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Corporate presentationnovember232012 Corporate presentationnovember232012 Presentation Transcript

  • Scotiabank – Mining Conference 2012 | Toronto November 27-29, 2012
  • 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 obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EISand Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to foreign legal systems, which maynot 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 thecompany is or may become a party to,; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration orreclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineralproperties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusualor 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 "RiskFactors" included in New Golds disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results andfuture 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 accordancewith applicable securities laws. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 2 2
  • 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 INFORMATIONThe scientific and technical information in this presentation has been reviewed by Mark Petersen, a Qualified Person under National Instrument 43-101 and an employee of New Gold.(1) TOTAL CASH COSTS“Total cash costs” per ounce figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold 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 cost 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 are reduced by any by-product revenue and are then divided by ounces sold to arrive at the total by-product cash costs of sales.The measure, along with sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from its mining operations. This data is furnished toprovide additional information and is a non-IFRS measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparable to similarmeasures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarilyindicative of operating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.(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 BlackwaterPEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enablethem to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do nothave demonstrated economic viability. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 3 3
  • The evolution of New Gold Successfully commissioning New Afton Further strengthening team History of accretive growth Developing world-class assets Growing resources Doubling gold productionTrack record of delivering on plans organically Lowering costs, expanding margins and increasing cash flow Increasing net asset value Blackwater – Summer 2012 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 4 4
  • History of accretive growth NGD Gold Price S&P/TSX Gold Index FTSE Gold Mines Index HUI Index 500% 450% Closing of Richfield acquisition 400% 350% +250% Completed $1.2bn business 300% combination with Western Goldfields 250% 200% +80% 150% +16% 100% (1%) 50% (4%) 0% 25-Sep-11 1-Jun-09 20-Oct-09 21-Nov-12 7-May-11 3-Jul-12 17-Dec-10 10-Mar-10 29-Jul-10 13-Feb-12 23-Nov-12Source: 1. Bloomberg. All amounts in USD.Note: 2. S&PTSX Gold Index includes 59 gold companies in various stages of development/production. 3. FTSE Gold Mines Index includes 26 gold producing companies. 4. HUI Index includes 15 of the major global gold producers. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 5 5
  • Project development and operational execution Gold production(1) (000s ounces) 450 400 405-445 350 383 387 300 250 302 200 233 150 100 50 0 2008 2009 2009 2010 2010 2011 2011 2012 Actual Guidance Actual Guidance Actual Guidance Actual Guidance Total cash cost(1)(2) ($/oz) $600 $500 $566 $400 $465 $446 $418 $410-430 $300 $200 $100 $0 2008 2009 2009 2010 2010 2011 2011 2012 Actual Guidance Actual Guidance Actual Guidance Actual Guidance Successfully brought Cerro San Pedro, Mesquite and New Afton into production on, or ahead of, scheduleNotes: 1. Refer to Cautionary Statement and note on Total cash cost. 2. 2009 and 2008 costs shown based on Canadian GAAP. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 6 6
  • Management and Board of DirectorsEXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORSRandall Oliphant, Executive Chairman David Emerson, Former Canadian Cabinet MinisterRobert Gallagher, President & CEO James Estey, Former Chairman UBS Securities CanadaBrian Penny, Executive VP and CFO Robert Gallagher, President & CEOErnie Mast, VP Operations Vahan Kololian, Founder Terra Nova Partners Martyn Konig, Former Executive Chairman European Goldfields• Board and Management hold 15 million shares of Company Pierre Lassonde, Chairman Franco-Nevada – ~$155 million investment Randall Oliphant, Executive Chairman Raymond Threlkeld, CEO Rainy River Resources Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 7 7
  • Capitalization and liquidity • New Gold has simplified its Balance Sheet and significantly increased its financial flexibility during 2012 – April 2012 – completed 7.00% $300 million senior notes offering and redemption of prior 10% senior secured notes – November 2012 – completed 6.25% $500 million senior notes offering – November 2012 – completed early redemption/conversion of 5% C$55 million convertible debenture • All debt now due in 2020 or beyond(1) • Total shares outstanding of 469 million TOTAL LIQUIDITY ($ millions) $100 HIGHEST LIQUIDITY IN $491 $739 COMPANY’S HISTORY $148 September 2012 Proceeds from Undrawn Credit Facility Cash and Equivalents(1) November Notes(2)Notes: 1. Cash and debt positions as of September 30, 2012. See Appendix 1 for detailed breakdown of components of debt. 2. Net proceeds from $500 million from November 14, 2012 high yield notes offering. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 8 8
  • Growing resource base in solid jurisdictions Measured & Indicated Gold Resources per 1,000 shares M&I Resources(2): 20.9 Moz 50 40 Blackwater 30 New Afton 20 Cerro San Pedro Mesquite 10 - (1) 2009 2010 2011 Today El Morro(3) Track record of increasing M&I gold resources on a ‘per share’ basis Operating assets Peak Mines Development projectsNotes: 1. Excludes resources from Amapari which was sold in April 2010. 2. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves, and Capoose Indicated Resources of 384koz. 3. New Gold holds a fully carried 30% interest in the El Morro project. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 9 9
  • Cost trends: New Gold versus industry(1)(2) $700 $643 $600 Total Cash Costs (US$/oz)(2) $557 $566 $500 $478 $464 $465 $446 $400 $418 $410-$430 $300 2008 2009 2010 2011 2012E New Gold provides leverage to gold price Margin +241% (US$/oz) $297 $1,014 Gold price +69% (US$/oz) $863 $1,460Notes: 1. Industry data per GFMS reports calculated net of by-product credits. 2. Refer to Cautionary Statement and note on Total cash cost. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 10 10
  • Key metrics trending in the right direction 2012 Gold Production (thousand ounces) • New Afton production start 120 105 and strong performance of 100 99 95 three other operations 80 60 drives best quarter of 2012 40 20 - Q112 Q212 Q312 • Fourth quarter should be 2012 Total Cash Costs, net of by-product sales ($/ounce)(1) even stronger $600 $543 $472 • Company, once again, on $400 $443 track to achieve both production and cost $200 Q112 Q212 Q312 guidance 2012 Average Realized Margin ($/ounce)(2) $1,200 $1,117 $1,032 $1,014 $900 $600 Q112 Q212 Q312Notes: 1. Refer to Cautionary Statement and note on Total cash cost. 2. Margin per ounce calculated as average realized gold price in 2012 third quarter less total cash cost per ounce during 2012 third quarter. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 11 11
  • New Afton - Successfully commissioned Reserves(1) Highlights • Located 10 kilometres from Kamloops, British Gold Copper Columbia • Dedicated labour force 1 Moz 1 Blbs • Commercial and full production achieved ahead of schedule Production and Costs • ~One year of active underground operations 2012 Production(2) 2012 Cash Costs(3) • Potential to double New Gold’s cash flow at Gold today’s prices 35-45Koz ~($1,250)/oz by-product Copper ~$640/oz co-product(4) 30-35Mlbs ~$1.40/lb LOM Production LOM Cash Costs(3) Gold 85Koz ($1,750)/oz by-product Copper $525/oz co-product(4) Extracting ore from underground 75Mlbs $1.15/lbNotes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Production includes all production including the gold and copper produced prior to commercial production. 3. Refer to Cautionary Statement and note on Total cash cost. 4. Co-product cash cost calculated based on relative percentage of gold and copper revenue, respectively. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 12 12
  • New Afton – Looking to unlock additional value Value Enhancement Opportunities C-Zone exploration Mill building Mill optimization beyond 11,000 tpd Regional exploration – 111km2 land packageConveyor Ore stockpile Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 13 13
  • El Morro (30%) – A world class project El Morro (30%) Gold Reserve(1) 2.5 Moz Copper Reserve(1) 1.9 Blbs • On June 27, 2012 Ontario Superior Court of Justice validated New Gold/Goldcorp partnership at El Morro Location Chile • Capital fully-funded by 70% partner Goldcorp Mine type Open Pit • 1.2 Moz inferred gold resource at higher gold and Reserves1 – Gold/Copper (Moz/Mlbs) 2.5/1,868 copper grades in deeper portion of La Fortuna deposit Resources1 – Gold/Copper (Moz/Mlbs) 3.0/2,193 • Current Resource entirely within La Fortuna deposit Estimate mine life 17 years • Neighbouring El Morro deposit underexplored LOM production/yr (Au koz/Cu Mlbs)2 90/85 • Addressing recent temporary suspension of LOM cash cost/oz co-product (Au/Cu)3 $550/$1.45 environmental permitNotes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves. El Morro Reserves and Resources shown on attributable 30% basis. 2. Refer to Cautionary Statements. 3. Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs based $1,200/oz gold and $2.75/lb copper. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 14 14
  • Blackwater – A robust project Blackwater Preliminary Economic Assessment Indicated/Inferred Gold Resource(1) 7.5 Moz/ 2.7 Moz Average Annual Gold Production(3) 507,000 ounces Average Total Cash Costs(3) $536 per ounce • Consolidated significant land position – 1,000km2 • Year-round accessibility for drilling/development Location Canada • Central British Columbia near infrastructure Proposed mine type Open Pit • Ability to fund continued exploration/development M&I Resources1 – Gold/Silver (Moz) 7.5/36.9 internally Inferred Resources1 – Gold/Silver (Moz) 2.7/28.3 – Development capital $1.8 billion including 24%, or $346 million contingency Targeted production2 2017 • Tax synergies with New AftonNotes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Blackwater start date based on indicative timeline which is dependent on continued exploration success, environmental approvals and the determination that the deposit is economically viable. 3. Averages based on first 15 years of production. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 15 15
  • Blackwater – Project overview• Start of production in 2017• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant• Life-of-mine strip ratio of 2.36 to 1• Low grade stockpiling strategy• Simple, conventional flowsheet using whole ore leach process• Life-of-mine gold and silver recoveries of 87% and 53%, respectively• Conventional waste rock and Tailings Storage Facility• Power supply from the hydroelectric power grid, via 133 kilometre transmission line• Minimal off-site infrastructure required – Good existing access road; water supply within 15 kilometres• Low environmental risk and facility designed for closure Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 16 16
  • Preliminary Economic Assessment (“PEA”) in review (1) Spot Case Base Case September 20, 2012 Gold Price (US$/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 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. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 17 17
  • Blackwater – Area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George50km Current resource grid 80km Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 18 18
  • Blackwater – Indicative timeline • Remains unchanged from mid-2011 targeted timeline 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 timelineNotes: 1. Indicative timeline is dependent on permit approvals. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 19 19
  • A future of growth• 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 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 20 20
  • Net asset value per share appreciation Net Asset Value(1) $15.00 High Share price ~1.5x 6/1/09 Today NAVPS Closing of Current Richfield ~0.9x $13.00 P/NAV acquisition Mesquite, Cerro San Pedro, Peak $11.00 High ~ $875 $1,775 Completed $1.2bn ~1.5x US$ NAV and Share price business combination with Western Goldfields New Afton $9.00 High ~ $120 $1,491 ~1.5x $7.00 Low ~0.7x El Morro(2) High $5.00 ~1.5x ~ $40 $707 356% increase in NAVPS $3.00 Blackwater(3) 250% increase in share price $-- $1,451 $1.00 25-Sep-11 1-Jun-09 20-Oct-09 7-May-11 3-Jul-12 17-Dec-10 21-Nov-12 10-Mar-10 29-Jul-10 13-Feb-12 23-Nov-12Source: Broker Reports, Company Estimates and Announcements, Bloomberg.Notes: 1. Street consensus NAV. 2. Current street consensus NAV for El Morro; Includes $50mm cash payment received from Goldcorp as part of transaction consideration. 3. New Gold purchased Richfield for C$480 million and Silver Quest for C$110 million. The deals closed on June 1, 2011 and December 23, 2011, respectively. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 21 21
  • Catalysts and key initiatives 2014 Blackwater Regional/Capoose Resource Update SECOND HALF 2013 New Afton C-Zone Resource Update Blackwater Regional/Capoose Evaluation of New Afton Mill Exploration Updates Expansion FIRST HALF 2013 El Morro New Afton C-Zone Exploration Exploration/Development New Afton Regional 2012 Full Year Results Exploration El Morro Permitting 2013 Guidance ResolutionsReserve & Resource Update Blackwater Feasibility Study Exploration Updates Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 22 22
  • 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 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 23 23
  • Appendix Appendices Page 1. Financial information 25 2. Operating performance 30 3. New Afton 33 4. El Morro 38 5. Blackwater 41 6. Reserves and resource notes 60 7. Commodity price/foreign 65 exchange assumptions Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 24 24
  • Appendix 1 Summary of debt Undrawn Credit Senior Notes Senior Notes Convertible El Morro Facility (April 2012) (November 2012) Debentures Funding Loan Face Value $150 million(1) $300 million $500 million C$55 million $56 million Maturity 3 years with annual April 15, 2020 November 15, 2022 June 28, 2014 n/a extensions permitted Interest Rate See ‘Key features’ 7% 6.25% 5% 4.58% Payable Revolving credit Semi-annually Semi-annually Semi-annually Upon start of production Conversion price n/a n/a n/a C$9.35 n/a Current trading n/a ~106 ~100.6 ~$102 n/a value Key features Normal financial • Senior unsecured • Senior unsecured Redeemable after New Gold to covenants • Redeemable after • Redeemable after January 1, 2012 repay Goldcorp April 15, 2016 at November 15, 2017 with between 30 out of 80% of its Interest Rate 103.5% down to at par plus half and 60 days notice 30% share of • 3% over LIBOR 100% of face after coupon, declining provided shares cash flow once El based on ratios 2018 ratably to par trading over Morro starts • Standby fee of • Unlimited dividends • Unlimited dividends C$11.69 production 0.75% if leverage ratio if leverage ratio below 2:1 below 2:1Notes: 1. $50 million currently allocated for Letters of Credit. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 25 25
  • Appendix 1 Trend of expanding margins continues $1,800 $1,575 $1,560 $1,600 $1,460 $1,486 $1,032 $1,117 $1,400 $1,014 $1,014 Realized gold price $1,194 (US$/oz) $1,200 $987 $766 Margin (US$/oz) $1,000 $863 US$/oz $522 Cash Cost(1) $800 $297 (US$/oz) $600 $566 $543 $400 $465 $446 $472 $443 $428 $200 $0 2008A 2009A 2010A 2011A Q112 Q212 Q312Note: 1. Refer to Cautionary Statement and note on Total cash cost. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 26 26
  • Appendix 1 2012 third quarter financial highlights Earnings from Mine Operations Adjusted Net Earnings per Share ($ millions) ($ per share)$100 $0.15 $77 $76 $78 $76 $0.11 $75 $0.10 $0.10 $0.10 $0.09 $50 $0.05 $25 - - Q312 Q212 Q112 Q311 Q312 Q212 Q112 Q311Cash Generated from Operations before Working Capital Net Cash Generated from Operations ($ millions) ($ millions)$100 $91 $100 $80 $82 $80 $71 $75 $75 $47 $46 $50 $50 $37 $25 $25 - - Q312 Q212 Q112 Q311 Q312 Q212 Q112 Q311 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 27 27
  • Appendix 1 Track record of per share growth outperforming gold Average gold price increased by 62% from 2009 through 2011 Adjusted earnings per share Net cash generated from operations per share $0.44 267% 104% $0.53 $0.48 $0.30 $0.26 $0.12 2009 2010 2011 2009 2010 2011 Net asset value per share(1)(2) Measured & Indicated gold resource per 1,000 shares(3) $11.02 25% 348% 40.8 32.7 $6.68 $2.46 6/1/09 12/31/10 12/31/11 12/31/10 12/31/11Notes: 1. Net asset value as at June 1, 2009 based on New Gold and Western Goldfields business combination. 2. Based on average of consensus net asset value per share ascribed by analysts covering New Gold. 3. Measured and Indicated gold resource shown inclusive of reserves. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 28 28
  • Appendix 1 2012 guidance Gold production(1) Total cash cost(1) 405 - 445Koz $410 - $430/oz 2012 cash cost estimate assumes: 2012 Guidance • $30.00 per ounce silver Gold production Total cash cost(1) • $3.50 per pound copper (ounces) ($/oz) • Parity Australian dollar Mesquite 140,000 - 150,000 $710 - $730 • Parity Canadian dollar Cerro San Pedro 140,000 - 150,000 $250 - $270 Total company cash cost subject to following sensitivities: Peak Mines 90,000 - 100,000 $640 - $660 • +/- $1.00 per ounce silver ~ +/- $5 per ounce • +/- $0.25 per pound copper ~ +/- $25 per ounce New Afton 35,000 - 45,000 ($1,200) - ($1,300) • +/- $0.05 AUD FX ~ +/- $10 per ounce Total 405,000 - 445,000 $410 - $430 • +/- $0.05 CDN FX ~ +/- $5 per ounceNotes: 1. Refer to Cautionary Statement and note on Total cash cost. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 29 29
  • Appendix 2 Mesquite 2011 Actual & 2012 Guidance Gold production (ounces) 2011A 2012E 140,000 - 150,000 Tonnes processed 11,733 12,500 – 13,500 (000 tonnes) Tonnes mined 45,973 45,000 – 47,000 (000 tonnes) Total cash cost ($ per ounce) Grade - gold (g/t) 0.57 0.50 – 0.55 $710 - $730 Capital 19 ~14 ($ million) 2011A versus 2012E Key assumptions and sensitivities • Lower strip ratio to result in higher ore tonnes • Diesel comprises ~20% of Mesquite’s total costs processed • Rack diesel price most correlated to Brent oil price • Gold grade is expected to decline from 2011 − Brent oil price increased by 13% since levels beginning of 2011 • Increase in costs primarily driven by lower • Every 10% change in diesel price has ~$15 per gold production ounce impact on costsNotes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxide; ~35% for sulphides. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 30 30
  • Appendix 2 Cerro San Pedro 2011 Actual & 2012 Guidance Gold production (ounces) 2011A 2012E 140,000 - 150,000 Tonnes processed 16,763 14,000 – 15,000 (000 tonnes) Silver production (million ounces) Tonnes mined 33,276 31,000 – 33,000 1.9 - 2.1 (000 tonnes) Grade - gold (g/t) 0.48 0.55 – 0.60 Total cash cost ($ per ounce) Grade – silver (g/t) 24 20 – 25 $250 - $270 Capital 7 ~16 ($ million) 2011A versus 2012E Key assumptions and sensitivities • Expected production of gold and silver consistent • Silver price - $30 per ounce (2011A - $35.15/oz) with 2011 • Mexican Peso: U.S. foreign exchange – 13:1 • Decrease in tonnes processed offset by • $1.00 per ounce change in silver equals ~$15 per grade and recovery movements ounce change in Cerro San Pedro cash cost • Increase in costs primarily driven by lower silver • 1.0 change in Mexican Peso equals ~$15 per by-product price assumption ounce change in Cerro San Pedro cash costNotes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%, Silver – ~30%. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 31 31
  • Appendix 2 Peak Mines 2011 Actual & 2012 Guidance Gold production (ounces) 2011A 2012E Tonnes processed 90,000 - 100,000 783 780 – 800 (000 tonnes) Tonnes mined 755 780 – 800 Copper production (million pounds) (000 tonnes) 12 - 14 Grade - gold (g/t) 3.94 4.0 – 4.2 Grade – copper (%) 0.93 0.88 – 0.90 Total cash cost ($ per ounce) Recovery – gold (%) 89 88 – 90 $640 - $660 Recovery – copper (%) 82 85 - 87 Capital 50 ~60 ($ million)2011A versus 2012E Key assumptions and sensitivities• Increased gold production driven by increases in • Copper price - $3.50 per pound (2011A - $3.78/lb) tonnes processed, gold grades and recoveries • Australian dollar: U.S. foreign exchange – 1:1• Similar copper production a result of increased • $0.25 per pound change in copper equals ~$35 per tonnes processed and copper recoveries offset ounce change in Peak cash cost by lower copper grades • 0.01 change in Australian dollar equals ~$10 per ounce change in Peak cash cost Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 32 32
  • Appendix 3Block cave mines Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 33 33
  • Appendix 3 New Afton – 2012 production start-up • The combination of over six months of active underground mining and the existence of the ore stockpile led to an efficient mill start-up • Mill started on June 28, 2012 • Commercial production achieved on July 31, 2012Tonnes per day15,000 Period of drawdown of stockpile inventory Mill reaches 11,00012,500 tpd10,000 7,500 Mining/milling rate reach 11,000 tpd run- 5,000 rate level Mill starts in June and reaches 2,500 6,600 tpd commercial rate in August - January March May July September November January March 2012 2013 Mine tpd Mill feed tpd Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 34 34
  • Appendix 3Production and sales New Afton 2012 Guidance Gold production (ounces) Tonnes processed (000 tonnes) 1,900 – 2,200 35,000 - 45,000 Grade - gold (g/t) 0.75 – 0.85 Grade - copper (%) 0.85 – 0.95 Copper production (million pounds) Recovery – gold (%) 88 – 90 30 - 35 Recover – copper (%) 88 – 90 Gold sales (ounces) • Difference between production and sales a result of pre-commercial production 20,000 - 30,000 commodity sales being net against capital costs and timing of certain concentrate sales Copper sales (million pounds) 20 - 25 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 35 35
  • Appendix 3 Operating costs • Operating costs ~$25 per tonne in first five months of commercial production(1) – Life-of-mine average ~$18 - $22 per tonne ~$6.20/t ~$4.60/t ~$9.20/t Processing Mining G&A 2012 co-product cash cost(3) 2012 by-product cash cost(2) $630 - $650 per ounce, ($1,200) - ($1,300) per ounce $1.35 - $1.45 per pound • Costs expected to be lower in future years as ‘per tonne’ cost reaches steady-state level – Life-of-mine average by-product cost ~($1,750)(4) – Life-of-mine average co-product costs(4) of ~$525 per ounce gold and ~$1.15 per pound copperNotes: 1. Includes treatment and refining charges and assumes parity Canadian/U.S. dollar foreign exchange rate. 2. Assumes $3.50 per pound copper price and parity Canadian/U.S. dollar foreign exchange rate. 3. Co-product costs calculated on a percentage of revenue basis and assume a gold price of $1,600 per ounce. 4. Based on assumption of $1,600 per ounce gold, $3.50 per pound copper and a parity foreign exchange rate. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 36 36
  • Appendix 3 New Afton – C Zone exploration• 3 phase underground core drilling program totaling 40,000 meters commencing Q3 2012• Phase 1: ~15,000 meters to delineate eastern limits of C-zone and assess potential to lower block cave extraction level for B3 reserve block - estimated completion by end Q1’13• Phases 2 & 3: ~25,000 meters to explore extensions to west and at depth - estimated completion Q4’13 C Zone Resource (2010) Tonnes Au Cu Gold Copper 000’s g/t % Koz Mlbs M&I 3,637 0.78 0.96 92 76 Inferred 11,317 0.60 0.75 218 186 Cross Long Section Section Looking South Looking East Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 37 37
  • Appendix 4 El Morro (30%) – funding structure(1) Total Capital 100% 100% Average annual ~ $3.9 billion cash flow 30% 70% Funded by ~ $2.7 billion $1.2 billion 30% 70% interest at 4.58% 20% 80% Carried funding repayment • New Gold’s 30% share of development capital 100% carried – Interest fixed at 4.58%Notes: 1. Based on 2011 Feasibility Study. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 38 38
  • Appendix 4 Selected porphyry gold/copper deposits/mines(1) Gold Grade (g/t) 0.80 0.70 0.60 $38/t $42/t El Morro 0.50 $51/t 0.40 $27/t $40/t 0.30 $24/t $49/t 0.20 0.10 $29/t Copper -- Grade 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% (%) Agua Rica Alumbrera Cadia-Ridgeway (2) Cerro Casale Chapada Cobre Panama El Morro Mt. MilliganSource: Company disclosure.Notes: 1. Circle sizes are representative of contained metal value of the reserves per tonne of reserve. Contained metal value calculated using Street research consensus long-term commodity pricing. 2. Includes “Cadia East Underground” and “Ridgeway Underground” reserves as indicated in Newcrest’s February 10, 2012 press release; does not include “Other” Cadia province reserves. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 39 39
  • Appendix 4 El Morro relative positioning(1) El Morro within Goldcorp portfolio (2) Gold Reserves Gold Equivalent Asset Asset (Moz) (Moz) Penasquito 16.5 Penasquito 45.2 Pueblo Viejo 10.1 El Morro 15.4 Los Filos 7.8 Pueblo Viejo 11.8 El Morro 5.8 Los Filos 8.7 Cerro Negro 4.5 Cerro Negro 5.2Notes: 1. Based on Goldcorp’s December 31, 2011 year-end resource statements. 2. Gold equivalent calculated based on the following commodity prices: Gold - $1,595/oz; Silver - $28.75/oz; Copper - $3.50/lb; Lead - $0.88/lb; Zinc - $0.86/lb. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 40 40
  • Appendix 5Blackwater drill program Cumulative number Cumulative number Drilling cut-off date of holes of metres March 2011 December 31, 2010 77 24,563 Initial Resource September 2011 July 31, 2011 148 49,223 Resource update Year-end 2011 November 30, 2011 218 67,848 Resource update March 2012 December 31, 2011 261 89,460 Resource update April 2012 March 5, 2012 328 115,9502012 assays received July 2012 May 14, 2012 449 149,739 Resource update Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 41 41
  • Appendix 5 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% / $1,300/oz x 83.6%. 7. Gold analyses are performed by fire assay/AA finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICP analyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses. 8. Rounding as required by reporting guidelines has been used, and totals may not sum. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 42 42
  • Appendix 5 Blackwater PEA costs - CapitalProject Development Capital Costs • Project is located 112 kilometres southwestDescription Cost ($ 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 $1,814 recoverable gold ounce Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 43 43
  • Appendix 5 Blackwater PEA costs - Operating Mining Costs Project Operating Costs 4% 4%2% Hauling Area Unit Cost (C$/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. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 44 44
  • Appendix 5 Open pit mining cost $4.00 $3.50 Mining cost per tonne moved (US$/t) $3.00 $2.50 Cerro San Pedro $2.00 Blackwater $1.50 Mesquite $1.00 $0.50 - - 30 60 90 120 150 1,000 tonnes per day Hycroft Prosperity Blackwater Malartic (start-up) Cerro San Pedro Marigold Rainy River Morelos Haile Malartic (technical report) Rosemont Detour (LOM) Mt. Milligan Donlin Creek Copper Mountain Mesquite La India Young Davidson Pinos Altos Detour (first ten years)Note: 1. Company technical reports and investor presentations. 2. Malartic mining cost shown during start-up phase and life-of-mine estimate from technical report on May 10, 2011. 3. Detour mining cost shown for first ten years and life-of-mine based on updated mine plan from September 4, 2012 news release. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 45 45
  • Appendix 5 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 $250 100 - - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 46 46
  • Appendix 5 PEA highlights(1) PEA Results Base Case Spot Case Gold Price (US$/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. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 47 47
  • Appendix 5 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. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 48 48
  • Appendix 5 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. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 49 49
  • Appendix 5Areas 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 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 50 50
  • Appendix 5Blackwater Resource Growth – July 2012 July 2012 Indicated Inferred Mt Au g/t Mt Au g/t 267 0.88 121 0.69 7.5 Moz 2.7 Moz Cumulative Drilling Holes Metres 449 147,282 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 51 51
  • Appendix 5 Blackwater – July 2012 drill results July 18, 2012Notes: 1. For complete summary of 2012 assay results, refer to New Gold website at www.newgold.com. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 52 52
  • Appendix 5Blackwater Block Model – July 2012 NW Silver Zone Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 53 53
  • Appendix 5BW Section 5892,800N – July 2012 Block Model Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 54 54
  • Appendix 5BW Section 375,500E – July 2012 Block Model Silver Zone Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 55 55
  • Appendix 5Blackwater regional exploration 17 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 56 56
  • Appendix 5Blackwater PEA mineral resource NW Silver Zone Sxn 5893,500N SW Breccia Pipe Sxn 375,000E Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 57 57
  • Appendix 5Blackwater exploration upside opportunitiesSection 5893,500N Gold Section 375,000E NW ‘Silver Zone’ SW Breccia Pipe Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 58 58
  • Appendix 5Blackwater exploration upside opportunities (cont’d) Section 5893,500N Silver Section 375,000E NW ‘Silver Zone’ SW Breccia Pipe Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 59 59
  • Appendix 6Reserves and resource notes Mineral Reserves statement as at December 31, 2011 Metal grade Contained metal Tonnes Gold Silver Copper Gold Silver Copper 000s g/t g/t % Koz Koz Mlbs Mesquite Proven 14,548 0.67 - - 313 - - Probable 138,796 0.55 - - 2,448 - - Mesquite P&P 153,345 0.56 - - 2,762 - - Cerro San Pedro Proven 23,972 0.58 16.99 - 447 13,091 - Probable 35,267 0.49 15.30 - 559 17,352 - Cerro San Pedro P&P 59,239 0.53 15.98 - 1,006 30,443 - Peak Proven 1,608 6.33 8.4 0.82 327 434 29 Probable 1,811 4.80 6.7 0.92 279 390 37 Peak P&P 3,419 5.50 7.5 0.87 606 824 66 New Afton Proven - - - - - - - Probable 47,900 0.64 2.0 0.90 986 3,080 954 New Afton P&P 47,900 0.64 2.0 0.90 986 3,080 954 El Morro 100% 30% Proven 308,036 0.58 - 0.57 1,716 - 1,153 Probable 212,167 0.38 - 0.51 787 - 715 El Morro P&P 520,024 0.50 - 0.54 2,503 - 1,868 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 60 60
  • Appendix 6Reserves and resource notes (cont’d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2011 Metal grade Contained metal Tonnes Gold Silver Copper Zinc Lead Gold Silver Copper Zinc Lead 000s g/t g/t % % % Koz Koz Mlbs Mlbs Mlbs Mesquite Measured - oxide 19,182 0.51 - - - - 316 - - - - Indicated - oxide 269,872 0.39 - - - - 3,407 - - - - Mesquite M&I - oxide 289,054 0.40 - - - - 3,723 - - - - Measured - non oxide 4,688 0.91 - - - - 137 - - - - Indicated - non oxide 79,851 0.65 - - - - 1,674 - - - - Mesquite M&I - non oxide 84,539 0.66 - - - - 1,811 - - - - Total Mesquite 373,594 0.46 - - - - 5,534 - - - - Cerro San Pedro Measured - open pit oxide 25,722 0.44 15.36 - - - 367 12,706 - - - Indicated - open pit oxide 55,647 0.31 12.28 - - - 546 21,976 - - - CSP M&I - open pit oxide 81,369 0.35 13.26 - - - 913 34,682 - - - Measured - open pit sulphide 13,317 0.54 13.60 - 0.64 0.10 232 5,823 - 187 29 Indicated - open pit sulphide 46,697 0.44 10.23 - 0.55 0.08 667 15,355 - 566 77 CSP M&I - open pit sulphide 60,014 0.47 10.98 - 0.57 0.08 899 21,178 - 753 106 Total CSP M&I - open pit 1,812 55,860 Peak Measured 3,092 4.89 7.3 1.14 - - 486 726 78 - - Indicated 3,697 3.89 7.1 1.09 - - 462 844 89 - - Peak M&I 6,789 4.30 7.2 1.11 - - 948 1,570 167 - - New Afton Measured 36,500 0.90 2.7 1.24 - - 1,058 3,194 1,002 - - Indicated 33,300 0.64 2.1 0.80 - - 685 2,276 584 - - New Afton M&I 69,800 0.78 2.4 1.03 - - 1,742 5,470 1,586 - - Blackwater Blackwater Indicated 267,145 0.88 4.3 - - - 7,524 36,932 - - - Capoose Indicated 31,216 0.38 26.5 - - - 384 26,594 - - - El Morro 100% 30% Measured - open pit 343,088 0.55 - 0.54 - - 1,836 - 1,233 - - Indicated - open pit 333,312 0.35 - 0.44 - - 1,117 - 960 - - El Morro M&I - open pit 676,400 0.45 - 0.49 - - 2,954 - 2,193 - - Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 61 61
  • Appendix 6Reserves and resource notes (cont’d) Inferred Resource statement as at December 31, 2011 Metal grade Contained metal Tonnes Gold Silver Copper Zinc Lead Gold Silver Copper Zinc Lead 000s g/t g/t % % % Koz Koz Mlbs Mlbs MlbsMesquite 38,633 0.41 - - - - 512 - - - -Cerro San PedroInferred - open pit oxide 40,355 0.17 8.55 - - - 214 11,091 - - -Inferred - open pit sulphide 24,736 0.47 7.40 - 0.50 0.07 374 5,882 - 271 39 588 16,972 - 271 39Manto Underground sulphides 6,270 1.83 94.51 - 3.09 1.09 368 19,052 - 427 151Peak 3,147 2.56 4.8 1.54 - - 259 486 107 - -New Afton 29,200 0.51 1.6 0.61 - - 483 1,478 390 - -BlackwaterBlackwater 120,478 0.69 7.3 - - - 2,661 28,276 - - -Capoose 37,256 0.37 24.6 - - - 443 29,518 - - - 100% 30%El MorroOpen pit 637,495 0.10 - 0.25 - - 605 - 1,045 - -Underground 128,280 0.97 - 0.78 - - 1,205 - 660 - -El Morro Inferred 1,810 1,705 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 62 62
  • Appendix 6 Reserves and resource notes (cont’d)Mineral reserves are contained within measured and indicated mineral resources. Measured and indicated mineral resources that are not mineral reserves do not have demonstrated economicviability as defined by a technical feasibility study. Inferred mineral resources are not known with the same degree of certainty as measured and indicated resources, do not have demonstratedeconomic viability, and are exclusive of mineral reserves. Mineral Reserves have been estimated and reported in accordance with the CIM Standards and National Instrument 43-101, or theAusIMM JORC equivalent.1) Mineral Reserves for the company’s mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off Mesquite $1,200 - - 0.21 g/t Au – Oxide reserves 0.41 g/t Au – Non-oxide reserves Cerro San Pedro $1,200 $20.00 - US$3.49/t NSR Peak Mines $1,300 $25.00 $2.75 A$130 – 184/t NSR New Afton $1,200 $20.00 $2.50 US$24/t NSR El Morro $1,200 - $2.75 0.20% Cu Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 63 63
  • Appendix 6 Reserves and resource notes (cont’d)2) Mineral Resources for the company’s mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold Silver Copper Zinc Lead Lower Cut-off (US$/oz) (US$/oz) (US$/lb) (US$/lb) (US$/lb) Mesquite $1,300 - - - - 0.11 g/t Au – Oxide resources 0.22 g/t Au – Non-oxide resources Cerro San Pedro $1,300 $24.00 - $1.00 $1.00 0.1g/t AuEq – Oxide resources 0.4g/t AuEq – Open pit Sulphide resources 2.5g/t AuEq – Underground manto resources Peak Mines $1,300 $24.00 $2.75 $0.85 $0.65 A$103 - 137/t NSR New Afton $1,300 $24.00 $2.75 - - 0.40% CuEq – All resources El Morro $1,350 - $3.25 - - 0.15% Cu – Open pit resources 0.20% Cu – Underground resources Blackwater $1,300 - - - - 0.30 g/t AuEq – All resources Capoose $1,025 - - - - 0.40 g/t AuEq – All resourcesMineral resources have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or theAusIMM JORC equivalent.3) Mineral resources are classified as measured, indicated and inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable fortheir potential extraction and mineral processing. Where different mining and/or processing methods might be applied to different portions of a mineralized system or metal deposit, thedesignators ‘open pit’ and ‘underground’ have been applied to indicate likely mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulfide’ have been applied to indicate the type ofmineralization as it applies to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification andreporting parameters for each of New Gold’s mines and projects are provided in the respective NI 43-101 Technical Reports and available on SEDAR.4) Qualified Person: The preparation of New Gold’s mineral reserve and resource statements has been done by Qualfied Persons as defined under Canadian under National Instrument 43-101under the oversight and review of Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold. Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 64 64
  • Appendix 7Commodity price/foreign exchange assumptions Guidance/consensus: 2012 2013 2014 Gold price ($/oz) 1,600 1,760 1,600 Silver price ($/oz) 30.00 34.38 30.00 Copper price ($/oz) 3.50 3.85 3.50 USD/AUD 1.00 1.01 0.96 USD/CAD 1.00 1.00 1.01 USD/MXN 13.00 12.35 12.50 Spot: Spot Gold price ($/oz) 1,750 Silver price ($/oz) 34.00 Copper price ($/oz) 3.50 USD/AUD 1.04 USD/CAD 1.00 USD/MXN 13.00 Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 65 65
  • Contact information Investor Relations Hannes Portmann Vice President, Corporate Development 416-324-6014 hannes.portmann@newgold.com Scotiabank – Mining Conference 2012 | Toronto | November 27-29, 2012 66 66