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  • 1. Blackwater Project UpdateInvestor/Analyst Breakfast September 20, 2012
  • 2. Cautionary statementAll monetary amounts in U.S. dollars unless otherwise statedCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSCertain information contained in this presentation, including any information relating to New Golds future financial or operating performance may be deemed "forward looking". All statementsin this presentation, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements. Forward-looking statementsare statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results"may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. All such forward-looking statements are based on the opinions and estimatesof management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Golds ability to control or predict.Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may causeactual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, withoutlimitation: significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico andChile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimatedproduction, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in international, national and local governmentlegislation in Canada, the United States, Australia, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations andpolitical 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 ofobtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates,including, but not limited to Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended theapproval of the environmental permit for the El Morro project; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure,corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges the company is or may become a party to; diminishingquantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in projectparameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks andhazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures,cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Golds disclosuredocuments 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 fromthose anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims anyintention 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.. Blackwater PEA Investor/Analyst Breakfast | September 2012 2 2
  • 3. Cautionary statement (cont’d)CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCESInformation concerning the properties and operations discussed in this presentation has been prepared in accordance with Canadian standards under applicable Canadian securities laws, andmay not be comparable to similar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred MineralResource" used in this presentation are Canadian mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource","Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations, they are not defined terms under standards of the United StatesSecurities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralizationcould be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptions ofmineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirementsof 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. Itcannot 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 notform the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into MineralReserves. Readers are also cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists, or is economically or legally mineable. In addition, the definitions of "ProvenMineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.TECHNICAL INFORMATIONCertain of the scientific and technical information in this presentation is derived from the NI 43-101 compliant technical report entitled “Technical Report, Blackwater Gold Project, OminecaMining Division, British Columbia, Canada” dated March 23, 2012, which is filed on SEDAR. Another NI 43-101 compliant technical report supporting the PEA and updated mineral resourceestimate (“PEA Report”) will be filed on SEDAR within 45 days. The following qualified persons, as that term is defined in NI 43-101, have prepared or supervised the preparation of technicalinformation relating to the PEA Report:• Mark Petersen, C.P.G. (New Gold Inc.)• Ronald G. Simpson, P Geo (GeoSim Services Inc.)• Herbert E. Welhener, MMSA – QPM (Independent Mining Consultants Inc.)• Bruno Borntraeger, P. Eng (Knight Piesold Ltd.)• Ignacy (Tony) Lipiec, P. Eng (AMEC)• Ramon Mendoza Reyes, P. Eng (AMEC)Mark Petersen, C.P.G., is also responsible for approving the technical information in this presentation that is not related to the PEA Report. Other than Mark Petersen, who is an employee ofNew Gold, each of the qualified persons listed above are independent of New Gold. Blackwater PEA Investor/Analyst Breakfast | September 2012 3 3
  • 4. Cautionary statement (cont’d)(1) TOTAL CASH COSTS“Total cash costs” per ounce figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold productsand included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash costs of production inNorth America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports totalcash costs on a sales basis. Total cash costs includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is exclusive of amortization,reclamation, capital and exploration costs. Total cash costs is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-product cash costs of sales. Themeasure, along with sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from its mining operations. This data is furnished to provideadditional information and is a non-IFRS measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measurespresented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicativeof operating costs presented under IFRS.(2) PEA – ADDITIONAL CAUTIONARY NOTEThis note regarding the preliminary economic assessment (PEA) is in addition to cautionary language already included within the presentation as required under NI 43-101. The PEA ispreliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them tobe categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not havedemonstrated economic viability. Blackwater PEA Investor/Analyst Breakfast | September 2012 4 4
  • 5. Preliminary Economic Assessment Cautionary LanguageThe PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculativegeologically to have the economic considerations applied to them that would enable them to be categorized asMineral Reserves, and there is no certainty that the PEA based on these Mineral Resources will be realized.Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Blackwater PEA Investor/Analyst Breakfast | September 2012 5 5
  • 6. Discussion topics Introduction Randall Oliphant PEA Review Paul Hosford Next Steps Bob Gallagher Continued Exploration Mark Petersen Conclusion Randall Oliphant Blackwater PEA Investor/Analyst Breakfast | September 2012 6 6
  • 7. Introduction Blackwater PEA Investor/Analyst Breakfast | September 2012 7 7
  • 8. Blackwater overview BLACKWATER ENHANCES NEW GOLD’S PORTFOLIO IN MULTIPLE WAYS Asset of world-class scale Robust project economics Excellent jurisdiction Excitement of new discoveries/continued exploration upside Potential to increase value – from exploration through production Blackwater PEA Investor/Analyst Breakfast | September 2012 8 8
  • 9. Experienced project team Chief Executive Officer • Over 32 years in the mining industry in leadership roles with Placer Dome, Newmont Mining and New Gold Robert Gallagher Chief Financial Officer • Over 23 years of experience in mine finance and accounting in leadership roles with Kinross, Western Goldfields and Silver Bear Resources Brian Penny VP Operations • Over 25 years in the mining industry in leadership roles with Inmet, Xstrata, Noranda and Falconbridge Ernie Mast VP Exploration • 28 years in minerals exploration in roles ranging from corporate management, project Mark Petersen evaluations and acquisitions, generative exploration and project management Project Director • Over 30 years in the mining industry primarily with Placer Dome and Terrane Metals Peter Marshall • Civil engineer with experience in feasibility management and project development • 30 years mining industry experience in operations and engineering, primarily with Barrick,Feasibility Study Director Hatch and Terrane Metals Paul Hosford • Metallurgical engineer with experience in project management of feasibility studies and EPCM • Led successful permitting and environmental construction aspects of Mt. Milligan Copper- Environmental Director Gold Mine in British Columbia Tim Bekhuys • Experienced in community and First Nations engagement Blackwater PEA Investor/Analyst Breakfast | September 2012 9 9
  • 10. Preliminary Economic Assessment (“PEA”) in review (1) Base Case Spot Case Gold Price (US$/oz) $1,275 $1,600 $1,775 $1,800 Silver Price (US$/oz) $22.50 $30.00 $34.50 $35.00 US$/CDN$ Foreign Exchange 0.94 0.97 1.00 1.00 5% NPV ($ billions) (2015) Pre-tax NPV 1.7 3.3 4.2 4.3 After-tax NPV 1.1 2.2 2.8 2.9 IRR (%) Pre-tax IRR 16.4 25.9 30.4 31.1 After-tax IRR 14.0 22.0 25.8 26.4 Payback period (years) Pre-tax payback period 4.7 3.0 2.6 2.5 After-tax payback Period 4.8 3.1 2.7 2.6 Highlights • Initial gold production targeted for 2017 • First five years – average annual gold production of 569,000 ounces at total cash costs (1) per ounce sold, net of by product sales, of $467 per ounce • Life-of-mine gold and silver production, inclusive of low grade stockpile, of 6.2 and 18.6 million ounces from the Indicated category and 1.8 and 13.5 million ounces from the Inferred category, respectively – $1.00 per ounce change in silver price assumption equates to ~$4 per ounce change in total cash costs (1) Blackwater expected to generate solid economic returns in current capital cost environment, even when using a long-term gold price assumption of US$1,275 per ounceNote: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 10 10
  • 11. Production and total cash costs(1) Gold production Base Case cash costs 700 $1,000 $900 600 $800 500 $700 Production (thousand ounces) Total cash costs ($/oz) $600 400 $500 300 $400 $300 200 $200 100 $100 - $0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Average First 5 Years Average First 15 Years 569,000 ounces gold at 507,000 ounces gold at $467 per ounce(1) $536 per ounce(1)Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 11 11
  • 12. Perspectives on capital costs • Blackwater development capital After-tax IRR (%)(1)(2) cost of $1.8 billion inclusive of 24%, or $346 million, contingency Gold price ($/oz) – $227 per recoverable ounce $1,275 $1,600 $1,775 $1,800 • Costed in mid-2012 capital environment assuming parity Development capital ($ billions) $1.5 18.1% 27.5% 31.8% 32.5% foreign exchange rate • Capital intensity may be abating $1.6 16.6% 25.4% 29.6% 30.2% • Large diversified companies, accounting for ~55% of global $1.7 15.2% 23.6% 27.6% 28.2% capital, delaying certain projects • Oil sands project expansions also $1.8 14.0% 22.0% 25.8% 26.4% being delayed • Each $100 million change in development capital equates to a ~$100 million change in NPV New Gold could benefit from announced delays in capital projects of major companiesNote: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. 2. IRR calculated to beginning of construction period in 2015. Blackwater PEA Investor/Analyst Breakfast | September 2012 12 12
  • 13. Total acquisition cost (“TAC”) • Acquisition costs of $602(1) million Total Acquisition Cost per Ounce based on: Total – Richfield - $470 million ($mm) $ Per Ounce (2) – Silver Quest - $114 million Total Acquisition costs to date $602 $75 – Geo Minerals - $18 million Development capital $1,814 $227 Life-of-mine sustaining capital $537 $67 • Total acquisition cost of $912 per Life-of-mine average cash costs ($/oz) (3) $543 ounce below recent industry Total acquisition cost ($/oz) $912 comparable transactions – Further potential to decrease Spot gold price ($/oz) $1,775 break-even gold price with continued resource expansion (Discount)/Premium to spot gold (49%) Break-even gold price $912Notes: 1. Per 2011 Annual financial statements. 2. Per ounce calculations based on 6.2 million ounces from the Indicated category and 1.8 million ounces from the Inferred category. 3. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 13 13
  • 14. PEA Review Blackwater PEA Investor/Analyst Breakfast | September 2012 14 14
  • 15. Blackwater Project – South Central British Columbia British Columbia, Canada Blackwater New Afton Blackwater PEA Investor/Analyst Breakfast | September 2012 15 15
  • 16. Blackwater Project – South Central British Columbia Power Line Railway Power Line Blackwater PEA Investor/Analyst Breakfast | September 2012 16 16
  • 17. Blackwater – South Central British Columbia ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George50km Current resource grid 80km Blackwater PEA Investor/Analyst Breakfast | September 2012 17 17
  • 18. Blackwater Project – South Central British Columbia Summer 2012 Blackwater PEA Investor/Analyst Breakfast | September 2012 18 18
  • 19. Blackwater Project overview• Start of production in 2017• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant• Life-of-mine strip ratio of 2.36 to 1• Low grade stockpiling strategy• Simple, conventional flowsheet using whole ore leach process• Life-of-mine gold and silver recoveries of 87% and 53%, respectively• Conventional waste rock and Tailings Storage Facility• Power supply from the hydroelectric power grid, via 133 kilometre transmission line• Minimal off-site infrastructure required – Good existing access road; water supply within 15 kilometres• Low environmental risk and facility designed for closure Blackwater PEA Investor/Analyst Breakfast | September 2012 19 19
  • 20. Site overview Blackwater PEA Investor/Analyst Breakfast | September 2012 20 20
  • 21. PEA resource summary• The deposit contains an Indicated mineral resource of 267 Mt at 0.88 g/t Au and 4.3 g/t Ag and an Inferred mineral resource of 121 Mt at 0.69 g/t Au and 7.3 g/t Ag at a base case lower cut-off of 0.30 gram per tonne gold equivalent• Mineral estimate is CIM 2010 compliant and prepared under Canadian National Instrument 43-101 – Based upon geologic block model that incorporated over 147,282 individual assays from 168,709 metres of diamond drill core in 449 drill holes – Average drill hole spacing of approximately 50 metres is sufficient to support mineral resource estimation up to the Indicated category• Mineral resource includes drill data received through May 14, 2012 Blackwater Project PEA Mineral Resource Estimate Indicated Mineral Resource Inferred Mineral Resource AuEq AuEq Cut-off Tonnes Au Ag Au Ag Cut-off Tonnes Au Ag Au Ag (g/t) (Mt) (g/t) (g/t) (Moz) (Moz) (g/t) (Mt) (g/t) (g/t) (Moz) (Moz) 0.25 280.4 0.85 4.2 7.64 37.9 0.25 128.6 0.66 7.0 2.72 28.9 0.30 267.1 0.88 4.3 7.52 36.9 0.30 120.5 0.69 7.3 2.66 28.3 0.40 230.6 0.96 4.6 7.14 34.1 0.40 98.9 0.77 7.8 2.45 24.8 Notes: 1. Mineral Resource Estimate has an effective date of July 27, 2012 and was prepared by Ronald G. Simpson, P Geo. 2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 3. Mineral Resources are amenable to open pit mining methods as defined by a Lerchs-Grossmann optimized pit simulation. 4. The Lerchs-Grossmann optimized pit is based on assumptions that include US$/CDN$ parity foreign exchange rate, 83.6% Au recovery, 44.9% Ag recovery, $1.52/tonne mining cost, $1.90/tonne waste mining cost, $10.52/tonne process and G&A cost. No allowances have been made for mining losses and dilution. The average pit slope angle is assumed to be 40°. 5. The base case gold equivalent (AuEq) cut-off (bolded) is greater than the conceptual marginal cut-off of 0.23 g/t. 6. AuEq = $24/oz Ag x 44.9% / $1,300/oz x 83.6%. 7. Gold analyses are performed by fire assay/AA finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICP analyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses. 8. Rounding as required by reporting guidelines has been used, and totals may not sum. Blackwater PEA Investor/Analyst Breakfast | September 2012 21 21
  • 22. PEA base case assumptionsGold price (US$/oz) $1,275 • PEA commodity prices represent aSilver price (US$/oz) $22.50 significant discount to current spot prices:Foreign exchange rate CAD$1.00 = US$0.94 – Gold: ~$500 per ounce (~28%)Diesel price ($/L) $0.98 below current gold priceAverage electricity rate (kWh) C$0.044Capital contingency 24% or $346 million – Silver: ~$12 per ounce (~35%) below current silver priceNPV calculation Calculated to 2015 (construction start)• Mineral resources have been constrained using a Lerchs-Grossman optimized pit using ordinary kriging – Pit slope – 40 degrees• Mineral resource is grade shell contained estimate – Resource samples were capped at 40 g/t gold and 150 g/t silver• Mine production schedule incorporates an elevated cut-off grade strategy during the first five years to raise the mill feed grade• Block model was created in Gemcom-Surpac Vision software using a block size with dimensions of 10m x 10m x 10m Blackwater PEA Investor/Analyst Breakfast | September 2012 22 22
  • 23. Blackwater PEA costs - CapitalProject Development Capital Costs • Project is located 112 kilometres southwestDescription Cost ($ million) from Vanderhoof and has access to low cost hydroelectric powerDirect CostsMining & Pre-production Development $208 • Development capital estimate of $1.8 billion is inclusive of a 24% or $346 millionOn Site Infrastructure $181 contingencyProcess $539 • Development capital estimated based on theTailing and Water Reclaim $74 current cost environmentInfrastructure (Power, Water, Road) $85Total Direct Costs $1,087 – A parity foreign exchange rate was assumed and the capital estimate wasOwners and Indirect Costs held constant in the economic analysisOwners Costs $54 • Sustaining capital of $537 million, reclamationEPCM $112 and closure costs of $95 million and $72 millionOther Indirects $215 in equipment salvage valueTotal Owners and Indirect Costs $381Subtotal $1,468 Total development and sustainingContingency (24%) $346 capital estimated at $294 perTotal Project $1,814 recoverable gold ounce Blackwater PEA Investor/Analyst Breakfast | September 2012 23 23
  • 24. Blackwater PEA costs - Operating Mining Costs Project Operating Costs 4% 4%2% Hauling Area Unit Cost (C$/t milled) $ per gold ounce produced 4% Auxiliary Mining $6.21 $259 6% Blasting G&A Processing $7.59 $317 9% Drilling 59% General and Administrative $0.95 $40 11% Loading General Maint. Royalty (0.6%) $0.18 $8 General Mine Refining $0.23 $9 Silver by-product sales at $22.50 per ounce silver ($2.16) ($90) Processing Costs 1% Reagents Total cash costs(1) net of by-product sales $13.01 $543 6% 8% Grinding Total Cash Costs (1) Schedule Media/liners Electricity 17% 44% Production Years $ per gold ounce produced Labour Years 1 through 5 $467 Maint materials 24% Years 1 through 15 $536 Water Supply Years 16 through 17 $678 Life-of-mine $543 Blackwater’s location near infrastructure, low stripping ratio, access to low cost power and silver by-product revenue expected to result in the Project having well below industry average cash costsNote: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 24 24
  • 25. Production and cash costs profile Life-of-mine Gold production – 489koz Total cash costs - $543/oz Years 1 through 5 Years 1 through 15 Years 16 through 17 Gold production – 569koz Gold production – 507koz Gold production – 296koz Total cash costs - $467/oz Total cash costs - $536/oz Total cash costs - $678/oz 700 $1,000 Gold production Base Case cash costs 600 $750 500 Gold production (thousand ounces) Total Cash Costs ($/oz) (1) 400 $500 300 200 $250 100 - - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 25 25
  • 26. PEA highlights(1) PEA Results Base Case Spot Case Gold Price (US$/oz) $1,275 $1,775 Silver Price (US$/oz) $22.50 $34.50 US$/CDN$ Foreign Exchange 0.94 1.00 After-tax NPV(5%) ($ billions) $1.1 $2.8 After-tax IRR 14.0% 25.8% After-tax payback period (years) 4.8 2.7 Operating cash flow ($ millions) Base Case Spot Case $900 • Average spot case $750 cash flow during first Operating cash flow five years of ~$655 $600 million $450 • Cumulative spot case $300 cash flow during first five years of ~$3.3 $150 billion $0 2017 2018 2019 2020 2021Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 26 26
  • 27. Areas of optimization Potential for expansion of the resource to the north and to depth Further geotechnical drilling to assess the possibility of steepening pit slopes Potential to reduce mining costs through mine plan optimization Optimizing process flowsheet Blackwater PEA Investor/Analyst Breakfast | September 2012 27 27
  • 28. Next Steps Blackwater PEA Investor/Analyst Breakfast | September 2012 28 28
  • 29. Environment and permittingThe site has no significant environmental constraints Agreements are in place with key First Nations Preparations have started for environmental assessment and permitting approval processEnvironmental assessment approval anticipated for second half of 2014 Building on strong community and First Nations relations as demonstrated at New Afton Blackwater PEA Investor/Analyst Breakfast | September 2012 29 29
  • 30. Project timeline • Remains unchanged from mid-2011 2012 2013 2014 2015 2016 2017 Development activity H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 First Nations & Public Consultation Drilling Preliminary Economic Assessment Base Line Environmental Studies Project Description/Terms of Reference Environmental Assessment Reports Provincial Approval Federal Approval Feasibility Study Engineering Procurement Construction Production Target Reflects critical path in timelineNote: 1. Indicative timeline is dependent on continued exploration success, permit approvals and the determination that the deposit is economically viable. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage. Blackwater PEA Investor/Analyst Breakfast | September 2012 30 30
  • 31. Continued exploration Blackwater PEA Investor/Analyst Breakfast | September 2012 31 31
  • 32. July 2012 – Updated mineral resource • Based on 449 core holes totaling 147,282 meters drilled from 2009 through May 14, 2012 • ~30% step-out holes and ~70% infill holes Indicated Resource • Majority of holes drilled to 400 meter depth – Mineralization open at depth in some areas 267Mt at 0.88 g/t for – System also remains open to north 7.5 Moz • Drilled an additional 100,363 metres in 377 holes since mid-May cut-off Blackwater Project PEA Mineral Resource Estimate Indicated Mineral Resource Inferred Mineral Resource Inferred Resource AuEq AuEq Cut-off Tonnes Au Ag Au Ag Cut-off Tonnes Au Ag Au Ag (g/t) 0.25 (Mt) 280.4 (g/t) 0.85 (g/t) 4.2 (Moz) (Moz) 7.64 37.9 (g/t) 0.25 (Mt) 128.6 (g/t) 0.66 (g/t) 7.0 (Moz) (Moz) 2.72 28.9 121Mt at 0.69 g/t for 0.30 0.40 267.1 230.6 0.88 0.96 4.3 4.6 7.52 7.14 36.9 34.1 0.30 0.40 120.5 98.9 0.69 0.77 7.3 7.8 2.66 2.45 28.3 24.8 2.7 MozNotes:1. Mineral Resource Estimate has an effective date of July 27, 2012 and was prepared by Ronald G. Simpson, P Geo.2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.3. Mineral Resources are amenable to open pit mining methods as defined by a Lerchs-Grossmann optimized pit simulation.4. The Lerchs-Grossmann optimized pit is based on assumptions that include US$/CDN$ parity foreign exchange rate, 83.6% Au recovery, 44.9% Ag recovery,$1.52/tonne mining cost, $1.90/tonne waste mining cost, $10.52/tonne process and G&A cost. No allowances have been made for mining losses and dilution. Theaverage pit slope angle is assumed to be 40°.5. The base case gold equivalent (AuEq) cut-off (bolded) is greater than the conceptual marginal cut-off of 0.23 g/t.6. AuEq = $24/oz Ag x 44.9% / $1,300/oz x 83.6%.7. Gold analyses are performed by fire assay/AA finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICPanalyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses.8. Rounding as required by reporting guidelines has been used, and totals may not sum. Blackwater PEA Investor/Analyst Breakfast | September 2012 32 32
  • 33. Blackwater PEA mineral resource NW Silver Zone Sxn 5893,500N SW Breccia Pipe Sxn 375,000E Blackwater PEA Investor/Analyst Breakfast | September 2012 33 33
  • 34. Blackwater exploration upside opportunitiesSection 5893,500N Gold Section 375,000E NW ‘Silver Zone’ SW Breccia Pipe Blackwater PEA Investor/Analyst Breakfast | September 2012 34 34
  • 35. Blackwater exploration upside opportunities (cont’d)Section 5893,500N Silver Section 375,000E NW ‘Silver Zone’ SW Breccia Pipe Blackwater PEA Investor/Analyst Breakfast | September 2012 35 35
  • 36. Blackwater feasibility study drilling program NW Silver Zone SW Breccia Pipe Blackwater PEA Investor/Analyst Breakfast | September 2012 36 36
  • 37. Blackwater land positionProject Area – September 2012 2011 June to December Capoose Capoose property Blackwater property Blackwater Auro Property Blackwater PEA Investor/Analyst Breakfast | September 2012 37 37
  • 38. 2012 exploration program  Delineate Blackwater resource to M&I level  BW area – Exploration / Condemnation drilling  Capoose area – Test potential to expand resource  Reconnaissance mapping and sampling – Planned on all properties Capoose Capoose property MYAB Area Blackwater property Blackwater Auro Property Blackwater PEA Investor/Analyst Breakfast | September 2012 38 38
  • 39. 2012 exploration/condemnation program 2012 Progress • 58 holes totaling 23,639 metres YTD • Program ~50% complete • Favorable volcanics, alteration and mineralization being intercepted northwest of Blackwater • Drilling northeast of Blackwater pending 2013 Program • Complete remaining ~15,000 meters by end Q1’13 • Follow up on areas of interest • Freeze and/or modify project siting and infrastructure footprint by end Q3’13 Blackwater PEA Investor/Analyst Breakfast | September 2012 39 39
  • 40. Capoose exploration  Explored potential to expand resource laterally and at depth1,800m  Completed 22 holes totaling 10,894 metres  Significant mineralization intercepted south and below known resource  Known resource sits within larger footprint of favorable volcanic stratigraphy, Assays pending alteration and mineralization extending 1.5-2 kilometre north and south1,600m 0.15 g/t Au, 24.4 g/t Ag 74m Assays pending Capoose1,400m Resource 0.77 g/t Au, 7.2 g/t Ag GradeShell 78m1,800m Sxn 5905,700N1,600m Sxn 5905,650N 0.78 g/t Au, 4.4 g/t Ag 80m1,400m Assays pending 0.24 g/t Au, 21.5 g/t Ag 25 m Blackwater PEA Investor/Analyst Breakfast | September 2012 40 40
  • 41. 2012 property wide reconnaissance  Gold-in-till sampling over ~750 km2 area  Soil geochem sampling over ~237 line-km >1000 ppb Au  Geologic reconnaissance mapping over 125 km2 500-1000 ppb Au 250-500 ppb Au 50-250 ppb Au Capoose Blackwater Blackwater PEA Investor/Analyst Breakfast | September 2012 41 41
  • 42. Conclusion Blackwater PEA Investor/Analyst Breakfast | September 2012 42 42
  • 43. What Blackwater means to New Gold World class asset in South Central BC Robust Project  8 million recoverable gold ounces today  Well below industry average cash costs  Solid economics even with conservative gold price assumptions Blackwater New Afton Experienced Management Team • New Gold teams who successfully delivered• Very few new discoveries of Blackwater’s Cerro San Pedro, Mesquite and New Afton scale in North America/Mexico in last five further supplemented by former Mount years Milligan permitting team• Blackwater a new discovery in an underexplored district with excellent Continued Exploration Upside infrastructure • Blackwater remains open, plus Capoose and regional targets Blackwater PEA Investor/Analyst Breakfast | September 2012 43 43
  • 44. Accretive resource growth Acquisition Cost 7.5Moz GOLD $602 million ~11% of current market capitalization & 36.9Moz Silver Blackwater accounts for 36% and 29% of New Gold’s consolidated gold and silver Measured & Indicated resources, respectively Blackwater PEA Investor/Analyst Breakfast | September 2012 44 44
  • 45. Building presence in British Columbia British Columbia Measured & Indicated Resources Gold Silver Copper 9.3Moz 42.4Moz 1.6Blbs British Columbia Gold Production and Total Cash Costs(1)(2) Blackwater and New Afton Combined cash costs 800 $250 Gold production (thousand ounces) 700 Combined cash costs ($/oz) $200 600 500 $150 400 300 $100 200 $50 100 - $0 2017 2018 2019 2020 2021Note: 1. Blackwater production and cash costs based on PEA and New Afton production and cash costs based on latest Technical Report and New Gold assumptions. 2. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast | September 2012 45 45
  • 46. Solid production profile• El Morro and Blackwater expected to more than double New Gold’s gold production by 2017 at low cost 1,000 800 Gold production (thousand ounces) 600 ~450 - 500 405 - 445 400 387 200 2011A 2012E 2013E 2017E Blackwater PEA Investor/Analyst Breakfast | September 2012 46 46
  • 47. Cash flow generation potential Operating Cash Flow ($ millions) $1,200 $900 $600 $300 - 2011A 2013E 2015E 2017ENote: 1. 2013E, 2015E and 2017E at spot commodity prices of $1,775/oz gold, $34.50/oz silver, $3.75/lb copper. Blackwater PEA Investor/Analyst Breakfast | September 2012 47 47
  • 48. 2012 – A year of catalysts Blackwater resource update New Afton production start El Morro litigation decision Further Blackwater PEA resource update New Afton commercial production Blackwater PEA New Afton mill achieving design capacity El Morro engineering/development planning Blackwater/New Afton exploration Blackwater PEA Investor/Analyst Breakfast | September 2012 48 48
  • 49. The New Gold investment thesis EXPERIENCED BOARD AND MANAGEMENT FULLY FUNDED COMPANY WITH STRONG BALANCE SHEETDIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY PRODUCTION GROWTH/MARGIN EXPANSION INCREASING UNDERLYING ASSET VALUE MULTIPLE CATALYSTS COMPELLING INVESTMENT PROPOSITION Blackwater PEA Investor/Analyst Breakfast | September 2012 49 49