processed (000 tonnes) 14,503 14,250-14,750 16,531 12,250-12,750 778 815-835 1,970 4,000-4,200

Tonnes mined (000 tonnes) 45,666 46,000-48,000 30,905 36,000-38,000 786 1,310-1,330 903 4,300-4,500

Gold grade (g/t) 0.46 0.41-0.45 0.47 0.58-0.63 4.18 4.1-4.3 0.73 0.67-0.71

Silver grade (g/t) -- -- 21.43 13.0-17.0 -- -- -- --

Copper grade (%) -- -- -- -- 0.97% 0.80-0.84% 0.78% 0.86-0.90%

Gold recovery (%) (1) (1) (2) (2) 91.3% 90.0-92.0% 78.8% 88.0-90.0%

Silver recovery (%) -- -- (2) (2) -- -- -- --

Copper recovery (%) -- -- -- -- 86.0% 89.0-91.0% 84.5% 88.0-90.0%

Capital expenditures ($mm) $11 $20 $15 $40 $47 $60 $297 $110

Reserve grade

Gold grade (g/t) 0.57 0.50 4.99 0.65

Silver grade (g/t) -- 17.3 7.3 2.3

Copper grade (%) -- -- 1.13% 0.93%

Mesquite Cerro San Pedro Peak Mines New Afton

Appendix 3

Mesquite

45

$690

2012A 2013E

142

2012A 2013E

Key assumptions and sensitivities

• Diesel comprises ~25% of Mesquite’s total costs

• Rack diesel price most correlated to Brent oil price

• Budgeted diesel price in 2013 8% higher than

2012 average price paid

• Every 10% change in diesel price has ~$20 per

ounce impact on costs

2012A versus 2013E

• Production expected to decline moderately

due to the planned processing of ore from an

area within the mine plan that is below

reserve grade

• Increase in costs attributable to higher cost

leach pad inventory working through sales

and lower production base

Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides.


Gold Production(1) (Koz) Total Cash Costs(2) ($/oz)

140

130

$850

$830

Appendix 3

Cerro San Pedro

46

$232

2012A 2013E

1.9

2012A 2013E

138

2012A 2013E


• Silver price - $30.00 per ounce (2012A - $30.78 per

ounce)

• Mexican Peso: U.S. foreign exchange – 13:1

• $1.00 per ounce change in silver equals ~$10 per

ounce change in Cerro San Pedro cash costs

• $1.00 change in Mexican Peso equals ~$25 per

ounce change in Cerro San Pedro cash costs

2012A versus 2013E

• Targeting 5% increase in gold production

• Decrease in tonnes processed offset by

increase in gold grade

• Increase in costs primarily driven by lower silver

by-product production as well as lower price

assumption

• ~$95 per ounce of increase in costs

attributable to lower silver by-product revenue

• Silver grades decreasing by ~25%

Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%; Silver – ~25%.


Gold Production(1) (Koz) Total Cash Costs(2) ($/oz) Silver Production(1) (Moz)

150

140 1.6

1.4

$395

$375

Appendix 3

Peak Mines

47

$764

2012A 2013E

96

2012A 2013E

14

2012A 2013E


• Copper price - $3.50 per pound (2012A - $3.51per

pound)

• Australian dollar: U.S. foreign exchange – 1:1

• $0.25 per pound change in copper equals ~$35 per

ounce change in Peak Mines cash costs

• $0.01 change in Australian dollar equals ~$10 per

ounce change in Peak Mines cash costs

2012A versus 2013E

• Increased gold production driven by 50,000

tonne increase in tonnes processed

• Similar copper production a result of increased

tonnes processed and copper recoveries offset

by lower copper grades

• Reduction in estimated cash costs a result of

increased gold production and lower foreign

exchange rate assumption versus average 2012

exchange rate

Gold Production (Koz) Total Cash Costs(1) ($/oz) Copper Production (Mlbs)

105

95 14

12

$690

$670


Appendix 3

Peak corridor map

48

Great Cobar

~9 kilometres

Appendix 4

New Afton

49

28

2012A 2013E

37

2012A 2013E

2012A versus 2013E

• New Afton entering first full year of production in 2013 after successful 2012 start-up

• Increased gold production driven by a full year of operations as well as continued recovery improvements,

partially offset by lower gold grade

• Copper production expected to more than double, driven by full year of production as well as increases in

copper grades and recoveries

85

75

74

66

Gold Production (Koz) Copper Production (Mlbs)

Appendix 4

New Afton (cont’d)

50

$656

2012A 2013E

($1,043)

2012A 2013E

$1.40

2012A 2013E


• Copper price - $3.50 per pound (2012A - $3.58 per pound)

• Canadian dollar: U.S. foreign exchange – 1:1

• $0.25 per pound change in copper equals ~$220 per ounce change in New Afton by-product cash costs

• $0.01 change in Canadian dollar equals ~$15 per ounce change in New Afton by-product cash costs

Total Cash Costs(1) ($/oz)

(By-Product)


(Co-Product Copper)


(Co-Product Gold)

($1,390)

($1,410)

$590

$570

$1.30

$1.20


Appendix 4

Ore access/drawbell development/mining rate

51

• Drawbell development has been progressing at a

faster rate than planned

• 50 active drawbells required to source 11,000

tonnes per day of ore feed

• Completed 50th drawbell on November 22,

2012

– At December 31, 2012 – 54 drawbells had

been completed

• As a result of accelerated drawbell development,

took the opportunity to develop the East Cave,

the benefits of which include:

• Additional ore access points

• More consistent annual production profile

• Added flexibility

It is expected approximately 65 active drawbells would ultimately provide ~25-30% more

ore, resulting in potential for similar increase in mining rate

54

~65

~90

0

20

40

60

80

100

December 31, 2012 June 30, 2013 December 31, 2013

Drawbell Development

Target Target

Appendix 4

New Afton drawbell development and ore columns

52

54 drawbells

in production

at end of 2012

East Cave

production to begin

mid-year

Central Cave

to be activated

later in mine life Final 11 drawbells

in West Cave

Accelerating East Cave

development for added

flexibility/more ore sources

Height of Draw

Planned development

in 2013

Copper resource grades

Appendix 4

Mining rate increase timeline

53

Q1’2013

Q2’2013

Q3’2013

Q4’2013

• Commission gyratory crusher

• Increase underground mining rate to 11,000 tonnes per day

• Complete VR7 rehab and implement push/pull ventilation

• Ventilation study to increase overall system capacity

• Increase mining rate to 11,500 tonnes per day

• Ore haulage studies to optimize scoops and trucks

• Begin mining in East Cave

• Total 65 completed drawbells

• Continued drawbell development

• Step up mining rate to 12,000 tonnes per day

• Total 90 completed drawbells

Appendix 4

Mill capacity

54

• Record daily throughput of 13,840 tonnes

• 12,250 tonnes per day sustained in October 2012 with

no significant optimization efforts

• Key considerations for increased mill throughput include:

• SAG Mill: Flexibility to optimize mill power and burden

level for finest possible product size distribution over a

wide range of ore conditions

• Ball Mill: Optimize SAG screen deck and hydrocyclone

cluster configurations for SAG/Ball Mill circuit balance;

optimal Ball Mill feed size and classification efficiency

• Flotation: Capacity is adequate for substantial increase

in throughput

• Concentrate Filtration: Existing capacity for incremental

production increase; ample space for installation of third

filter

• Tailings Pumping Capacity: Three stage variable speed

pumps currently running well below maximum

capacities

Appendix 4

Mill throughput increase timeline

55

Q1’2013

Q2’2013

Q3’2013

Q4’2013

• Optimize crushing and conveying with gyratory crusher

• Hold mill at 11,000 tonnes per day average, build-up live stockpile

• Crushing and conveying output achieves steady-state – mill matching at

11,500 tonnes per day average

• Target completion of several efficiency improvements including: cyclones,

Ball Mill trommel, pebble crusher, screen deck, expert system

• Increase crushing and conveying output as experience is gained

• Target of mill throughput increase to 12,000 tonnes per day

Appendix 5

El Morro overview of updated Feasibility Study

56

• El Morro Feasibility Study was updated in December 2011

• Key parameters for New Gold include:

• 30% share of estimated development capital, or $1.2 billion, carried by Goldcorp

– Receive cash flow from start of production

– Interest rate fixed at 4.58%

• Base 17-year mine life

• 30% share of annual production: ~90,000 ounces of gold and ~85 million pounds of copper

• Estimated total cash costs(1), net of by-products ($700) per ounce

– Co-product gold ~$550 per ounce

– Co-product copper ~$1.45 per pound

• At today’s prices, approximates $290 million in annual EBITDA


Appendix 5

El Morro project – Plan view

57

Appendix 5

La Fortuna deposit

58

2012 open pit Proven and

Probable reserves and Measured

and Indicated resources

Underground Inferred

resource with block

cave potential

500 metres

Appendix 5

El Morro (30%) – Funding structure(1)

59

• New Gold’s 30% share of development capital 100% carried

• Interest fixed at 4.58%

Notes: 1. Capital estimates based on December 2011 Feasibility Study.

Total Capital

100%

~ $3.9 billion

100% Average annual

cash flow

70% 30%

70% ~ $2.7 billion

Funded by

$1.2 billion

interest at 4.58%

30%

80%

20%

Carried funding repayment

Appendix 5

Selected porphyry gold/copper deposits/mines(1)

60

Au Grade(g/t)

Cu Grade(%)

$91/t

$44/t

$41/t

$27/t

$53/t

$52/t

$42/t

$33/t

$31/t

$30/t

--

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.20% 0.40% 0.60% 0.80% 1.00% 1.20%

Source: Company disclosure.

Notes: 1. Circle sizes are representative of contained metal value of the reserves per tonne of reserve. Contained metal value calculated using Street research consensus long-term commodity pricing.

2. Includes “Cadia East Underground” and “Ridgeway Underground” reserves as indicated in Newcrest’s February 8, 2013 press release; does not include “Other” Cadia province reserves.

El Morro

Producing Development

Chapada

Cadia-Ridgeway

Alumbrera

New Afton

New Prosperity

Cobre Panama

Mt. Milligan

Cerro Casale

El Morro

Agua Rica (2)

New Afton

AssetGold Reserves

(Moz)Asset Gold Equivalent

(2)

(Moz)

Penasquito 15.7 Penasquito 43.9

Pueblo Viejo 10.0 El Morro 17.4

Los Filos 7.4 Pueblo Viejo 11.7

El Morro 6.7 Los Filos 8.4

Cerro Negro 5.7 Cerro Negro 6.7

Appendix 5

El Morro relative positioning(1)

61

Notes: 1. Based on Goldcorp’s December 31, 2012 year-end resource statements.

2. Gold equivalent calculated based on the following commodity prices: Gold - $1,600/oz; Silver - $30.00/oz; Copper - $3.50/lb; Lead - $0.90/lb; Zinc - $0.90/lb.

El Morro within Goldcorp portfolio

Appendix 6

Blackwater – Project overview

62

• Start of production in 2017

• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant

• Life-of-mine strip ratio of ~2.4 to 1

• Low grade stockpiling strategy

• Simple, conventional flowsheet using whole ore leach process

• Life-of-mine gold and silver recoveries of 87% and 53%, respectively

• Conventional waste rock and Tailings Storage Facility

• Power supply from the hydroelectric power grid, via 133 kilometre transmission line

• Minimal off-site infrastructure required

• Good existing access road; water supply within 15 kilometres

• Low environmental risk and facility designed for closure

Appendix 6

Blackwater PEA costs – Capital

63

Project Development Capital Costs

Description Cost ($ million)

Direct Costs

Mining & Pre-production Development $208

On Site Infrastructure $181

Process $539

Tailing and Water Reclaim $74

Infrastructure (Power, Water, Road) $85

Total Direct Costs $1,087

Owner's and Indirect Costs

Owner's Costs $54

EPCM $112

Other Indirects $215

Total Owner's and Indirect Costs $381

Subtotal $1,468

Contingency (24%) $346

Total Project $1,814

• Project is located 112 kilometres southwest from Vanderhoof and has access to low cost hydroelectric power

• Development capital estimate of $1.8 billion is inclusive of a 24% or $346 million contingency

• Development capital estimated based on the current cost environment

• A parity foreign exchange rate was assumed and the capital estimate was held constant in the economic analysis

• Sustaining capital of $537 million, reclamation and closure costs of $95 million and $72 million in equipment salvage value

Total development and sustaining

capital estimated at $294 per

recoverable gold ounce

Appendix 6

Blackwater PEA costs – Operating

64

Project Operating Costs

Area Unit Cost (C$/t milled) $ per gold ounce produced

Mining $6.21 $259

Processing $7.59 $317

General and Administrative $0.95 $40

Royalty (0.6%) $0.18 $8

Refining $0.23 $9

Silver by-product sales at $22.50 per ounce silver ($2.16) ($90)

Total cash costs(1) net of by-product sales $13.01 $543

44%

24%

17%

8%6%

1% Reagents

GrindingMedia/linersElectricity

Labour

Maint materials

Water Supply

59%

11%

9%

6%

4%

4% 4%2%Hauling

Auxiliary

Blasting

G&A

Drilling

Loading

General Maint.

General Mine

Processing Costs

Mining Costs

Blackwater’s location near infrastructure, low stripping ratio, access to low cost power and silver

by-product revenue expected to result in the Project having well below industry average cash costs

Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note.

Appendix 6

Project planning, management and execution initiative

65

New Gold has engaged McKinsey & Company to collaborate with Blackwater team on

establishing a Project Implementation Plan

• Key objective is to maximize effectiveness of project planning to ensure delivery and

execution of Blackwater is consistent with New Gold’s prior developments including:

Mesquite, Cerro San Pedro and New Afton

Areas of focus include:

• Delivery model selection

• Project team organization

• Reporting metrics and management processes

• Labour strategy

• Procurement strategy

• Governance

• Risk management

Appendix 7

Reserves and resources

66

Tonnes

000's

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

Mesquite

Proven 13,140 0.68 - - 287 - -

Probable 114,409 0.56 - - 2,055 - -

Mesquite P&P 127,549 0.57 - - 2,342 - -

Cerro San Pedro

Proven 21,100 0.52 17.1 - 353 11,600 -

Probable 26,400 0.48 17.4 - 407 14,800 -

CSP P&P 47,500 0.50 17.3 - 760 26,400 -

Peak

Proven 2,030 6.07 7.6 1.07 396 496 48

Probable 2,020 3.90 7.0 1.20 253 455 53

Peak P&P 4,050 4.99 7.3 1.13 649 951 101

New Afton

Proven - - - - - - -

Probable 52,500 0.65 2.3 0.93 1,100 3,880 1,080

New Afton P&P 52,500 0.65 2.3 0.93 1,100 3,880 1,080

El Morro 30% Basis

Proven 307,949 0.57 - 0.56 1,705 - 1,135

Probable 335,152 0.37 - 0.44 1,186 - 962

El Morro P&P 643,101 0.47 - 0.49 2,891 - 2,097

Mineral Reserves statement as at December 31, 2012

Metal grade Contained metal

100% Basis

Appendix 7

Reserves and resources (cont’d)

67

Tonnes

000's

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

Mesquite

Measured - oxide 19,100 0.51 - - 313 - -

Indicated - oxide 274,100 0.38 - - 3,349 - -

Meqsuite M&I - oxide 293,200 0.39 - - 3,662 - -

Measured - non oxide 4,900 0.88 - - 139 - -

Indicated - non oxide 96,000 0.61 - - 1,883 - -

Mesquite M&I - non oxide 100,900 0.62 - - 2,022 - -

Total Mesquite M&I 394,100 0.45 - - 5,684 - -

Cerro San Pedro

Measured - oxide 27,100 0.34 15.0 - 303 13,100 -

Indicated - oxide 49,000 0.24 13.0 - 380 20,480 -

CSP M&I - oxide 76,100 0.28 13.7 - 683 33,580 -

Measured - sulphide 15,200 0.47 11.9 - 229 5,800 -

Indicated - sulphide 60,400 0.41 9.6 - 791 18,600 -

CSP M&I - sulphide 75,600 0.42 10.1 - 1,020 24,400 -

Total CSP M&I 151,700 0.35 11.9 - 1,703 57,980 -

Peak

Measured 2,700 5.74 7.5 1.05 494 650 62

Indicated 3,200 3.75 6.8 1.19 386 700 84

Peak M&I 5,900 4.66 7.1 1.13 880 1,350 146

New Afton

A&B Zones

Measured 33,500 0.86 2.9 1.18 929 3,160 873

Indicated 45,900 0.67 2.4 0.89 984 3,530 896

A&B Zone M&I 79,400 0.75 2.6 1.01 1,913 6,690 1,769

C-Zone

Measured 400 0.60 1.3 0.73 8 20 6

Indicated 2,900 0.63 1.3 0.68 58 120 43

C-Zone M&I 3,300 0.62 1.3 0.68 66 140 49

Total New Afton M&I 82,700 0.74 2.6 1.00 1,979 6,830 1,818

Blackwater

Measured 88,188 0.94 5.2 - 2,670 14,740 -

Indicated 207,958 0.81 6.2 - 5,400 41,450 -

Blackwater M&I 296,146 0.85 5.9 - 8,070 56,190 -

Capoose

Indicated 14,200 0.43 20.8 - 196 9,497 -

El Morro

Measured 307,949 0.57 - 0.56 1,705 - 1,135

Indicated 335,152 0.37 - 0.44 1,186 - 962

El Morro M&I 643,101 0.47 - 0.49 2,891 - 2,097

100% Basis

Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012


30% Basis

Appendix 7

Reserves and resources (cont’d)

68

Tonnes

000's

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

Mesquite

Oxide 35,200 0.33 - - 373 - -

Non oxide 15,700 0.55 - - 278 - -

Mesquite Inferred 50,900 0.40 - - 651 - -

Cerro San Pedro

Oxides 53,400 0.17 9.0 - 300 15,400 -

Sulphides 50,500 0.34 8.5 - 550 13,800 -

CSP Inferred 103,900 0.25 8.8 - 850 29,200 -

Peak 1,700 2.64 4.8 1.13 144 261 42

New Afton

A&B-Zone 14,900 0.45 2.0 0.65 216 940 212

C-Zone 13,600 0.70 1.5 0.76 307 670 228

New Afton Inferred 28,400 0.57 1.8 0.70 523 1,610 440

Blackwater 16,585 0.58 10.8 - 310 5,760 -

Capoose 64,070 0.29 23.2 - 595 47,789 -

El Morro 137,555 0.99 - 0.70 1,310 - 632

Inferred Resource statement as at December 31, 2012


100% Basis 30% Basis

Appendix 7

Reserves and resources notes

69

Mineral reserves are contained within Measured and Indicated mineral resources. Measured and Indicated mineral resources that are not mineral reserves do not have demonstrated economic

viability as defined by a technical Feasibility Study. New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. Inferred mineral resources are not known

with the same degree of certainty as Measured and Indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves. Mineral reserves have been

estimated and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (‘CIM’) definition standards and guidelines and Canadian National Instrument 43-101 (‘NI

43-101’).

1) Mineral Reserves for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria:

Mineral Property Gold

(US$/oz)

Silver

(US$/oz)

Copper

(US$/lb)

Lower Cut-off

Mesquite $1,300 - - 0.21 g/t Au – Oxide reserves

0.41 g/t Au – Non-oxide reserves

Cerro San Pedro $1,300 $24.00 - US$4.33 /t NSR

Peak Mines $1,300 $24.00 $3.00 A$120 – 253/t NSR

New Afton $1,300 - $3.00 US$24/t NSR

El Morro $1,350 - $3.00 0.20% CuEq

Appendix 7

Reserves and resources notes (cont’d)

70

2) Mineral Resources for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria:

Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI 43-101.

Mineral Property Gold

(US$/oz)

Silver

(US$/oz)

Copper

(US$/lb)

Lower Cut-off

Mesquite $1,400 - - 0.12 g/t Au – Oxide resources

0.24 g/t Au – Non-oxide resources

Cerro San Pedro $1,400 $28.00 - 0.1g/t AuEq – Open pit oxide resources

0.4g/t AuEq – Open pit sulphide resources

Peak Mines $1,400 $28.00 $3.25 A$97 - 137/t NSR

New Afton $1,400 $28.00 $3.25 0.40% CuEq – All resources

El Morro $1,500 - $3.50 0.15% Cu – Open pit resources

0.20% Cu – Underground resources

Blackwater $1,400 - - 0.40 g/t AuEq

Capoose $1,400 - - 0.40 g/t AuEq

3) Mineral resources are classified as Measured, Indicated and Inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable for

their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators ‘open pit’ and

‘underground’ have been applied to indicate envisioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ have been applied to indicate the type of mineralization as

it relates to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification and reporting parameters for

each of New Gold’s mineral properties are provided in the respective NI 43-101 Technical Reports which are available on SEDAR.

4) Qualified Person: The preparation of New Gold’s mineral reserve and resource statements has been done by Qualified Persons as defined under Canadian National Instrument 43-101

under the oversight and review of Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.

Appendix 8

Commodity price/foreign exchange assumptions

71

Guidance assumptions

Spot:

2013

Gold price ($/oz) 1,600

Silver price ($/oz) 30.00

Copper price ($/oz) 3.50

USD/AUD 1.00

USD/CAD 1.00

USD/MXN 13.00

Spot

Gold price ($/oz) 1,610

Silver price ($/oz) 29.90

Copper price ($/oz) 3.65

USD/AUD 1.03

USD/CAD 1.00

USD/MXN 12.70

Contact information

72

Investor Relations

Hannes Portmann

Vice President, Corporate Development

416-324-6014

[email protected]

J.P. Morgan Global High Yield & Leveraged Finance - New Gold

Documents

Transcript of J.P. Morgan Global High Yield & Leveraged Finance - New Gold