europe conference calls€¦ · 04/03/2020 · europe conference calls april 1-2, 2020. 2...

Europe Conference CallsApril 1-2, 2020

2

Cautionary Statements

ALL AMOUNTS IN U.S. DOLLARS 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 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 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", "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: the expected mill production, production costs, economics, and operating parameters of New Afton and Rainy River, planned activities, exploration

potential, permitting timelines and plans for capital expenditures at New Afton and Rainy River for 2020, statements with respect to the anticipated effect of the

COVID-19 pandemic on New Gold’s operations, including the expected date of the partial restart at Rainy River, supply chain continuity and financial status, New Gold

being able to maintain its level of operations and supply chain continuity during the COVID-19 pandemic and New Gold’s financial resources being sufficient to support

operations during the COVID-19 pandemic, including all information on slides 9 to 56 with respect to the Rainy River 2020 & LOM Technical Presentation and all

information on slides 57 to 126 with respect to the New Afton 2020 & LOM Technical Presentation, the expected amount of free cash flow (“FCF”) and after tax net

present value (“NPV”) resulting from New Afton and Rainy River based on the updated life of mine plans, statements with respect to Ontario Teachers’ (as defined

below) exercising its Conversion Option and the anticipated effects, New Gold pursuing any of the debt optimization scenarios set out in slide 6 “Capital Structure and

Improved Liquidity Position”, all information on slide 25 “2020 Consolidated Guidance”, slide 26 “Consolidated Life of Mine Highlights” and all estimations of the

Mineral Reserves and Mineral Resources at Rainy River and New Afton, including the information on slides 27 to 31 “Mineral Resources and Reserves (as at Dec 31,

2019)”.

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 and uncertainties, 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, New Gold's latest annual management's discussion and analysis ("MD&A"), Annual Information Form and

Technical Reports filed at www.sedar.com and on EDGAR at www.sec.gov. 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 following assumptions: (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 mineral resource estimates; (4) the exchange rate between the Canadian dollar and U.S.

dollar, and to a lesser extent, the Mexican Peso, 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 the Rainy River and New Afton being consistent with New Gold's current

expectations, particularly in the context of the outbreak of COVID-19; (8) all required permits, licenses and authorizations being obtained from the relevant

governments and other relevant stakeholders within the expected timelines and the absence of material negative comments during the applicable regulatory

processes; and (9) metals and other commodity prices and exchange rates being consistent with those estimated for the purposes of 2020 guidance, specifically for

the updated life of mine plans, gold and silver prices as indicated throughout the presentation and foreign exchange rates being as indicated throughout the

presentation; (10) the Company’s ability to implement the new life of mine plans on the timing described herein or at all; (11) there being no new cases of COVID-19 in

New Gold’s workforce at either the Rainy River or New Afton mine and the assumption that no additional members of the workforce are expected to be required to

self-isolate due to cross-border travel to the United States or any other country; (12) the responses of the relevant governments to the COVID-19 pandemic being

sufficient to contain the impact of the COVID-19 pandemic; (13) there not being a significant economic recession or downturn as a result of the COVID-19 pandemic;

and (14) with respect to New Gold’s annual guidance for Rainy River, the temporary suspension of operations at the Rainy River mine ending within several weeks.

3

Cautionary Statements

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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 and the availability and management of capital resources; additional funding

requirements; price volatility in the spot and forward markets for metals and other commodities; fluctuations in the international currency markets and in the rates of

exchange of the currencies of Canada, the United States and, to a lesser extent, Mexico; discrepancies between actual and estimated production, between actual and

estimated mineral reserves and mineral resources and between actual and estimated metallurgical recoveries; risks related to early production at the Rainy River

mine, including failure of equipment, machinery, the process circuit or other processes to perform as designed or intended; fluctuation in treatment and refining

charges; changes in national and local government legislation in Canada, the United States and, to a lesser extent, Mexico 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 in which New Gold operates, 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 New Gold is or may become a party to; diminishing quantities or grades of mineral reserves and mineral

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; 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; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups;

risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting

requirements; there being cases of COVID-19 in New Gold’s workforce at either the Rainy River or New Afton mine, or both; New Gold’s workforce at either the Rainy

River mine or the New Afton mine, or both, being required to self-isolate due to cross-border travel to the United States or any other country; the responses of the

relevant governments to the COVID-19 outbreak not being sufficient to contain the impact of the COVID-19 pandemic; the COVID-19 pandemic disrupting New Gold’s

supply chain continuity; New Gold’s liquidity not being sufficient to support operations during the COVID-19 pandemic or afterwards; with respect to New Gold’s

annual guidance for Rainy River, the temporary suspension of operations at the Rainy River mine lasting longer than several weeks; and risks inherent to a mine

facility during shut down; and difficulties in demobilization or restart of operations due to various factors, including lack of availability of manpower or equipment. In

addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards,

industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses and risks associated with a mine with relatively limited

history of commercial production, such as Rainy River, (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 Annual Information Form, MD&A and other disclosure documents filed on and available at www.sedar.com and on EDGAR at

www.sec.gov. 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.

For further information on the Company’s response to COVID-19, please refer to: https://www.newgold.com/covid-19/

4

COVID-19 Business Plan

Employee and community health and safety • The health and safety of our employees and communities remains number one priority

• Full compliance with government and health agency recommendations

• Restricted access to sites; travel restrictions; enhanced sanitization practices; self-isolation;

community-based consultations; optimized plans for transport and employee accommodation; social

distancing; work from home options (see www.newgold.com/covid-19/ for further details)

Supply chain continuity• Supply chain secure for key items; no disruptions to supply anticipated

• Standard inventory items on hand; required quantities being maintained

• Long-lead items remain on schedule

Business continuity plans and Rapid Response Team fully mobilized • Scenario-based business continuity plans in place

• Ramp-down / ramp-up plans as required

• Partial restart of Rainy River beginning April 3 utilizing local workforce

Financial status• ~$590 million in liquidity, including ~$390 million in cash and cash equivalents (incl. $300 million from

the OTPP partnership)

• Ample liquidity to support operations during this crisis

• 90-95% of costs are denominated in Canadian dollars (New Afton: 90% / Rainy River 95%)

Suspended site activities• Exploration programs on hold awaiting receipt of required permits

• Ongoing assessment of capital project timelines

http://www.newgold.com/covid-19/

5

Building a Canadian Focused Multi-Asset Company

Rainy River Mine: Ontario, Canada

• Open pit and underground mine in northern Ontario

• FCF beginning in Q4 2020 and over LoM: Improved NPV

• Open pit mining HG/MG ore via a smaller, more profitable

pit shell

• Underground evaluated on a per zone basis for profitability

with potential for mine life extension

• LoM FCF of ~$550M at $1,300 gold; ~$1B at $1,550 gold

• Evaluating exploration potential on broader land package

• Announced 14-day suspension to follow COVID-19 self-

isolation requirements (March 20-April 2)

• Restart scheduled to begin April 3 with local workforce

New Afton Mine: B.C., Canada

• Low cost producer in B.C. that drives free cash flow

• Updated LoM technical and cost update of an integrated

B3/C-zone optimization; mine life extension to 2030

• Self-funded C-zone development underway

• LoM FCF of $1B at $1,300 gold and $3.00 copper and

$1,550 gold and $2.75 copper

• Exploration potential at depth and over land package

• Currently operating at normal levels

• Implemented a 14-day-on x 14-day-off rotational schedule

Rainy River Gold Mine

Open pit & underground

Located near Ft. Frances, Ont.

2020E production: 245k-265k gold eq. oz

Blackwater Gold Project

+8 Million gold oz in Reserves

New Afton Gold/Copper Mine

Underground block cave

Located near Kamloops, BC

2020E production:

73k-83koz gold and 75-85Mlb copper

Cerro San Pedro Gold/Silver Mine

Reclamation underway

Profitable and Responsible Mining Focused in Canada

6

Ontario Teachers Pension Plan Transaction Terms

Transaction

• New Gold has entered into a strategic partnership with Ontario Teachers’ Pension Plan (“Ontario

Teachers’”) with the following terms (the “Transaction”):

• First 4 years – 46% Free Cash Flow Interest (“FCF Interest”) in New Afton

• After 4 years – Ontario Teachers’ has an option (“Conversion Option”) to convert into a 46% joint

venture in New Afton (“JV Interest”); if Ontario Teachers’ does not convert into the JV Interest, the

FCF Interest in New Afton will be reduced to 42.5% (“Reduced FCF Interest”)

Buyback Option

• During the exercise period of the Conversion Option, New Gold holds an overriding buyback option

to repurchase 100% of Ontario Teachers’ interest in New Afton at the greater of an agreed upon IRR

or the fair market value at that time

Exploration Claims

• New Gold will retain 100% of the exploration claims outside of the New Afton mining permit. Ontario

Teachers’ has an option to acquire its proportionate share of these claims upon conversion into the

JV Interest

Key Transfer Rights • New Gold and Ontario Teachers will hold a mutual right of first offer for the life of the agreements

Governance

• As a strategic partner, Ontario Teachers’ will have certain governance rights

• Upon conversion into the JV Interest, Ontario Teachers’ will receive customary joint venture

governance rights

Completed $300M strategic partnership with Ontario Teachers’ Pension Plan (March 31, 2020)

• Improved balance sheet with significantly enhanced liquidity of ~$590 million

• Financial flexibility and debt reduction opportunities

7

Capital Structure and Improved Liquidity Position

1. Estimated cash and cash eq. as of March 31, 2020

2. Approximately $120 million of $400 million facility used for Letters of Credit.

• Strengthened balance sheet with key transactions

• $300M partnership with Ontario Teachers Pension Plan

(March 31, 2020)

• C$150M equity financing (August 30, 2019)

• Available liquidity of ~$590M, including ~$390M in cash and

cash equivalents

• Additional debt optimization scenarios currently under review

New Gold Debt Structure

Face Value ($M) Maturity Interest Rate

Revolving Credit Facility $4002 Aug. 2021 LIBOR + 2.25% - 3.75%

Senior Unsecured Notes $400 Nov. 2022 6.25%

Senior Unsecured Notes $300 May 2025 6.375%

Undrawn credit facility

$200M (2)

Cash & Cash Eq. (1)

~$390M

~$590M Short

Term Liquidity

2020 Gold Hedging Program

Term Quantity Floor Ceiling

Jan 2020 - Jun 2020 12 koz per month $1,300/oz $1,355/oz

Jul 2020 - Dec 2020 16 koz per month $1,300/oz $1,415/oz

Recent strength of US dollar has positive impact on cash flow

8

Rainy River: 2019 Focus on Re-Positioning for Profitability

1. Gold eq. ounces include silver and copper ounces produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. All copper is produced by the New Afton Mine. The ratio for Q4 2019

was calculated based on average spot market prices of $1,480 per gold ounce, $17.31 per silver ounce and $2.67 per copper pound.

2. Refer to the “Non-GAAP Performance Measures” section of this presentation.

3. 2020 guidance was calculated using a constant gold equivalent ratio of $1,500 per gold ounce, $17.75 per silver ounce and $2.85 per pound copper, and a foreign exchange rate of 1.30 Canadian dollars to the US dollar.

4. For a detailed breakdown of Mineral Reserves & Resources refer to the appendix. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical

Information”. Resources are exclusive of Reserves.

Production FY 20192020

Guidance3

Gold Production (oz) 253,772 240,000-260,000

Gold eq. Production (oz)1,2 257,051 245,000-265,000

Operating Costs FY 20192020

Guidance3

Cash costs per gold eq. oz. 2 910 875-955

AISC per gold eq. oz.2 1,630 1,470-1,550

Capital ($M) FY 20192020

Guidance3

Sustaining Capital and sustaining

leases2 189 128-162

Growth Capital2 7 3-9

Exploration 1.4 2-6

Mineral Reserves and Resources

(December 31, 2019)4

Tonnes

(000’s)

Gold

Grade

(g/t)

Gold

(Koz)

Total Proven & Probable 77,572 1.06 2,636

Open Pit P&P (direct processing) 46,375 1.17 1,748

Underground P&P (direct processing) 4,096 4.17 549

Open Pit P&P (low grade) 21,172 0.35 237

Stockpile reserves 5,928 0.53 102

Measured & Indicated 23,127 2.57 1,914

Inferred 3,479 1.77 198

2019 Highlights

• Achieved production and cash cost guidance

• Stabilized Rainy River operations and completed

substantially all deferred capital

• Focus has transitioned to productivity and cost

optimization beginning on 2020

• Completed updated life of mine plan that focused

on productivity and free cash flow generation

• Returning focus to exploration on larger land

package

9Optimized Mine Plan Supports Profitable Mining and Improved NPV

• Focus on profitability that drives positive and

sustained free cash flow beginning in Q4 20201

• Mining medium and high grade open pit ore; low

grade stockpiled for processing with

underground ore

• Smaller pit size with uneconomic open pit and

underground material removed from mine plan

• Increased open pit cut-off grade to 0.46-0.49

g/t gold eq.

• Lower strip ratio of 2.53:1 > 150 Mt reduction in

waste tonnes mined

• Each underground zone evaluated separately

for potential inclusion in the mine plan

• Underground access from Intrepid portal and 4

open pit portals; reduces underground

development

• Capital reduction with smaller-size TMA and

potential slope reduction

• Upside for expanded underground mine

• Improved after-tax NPV5%: $421M1 / $858M2

Rainy River Life of Mine Highlights

2020-20241 2025-20281,4 LoM1 Sensitivity2

Tonnes ore mined open pit (Mt) 65.9 1.6 67.5 67.5

Head grade (gold g/t) 0.91 1.13 0.91 0.91

Tonnes ore mined underground (Mt) 0.7 3.4 4.1 4.1


Mill production (ktpd) 26.0 25.4 25.8 25.8


Gold recovery (%) 89 88 89 89

Total gold eq. production (k oz) 1,559 829 2,388 2,384

Avg. annual gold eq. production (k oz) 312 255 289 289

Cash costs per gold eq. oz. ($/oz) $668 $669 $665 $670

AISC per gold eq. oz. ($/oz) $1,071 $790 $967 $973

Sustaining capital ($M) 5 $522 $64 $586 $586

Growth capital ($M) 5 $28 $28 $56 $56

Cumulative total cash flow ($M) $243 $381 $5573 $1,096

After-tax NPV5% - - $421 $858

1. Assuming $1,300 per gold ounce, $16.00 per silver ounce, and a foreign exchange rate of 1.30 Canadian dollars to 1 US dollar

2. Assuming $1,550 per gold ounce, $17.50 per silver ounce, and a foreign exchange rate of 1.30 Canadian dollars to 1 US dollar

3. LOM value includes a negative cash flow of $68 million post 2028 primarily for closure activities

4. 2028 represents a partial year of processing (Q1 2028)

5. Sustaining and Growth Capital spend exclude working capital movements

Totals may not compute exactly due to rounding.

Rainy River Updated Life of Mine Highlights

10

Rainy River Mine

LOM Plan: Open Pit – Waste Reduction

2018 NI 43-101 Resource Pit

2020 NI 43-101 Resource Pit

New Open Pit Plan Delivers Superior Value vs 2018 plan1

1. Using updated unit cost assumptions, geotechnical and capital requirement assumptions

11

• Underground mine plan includes only optimally profitable areas at $1,275/ gold oz; significantly

decreases capital development spend

• Underground production 2022 to 2028 via 5 access portals (4 in-pit plus Intrepid), significant

reduction in horizontal and vertical development metres and in-mine infrastructure requirements

• Long-hole mining rate ramps up to a peak of 3,100 tpd by 2026 with avg. gold grade of 4.17 g/t

• Open pit fleet to re-handle ore mined from portals

• Opportunity to extend underground mine life in a higher gold price environment

Rainy River MineLOM Plan: Underground Mine

Higher Underground Mine Grade Drives Margin

Grey areas indicate

potential new mining areas

12

1.08

0.951.02

1.17 1.191.26 1.25

0.85 0.84

0.61

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Gold

gra

de (

g/t)

Au O

unces P

roduced

Mill Production vs. Gold Grade

Gold ounces produced (Au oz) Mill Feed Grade (Au g/t)

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Rainy River Mine

LOM Plan: Mill Production

Maximizing Throughput Over Life of Mine

• The mill facility to average approximately 25,800 tpd with mill availability of ~92%

• LOM head grade of ~1.06 gold g/t at a recovery rate of 89%

• Low-grade ore stockpile to supplement underground mill feed from 2025-2028

• Unit cost reduction as productivity increases and contractor costs decline; remains stable over LOM

• Completed pebble crusher testing in January 2020 with final commissioning in February 2020

• Gravity circuit commissioned in January 2020 to improve gold recoveries

13

NE Trend Target: Field reconnaissance exploration to assess the potential

for shear hosted high grade gold discovery within ~15 km regional structural

corridor has been completed in 2019. Two broader areas with coincident

geochemical and geophysical anomalism have been defined for first pass

exploration drilling in 2020.

Geological mapping, soil and rock sampling to assess the perspectivity of

additional areas within the broader claims block will continue during 2020,

with the objective to define drill-ready targets.

Permit application for drilling program has been submitted for a drilling

campaign planned in the first half of 2020.

Target areas defined by coincidentgeochemical and geophysical anomalism forfollow up reconnaissance drilling campaign

Rainy River Mine

LOM Plan: Exploration Plan

14

New Afton Mine: Reinvesting in the Future

1. Gold eq. ounces for New Afton includes silver ounces and copper pounds produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q4 2019 was calculated based on average

spot market prices of $1,480 per gold ounce, $17.31 per silver ounce and $2.67 per copper pound and includes 65,368 ounces of silver.

2. Refer to the “Non-GAAP Performance Measures” section of this presentation.

3. 2020 guidance was calculated using a constant gold equivalent ratio of $1,500 per gold ounce, $17.75 per silver ounce and $2.85 per pound copper, and a foreign exchange rate of 1.30 Canadian dollars to the US dollar.

4. For a detailed breakdown of Mineral Reserves & Resources refer to the appendix. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

Resources are exclusive of Reserves.

Mineral Reserves and

Resources (Dec. 2019) 4

Gold

Grade

(g/t)

Gold

(Koz)

Copper

Grade

(%)

Copper

Mlbs.

Proven & Probable 0.66 1,005 0.77 802

Measured & Indicated 0.61 1,118 0.74 933

Inferred 0.38 172 0.42 121

Capital ($M) FY 20192020

Guidance3

Sustaining Capital & sustaining leases 2 38 50-70

Growth Capital 2 24 85-105

Exploration ~5 5-10

Production FY 20192020

Guidance3

Gold Production (oz) 68,785 73,000-83,000

Copper Production (Mlb) 79.4 75-85

Gold eq. Production (oz)1 229,091 220,000-250,000

Operating Costs FY 20192020

Guidance3

Operating expense per gold oz 509 550-630

Operating expense per copper lb 1.02 -

Cash costs per gold eq. oz. 2 647 665-745

AISC per gold eq. oz.2 829 940-1,020

West

Cave

East

Cave

B3

An underground block cave operation located in B.C.

2019 Highlights

• Achieved production and cash cost guidance

• Launched development of the self-funded C-zone

• Completed updated B3/C-zone LOM technical and

cost update

• Launched strategic exploration program at depth

and over larger land package

• Potential near-term production growth from the

SLC zone

15

• B3 and C-zone fully integrated mine plan

with technical and cost updates

• Mine life extension to 2030

• Updated mine design and subsidence

mitigation plan

• In-pit tailings disposal: thickened and

amended tailings (TAT); TAT to also

increase current and historic tailings stability

• Low operating costs throughout life of mine

• Advancing permitting timeline

• Optimized scenario for self-funded C-zone

development

• Free cash flow: ~$1 billion (2020-2030)

• After-tax NPV5% of $735M1 or $766M2

• Potential integration of SLC zone mine plan

• Exploration potential below the C-zone and

on land package could increase mine life

New Afton Life of Mine Highlights

2020-20241 2025-20301,4 LOM1 Sensitivity2

Tonnes ore mined (Mt) 22.8 25.2 48.1 48.1

Head grade mined (gold g/t) 0.58 0.75 0.68 0.68

Head grade mined (copper %) 0.73 0.80 0.77 0.77

Avg. Mill production (ktpd) 13.2 13.3 13.3 13.3

Gold recovery (%) 85 87 86 86

Copper recovery (%) 88 91 89 89

Total gold production (oz) 379.9 537.9 917.8 917.8

Total copper production (Mlb) 339.2 406.4 745.7 745.7

Avg. annual gold eq. production (k oz) 235.3 283.9 260.2 221.1


AISC per gold eq. oz. ($/oz) $790 $596 $681 $801

Sustaining capital ($M)3 $121 $54 $175 $175

Growth capital ($M)3 $460 - $460 $460

Cumulative total cash flow ($M) $113 $946 $1,0515 $1,092

After-tax NPV5% - - $735 $766

1. Assuming $1,300 per gold ounce, $16.00 per silver ounce, $3.00 per copper pound and a foreign exchange rate of 1.30 Canadian

dollars to 1 US dollar

2. Assuming $1,550 per gold ounce, $17.50 per silver ounce, $2.75 per copper pound and a foreign exchange rate of 1.30 Canadian

dollars to 1 US dollar

3. Sustaining and Growth Capital spend excludes working capital movement

4. 2030 represents a partial year of processing (Q1 2030)

5. LOM value includes a negative cash flow of $9 million post 2030 primarily for closure activities offset by salvage values

Totals may not compute exactly due to rounding.

Unlocking the potential of the C-zone drives $1B in FCF

New Afton Updated Life of Mine Highlights

16

The Technical Report will support the December 31, 2019 Mineral Reserve and Resource

estimates and provides a technical and cost update of the revised Life of Mine (LOM) Plan

New Afton Mine

LOM Plan: Technical and Cost Update

✓ B3 and C-zone fully integrated mine

plan

✓ Geotechnical study updates:

✓ Mine design

✓ Subsidence

✓ Tailings update:

✓ In-pit disposal using a thickened &

amended tailings approach to

increase stability

✓ Stabilization of current and old

tailings

✓ Permitting timeline

✓ Capital and operating costs updated

West

Cave

East

Cave

B3

C-zone

East Cave

Recovery

(SLC))

Self-funded C-zone Project with Robust Economics

17

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Me

tal P

rod

uce

d (

oz,

'00

0 lb

s)

To

tal t

on

ne

s m

ille

d

Mill Production

Tonnes Milled Au Produced (oz) Cu Produced ('000 lbs)

2020 NI 43-101 LOM

New Afton Mine

LOM Plan: Mill Production

• Lower production in 2021 to 2024 (with lower production in 2024) until the C-zone begins production

• Sub-level cave (“SLC”) zone could be partially offset lower production period

• Improved recoveries as B3 and C-zone hypogene ore is processed (86% gold and 90% copper)

• The updated life of mine plan incorporates thickened and amended tailings to increase stability of the

current and historical tailings, with in-pit thickened tailings deposition planned for the C-zone ore portion

• Geotechnical study updates with the objective of enhancing the mine plan and subsidence control

Maximizing Throughput Throughout Life of Mine

18

New Afton Mine

LOM Plan: Key Permitting Activities

Cash Flow Positive

• Early and transparent engagement and consultations First Nation Partners

and Key Stakeholders

• Positive relationship with Government authorities has facilitated timely

permitting

• Government committed to ‘keep Operating Mines Operating and BC

Mines Competitive’

Milestone Expected Time

B3 Permit Receipt H1 2021

B3 Production H2 2021

C-Zone Permit Receipt H1 2022

C-Zone Production H2 2023

19

• Underground drilling delineated and expand mineral

resources within and below the SLC Zone

• Delineated the SLC target area to M&I and added 3.6M

tonnes of >0.4% CuEq of Mineral Resources, grades in line

with the C-Zone with zones of high grade Cu-Au

• Results were incorporated in the 2019 year end

mineral resource update

• Zone remains open to down plunge into the newly

defined East Extension area

SLC Mining Options Evaluated to Add Ore Reserve

Inventory to the LOM

UG Drill Targets – Long Section

D-Zone Exploration Targeting Scale or Greater Resource Growth

• D-Zone underground drilling testing for additional resources down

plunge of the C-Zone reserve

• Testing pinch and swell geometry to verify potential for zone of

productive mineralization to re-widen laterally and down plunge

• Main ore body is pinching at depth. Potential to define additional

mineralization remains as an offset and/or continuation down plunge

from SLC Zone within a newly interpreted parallel dilation zone.

• Drill intercepts in the upper D-Zone appear to feature good widths and

ore grade in line with C-Zone over an approximate 200-250m vertical

extent

D-Zone Drill Target

New Afton Mine

Exploration Potential Near Mine – SLC and D-zone

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20

Preliminary Stages of Testing District Target Potential

• Cherry Creek Corridor Target: exploration activities are progressing to drill targets refinement

• 12 km trend of prospective geochemical and geophysical anomalies located ~3 km from New Afton mill

• 45 line-km geophysical IP survey completed at the end of August 2019

• Geochemical survey completed covering entire trend

• Significant near-surface epithermal gold and underlying porphyry copper-gold system discovery potential

• Phase 1 exploration drilling in Q1 2020 pending permit approval by Ministry of Energy and Mines

New Afton Mine

Exploration Potential – District

21

Blackwater Project: B.C., Canada

• Open pit mine in B.C., 160km southwest of

Prince George

• Received federal EA approval April 15, 2019;

provincial EA June 24, 2019

• Participation Agreement with two First Nations

completed April 18, 2019; Engagement and

negotiations continue with other First Nations

• Currently re-evaluating project sizing, higher

grade while maintaining a low strip ratio; lower

initial capital

• Current reserve is defined at 8.2 Moz gold

with a grade of 0.74 g/t gold

• Site area is well serviced

1. For a detailed breakdown of Mineral Reserves & Resources refer to the Management Discussion and Analysis dated February 13, 2019. Refer to Endnotes under the heading “Cautionary note to

U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.


Resources

(December 31, 2018) 1

Gold Grade (g/t) Gold (Koz)

Proven & Probable 0.74 8,170

Measured & Indicated2 0.71 1,400

Inferred 0.66 385


Resources

(December 31, 2018) 1

Silver Grade (g/t) Silver (Koz)

Proven & Probable 5.5 60,800

Measured & Indicated2 4.4 8,733

Inferred 3.9 2,248

22

Rainy River positioned for profitable operations with underground upside

Optimized C-zone mine plan drives solid free cash flow stream

Optimizing the balance sheet supported by a growing free cash flow stream

Re-launched exploration programs at Rainy River and New Afton

Blackwater re-evaluation provides optionality

New Gold: A Profitable Path Forward

APPENDIX

24

COVID-19 Response Plan

• Instituting self-quarantine measures for anyone who has been in close contact with a confirmed case of COVID-19, or who has

travelled either internationally or domestically within the past 14-days.

• With the exception of individuals required to run critical office-based systems (e.g., IT server maintenance, security) our

corporate offices will be temporarily closed.

• We have provided regular COVID-19 company-wide communications including posters and emails about COVID-19, symptoms,

and health and hygiene best practices.

• We are conducting ongoing monitoring of the status of COVID-19 through reliable sources such as the World Health

Organization (WHO), the Public Health Agency of Canada (PHAC), the Centers for Disease Control (CDC), and local public

health agencies and have directed leaders and employees to advise and track any presumptive or confirmed COVID-19 cases

that could potentially put employee at risk, along with how each case was handled.

• We have implemented increased cleaning on frequently touched surfaces at all locations and have provided hand sanitizer

dispensers in common areas.

• We have confirmed that suppliers and contractors have also implemented preventative practices and have a business continuity

plan in place.

• The New Gold’s Employee Assistance Program offered through LifeWorks is available to support all our employees and their

families related to mental, physical, emotional and financial well-being.

We have established a Pandemic Response and Business Plan Committee comprised of leadership from all locations that

meets regularly and has developed and implemented pre-screening and business continuity plans. The Committee is

established to ensure that we are assessing all potential risks and develop viable contingency plans that enable us to stay

ahead of any potential safety and health risks for our employees and members of our host communities. Designated

teams from relevant functions are proactively planning for various contingencies and responding to daily changes and

circumstances. We are proactively preparing for the potential spread of COVID-19 to any of New Gold’s locations, with

specific business continuity plans in place. We have also instituted a number preventative measures including:

More information including site specific response plans is provided via the following link: www.newgold.com/covid-19/

http://www.newgold.com/covid-19/

25

Repositioning New Gold for Sustainable Shareholder Value Creation

Rainy River Mine Objective: Profitable operations at $1,275 gold

• Mine plan focused on profitable mining that drives free cash flow and improved NPV

• Updated mine plan supports sustained free cash flow beginning in Q4 2020 and over mine life

• Open pit mine: mining high and medium grade ore via a smaller open pit; significant reduction in total

waste mined at new strip ratio (including overburden) of 2.53:1

• Underground mine: individual zones evaluated; only profitable zones included in plan with further upside

at higher gold prices

• Updated plan delivers superior value and free cash flow from 2020-2024 and life of mine, as compared

to the 2018 plan, even at reduced total gold ounces in reserves. (using updated unit cost assumptions,

geotechnical and capital requirement assumptions)

New Afton Mine Objective: Technical and cost update of de-risked C-zone mine plan

• B3/C-zone integrated mine plan extends mine life to 2030 with robust economics

• Self-funded project execution 2020-2024 at $1,300 per gold ounce and $3.00 per copper pound prices

• Geotechnical studies optimize mine design and mitigate subsidence

• In-pit tailings: thickened and amended tailings to increase stability

• Potential to include SLC zone in near-term mine plan to partially offset lower production period

• Exploration potential below C-zone and elsewhere on large land package

The NI 43-101 economics are done at a Reserve price of $1,275/oz gold and $17.00/oz silver.

Repositioned for Profitable Mining

26

2020 Consolidated Guidance

Material assumptions include: Short-term consensus prices of $1,500 per gold ounce, $17.75 per silver ounce, and $2.85 per pound copper, and a

foreign exchange rate of 1.30 Canadian dollars to the US dollar.

Operational Estimates Rainy River New Afton 2020 Consolidated Guidance1

Gold Produced (ounces) 240,000 – 260,000 73,000 – 83,000 313,000 – 343,000

Copper Produced (Mlbs) - 75 - 85 75 – 85

Gold Eq. Produced (ounces)1 245,000 – 265,000 220,000 – 250,000 465,000 – 515,000

Operating expense per gold eq. ounce1 $875 - $955 $550 - $630 $725 - $805

Cash Costs per gold eq. ounce (on a co-product basis)1 $875 - $955 $665 - $745 $775 - $855

Corporate G&A per gold eq. ounce1 - - $30 - $40

Depreciation and depletion per gold eq. ounce1 $490 - $570 $275 - $355 $390 - $470

All-in Sustaining Costs per gold eq. ounce1 $1,470 - $1,550 $940 - $1,020 $1,260 - $1,340

Capital Investment & Exploration Expense Estimates Rainy River New Afton 2020 Consolidated Guidance1

Sustaining Capital & Sustaining Leases ($M) $128 - $162 $50 - $70 $178 - $232

Growth Capital ($M)2 $3 - $9 $85 - $105 $100 - $126

Exploration ($M)3 $2 - $6 $5 - $10 $9 - $18

1. Gold equivalent ounces includes approximately 420,000 to 445,000 ounces of silver at Rainy River and approximately 330,000 to 340,000 ounces of silver at New Afton.

2. Consolidated growth capital includes ~$12 million for Blackwater

3. Exploration expense includes ~$2 million for Blackwater

27

Rainy River 2020-20241 2025-20281,4 Life of Mine1 Sensitivity2



AISC per gold eq. oz. ($/oz) $1,071 $790 $967 $973

Sustaining capital ($M) 3 $522 $64 $586 $586

Growth capital ($M) 3 $28 $28 $56 $56

Cumulative total cash flow ($M) $243 $381 $557 $1,096

After-tax NPV5% - - $421 $858

New Afton 2020-20241 2025-20301,4 Life of Mine1 Sensitivity2



AISC per gold eq. oz. ($/oz) $790 $596 $681 $801


Growth capital ($M)3 $460 - $460 $460

Cumulative total cash flow ($M) $113 $946 $1,051 $1,092

After-tax NPV5% - - $735 $766

Consolidated 2020-20241 2025-20301,4 Life of Mine1 Sensitivity2



Growth capital ($M)3 $488 $28 $516 $516

Cumulative total cash flow ($M) $357 $1,290 $1,6075 $2,188

Consolidated Life of Mine Highlights

Totals may not compute exactly due to rounding

1. Assuming $1,300 per gold ounce, $16.00 per silver ounce, $3.00 per copper pound and a foreign exchange rate of 1.30 Canadian dollars to 1 US dollar

2. Assuming $1,550 per gold ounce, $17.50 per silver ounce, $2.75 per copper pound and a foreign exchange rate of 1.30 Canadian dollars to 1 US dollar

3. Sustaining and Growth Capital spend excludes working capital movement

4. 2028 represents a partial year of production for Rainy River and 2030 represents a partial year of production for New Afton.

5. Consolidated LOM value includes a negative cash flow of $77 million post 2030 primarily for closure activities offset by salvage values

28


(as at Dec 31, 2019)

Mineral Reserves Statement as at December 31, 2019

Proven & Probable Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Open Pit Mineral Reserves

Direct processing

Proven 15,700 1.21 2.4 - 612 1,187 -

Probable 30,675 1.15 2.5 - 1,136 2,416 -

Open Pit P&P (direct proc.) 46,375 1.17 2.4 - 1,748 3,602 -

Low grade

Proven 5,702 0.35 1.9 - 65 341 -

Probable 15,470 0.35 2.2 - 172 1,076 -

Open Pit P&P (low grade) 21,172 0.35 2.1 - 237 1,417 -

Stockpile

Proven 5,928 0.53 1.1 - 102 211 -

Probable - - - - - - -

Open Pit P&P (stockpile) 5,928 0.53 1.1 - 102 211 -

Open Pit Total Mineral Reserves 73,476 0.88 2.2 - 2,087 5,231 -

Underground

Proven - - - - - - -

Probable 4,096 4.17 7.8 - 549 1,034 -

Underground P&P (direct proc.) 4,096 4.17 7.8 - 549 1,034 -

Combined Direct proc. & Low grade

Proven 27,331 0.88 2.0 - 779 1,740 -

Probable 50,240 1.15 2.8 - 1,857 4,526 -

Total Rainy River Mineral Reserves 77,572 1.06 2.5 - 2,636 6,265 -

29


(as at Dec 31, 2019)

Mineral Reserves Statement as at December 31, 2019

Proven & Probable Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B Zones

Proven - - - - - - -

Probable 20,213 0.55 1.9 0.73 357 1,234 323

C Zone

Proven - - - - - - -

Probable 27,088 0.74 1.8 0.80 648 1,610 478

Total New Afton P&P 47,302 0.66 1.9 0.77 1,005 2,844 802

BLACKWATER

Direct processing reserves

Proven 124,500 0.95 5.5 - 3,790 22,100 -

Probable 169,700 0.68 4.1 - 3,730 22,300 -

P&P (direct processing) 294,300 0.79 4.7 - 7,510 44,400 -

Low grade reserves

Proven 20,100 0.50 3.6 - 330 2,300 -

Probable 30,100 0.34 14.6 - 330 14,100 -

P&P (low grade) 50,200 0.40 10.2 - 650 16,400 -

Combined Direct proc. & Low grade

Proven 144,600 0.88 5.3 - 4,110 24,400 -

Probable 199,800 0.63 5.7 - 4,050 36,400 -

Total Blackwater P&P 344,400 0.74 5.5 - 8,170 60,800 -

Total P&P 11,811 69,909 802

30


(as at Dec 31, 2019)

Mineral Resource statement as at December 31, 2019

Measured & Indicated (Exclusive of Reserves) Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

High and Medium grade Mineral Resources

Open Pit

Measured 695 1.46 2.9 - 33 64 -

Indicated 4,813 1.18 3.4 - 182 531 -

Open Pit M&I (High and med. grade) 5,508 1.21 3.4 - 214 596 -

Underground

Measured - - - - - - -

Indicated 14,866 3.49 9.1 - 1,669 4,331 -

Underground M&I 14,866 3.49 9.1 - 1,669 4,331 -

Low grade Mineral Resources

Open Pit

Measured 293 0.34 1.9 - 3 18 -

Indicated 2,460 0.34 2.2 - 27 175 -

Open Pit M&I (High, medium and low grade) 2,753 0.34 2.2 - 30 193 -

Combined M&I

Measured 988 1.13 2.6 - 36 82 -

Indicated 22,139 2.64 7.1 - 1,878 5,037 -

Total Rainy River M&I 23,127 2.57 6.9 - 1,914 5,120 -

31


(as at Dec 31, 2019)Mineral Resource statement as at December 31, 2019

Measured & Indicated (Exclusive of Reserves) Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B Zones

Measured 17,013 0.63 1.7 0.83 346 940 312

Indicated 9,759 0.44 2.6 0.71 138 825 154

A&B Zone M&I 26,773 0.56 2.1 0.79 484 1,765 466

C-zone

Measured 6,116 0.78 2.0 0.94 154 401 126

Indicated 12,727 0.71 2.1 0.83 292 852 233

C-zone M&I 18,843 0.74 2.1 0.86 446 1,254 359

HW Lens

Measured - - - - - - -

Indicated 11,362 0.51 2.0 0.44 187 738 109

HW Lens M&I 11,362 0.51 2.0 0.44 187 738 109

Combined M&I

Measured 23,154 0.67 1.8 0.86 500 1,345 438

Indicated 33,854 0.57 2.2 0.66 617 2,409 495

Total New Afton M&I 57,008 0.61 2.1 0.74 1,118 3,754 933

BLACKWATER

Direct processing Mineral Resources

Measured 288 1.39 6.6 - 13 61 -

Indicated 45,440 0.84 4.7 - 1,227 6,866 -

M&I (direct proc.) 45,728 0.84 4.7 - 1,240 6,927 -

Low grade Mineral Resources

Measured 11 0.29 7.4 - - 3 -

Indicated 15,831 0.32 3.9 - 162 1,985 -

M&I (low grade) 15,842 0.32 3.9 - 162 1,988 -

Total Blackwater M&I 61,570 0.71 4.5 - 1,402 8,915 -

Total M&I Exclusive of Reserves 4,434 17,788 933

32


(as at Dec 31, 2019)

Mineral Resources statement as at December 31, 2019

Inferred Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

High and medium grade resources

Open Pit 2,015 0.61 1.8 - 39 114 -

Underground 1,297 3.76 3.5 - 157 146 -

Total Direct Processing 3,312 1.84 2.4 - 196 260 -

Low grade resources

Open Pit 167 0.35 1.4 - 2 8 -

Rainy River Inferred 3,479 1.77 2.4 - 198 268 -

NEW AFTON

A&B Zones 6,367 0.34 1.3 0.35 70 272 49

C-zone 7,650 0.41 1.3 0.47 101 316 71

HW Lens 3 0.49 0.6 0.19 - - -

New Afton Inferred 14,022 0.38 1.3 0.42 172 589 121

BLACKWATER

Direct processing 13,933 0.76 4.0 - 341 1,792 -

Low grade resources 4,225 0.32 3.5 - 44 475 -

Blackwater Inferred 18,158 0.66 3.9 - 385 2,267 -

Total Inferred 754 3,124 121

33

Notes to Mineral Reserve and Resource Estimates

Notes to Mineral Reserve and Resource Estimates

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. All Mineral Reserve and Mineral Resource estimates for New Gold’s properties and projects are effective December 31, 2019.

3. New Gold’s year-end 2019 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign

exchange (FX) rate criteria:

4. Lower cut-offs for the Company’s Mineral Reserves and Mineral Resources are outlined in the following table:

Gold

$/ounce

Silver

$/ounce

Copper

$/pound

FX

CAD:USD

Mineral Reserves $1,275 $17.00 $3.00 1.30

Mineral Resources $1,375 $19.00 $3.25 1.30

Mineral PropertyMineral Reserves

Lower Cut-off

Mineral Resources

Lower Cut-off

Rainy River

O/P direct processing:

O/P low grade material:

U/G direct processing:

0.46 – 0.49 g/t AuEq

0.30 g/t AuEq

2.20 g/t AuEq

0.44 – 0.45 g/t AuEq

0.30 g/t AuEq

2.00 g/t AuEq

New Afton Main Zone – B1 & B2 Blocks:

B3 Block & C-zone

USD$ 21.00/t

USD$ 24.00/tAll Resources 0.40% CuEq

Blackwater O/P direct processing:

O/P low grade material:

0.26 – 0.38 g/t AuEq

0.32 g/t AuEqAll Resources: 0.40 g/t AuEq

5. 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 and technical feasibility, do not have demonstrated economic viability, and are likewise exclusive of Mineral Reserves. Numbers

may not add due to rounding.

34

Notes to Mineral Reserve and Resource Estimates (cont’d)

6. Mineral Resources are classified as measured, indicated and inferred based on relative levels of confidence in their estimation and on technical and

economic parameters consistent with the methods considered to be most suitable to their potential commercial extraction. The designators ‘open pit’ and

‘underground’ may be used to indicate the envisioned mining method for different portions of a resource. Similarly, the designators ‘direct processing’

and ‘lower grade material’ may be applied to differentiate material envisioned to be mined and processed directly from material to be mined and stored

separately for future processing. 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 will be available at www.sedar.com within 45 days of New Gold’s press release dated February 13, 2020 with respect to the

Rainy River and New Afton updated life of mine plans.

7. The preparation of New Gold's consolidated statement and estimation of mineral reserves has been completed under the oversight and review of Mr.

Andrew Croal, Director of Technical Services for the Company. Mr. Croal is a Professional Engineer and member of the Association of Professional

Engineers Ontario. Preparation of New Gold’s consolidated statement and estimation of mineral resources has been completed under the oversight and

review of Mr. Michele Della Libera, Director, Exploration for the Company. Mr. Della Libera is a Professional Geoscientist and member of the Association

of Professional Geoscientists of Ontario and of the Engineers and Geoscientists of British Columbia. Mr. Croal and Mr. Della Libera are "Qualified

Persons" as defined by NI 43-101.



35

• Open Pit reserves are impacted by:

• Updated LOM costs

• Updated metallurgical recovery model

• Movement of some open pit Mineral Reserves to underground Mineral Reserves due to updated mine plan

-

500

1,000

1,500

2,000

2,500

3,000

3,500

NI43-101

2018

Updated Costs

04-Dec-19

Other NI43-101

2020

Co

nta

ined

Go

ld (

oz

x '0

00

)

Change in In-Pit Mineral Reserves + Stockpiles

(Actualized Starting Topography End-of-December 2019)

Rainy River Mine

Open Pit Mineral Reserves

Refer to the detailed December 31, 2019 Mineral Reserves and Mineral Resources tables reported in the press release dated February 13, 2020.

Smaller Open Pit Drives Stronger FCF Starting in Q4 2020



36

• Economic viability of large portion of underground mineralization is dependent on availability of open pit stockpile

to maintain mill throughput and to share fixed costs

Rainy River Mine

Underground Mineral Reserves

Mining Profitable Underground Areas, Upside at Higher Gold Prices

37

Qualified Persons

The technical information was developed through the combined efforts of the Company’s internal technical team and

independent consultants including:

• Francis McCann, General Manager / Principal Mining Engineer, AMC Consultants Toronto – QP for the Rainy River

Open Pit Mineral Reserves Estimate and Open Pit Mining

• Herbert A. Smith, Senior Principal Engineer, AMC Consultants Vancouver – QP for the Rainy River Underground

Mineral Reserves Estimate and Underground Mining

• Dinara Nussipakynova, Principal Geologist, AMC Consultants Vancouver – QP for the Rainy River Open Pit and

Underground Resources Estimate

• Ken Bocking, Golder Toronto – QP for Rainy River Waste dumps, Open Pit Overburden slopes studies

• Ed Saunders – SRK Vancouver – QP for the Rainy River Open Pit Hard Rock Slopes studies

• Andre Zerwer, Principal Geotechnical Engineer, BGC Sudbury – QP for the Rainy River Tailings Dam studies

• Andrew Millar, Principal Metallurgist, AMC Brisbane - QP for the Rainy River Metallurgical studies

• Twila Griffith, Senior Environmental Specialist, Rainy River Mine – QP for the Rainy River Environmental Study

• Normand L. Lecuyer, P.Eng., Roscoe Postle Associates Inc. (RPA) – QP for technical information for New Afton

• David W. Rennie, P.Eng., Roscoe Postle Associates Inc. (RPA) – QP for technical information for New Afton

• Holger Krutzelmann, P.Eng., Roscoe Postle Associates Inc. (RPA) – QP for technical information for New Afton

• Luis Vasquez, M.Sc., P.Eng., Roscoe Postle Associates Inc. (RPA) – QP for technical information for New Afton

38

Glossary of terms

• AISC: All-in Sustaining Costs

• Au Eq. Oz.: Gold equivalent ounces

• HAOP: Historic Afton Open Pit

• HATSF: Historic Afton Tailings Storage Facility

• K TPCD: Kilo Tonne per Calendar Day

• M&I: Measured and Indicated

• NATSF: New Afton Tailings Storage Facility

• P&P: Proven and Probable

• TAT: Thickened and Amended Tailings

• UG: Underground

• EMRS: East Mine Rock Stockpile (waste rock stockpile)

• KTPD: Kilo Tonne per Day

• LGO: Low Grade Ore

• LOM: Life of mine

• NAG: Net Acid Generating

• OVB: Overburden

• PCR: Principal Component Repairs

• P&P: Proven and Probable

• TMA: Tailings Management Area

• WMRS: West Mine Rock Stockpile (waste rock stockpile)

• WTP: Water Treatment Plant

39

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 with Canadian standards for reporting of mineral resource estimates, which differ in some respects

from United States standards. In particular, and without limiting the generality of the foregoing, the terms “inferred mineral resources,” “indicated mineral resources,” “measured mineral

resources” and “mineral resources” used or referenced in this presentation are Canadian mineral disclosure terms as defined in accordance with NI 43-101 under the guidelines set out in

the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines, May 2014 (the “CIM Standards”). Until

recently, the CIM Standards differed significantly from standards in the United States. The U.S. Securities and Exchange Commission (the “SEC”) has adopted amendments to its disclosure

rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934, as amended (the

“Exchange Act”). These amendments became effective February 25, 2019 (the “SEC Modernization Rules”) with compliance required for the first fiscal year beginning on or after January

1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which will be rescinded

from and after the required compliance date of the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured

mineral resources”, “indicated mineral resources” and “inferred mineral resources”. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral

reserves” to be “substantially similar” to the corresponding definitions under the CIM Standards, as required under NI 43-101. Accordingly, during this period leading up to the compliance

date of the SEC Modernization Rules, information regarding mineral resources or mineral reserves contained or referenced in this presentation may not be comparable to similar information

made public by United States companies.

Readers are cautioned that “inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their 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, except in limited circumstances. The term “resource” does not equate to the term “reserves”. Readers should not to assume that all or any

part of measured or indicated mineral 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.

TECHNICAL INFORMATION

The scientific and technical information relating to Mineral Reserves contained herein has been reviewed, verified and approved by Mr. Andrew Croal, Director, Technical Services of New

Gold. The scientific and technical information relating to Mineral Resources and exploration activities and results contained herein has been reviewed and approved by Mr. Michele Della

Libera Director, Exploration of New Gold. All other scientific and technical information contained herein has been reviewed and approved by the persons named under the heading

“Technical Information and Qualified Persons” with respect to the technical and scientific information noted for each name. Mr. Croal is a Professional Engineer and member of the

Association of Professional Engineers Ontario. Mr. Della Libera is a Professional Geoscientist and a member of Engineers & Geoscientists British Columbia and Professional Geoscientists

Ontario. Mr. Croal, Mr. Della Libera and the persons named under the heading “Technical Information and Qualified Persons” are "Qualified Persons" for the purposes of NI 43-101. No

limitations were imposed on these Qualified Persons with respect to the verification of the data contained herein. Further detail about the mineral resource and reserve estimates, including

assumptions, parameters, risks and data verification measures, will be available in the updated technical reports to be filed by the Company within 45 days following the date of this news

release.

40

Non-GAAP Measures

NON-GAAP MEASURES

(1) ALL-IN SUSTAINING COSTS

“All-in sustaining costs” per ounce is a non-GAAP financial measure. 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 (as presented in the cash flow statement), 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 assists 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) SUSTAINING CAPITAL

"Sustaining capital" is a non-GAAP financial measure as well as “sustaining lease”. New Gold defines sustaining capital as net capital expenditures that are intended to maintain operation

of its gold producing assets. A sustaining lease is similarly a capital lease payment that is sustaining in nature. To determine sustaining capital expenditures, New Gold uses cash flow

related to mining interests from its statement of cash flows and deducts any expenditures that are non-sustaining or growth capital. Management uses sustaining capital and other

sustaining costs, to understand the aggregate net result of the drivers of all-in sustaining costs other than total cash costs. Sustaining capital and sustaining lease are intended to provide

additional information only, does not have any 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.

(3) TOTAL CASH COSTS

“Total cash costs” per ounce is a non-GAAP financial measure which is 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.

(4) FREE CASH FLOW

“Free cash flow” is defined as operating cash flow less sustaining capital expenditures.

(5) GROWTH CAPITAL

"Growth capital" is a non-GAAP financial measure. New Gold terms non-sustaining capital costs to be “growth capital”, which are capital expenditures to develop new operations or capital

expenditures related to major projects at existing operations where these projects will materially increase production. To determine growth capital expenditures, New Gold uses cash flow

related to mining interests from its statement of cash flows and deducts any expenditures that are sustaining capital. Growth capital is intended to provide additional information only, does

not have any 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.

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