Rainy river site visit presentation v final

Rainy River Site VisitSeptember 15, 2015

Cautionary statements

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

2

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 are “forward looking”. All statements in this presentation,other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are “forward-looking statements”. Forward-looking statements arestatements 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”,“targeted”, “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 of such terms. Forward-looking statements in this presentation include, among others,statements with respect to: anticipated total cash costs and all-in sustaining costs, and the factors contributing to those expected results, as well as expected capital expenditures; mine life; mineralreserve and resource estimates; grades expected to be mined; the expected production, costs, economics, revenues and operating parameters and permitting requirements of the Rainy Riverproject; planned activities for 2015 and beyond at the Rainy River Project, as well as planned exploration activities and expenses; anticipated progress of construction and targeted timing forcommissioning and full production (and other activities) related to Rainy River; statements with respect to the ability of the parties to satisfy the conditions of and complete the sale of New Gold’sinterest in the El Morro property to Goldcorp Inc.(“El Morro sale”); and the ability of Teck Resources Limited and Goldcorp Inc. to satisfy the conditions of and complete the El Morro – Relincho jointventure (“Project Corridor”); and statements with respect to the payment of the remaining $75 million from Royal Gold.

All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors anduncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this presentation, NewGold’s annual and quarterly management’s discussion and analysis (“MD&A”), its Annual Information Form and the Technical Reports on the Rainy River Project dated February 14, 2014 filed atwww.sedar.com. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the followingassumptions: (1) there being no significant disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate,being consistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and resource estimates; (4) the exchange rate between the Canadian dollar, and U.S.dollar being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment,labour and materials costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of Rainy River beingconsistent with New Gold’s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within theexpected timelines; (9) the results of the feasibility study for the Rainy Project being realized; (10) conditions of the El Morro sale; and the conditions to closing of Project Corridor being satisfied in atimely manner; and (ii) conditions to the payment of the remaining $75 million from Royal Gold being satisfied in mid-2016.

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 actualresults, 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 and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets for metals and othercommodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada and the United States; discrepancies between actual and estimatedproduction, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, andthe United States, 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 inwhich 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 thenecessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessarypermits for the Rainy River Project; delay or failure to receive regulatory approvals or the failure to satisfy other closing conditions to the El Morro sale or Project Corridor; the lack of certainty withrespect 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 tocurrent and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; competition; loss of key employees; rising costs of labour,supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the feasibility study for Rainy River; changesin 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; unexpected delays andcosts inherent to consulting and accommodating rights of First Nations and other Aboriginal groups; uncertainties with respect to obtaining all necessary surface and other land use rights or tenurefor Rainy River; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements;and not realizing the potential benefits of the El Morro sale. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, includingenvironmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability toobtain 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-lookingstatements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

The footnotes, endnotes and appendices to this presentation contain important information. The endnotes and appendices are found at the end of the presentation.

Site visit agenda – September 15, 2015

8:00am SAFETY ORIENTATION

8:30am PRESENTATION

10:30am SITE TOUR

12:30pm LUNCH

1:00pm Q&A / CORE DISPLAY

3:00pm DEPART SITE / END OF VISIT

3

Presentation agenda

INTRODUCTION RANDALL OLIPHANT

GEOLOGY AND EXPLORATION MARK PETERSEN

DEVELOPMENT PLAN PAUL HOSFORD

OPERATIONAL READINESS GRANT GODDARD

LIFE-OF-MINE PLAN OVERVIEW RYAN HOEL

PROCESSING DAVE HALL

CORPORATE SOCIAL RESPONSIBILITY /

FIRST NATIONSBOB GALLAGHER

SUMMARY RANDALL OLIPHANT

4

Rainy River overview

• Low-risk, mining-friendly jurisdiction

• 100%-owned large land package totalling

over 190 square kilometres

• High-quality, long-life open pit and

underground mine

• 17 kilometre tie-in to power and close to

regional infrastructure

• Supportive local government and community

• 3.8 million ounce gold reserve(1) with

continued exploration upside

RAINY RIVER PROJECT

Construction commenced in May 2015; start-up targeted mid-2017

RAINY RIVER PROJECTONTARIO, CANADA

51. For a detailed breakdown of mineral resources and reserves by category and the key assumptions and parameters, refer to Appendix 1. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral

reserves and mineral resources” and “Technical Information”.

Rainy River quick facts

Operations Annual Production(3) Costs(3)

Gold Reserve(1) and Mine Life Capital Targeted Start-up

1. For a detailed breakdown of mineral resources and reserves by category and the key assumptions and parameters, refer to Appendix 1. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and

mineral resources” and “Technical Information”.

2. Current plan based on $1.25 C$/US$ foreign exchange rate. As at August 31, 2015.

3. First nine years.

4. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”.

5. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

3.8 Moz

Gold reserve

$570per oz

Total cash costs(4)

$670per oz

All-in sustaining costs(5)

Open pit and underground

21,000 tonne per day

process plant with

conventional crushing,

grinding, leaching and

carbon-in-pulp technology

$733million

Remaining development capital(2)

Mid-2017

14 year

Base mine life

~$33million

Average sustaining capital per year(3)

~325 Koz

Gold production

~480 Koz

Silver production

3.3 Mozat 1.5 g/t

6

Direct Processing Material

Rainy River location and infrastructure

• Located 65 kilometres

northwest of Fort Frances

and approximately 160

kilometres south of

Kenora

• Town of Fort Frances has

a population of over

10,000 people

• Established infrastructure

with year-round road

access and power lines

in close proximity

• Accepted into the

Industrial Electricity

Incentive Program ("IEI

Stream 3") which enables

the project to receive a

reduction in electricity

costs through the end of

2024

7

Rainy River development – Management team

Bob Gallagher

President & CEO

• Over 40 years in the mining industry in leadership roles with Placer Dome,

Newmont Mining and Peak Gold

David Schummer

EVP & COO

• Over 25 years in the mining industry

• Previously with Newmont Mining in multiple senior leadership roles

Mark Petersen

VP Exploration

• Over 30 years in minerals exploration and leadership roles

• New Gold’s Qualified Person for mineral reserve and resource disclosure

Peter Marshall

VP Project Development

• 30 years of resource development experience

• Previously with Terrane Metals and Placer Dome

Paul Hosford

Project Director

• 30 years of resource experience

• Previously with Terrane Metals and Hatch

Grant Goddard

General Manager

• Over 30 years of mineral resource experience

• Previously COO with TMAC Resources

Chris McGoldrick

Construction Director

• Over 35 years of construction and mining project development experience

• Previously with Anglo American, Placer Dome and Inco

8

Rainy River stream highlights

9

INCREASES FINANCIAL FLEXIBILITY

PROVIDES ATTRACTIVE COST OF CAPITAL

MINIMIZES IMPACT TO CONTINUED PROJECT UPSIDE

MAXIMIZES EXPOSURE TO GOLD PRICE UPSIDE

Secured 20% of total development

capital for less than 6% of estimated

future revenues(1)(2)(3)

Increases project rate of return to

equity holders by approximately 3%(1)

Stream percentage reduced by 50%

to 3.25% gold and 30% silver after

threshold ounces(4) delivered

Ongoing cash payments to New Gold

at 25% of spot gold and silver prices

1. Second instalment of $75 million is to be paid when 60% of development capital spent and other customary conditions are satisfied.

2. Based on $877 million total development capital.

3. Based on a gold price of $1,200/oz and silver price of $16/oz and first nine years of full production from 2018 through 2026.

4. Threshold ounces defined as 230,000 gold ounces and 3.1 million silver ounces.

• On July 20, 2015 New Gold announced a $175 million streaming transaction with Royal Gold on

future gold and silver production from Rainy River

IRR TO ROYAL GOLD

Gold Price ($/oz)

Silver Price ($/oz)

$1,100

$14.00

$1,200

$16.00

$1,300

$18.00

IRR (%) 2.5% 3.7% 4.9%

$327

$733$175

$757

$65

$236

Rainy River funding

• Stream proceeds of $175

million together with cash

proceeds from El Morro

transaction provide meaningful

contribution towards funding

Rainy River

• Amount of free cash flow

generated over next two years

to determine if any draw

required on credit facility

• 2014 sustaining free

cash flow(1) was $143

million

Liquidity Rainy River

Development

Cash Balance June 30/15

Proceeds from Stream(3)

Rainy River Remaining

Development Capital(5)

1. Sustaining free cash flow is equal to cash generated from operations less sustaining capital expenditures.

2. El Morro cash proceeds net of tax. Completion of the El Morro transaction is subject to certain conditions.

3. Second instalment of $75 million to be paid when 60% of development capital spent and other customary conditions are satisfied.

4. As at June 30, 2015.

5. As at August 31, 2015.

10

Proceeds from El Morro(2)

Available Credit Facility

Sustaining Free Cash Flow

from Operations(1)

Rainy River Remaining

Development Capital(4)

Financial analysis

$0.05 change in exchange rate

AFTER-TAX PROJECT ECONOMICS(1)

Gold Price ($/oz) $1,150 $1,200 $1,300

C$/US$ exchange 1.33 1.30 1.25

5% NPV ($mm) 428 462 604

IRR (%) 11.8 12.4 15.3

Payback (years) 5.9 5.7 4.9

$100 per ounce change in gold price

~$65mm ~1.4% ~$15mm~$20/oz

After-tax NAV IRR Total Cash Costs(2)Development

Capital

~$180mm ~3.9%

After-tax NAV IRR

1. Net present value discounted to July 1, 2015, excludes sunk costs. IRR and payback period inclusive of all project development costs. Stream proceeds included as a net reduction to capital costs with future cash flow reduced by stream payment

obligations. Assumes second instalment of stream proceeds paid in 2016. Silver price assumption of $16/oz.

2. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”.

11

12

GEOLOGY AND EXPLORATIONMark Petersen, VP Exploration

Rainy River history

1967 First Exploration

1967 – 1989 Noranda, HudBay, Inco, Mingold

1988 OGS Map P3140 Gold Grains in Rotosonic Drill Core and Surface Samples (1987-1988)

1990 Nuinsco started exploration

1994 First diamond drill program discovered 17 Zone

1994 – 2004 BP, 433 zones discovered

2005 Rainy River Resources Ltd. purchased property

2006 ODM Zone discovered

2007 Cap Zone discovered

2008 First NI 43-101 Resource Completed

2012 PEA completed; discovery of Intrepid Zone

2013New Gold acquired Rainy River Resources Ltd.

Updated Resource Estimate

2014Environmental assessment report submitted

New Gold completed updated Feasibility Study

2015 Environmental approvals for Rainy River received and construction commenced

13

Superior province gold districts

From Poulsen et al. (2000)

14 Moz produced28 Moz total endowment

7+ Moz

QFZ

14

Porcupine

Property ownership and known gold prospects

RR ODMclaim block

RR Off Lake claim block

Mine DevelopmentArea

New Gold exploration prospects

15

MineDevelopment Areas

Local geology and gold resources

16

Mine stratigraphy

Massive to pillowed mafic flows

Massive to amygdaloidal Dacite flows

CAP

ODM

HS

433

17

Mineral reserves – Looking north

Bayfield Extensions

Rainy River Mineral Reserves Summary(1)

as at December 31, 2014

Proven & Probable

Reserves

Tonnes

000’s

Gold

g/t

Silver

g/t

Gold

Koz

Silver

Koz

Open pit 62,705 1.31 2.8 2,642 5,632

Underground 4,187 4.96 10.3 668 1,388

Stockpile 37,384 0.39 2.0 462 2,390

Total P&P 104,276 1.13 2.8 3,772 9,410

Bayfield extensions are not included in current mineral reserves for Rainy River.



$800 per ounce optimized pit shell

M&I (yellow) and Inferred (pink) >1.0 gpt AuView looking North

Resource upside

Rainy River Mineral Resources Summary(1)

as at December 31, 2014

Measured & Indicated

Resources

Tonnes

000’s

Gold

g/t

Silver

g/t

Gold

Koz

Silver

Koz

Open pit 40,315 1.31 3.5 1,696 4,483

Underground 5,595 3.99 15.2 718 2,728

Stockpile 35,350 0.42 2.5 482 2,788

Total M&I 81,260 1.11 3.8 2,896 9,999

Inferred Resources 18,088 1.10 4.0 637 2,336


reserves and mineral resources” and “Technical Information”. Mineral resources are exclusive of reserves.

Reserve pit shell

MI&I resource pit shell

Mineral reserves and resources summary(1)

GOLD

SILVER



Open Pit Direct

Processing 1.3 g/tOpen Pit Direct

Processing 1.3 g/t

Open Pit Direct

Processing 2.8 g/t Open Pit Direct

Processing 3.5 g/t

Underground

Direct Processing 5.0 g/t

Underground


Underground Direct Processing 10.3 g/t Underground


3.8 Moz

9.4 Moz

2.9 Moz

10.0 Moz

0.6 Moz

2.3 Moz

20

Open Pit Direct Processing

Underground Direct Processing

Stockpile

Stockpile

Stockpile

StockpileStockpile

• Large contiguous land position

• 190 square kilometres

• Primary deposits and mineral resources well

defined:

• Over 2,000 drill holes

• Over 1,000,000 metres of diamond drilling

• Over 500,000 assays

• Average 35 metre drill hole spacing

• Proven & Probable reserves(1):

• 3.8 Moz gold

• 9.4 Moz silver

• Measured & Indicated resources (exclusive of

reserves)(1):

• 2.9 Moz gold

• 10.0 Moz silver

• Excellent long-term exploration upside

• Rainy River district is a direct analog to the

prolific Doyon-Bousquet-LaRonde gold-rich

VMS camp in the central Abitibi belt

Summary

• Identify and test potential for new

mineralized horizons with focus on

potential higher grade upside

• 2015 exploration budget

• $1.8 million mine development

area

• $4.2 million broader district

holdings

NEAR-TERM FOCUS

• District scale prospectivity recognized in

multiple areas

• Rainy River VMS stratigraphy

trend extensions to east and west

• Off Lake orogenic gold veins

FURTHER POTENTIAL



23

DEVELOPMENT PLANPaul Hosford, Project Director

Infrastructure

Rainy River development – Milestones completed

All major construction permits received. Schedule 2 permit expected H1’2016

All land purchases complete

Temporary Accommodations Facility complete and 416 beds available

Engineering and procurement complete

All mechanical, electrical, instrumentation equipment purchased

Execution commenced for Bulk Earthworks, Concrete Supply and Install, Steel Supply/Install, Highway 600

Road Relocation and Water Management Earthworks Construction (3 packages), East Access Road,

Temporary Buildings, Steel tanks and Pinewood Water Supply System

Contracts tendered for 230kV transmission line, Tailings Management Area (TMA), HV substation and the

major mechanical/piping/electrical/instrumentation (MPEI) packages

Initial mine fleet assembly commenced

Operations team recruitment in progress

Developed on-site quarries for aggregate material supply

ACHIEVED TO DATE

24

Rainy River development – 2015 year-end targets

Project construction completion progressed to approximately 25%

Award remaining major contracts

Complete Highway 600 road realignment and East Access Road

Complete plant site earthworks

Complete grinding building foundations and erect steel building

Primary crusher structure approximately 50% complete

Complete water management earthworks diversions and facilities, and starter water management pond

Commence open pit pre-stripping and haul road build out

Complete manufacture and delivery of Ball and SAG mills

PLANNED BY END OF YEAR

25

Rainy River timeline

2014

2015 2016 2017

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Complete Feasibility Study

Submit Environmental Assessment Report

Order Long Lead Equipment

Award EPCM Contract

Detailed Engineering & Procurement

Provincial Environmental Assessment Approval

Federal Environmental Assessment Approval

Process Plant Construction

Tailings & Water Management Facilities Construction

Delivery of Pre-Stripping Mine Equipment

Power Line Construction

Commence Pre-Strip & Pit Development

Commissioning

Targeted milestones

Mid-2017 – Start-up and Commissioning26

Description ($mm)

Direct Costs

Mining 157

On-Site Infrastructure 88

Process Plant 298

Tailings Facility 61

Access Corridor 16

Off-Site Facilities 22

Total Direct Capital Costs 641

Owner's and Indirect Costs

Other Indirects 150

Owner's Costs 87

Total Owner's & Indirect Capital Costs 237

Total Project $877

PROJECT DEVELOPMENT CAPITAL COSTS(1)(2)

1. Current plan based on $1.25 C$/US$ foreign exchange rate. Contingency has been distributed across the cost items.

2. Numbers may not add due to rounding.


Rainy River development capital breakdown

$0.05 change in exchange rate equals

~$15 million change in development capital

REMAINING

DEVELOPMENT

CAPITAL(3)

$733 million

SPENT TO DATE(3)

$144 million

16%SPENT TO DATE

27

Rainy River – Committed to date(1)

28

Description EstimateTotal Spent /

Committed

Direct Costs

Mining 157 68

On-Site Infrastructure 88 49

Process Plant 298 187

Tailings Facility 61 20

Access Corridor 16 10

Off-Site Facilities 22 3

Total Direct Capital Costs 641 337

Owner's and Indirect Costs

Other Indirects 150 86

Owner's Costs 87 57

Total Owner's & Indirect Capital Costs 237 143

Total Project $877 $480

PROJECT DEVELOPMENT CAPITAL COSTS ($mm)(2)(3)

~55% of total capital

spent/committed to date


2. Current plan based on $1.25 C$/US$ foreign exchange rate. Contingency has been distributed across the cost items.

3. Numbers may not add due to rounding.

SPENT TO DATE(1)

$144 million

FIXED PRICE AND

QUANTITIES

$134 million

FIXED UNIT PRICES,

VARIABLE QUANTITIES

$202 million

Detailed engineering 100% complete

Finalize detailed control estimate and schedule

Tender, award and execute site clearing

Prepare and award major civil works contracts

• Complete plant site, infrastructure and water

management earth works

• Construct Highway 600 realignment and mine

access road

• Construct mill building foundation

• Commission first phase of mine fleet

• Commence prestripping

2015 CAPITAL EXPENDITURE DETAILS 2015 PROGRAM

($mm)

Process plant $84

Mining 52

Indirects 27

On-site infrastructure 27

Owners costs 22

Accommodation facility 21

Tailings facilities 15

Access corridor 13

Off-site facilities 13

Construction management services 5

Contingency/escalation 21

Total $300

Rainy River 2015 capital expenditure and project plan

29

Site construction images

Grinding Building

Primary Crusher Foundation

Highway 600 Realignment

Primary Crusher Foundation

30

Site construction images

Ball Mill Foundation West Creek Diversion

Treatment PondPlant site area - 20,000 cubic metres of rock blasted

Kitchen at the camp

Additional Precast

31

32

OPERATIONAL READINESSGrant Goddard, General Manager

Operational readiness

• What is the operations “project plan”?

• Guiding the day-to-day work of the

operations

• Linkages of construction activities and

overall project schedule

• Is not “added work” but “the work”

A thoughtful, planned process of managing the many activities

necessary to be executed to assure a successful operational

start-up and sustainable mining operation

33

Operations team

Doug Desaulniers

Maintenance Manager

Dave Hall

Mill Manager

Ryan Hoel

Mine Manager

Ann Wallin

HR ManagerVelibor Petric

Finance Manager

Sarah Thompson

Materials Manager

Peta Risojevic

Health & Safety

Manager

Nigel Fisher

Environment Manager

Chris Reeves

Business Development

Manager

Stacey Jack

Community Affairs

Manager

Grant Goddard

General Manager

OPERATIONS TEAM OPERATIONS SUPPORT TEAM

Key operations team members in place34

Key workstreams

Organizational Readiness

Health & Safety

Environmental

Communities

Training

Human Resources

Mining

Processing

Asset Management

Procurement & Contracts

Finance & Cost Management

Commissioning, Ramp Up and Handover

Business & Technical Systems

Internal Communications

Sales

Knowledge Management

Continuous Improvement

Transition & Closeout

HOW DO WE PLAN FOR WORKSTREAMS?

• Workshops focusing on what activities we

need to accomplish and when to ensure we

are ready for “Go Live”

• Outputs of the workshops are inputs into the

detailed operations work plan and milestone

schedule

• Integrate the plan and schedule with

construction

• Development of critical actions register

• Weekly management of work streams to

ensure effective risk management

• Use of a “War Room” to keep information

relevant and transparent

• Periodic re-visit of milestones/activities, as

field/execution/project evolves

35

36

LIFE-OF-MINE PLAN OVERVIEWRyan Hoel, Mine Manager

37

Site layout

West Mine Rock

Stockpile

East Mine Rock

Stockpile

Open pit illustration

LOOKING SOUTH WEST

38

Current mining fleet and equipment

Hauling and loading equipment

• 6 – Komatsu 830E 218t (haul trucks)

• 2 – Komatsu PC5500 26m3 (hydraulic

shovels)

• 1 – Komatsu WA1200 18m3 (large wheel

loader)

• 3 – Komatsu D375/D475 (dozers)

Drills

• 2 – Sandvik DR580 (blasthole drills)

Next major deliveries – Q4’2015

• 2 – Cat 16M (graders)

• 1 – Komatsu 830E 218t (haul truck)

39

Open pit design

Reserves(1)

Ore tonnage Mt 100

Including Stockpile Excluding Stockpile

Au grade g/t 1.0 1.3

Ag grade g/t 2.6 2.8

Au koz 3,104

Ag koz 8,022

Waste tonnage Mt 320

Overburden Mt 72

Open pit mine design based on:

• Updated block model:

10m x 10m x 10m

• Truck and Hydraulic Shovel

• 2 Year pre-production

• 9 Year mine life plus stockpile

Phase 1 (2015 – 2020)

Phase 2 (2018 – 2022)

Phase 3 (2021 – 2025)

North



• Primary mobile equipment fleet will move 68 Mtpy of ore, waste and

overburden at peak production rates

Equipment Model UnitsRequired During

DevelopmentCurrently At Site

Haul trucks Komatsu 830E 218t 22 8 6

Hydraulic shovels (diesel) Komatsu PC5500 26m3 2 2 2

Hydraulic shovel (electric) Komatsu PC7000 29m3 1 0 0

Large wheel loader Komatsu WA1200 18m3 1 1 1

Blasthole drills Sandvik DR580 3 2 2

Dozers Komatsu D375 6 4 3

Graders Cat 16M 3 2 0

Open pit equipment

41

Open pit mining and milling schedule

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2017 2018 2019 2020 2021

Ore Waste Overburden

MINING SCHEDULE – FIRST FIVE YEARS (KT)

Strip

Ratio 3.9 3.3 4.0 4.1 4.8

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2017 2018 2019 2020 2021

Open pit ore to mill Open pit ore to stockpile

MILLING SCHEDULE – FIRST FIVE YEARS (KT)

Avg. grade to

mill (g/t)

Avg. grade to

stockpile (g/t)0.4

1.5

0.4

1.5

0.4

1.4

0.4

1.4

0.4

1.3

Planned three year

ramp up to full

mining

capacity

(1)

1. Mining of waste/overburden expected to commence early-2016.

42

Open pit mining cost

BREAKDOWN OF OPEN PIT MINING COST PER TONNE

OTHER (1%)

BLASTING (11%)

FUEL AND ELECTRICITY (30%)

EQUIPMENT OPERATING COST

(INCLUDING MAINTENANCE) (32%)

LABOUR (26%)

Significant Canadian

dollar exposure

~70%Diesel price assumption

$0.95 per litre

43

C$2.15 /t mined

Current diesel price

~$0.60 per litre

Underground design

• 1,500 tpd longhole open stope mine

with backfill

• 10 year mine life with potential to

expand at depth

Reserves(1)

Ore tonnage Mt 4.2

Au grade g/t 5.0

Ag grade g/t 10.3

Au koz 668

Ag koz 1,388



Underground mine plan

ODM West

ODM Main Upper

ODM Main Lower

433 Zone

ODM East

17 East Upper

17 East Lower

Intrepid Lower

Intrepid Upper

Bayfield Burns Block

(‘under development’)

45

Underground equipment

• Underground development scheduled to begin once production from open pit commences

• Primary equipment fleet will mine 1,500 tpd of ore at full production rates

Equipment Specification UnitsRequired During

Underground Development

Jumbo drill Sandvik DD421 3 2

Load-Haul-Dump Loader Cat R2900 4 2

Haul Truck Cat AD45 6 4

Mechanized Bolter Sandvik DS411 2 2

Production Long Hole Drill Sandvik DL431 2 0

Face Charger, Explosives Loader Normet Charmec MF 605 2 2

Production Explosives Loader Bulk Modules 1 0

Shotecrete Sprayer Normet Spraymec 1050WP 1 1

Transmixer Normet Ultimec LF600 1 1

46

Underground mining schedule

0

100

200

300

400

500

600

2019 2020 2021 2022 2023

MINING SCHEDULE – FIRST FIVE YEARS (KT)

• Underground development scheduled to begin once production from open pit commences

• 23 months development to first underground ore - $115 million capital costs

31.64.5

32.34.8

18.35.3

7.75.4

5.05.3

Five year ramp up

assumed to full

production

Gold grade (g/t)

Silver grade (g/t)

47

Underground cost

BREAKDOWN OF UNDERGROUND COST PER TONNE

OTHER (7%)

BLASTING (3%)

EQUIPMENT OPERATING

COST (INCLUDING

MAINTENANCE) (32%)

LABOUR (45%)

FUEL AND ELECTRICITY (13%)


dollar exposure

~70%

48

C$90.62 /t mined

Mill feed schedule

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2017 2018 2019 2020 2021

Open pit ore to mill Underground ore to mill

MILL FEED SCHEDULE – FIRST FIVE YEARS (KT)

Average Mill

Head Grade (g/t)

Underground Grade (g/t)

Open Pit Grade (g/t)

1.5 1.5 1.5 1.5 1.5

1.5

--

1.5

--

1.4

4.5

1.4

4.8

1.3

5.3

49

Gold production profile

0

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Open Pit Underground

~325 Koz

50

GOLD PRODUCTION PROFILE – FIRST FIVE YEARS (Koz)

51

PROCESSINGDave Hall, Mill Manager

RECLAMATION◊ Buildings are removed◊ Local Vegetation is planted

over stock piles◊ Tailings Management Area is

turned into a lake◊ Open Pit fills with water

Schematic process flow sheet

52

Process plant design

PROCESS DESIGN CRITERIA

• Axb = 24.2

• Bond work index = 15.0

• Crusher work index = 25.0

• 80th percentile BWI & Axb used for mill

design

• Life-of-mine recovery

• Gold ~91%

• Silver ~63%

MAJOR PROCESS EQUIPMENT

• Crusher: 55” x 83”; 600 kW (800 HP)

• Coarse ore stockpile – 60,000 tonnes

with 20,000 tonne live storage

• SAG Mill: 36’ x 20’; 15 MW (20,000 HP)

variable speed

• Ball Mill: 26’ x 40.5’; 15 MW (20,000 HP)

variable speed

• P80 = 75 micron target grind

• Pebble Crusher: 448 kW (600 HP)

• Leach Tanks: 8 x 18 m Ø, 30-hour leach

• CIP Tanks: 7 x 330 m3

• Two Cyanide Destruction tanks: 11.5 Ø,

1.5-hour retention

53

Mill sizing

• Over 400 comminution tests were conducted covering a large cross section of the pit and ore types

• 3.5 tests per million tonnes versus industry standard of one test per million tonnes

• SAG mill design was based on the 80th percentile A x b values; industry standard is 75th percentile

• Circuit was designed using three independent sizing methods (Starkey, OMC, and Morrel) with

excellent correlation

• Mill motor and drive combination will provide the power draw required to process the ore at 84% of

the available power; industry standard is 88% to 90%

• Design parameters were reviewed and endorsed by an independent third party industry expert

• Gyratory and pebble crusher both have sufficient horsepower that could be used for additional

throughput and/or finer crush sizes – this would allow additional grinding throughput

• Ball Mill has sufficient grinding power as the drive was selected to maintain common mill drive spares

54

Appropriate size mills and drives in place, secondary crushing

not required to reach nameplate throughput

Processing plant

55

Processing cost

56

BREAKDOWN OF PROCESSING COST PER TONNE MILLED

OTHER(1) (14%)

LABOUR (18%)

PROPANE AND

ELECTRICITY (22%)

REAGENTS (24%)

GRINDING MEDIA AND

LINERS (22%)

C$9.01


dollar exposure

~80%Current power cost assumption

$0.045/kWh Further reduction in electricity

costs anticipated through 2024

as part of IEI Stream 3

1. Includes: Maintenance, transportation and water treatment.

57

CORPORATE SOCIAL RESPONSIBILITY /

FIRST NATIONSBob Gallagher, President and CEO

Benefits to community

• 400 construction and 600 operations

phase jobs estimated

– Currently employ ~80 people

with 50% hired locally

– Operations team consists of

~50% local hires and 16%

members of Aboriginal groups

• Annual indirect and induced

employment in Ontario during

operations is expected to total

approximately 600 and 575 jobs,

respectively

• When added to direct employment for

the Rainy River project, total direct

and indirect employment in Ontario as

a result of the operation phase is

approximately 2,000 jobs per year

• Estimated gross annual mine payroll

of $45 – $50 million per year

ECONOMIC CONTRIBUTIONS(1)

1. Based on 2015 PriceWaterhouse Cooper Report – “Economic and Social Impact of New Gold Inc.'s Ontario Operations” prepared for New Gold.

DIRECT AND INDIRECT GDP IMPACT OF NEW GOLD IN ONTARIO

Indirect

Direct

$31.4 MILLION

$401.1 MILLION

58

First Nations communities

59

Community engagement

We have been an active and engaged member of

the community and have a number of successes

and initiatives that show our commitment:

• Four signed Participation Agreements with

local Aboriginal Groups

• Productive, ongoing discussions with four

additional First Nations

• Contributions of nearly $100,000 to the local

district through donations, sponsorships and

scholarships

• Established two local New Gold offices, one in

Emo and a second in Thunder Bay – with

open door policies for questions and feedback

• Established multiple First Nations joint

ventures with non Aboriginal contractors

• Initiated a Supplier Request for Information to

source locally wherever possible

• New Gold continues to have progressive

relationships with each of these communities 60

SUMMARYRandall Oliphant, Executive Chairman

61

Rainy River – Where are we today

• Permits to enable commencement of major

earthworks construction received in May

• Detailed engineering complete

• Construction-related activities progressing

on schedule

• Temporary accommodation facility

complete with 416 beds operational

• First major earthworks for process plant

site commenced and completed in May;

mill building construction commenced

• First concrete pour for primary crusher

foundation successfully completed in July;

mill building foundation installation

commenced in August

• Delivery and assembly of initial mining fleet

commenced in August

• Delivery of mills on schedule for late 2015

62

Rainy River summary

1. Based on 2015 Behre Dolbear Report – “2015 Ranking of Countries for Mining Investment”.

2. For a detailed breakdown of mineral resources and reserves by category and the key assumptions and parameters, refer to Appendix 6. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves

and mineral resources” and “Technical Information”. Mineral resources are exclusive of reserves.

• 17km tie-in to power and close to

regional infrastructure

• Land package over 190 square

kilometres

• Supportive local government and

community

JURISDICTION RESOURCE SCALE(2)

Ontario, Canada

GOLD

RESERVES

3.1Moz at 1.0g/tOPEN PIT

UNDERGROUND

0.7Moz at 5.0g/t

3.8 Moz

#1

GOLD M&I

RESOURCES

2.2Moz at 0.9g/tOPEN PIT

UNDERGROUND

0.7Moz at 4.0g/t

2.9 Moz

Construction activities remain on time and on budget

63

Rainy River summary (cont’d)


2. Current plan based on $1.25 C$/US$ foreign exchange rate.

START-UP / COMMISSIONING

REMAINING DEVELOPMENT

CAPITAL ESTIMATE(1)(2)

2015 CAPITAL SPEND ESTIMATE(2)

Mid-2017

• $144 million spent through

August 31, 2015

$733million

• ~80% in Canadian dollars

$300million

64

Rainy River cost profile

• ~80% in Canadian dollars

65

Description (C$ per tonne milled) ($ per gold ounce produced)

Direct Costs

Open pit mining 10.26338

Underground mining 3.65

Processing 9.01 219

General and administrative 1.80 44

Royalties 0.67 20

Refining and transport 0.12 3

Cash costs 25.51 624

Silver by-product sales at $16.00 per ounce silver (0.98) (24)

Total cash costs(1) 24.53 600

Sustaining capital 4.12 100

All-in sustaining costs(2) 28.65 700

BREAKDOWN OF OPERATING COSTS(1)

1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Current plan based on $1.25 C$/US$ foreign exchange rate and $16/oz silver price.

2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Current plan based on $1.25 C$/US$ foreign exchange rate and $16/oz silver price.

• Mining costs are projected to be C$2.15 per tonne of material for the open pit and

C$90.62 per tonne of material for the underground

• Costs per tonne milled over the life-of-mine are summarized below:

Strong balance sheet

661. Cash and equivalents as at June 30, 2015.

2. $64 million of $300 million facility used for Letters of Credit at June 30, 2015.

3. Second instalment of $75 million to be paid when 60% of development capital spent and other customary conditions are satisfied.

4. El Morro cash proceeds of $90 million less taxes. Completion of the El Morro transaction is subject to certain conditions. Refer to Appendix 5.

$803million

LIQUIDITY POSITION

$236 million

UNDRAWN

CREDIT

FACILITY(2)

CASH AND

EQUIVALENTS(1)

$327 million

ONGOING SUSTAINING

FREE CASH FLOW

GENERATION

$175 million

PROCEEDS FROM

STREAMING

TRANSACTION(3)

~$65 million

NET CASH PROCEEDS FROM

EL MORRO TRANSACTION(4)

Future opportunities

INTEGRATION OF BAYFIELD MINERAL RESOURCES

RESOURCES OPEN AT DEPTH – INCREASED UNDERGROUND MINE POTENTIAL

UPSIDE POTENTIAL ON MILL THROUGHPUT

REGIONAL RESOURCE PROSPECTIVITY

67

Rainy River impact

1. For a detailed breakdown of mineral resources and reserves by category and the key assumptions and parameters, refer to Appendix 1. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves

and mineral resources” and “Technical Information”.

2. First nine years.

3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. First nine years.

4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. First nine years.

5. Net present value discounted to July 1, 2015, excludes sunk costs. IRR inclusive of all project development costs. Stream proceeds included as a net reduction to capital costs. At spot prices of: Gold - $1,150/oz, Silver - $16/oz; C$/US$ - $1.33.

68

GOLD RESERVES(1) 3.8Moz

MINE LIFE 14 years

AVERAGE PRODUCTION(2) ~325,000

TOTAL CASH COSTS(3) ~$570/oz

ALL-IN SUSTAINING COSTS(4) ~$670/oz

REMAINING DEVELOPMENT CAPITAL $733 million

NET PRESENT VALUE(5) $428 million

IRR(4) 11.8%

JOB CREATION ~600

Site visit agenda for remainder of day

10:30am SITE TOUR

12:30pm LUNCH

1:00pm Q&A / CORE DISPLAY

3:00pm DEPART SITE / END OF VISIT

69

THANK YOUNew Gold Team

Appendix

71

Mineral reserves

72

Mineral Reserves estimate as at December 31, 2014

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Direct processing material

Open Pit

Proven 15,839 1.47 2.0 - 746 1,038 -

Probable 46,866 1.26 3.1 - 1,896 4,594 -

Open Pi t P&P (direct process ing) 62,705 1.31 2.8 - 2,642 5,632 -

Underground

Proven - - - - - - -

Probable 4,187 4.96 10.3 - 668 1,388 -

Underground P&P (direct process ing) 4,187 4.96 10.3 - 668 1,388 -

Stockpile material

Open Pit

Proven 6,843 0.38 1.5 - 84 332 -

Probable 30,541 0.39 2.1 - 378 2,058 -

Open Pi t P&P (s tockpi le) 37,384 0.39 2.0 - 462 2,390 -

Total P&P

Proven 22,682 1.14 1.9 - 830 1,370 -

Probable 81,594 1.12 3.1 - 2,942 8,040 -

Total Rainy River P&P 104,276 1.13 2.8 - 3,772 9,410 -

Metal grade Contained metal

Mineral resources

73

Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2014

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Direct processing material

Open Pit

Measured 3,416 1.35 1.8 - 148 199 -

Indicated 36,899 1.30 3.6 - 1,548 4,284 -

Open Pi t M&I (direct process ing) 40,315 1.31 3.5 - 1,696 4,483 -

Underground

Measured - - - - - - -

Indicated 5,595 3.99 15.2 - 718 2,728 -

Underground M&I (direct process ing) 5,595 3.99 15.2 - 718 2,728 -

Stockpile material

Open Pit

Measured 1,232 0.35 1.2 - 14 49 -

Indicated 34,118 0.43 2.5 - 468 2,739 -

Open Pi t M&I (s tockpi le) 35,350 0.42 2.5 - 482 2,788 -

Total M&I

Measured 4,648 1.08 1.7 - 162 248 -

Indicated 76,612 1.11 3.9 - 2,734 9,751 -

Total Rainy River M&I 81,260 1.11 3.8 - 2,896 9,999 -


Mineral resources (cont’d)

74

Inferred Resource estimate as at December 31, 2014

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Direct processing

Open Pit 7,785 0.82 2.7 - 206 665 -

Underground 2,609 4.20 7.6 - 352 635 -

Tota l Direct Process ing 10,394 1.67 3.9 - 558 1,300 -

Stockpile

Open Pit 7,694 0.32 4.2 - 79 1,036 -

Total Rainy River Inferred 18,088 1.10 4.0 - 637 2,336 -


1) New Gold’s Mineral Reserves and Mineral Resources have been estimated in accordance with the CIM Standards, which are incorporated by reference in NI 43-101.

2) For year-end 2014 mineral reserves for the Company’s mineral properties have been estimated 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

Rainy River $1,200 $18.00 - Open Pit Direct Processing: 0.30 – 0.70 g/t AuEq

Open Pit Stockpile: 0.30 g/t AuEq

Underground: 3.50 g/t AuEq

Reserves and resources notes

3) New Gold reports its Measured and Indicated Mineral Resources exclusive of Mineral Reserves. Measured and Indicated Mineral Resources that are not Mineral Reserves do not have

demonstrated economic viability. Inferred Mineral Resources have a greater amount of uncertainty as to their existence, economic and legal feasibility, do not have demonstrated economic

viability, and are likewise exclusive of Mineral Reserves.

4) Year-end 2014 Mineral Resources for the Company’s mineral properties (other than the Mineral Resource estimates for the Rainy River Project and Blackwater Project, which are

effective March 10, 2015) have been estimated based on the following metal prices and lower cut-off criteria:

5) Mineral Resources are classified as Measured, Indicated and Inferred 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. Mineral Reserves and Mineral Resources may be materially affected by environmental,

permitting, legal, title, taxation, sociopolitical, marketing and other risks and relevant issues. Additional details regarding Mineral Reserve and Mineral Resource estimation, classification,

reporting parameters, key assumptions and associated risks for each of New Gold’s material properties are provided in the respective NI 43-101 Technical Reports which are available at

www.sedar.com.

6) All Mineral Resource and Mineral Reserve estimates for New Gold’s operating properties and El Morro Project are effective December 31, 2014. For the Rainy River and Blackwater

Projects, the Mineral Resource estimates are effective March 10, 2015 and the Mineral Reserve estimates are effective December 31, 2014. For the Rainy River Project, the Mineral

Resource estimate reflects New Gold’s acquisition of Bayfield, which was effective January 1, 2015.

Mineral Property Gold

(US$/oz)

Silver

(US$/oz)

Copper

(US$/lb)

Lower Cut-off

Rainy River $1,300 $20.00 - Open Pit Direct Processing: 0.30 – 0.45 g/t AuEq

Open Pit Stockpile: 0.30 g/t AuEq

Underground: 2.50 g/t AuEq

75

Endnotes

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES

Information concerning the properties and operations of New Gold 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 the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May

10, 2014 and incorporated by reference in National Instrument 43-101 (“NI 43-101”). While the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral

Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. 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. Under Canadian rules, estimates of inferred mineral resources may not form

the basis of feasibility of pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category. Readers are cautioned

not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable.

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 estimation is made. Readers are cautioned not to assume that all or any part of the measured or indicated mineral resources will ever be converted into mineral reserves. 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 and approved by Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Petersen is an AIPG Certified Professional

Geologist and a “Qualified Person” under National Instrument 43-101.

NON-GAAP MEASURES

All cash costs and all-in sustaining cost estimates (excluding historical amounts) in this presentation assume the following commodity prices and exchange rates: Silver - $16.00 per ounce, Copper - $2.75

per pound, and CDN/USD - $1.25, AUD/USD - $1.25, MXN/USD - $15.00, unless otherwise stated.

(1) ALL-IN SUSTAINING COSTS

Consistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies from around the world of which New Gold is a member, New Gold defines “all-in

sustaining costs” per ounce as the sum of total cash costs, capital expenditures that are sustaining in nature, corporate general and administrative costs, capitalized and expensed exploration that is

sustaining in nature and environmental reclamation costs, all divided by the ounces of gold sold to arrive at a per ounce figure. New Gold believes this non-GAAP financial measure provides further

transparency into costs associated with producing gold and will assist analysts, investors and other stakeholders of the company in assessing the company’s operating performance, its ability to generate

free cash flow from current operations and its overall value. This data is furnished to provide additional information and is a non-GAAP financial measure. All-in sustaining costs presented do not have a

standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of

performance prepared in accordance with IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS. Further details regarding historical all-in

sustaining costs and a reconciliation to the nearest IFRS measures are provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(2) TOTAL CASH COSTS

“Total cash costs” per ounce figures are non-GAAP measures which are calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold and gold

products that ceased operations in 2002. 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. The company believes that certain investors use this information to evaluate the company’s performance and ability to generate liquidity through operating cash

flow to fund future capital expenditures and working capital needs. This measure, along with sales, is considered to be a key indicator of the company’s ability to generate operating earnings and cash flow

from its mining operations. Total cash costs include mine site operating costs such as mining, processing and administration costs, royalties, production taxes, and realized gains and losses on fuel

contracts, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales. Total cash costs are then divided by ounces of gold sold to arrive at a per ounce figure.

Co-product cash costs remove the impact of other metal sales that are produced as a by-product of gold production and apportion the cash costs to each metal produced on a percentage of revenue basis,

and subsequently divides the amount by the total ounces of gold or silver or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless otherwise indicated, all total cash

cost information in this presentation is net of by-product sales. This data is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs and co-product cash costs

presented do not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute

for measures of performance prepared in accordance with IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under GAAP. Further details

regarding historical total cash costs and a reconciliation to the nearest IFRS measures are provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

76

Contact information

Investor Relations

Hannes Portmann

Vice President, Corporate Development

416-324-6014

[email protected]

77

Rainy river site visit presentation v final

Investor Relations

Transcript of Rainy river site visit presentation v final