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Investor day 2013 v final

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  • 1. Investor Day 2013February 5, 2013Arcadian Loft 1
  • 2. Discussion topicsCompany Overview Randall Oliphant2012 Operating Performance and 2013 Outlook Ernie MastHealth, Safety and Corporate Social Responsibility Bob GallagherDevelopment Projects Bob GallagherReserves and Resources and Exploration Update Mark PetersenNew Afton Value Enhancing Initiatives Kurt KeskimakiConclusion Randall Oliphant 2
  • 3. Cautionary statementAll monetary amounts in U.S. dollars unless otherwise statedTotal cash costs shown net of by-product sales 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-lookingstatements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results"may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. All such forward-looking statements are based on the opinions and 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. 3
  • 4. 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, and may not be comparable tosimilar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this presentation are Canadian miningterms 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 CIMCouncil on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations,they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination hasbeen made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptionsof mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United StatesSecurities and Exchange Commission. An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an"Inferred Mineral Resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers arecautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an "Inferred MineralResource" exists, or is economically or legally mineable. In addition, the definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of theUnited 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 products and included leading NorthAmerican gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash cost of production in North America. Adoption of the standard is voluntaryand the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. Total cash costs includes mine site operating costssuch 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 thendivided 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 itsmining operations. This data is furnished to provide additional information and is a non-IFRS measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparableto similar measures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative ofoperating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.(2) ALL-IN SUSTAINING CASH COSTSThe company is working with the World Gold Council and is in the process of adopting an “all-in sustaining cash costs” measure that the company believes more fully defines the total costs associated with producing gold.Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: by-product cash costs, corporate general and administrative expenses, exploration expense and sustaining capital.This metric is a non-IFRS measure.(3) PEA – ADDITIONAL CAUTIONARY NOTEThis note regarding the Preliminary Economic Assessment (“PEA”) is in addition to cautionary language already included within the news release as required under NI 43-101. The Blackwater PEA is preliminary in natureand includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is nocertainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.This note regarding the preliminary economic assessment (“PEA”) is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature andincludes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is nocertainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on NewGold’s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, updated themineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an importantindicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date,and the PEA does not reflect the latest mineral resource estimate. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for thenew resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may have an impact on New Gold’s plans on how it intends to develop the deposit, including pit outlines,production rates and mine life. 4
  • 5. Company Overview 5
  • 6. New Gold overview Focus on Value Enhancement Established Track Record Experienced/Invested Team Low Cost/High Margin Growing Resources Doubling Gold Production Organically Strong Balance Sheet Accretive ‘per share’ GrowthESTABLISHING THE LEADING INTERMEDIATE GOLD COMPANY 6
  • 7. 2012 to 2013 – The path forward 2012 Achievements 2013 Objectives Forecasting additional 12% gold 6% gold production growth production growth Targeting a further ~$145 per Total cash costs(1) declined by $25 ounce reduction in total cash per ounce costs(1) Average realized margin of $1,130 Margin expected to grow to per ounce $1,325(2) per ounceNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. 2013 estimated margin per ounce based on mid-point of range of total cash costs of $275 per ounce and an assumed gold price of $1,600 per ounce. 7
  • 8. 2012 to 2013 – The path forward (cont’d) 2012 Achievements 2013 ObjectivesNew Afton achieved full production Evaluation of New Afton millahead of schedule (September throughput increase/C-Zone2012) explorationSuccessfully completed Blackwater Focus on Feasibility Study andPreliminary Economic Assessment PermittingMeasured and Indicated resources Increase resources organically atincreased by 10% per share; New Blackwater, New Afton C-Zone andAfton extended mine life by two Peak Minesyears 8
  • 9. 2012 to 2013 – The path forward (cont’d) 2012 Achievements 2013 Objectives Increased liquidity and balance Build increased flexibility through sheet strength free cash flow generation Strengthened team with additions of Continuously look for David Emerson to the Board of opportunities to add talented Directors and Ernie Mast as VP people Operations Outperformed S&P/TSX gold index(1) Strive to further history of by 25% outperformanceNotes: 1. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production. 9
  • 10. Board of DirectorsDavid Emerson, Former Canadian Cabinet Minister Martyn Konig, Former Chairman European GoldfieldsJames Estey, Former Chairman UBS Canada Pierre Lassonde, Chairman Franco-NevadaRobert Gallagher, President & CEO Randall Oliphant, Executive ChairmanVahan Kololian, Founder Terra Nova Partners Raymond Threlkeld, CEO Rainy River Resources Collectively over $125 million invested in New Gold 10
  • 11. Growing resource base in solid jurisdictions Measured & Indicated Gold Resources per 1,000 shares M&I Resources(2): 21.4 Moz 50 40 Blackwater 30 New Afton 20 Cerro San Pedro Mesquite 10 - YE 2009 (1) YE 2010 YE 2011 YE 2012 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 4 for detailed disclosure on reserve and resource calculations. Measured and Indicated resources inclusive of reserves, and Capoose Indicated resources of 196Koz. 3. New Gold holds a fully carried 30% interest in the El Morro project. 11
  • 12. Capitalization and liquidity • All corporate debt now due in 2020 or beyond(3) • Two senior unsecured notes offerings during 2012 ($300 million/7.00%, $500 Cash and million/6.25%) $688mm Equivalents(1) • Redemption of 10% senior secured notes • Early conversion of 5% convertible debenture Undrawn Credit • Total common shares outstanding of 476 $100mm Facility(2) million Liquidity Position $788mmNotes: 1. Cash and equivalents as at December 31, 2012. The cash balance provided is an unaudited figure and may differ slightly from the final result included in the 2012 annual audited financial statements and MD&A. 2. $50 million of total $150 million currently used for Letters of Credit. 3. See Appendix 1 for detailed breakdown of components of debt. 12
  • 13. Fourth quarter leads to strong 2012 Fourth Quarter and Full Year 2012 Gold Production (thousand ounces) • Fourth quarter was the strongest of 2012 and 450 412 among the best in New 300 Gold’s history 150 113 • New Afton started to hit - Q412 FY2012 its stride Fourth Quarter and Full Year 2012 Total Cash Costs ($/ounce)(1) • Mining of higher grade $600 areas at Peak Mines $421 $400 • Fourth quarter total cash $254 $200 costs(1) demonstrate company’s low costs - Q412 FY2012 • Highest ever quarterly and Fourth Quarter and Full Year 2012 Average Realized Margin ($/ounce)(2) annual average realized $1,400 $1,324 margin $1,130 $1,100 $800 $500 Q412 FY2012Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. Average realized margin per ounce calculated as average realized gold price in fourth quarter and full year 2012 less total cash costs per ounce during fourth quarter and full year 2012. 13
  • 14. Operational execution Gold production(1) (thousand ounces) 412 383 387 302 2009 2009 2010 2010 2011 2011 2012 2012 Guidance Actual Guidance Actual Guidance Actual Guidance Actual Total cash costs(1)(2) ($/ounce) $465 $446 $418 $421 2009 2009 2010 2010 2011 2011 2012 2012 Guidance Actual Guidance Actual Guidance Actual Guidance Actual Four year track record of delivering on guidance, production growth and lower cash costsNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. 2009 costs shown based on Canadian GAAP and 2010 and beyond based on IFRS. 14
  • 15. 2013 consolidated guidance 2012 Actual 2013 Guidance +48Koz Gold production + 12% Gold production(1) 412Koz 440 - 480Koz Total cash costs(2) Total cash costs(2) $421/oz ($146/oz) $265 - $285/oz (35%)Notes: 1. Gold sales expected to be in same range as production. 2. Refer to Cautionary Statement and note on Total cash costs. 15
  • 16. 2013 consolidated guidance and sensitivities Gold production(1) Total cash costs(2) 440 - 480Koz $265 - $285/oz • Gold production growth through full year of • By-product sensitivities: production at New Afton and increased • $0.25 per pound change in copper impacts throughput and recoveries at Peak Mines consolidated cash costs by ~$45 per ounce • Copper production forecast to double to 78 to 88 • $1.00 per ounce change in silver impacts million pounds consolidated cash costs by ~$3 per ounce • Copper and silver by-products continue to act as • At spot commodity prices and foreign exchange natural hedge to industry-wide cost pressures rates, total cash costs(2) would be below $250 • By-product price assumptions (consistent with per ounce 2012): • Copper $3.50 per pound • Silver $30.00 per ounceNotes: 1. Gold sales range forecast to be 440,000 to 480,000 ounces. 2. Refer to Cautionary Statement and note on Total cash costs. 16
  • 17. Lower costs driving margin expansion New Gold offers shareholders potential for over $450 per ounce(1) of incremental margin $800 (3) $736 $643 Total Cash Costs (US$/oz)(2) $600 $557 Incremental Margin to New Gold $478 Shareholders $465 $400 $446 $418 $421 $265-$285 $200 2009 2010 2011 2012 2013ENotes: 1. Calculated based on Q3’2012 GFMS industry average less mid-point of New Gold 2013 cost guidance. 2. Refer to Cautionary Statement and note on Total cash costs. 3. Industry data per GFMS reports calculated net of by-product credits as at Q3’2012. 17
  • 18. 2013 estimated all-in sustaining cash costs Total cash costs(1) $275/oz General and administrative ~$60/oz Exploration expense ~$70/oz Sustaining capital(2) ~$470/oz All-in sustaining cash costs(3) ~$875/ozNotes: 1. Refer to Cautionary Statement and note on Total cash costs. $275 per ounce based on mid-point of 2013 guidance. 2. Sustaining capital based on New Gold’s total 2013 estimated capital expenditures excluding expenditures related to growth-related initiatives. 3. All-in sustaining cash costs calculated using the mid-point of New Gold’s estimated 2013 production range. 18
  • 19. A future of growth Peer leading growth with targeted doubling of production by 2017 1,000 800 Gold Production (thousand ounces) 600 ~440 - 480 412 400 387 200 2011A 2012A 2013E 2017E 19
  • 20. History of growth leading to outperformance New Gold Gold Production Growth Margin Growth(1) Trailing 3 Years S&P/TSX Gold Index (9%) FTSE Gold Mines Index (8%) +36% +116% HUI Index Gold Price 3% 53% New Gold (US$) 203% (50%) 0% 50% 100% 150% 200% 250% 2012 S&P/TSX Gold Index (16%) FTSE Gold Mines Index (15%) +6% +11% HUI Index Gold Price (11%) 7% New Gold (US$) 9% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 2011 FTSE Gold Mines Index (16%) S&P/TSX Gold Index (14%) +1% +32% HUI Index New Gold (US$) (13%) 3% Gold Price 10% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 2010 S&P/TSX Gold Index 26% FTSE Gold Mines Index 29% +27% +47% Gold Price HUI Index 30% 33% New Gold (US$) 168% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180%Notes: 1. Margin per ounce calculated as average realized gold price less total cash costs per ounce. 2. Bloomberg. All amounts in USD. 3. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production. 4. FTSE Gold Mines Index includes 26 gold producing companies. 5. HUI Index includes 15 of the major global gold producers. 20
  • 21. 2012 Operating Performanceand 2013 Outlook 21
  • 22. 2012 guidance versus actuals Gold Production (Koz) • Achieved consolidated 405-445 production and sales 150 guidance for each of gold, silver and copper 100 142 138 412 • Total cash costs(1) also 50 96 within guidance range 37 - • Each asset a meaningful Mesquite Cerro San Pedro Peak New Afton Consolidated contributor to overall Reflects 2012 guidance range portfolio Total Cash Costs(1) ($/oz) • Portfolio mix $410-$430 continues to be $1,000 effective with by- $500 $764 $690 $232 products providing - $421 offset to cost ($500) ($1,043) pressures ($1,000) ($1,500) Mesquite Cerro San Peak New Afton Consolidated Pedro Reflects 2012 guidance rangeNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 22
  • 23. 2012 actuals versus 2013 guidance Gold Production (Koz) Total Cash Costs(1) ($/oz) + 48Koz ($146/oz) + 12% 480 (35%) 440 $421 $285 412 $265 2012A 2013E 2012A 2013E 2013 Guidance Summary Gold production Silver production Copper production Total cash costs(1)(2) (Koz) (Moz) (Mlbs) ($/oz) Mesquite 130 - 140 -- -- $830 - $850 Cerro San Pedro 140 - 150 1.4 - 1.6 -- $375 - $395 Peak Mines 95 - 105 -- 12 - 14 $670 - $690 New Afton 75 - 85 -- 66 - 74 ($1,410) - ($1,390)(3) Total 440 - 480 1.4 - 1.6 78 - 88 $265 - $285Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. By-product price assumptions: Silver - $30.00/oz; Copper - $3.50/lb. 3. New Afton co-product cost estimates: Gold - $570-$590/oz; Copper - $1.20-$1.30/lb. 23
  • 24. Mesquite Gold Production(1) (Koz) Total Cash Costs(2) ($/oz) $850 140 $830 142 $690 130 2012A 2013E 2012A 2013E 2012A versus 2013E Key assumptions and sensitivities • Production expected to decline moderately • Diesel comprises ~25% of Mesquite’s total costs due to the planned processing of ore from an • Rack diesel price most correlated to Brent oil price area within the mine plan that is below reserve grade • Budgeted diesel price in 2013 8% higher than 2012 average price paid • Increase in costs attributable to higher cost leach pad inventory working through sales • Every 10% change in diesel price has ~$20 per and lower production base ounce impact on costsNotes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides. 2. Refer to Cautionary Statement and note on Total cash costs. 24
  • 25. Cerro San Pedro Gold Production(1) (Koz) Silver Production(1) (Moz) Total Cash Costs(2) ($/oz) 150 $395 140 138 1.6 1.9 $375 1.4 $232 2012A 2013E 2012A 2013E 2012A 2013E 2012A versus 2013E Key assumptions and sensitivities • Targeting 5% increase in gold production • Silver price - $30.00 per ounce (2012A - $30.78 per • Decrease in tonnes processed offset by ounce) increase in gold grade • Mexican Peso: U.S. foreign exchange – 13:1 • Increase in costs primarily driven by lower silver • $1.00 per ounce change in silver equals ~$10 per by-product production as well as lower price ounce change in Cerro San Pedro cash costs assumption • $1.00 change in Mexican Peso equals ~$25 per • ~$95 per ounce of increase in costs ounce change in Cerro San Pedro cash costs attributable to lower silver by-product revenue • Silver grades decreasing by ~25%Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%; Silver – ~25%. 2. Refer to Cautionary Statement and note on Total cash costs. 25
  • 26. Peak Mines Gold Production (Koz) Copper Production (Mlbs) Total Cash Costs(1) ($/oz) 105 14 96 95 $764 $690 14 12 $670 2012A 2013E 2012A 2013E 2012A 2013E 2012A versus 2013E Key assumptions and sensitivities • Increased gold production driven by 50,000 • Copper price - $3.50 per pound (2012A - $3.51per tonne increase in tonnes processed pound) • Similar copper production a result of increased • Australian dollar: U.S. foreign exchange – 1:1 tonnes processed and copper recoveries offset • $0.25 per pound change in copper equals ~$35 per by lower copper grades ounce change in Peak Mines cash costs • Reduction in estimated cash costs a result of • $0.01 change in Australian dollar equals ~$10 per increased gold production and lower foreign ounce change in Peak Mines cash costs exchange rate assumption versus average 2012 exchange rateNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 26
  • 27. New Afton Gold Production (Koz) Copper Production (Mlbs) 74 85 66 75 37 28 2012A 2013E 2012A 2013E2012A versus 2013E• New Afton entering first full year of production in 2013 after successful 2012 start-up• Increased gold production driven by a full year of operations as well as continued recovery improvements, partially offset by lower gold grade• Copper production expected to more than double, driven by full year of production as well as increases in copper grades and recoveries 27
  • 28. New Afton (cont’d) Total Cash Costs(1) ($/oz) Total Cash Costs(1) ($/oz) Total Cash Costs(1) ($/oz) (By-Product) (Co-Product Gold) (Co-Product Copper) 2012A 2013E $590 $656 $1.30 $570 $1.40 $1.20 ($1,043) ($1,390) 2012A 2013E 2012A 2013E ($1,410) Key assumptions and sensitivities • Copper price - $3.50 per pound (2012A - $3.58 per pound) • Canadian dollar: U.S. foreign exchange – 1:1 • $0.25 per pound change in copper equals ~$220 per ounce change in New Afton by-product cash costs • $0.01 change in Canadian dollar equals ~$15 per ounce change in New Afton by-product cash costsNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 28
  • 29. 2012 and 2013 capital expenditures by site• New Gold’s 2013 estimated capital expenditures of $290 million are down 42% from 2012 • Capital includes costs related to ongoing annual sustaining capital as well as investments for future production• Capital estimates by site are shown below:Total 2012 Actual Capital Expenditures: $497 million Total 2013 Capital Expenditure Estimate: $290 million Mesquite Cerro San Pedro $11mm $15mm Mesquite $20mm Peak Mines $47mm Cerro San Pedro $40mm New Afton $110mm Blackwater New Afton $127mm $297mm Peak Mines $60mm Blackwater $60mm 29
  • 30. 2013 capital expenditures by category• The below breaks down capital expenditures at each site into two categories – annual sustaining capital and direct investments for future production growth and mine life extensionNew Afton - $110 million • $90 million – continued cave and drawbell development as well as related 18% technical services • Total of ~90 drawbells expected to be completed by end of 2013 82% • Annual drawbell development to decrease over mine life with commensurate decrease in capitalBlackwater - $60 million • $15 million – capitalized exploration • $45 million – Feasibility and related engineering studies, permitting, camp 100% facilities/operationPeak Mines - $60 million • $30 million – underground development and capitalized exploration • $30 million – equipment, mine and mill projects/maintenance 50% 50% Direct investment for future production Annual sustaining capital 30
  • 31. 2013 capital expenditures by category (cont’d)Cerro San Pedro - $40 million • $30 million – final leach pad expansion and capitalized stripping for phase 5 25% development 75% • $10 million – site maintenance/processing improvementsMesquite - $20 million • $12 million – two additional trucks and construction of new welding and tire shops • $8 million – equipment components/site maintenance 40% 60% New Gold’s 30% share of estimated El Morro capital cost of $23 million fully carried by Goldcorp Inc. Direct investment for future production Annual sustaining capital 31
  • 32. Health, Safety and CorporateSocial Responsibility 32
  • 33. Overview Policy Governance• At New Gold, our commitment to corporate • The HSE & CSR Committee of our Board of social responsibility is specified in our Health, Directors provides oversight of our progress Safety, Environment and Corporate Social and adherence to the principles of our Policy Responsibility (“HSE & CSR”) Policy Commitment • On the ground wherever we work, the organization, resources and commitment of our people are in place to actualize the Policy • New Gold is a business participant of the UN Global Compact and has committed to its principles in the areas of human rights, labor, environment and anti-corruption • New Gold is a signatory to the International Cyanide Management Code • Our Sustainability Report is published annually 33
  • 34. Safety, environmental and social responsibility highlights Safety • Cerro San Pedro – over one million man hours without a Lost Time Incident (“LTI”)New Gold is the sum total of our employees’ strengths – it is a company-wide policy to develop their careers and • New Afton continues as one of the lowest LTI protect their health and safety underground mines Environment • Mesquite – certified under the International Cyanide Management CodeNew Gold takes a pro active risk-management approach tosafeguarding the environment guided by high international • Cerro San Pedro – re-certified ISO 14001 Environmental and national standards Management System for 2011-2014 period • Cerro San Pedro – recognized as a socially responsible Social Responsibility company for the third straight year by Mexican CentreNew Gold fosters open communication with local residents for Philanthropy and community leaders and strives to be a full partner in the long-term sustainability of the communities and • Opened local Vanderhoof office and sample preparation regions in which we operate laboratory to support the Blackwater Project • New Afton – working together with local First Nations on project contracts 34
  • 35. Safety performance 8.0 6.0 New Gold 2011 Industry Average 2011 4.0 New Gold 2012 2.0 0.0 Peak New Afton Blackwater Cerro San Mesquite All Operations PedroNotes: 1. Industry stats are supplied by those jurisdictions in which each mine is operating and is reflective of underground and surface operations as appropriate. 2. “All Operations” compares the average rate of injury for all New Gold operations versus average rate for all Regulatory jurisdictions based on 200,000 hours. 35
  • 36. 2012 recognitionsNew Afton 2011 Mining and Sustainability Award Corporate Advocate for Aboriginal Business Award Viola R. MacMillan Award for company or mine developmentBlackwaterNorthern British Columbia Prospector/Developer of the Year AwardCerro San Pedro Mexican Mining Chamber Award for Excellence in SafetyPeak Mines Cobar Business Award for Environmental Achievement 36
  • 37. 2013 key objectives ISO 14001 certification for all New Gold operations Pre-approval for International Cyanide Management Code at Cerro San Pedro and Peak Mines Formalize community engagement and feedback systems at all sites Continue active engagement with First Nations at Blackwater and New Afton Initiate certification process for ‘Towards Sustainable Mining’ at Blackwater Begin filing Environmental Impact Assessment with federal and provincial environmental assessment agencies for Blackwater 37
  • 38. Development Projects 38
  • 39. Two growth projects sharing key characteristics Blackwater El Morro (30%) Significant resource base Continued exploration potential Located in areas with strong mining tradition Estimating below industry average costs Robust production and cash flow generation potential 39
  • 40. A future of further gold and copper leverage • Blackwater and El Morro combine to provide New Gold shareholders with significant gold and copper resource exposure • The two assets combined should double the company’s production base at low costs Measured & Indicated Potential Annual Gold/Copper Inferred Resources(1)(3) Resources(1)(2) Production(4) Gold Copper Gold Copper Gold Copper (Moz) (Blbs) (Moz) (Blbs) (Koz) ~600 (Mlbs) 12 11.2 6 12 6 600 250 El Morro 10 10 500 El Morro 200 8 4 8 4 400 150 6 6 300 Blackwater 2.1 ~85 100 4 Blackwater 2 4 2 200 2.2 El Morro El Morro 50 2 2 El Morro 0.6 100 Blackwater - - - - - - Gold Copper Gold Copper Gold CopperNotes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. El Morro shown at New Gold’s attributable 30% share. 2. Blackwater Measured and Indicated resources inclusive of Capoose Indicated resources of 196Koz. 3. Blackwater Inferred resources inclusive of Capoose Inferred resources of 595Koz. 4. El Morro shown at New Gold’s attributable 30% share. 40
  • 41. Blackwater 41
  • 42. Site snapshot 42
  • 43. Project overview• Acquired in mid-2011 through acquisition of Richfield Ventures• Conducted aggressive exploration drill program to increase size and quality of mineral resource• Completed Preliminary Economic British Columbia Assessment (“PEA”) in September 2012• 2012 year end resource included additional Vanderhoof 101,056 metres in 466 holes beyond PEA Prince George• Total 2012 drilling over 270,000 metres Blackwater project wide• Targeting completion of Feasibility Study by late 2013 New Afton Vancouver Victoria 43
  • 44. Blackwater area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George 50km Blackwater Resource 80km 44
  • 45. 2012 key achievements Signing of two exploration agreements with First Nations Approval of Multi-Year Area Based exploration permit Opened regional office and sample preparation lab in Vanderhoof Completion of Preliminary Economic Assessment Confirmed point of access to B.C. Hydro power connection Initiated Federal and Provincial environmental processes Completed Geotechnical Investigation Program Completed Environmental Baseline Program Completed 2012 year end mineral resource estimate 45
  • 46. Mineral resource update since PEA• 2012 year end resource update successfully upgraded majority of mineralization into Measured and Indicated resource categories • 33% of Measured and Indicated resource contained gold ounces now at Measured classification whereas previously all classified as Indicated • Infill drilling now complete on main Blackwater mineral resource• Incorporation of infill drilling and updated geologic resource constraints post-PEA resulted in a decline in the overall resource inventory offset by a significant increase in confidence Year End 2012 Mineral Resources September 2012 Mineral Resource Estimate (0.4 AuEq g/t cut-off) (0.3 AuEq g/t cut-off) Tonnes Au Ag Gold Silver Tonnes Au Ag Gold Silver Category Category (000’s) (g/t) (g/t) (Koz) (Koz) (000’s) (g/t) (g/t) (Koz) (Koz) Measured 88,188 0.94 5.2 2,670 14,740 Measured -- -- -- -- -- Indicated 207,958 0.81 6.2 5,400 41,450 Indicated 267,145 0.88 4.3 7,520 36,930 Total M&I 296,146 0.85 5.9 8,070 56,190 Total M&I 267,145 0.88 4.3 7,520 36,930 Inferred 16,585 0.58 10.8 310 5,760 Inferred 120,478 0.69 7.3 2,660 28,280 46
  • 47. Mineral resource update since PEA (cont’d)• In assessing the updated mineral resource estimate, New Gold is focused on the highest quality tonnes and ounces to maximize profitability rather than global resource inventory • Increased resource reporting cut-off to 0.4 gold-equivalent grams per tonne (“AuEq g/t”) from PEA resource cut-off (0.3 AuEq g/t) to maximize grade of tonnes to be mined at expense of more marginal resources – Intend to stockpile material below 0.4 AuEq g/t cut-off for processing later in Blackwater’s mine life • Continue to target a variable cut-off strategy for mine planning to process most profitable ore tonnes in early years to maximize internal rate of return and payback period – 2012 year end resource expected to support a steadier production profile in first 10 years when compared to PEA which saw higher production in first five years at expense of lower production levels in years six through 10 • Total estimated gold production in first 10 years is expected to remain consistent with that of the PEA 47
  • 48. General update since PEA $1.8 billion (inclusive of $346 million contingency) per PEA Development Capital remains consistent with current expectations Trade-off studies ongoing, however, total mining, processing Operating Cost Per Tonne and G&A cost per tonne expected remain in line with PEA estimates Subject to ongoing scheduling optimizations through Mine Plan completion of Feasibility Study. Focus on mining/processing of most profitable ounces Strip Ratio Remains in line with PEA estimate 48
  • 49. 2013 plans and initiatives Update process flowsheet, throughput and grinding plant selection studies Update infrastructure trade-off studies Mine planning and optimized production schedule Detailed design of tailings facility, powerline, access road and fresh water supply route Complete Feasibility Study Complete Environmental Assessment Report Continue discussions with First Nations regarding Participation Agreements 49
  • 50. Project planning, management and execution initiative New Gold has engaged McKinsey & Company to collaborate with Blackwater team on establishing a Project Implementation Plan• Key objective is to maximize effectiveness of project planning to ensure delivery and execution of Blackwater is consistent with New Gold’s prior developments including: Mesquite, Cerro San Pedro and New AftonAreas of focus include:• Delivery model selection• Project team organization• Reporting metrics and management processes• Labour strategy• Procurement strategy• Governance• Risk management 50
  • 51. Blackwater – Indicative 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. 51
  • 52. El Morro 52
  • 53. El Morro (30%) 2.9 Moz 2.1 Blbs Gold Reserve(1) Copper Reserve(1) • Goldcorp – 70% partner and project operator • New Gold’s 30% share of capital fully-funded by Goldcorp • Current resource entirely within La Fortuna deposit • Neighbouring El Morro deposit underexplored • 2012 year end update added 0.4 million ounces of gold and 229 million pounds of copper to reserves(1) • Addressing recent temporary suspension of environmental permit • Resolution targeted prior to end of 2013 • Chile evaluating various alternatives for a power source to northern Chilean development projectsNotes: 1. New Gold’s attributable 30% share. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 53
  • 54. 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. Capital estimates based on December 2011 Feasibility Study. 54
  • 55. El Morro project – Plan view 55
  • 56. La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 metres 56
  • 57. Overview of updated Feasibility Study • El Morro Feasibility Study was updated in December 2011 • Key parameters for New Gold include: • 30% share of estimated development capital, or $1.2 billion, carried by Goldcorp – Receive cash flow from start of production – Interest rate fixed at 4.58% • Base 17-year mine life • 30% share of annual production: ~90,000 ounces of gold and ~85 million pounds of copper • Estimated total cash costs(1), net of by-products ($700) per ounce – Co-product gold ~$550 per ounce – Co-product copper ~$1.45 per pound • At today’s prices, approximates $290 million in annual EBITDANotes: 1. Refer to Cautionary Statement and note on Total cash costs. 57
  • 58. Reserves and Resourcesand Exploration Update 58
  • 59. Gold reserves and resources Year End 2011 Year End 2012 Proven and Probable Reserves Proven and Probable Reserves (Moz) • Mine depletion at four operating assets partially offset by year-over-year reserve increases at New Afton and Peak Mines 7.9 7.7 • New Afton reserve update adds ~2 years to mine life Measured and Indicated Resources (Moz)(2) Measured and Indicated Resources • 10% increase in resources per share 18.8 21.4 Inferred Resources (Moz) 6.3 4.4Notes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 2. Measured and Indicated resources inclusive of reserves. 59
  • 60. Exploration growing resources Measured & Indicated Gold Resources (million ounces, inclusive of reserves) 22.0 3.2 21.4 21.0 20.0 19.0 18.8 18.0 (0.6) 17.0 16.0 15.0 12/31/2011 Ounces Mined Ounces added through 12/31/2012 2012 exploration/updated resource estimates Blackwater New Afton Mesquite Peak Mines Cerro San PedroNotes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 60
  • 61. Increasing gold leverage per share • 10% increase in Measured and Measured and Indicated Resources(1) Indicated gold resources per share • 49% increase in Blackwater 50 resources Gold Resources (ounces per 1,000 shares) 40 • 14% increase in New Afton resources 30 • Fourth consecutive year with ‘per share’ growth in Measured and 20 Indicated resources 10 - YE 2009 YE 2010 YE 2011 YE 2012Notes: 1. Measured and Indicated resources inclusive of reserves. 61
  • 62. Measured and Indicated resource contribution Gold M&I Resources(2) Silver M&I Resources(2) Copper M&I Resources(2) 21.4 Moz 132 Moz 4.1 Blbs Capoose Peak Mines Cerro San Pedro New Afton El Morro Mesquite Peak Mines New Afton Capoose Blackwater Blackwater El Morro Cerro San Pedro December 31, 2012 Blackwater El Morro Cerro San Pedro Capoose Mesquite New Afton Peak MinesNotes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 2. Measured and Indicated resources inclusive of reserves. 62
  • 63. 2013 exploration program overview• New Gold’s estimated exploration budget for 2013 is $50 million • Capitalized: $20 million • Expensed: $30 million Capitalized: $5 million Capitalized: $15 million Expensed: $5 million Expensed: $15 million Peak Mines 33,000 metres Blackwater 40,000 metres New Afton 40,000 metres Expensed: $10 million 63
  • 64. Blackwater area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George 50km Blackwater Resource 80km 64
  • 65. Blackwater area geology Glacial till Post-mineral andesites Blackwater host volcanics Siltstones 5 km 65
  • 66. Blackwater development footprint Glacial till Post-mineral andesites Blackwater host volcanics Siltstones 5 km 66
  • 67. Blackwater 2013 objectives • Blackwater: Explore for satellite deposits and test potential extensions to known resource • Capoose: Expand and upgrade resource with special focus on potential to extend gold-rich zones >1000 ppb Au • Regional targets: Identify specific drill targets and 500-1000 ppb Au complete first pass reconnaissance drilling 250-500 ppb Au 50-250 ppb Au Capoose Fawnie Van Tine Blackwater Auro Plan for four to six drills to be active during primary field season 67
  • 68. Peak corridor map Great Cobar ~9 kilometres 68
  • 69. New Afton long section A-Zone B-Zone 2012 East Extension Reserves conversion drilling B3 Block 4,900m EA-2 C-Zone EA-9 EA-21 EA-11 * EA-19 * * EA-24 * * * * 2012 Holes completed - Assays pending 69
  • 70. New Afton exploration program – 2012 results• B-Zone reserve addition • Added reserves equivalent to two years of production at current rates • Four infill holes totaling 1,100 metres included in year end resource update • Four additional infill holes totaling 2,000 metres to be included in future resource update• C-Zone exploration • Completed 26 exploration holes totaling 13,898 metres during third and fourth quarters of 2012 • First 11,200 metres drilled to prove up deeper Measured and Indicated resources and potentially lower B3 block extraction level • Three holes totaling 1,321 metres included in year end resource update • 23 holes totaling 12,577 metres to be included in future resource update 70
  • 71. New Afton exploration program Explore and expand mineral resources to extend mine life and provide additional ore sources to support increased mill throughput A&B Zone Reserves December 31, 2012 Proven and Probable Reserves • C-Zone grades compare favorably to Tonnes Au Cu Gold Copper current reserves (000’s) (g/t) (%) (Koz) (Mlbs) • 2012 drill results indicate potential to 52,500 0.65 0.93 1,100 1,080 lower current B3 extraction level and C-Zone Resources December 31, 2012 increase both tonnes and grade for C- Zone Measured and Indicated Resources Tonnes Au Cu Gold Copper (000’s) (g/t) (%) (Koz) (Mlbs) 3,300 0.62 0.68 66 49 Inferred Resources Tonnes Au Cu Gold Copper (000’s) (g/t) (%) (Koz) (Mlbs) 13,600 0.70 0.76 307 228 71
  • 72. New Afton C-Zone exploration program – Highlights A-Zone A-Zone 5,400m 5,400m B-Zone East Extension B-Zone 4,900m 4,900m EA-2 EA-2 EA-9 EA-9 EA-11 EA-21 C-Zone EA-21 EA-11 C-Zone EA-19 EA-19 * EA-24 * * EA-24 * * Historic “Deep C-Zone” Intercepts AF-125: 122m @ 1.01 g/t Au, 1.23% Cu * Holes completed - Assays pending AF-139: 92m @ 1.09 g/t Au, 1.36% Cu Fourth Quarter 2012 C-Zone Drilling Highlights Drill Hole From (m) To (m) Interval (m) Au g/t Cu % EA12-7 424 494 70 1.23 1.19 Drilling highlights not EA12-9 286 444 158 0.88 0.94 EA12-11 418 528 110 1.05 0.90 included in 2012 year EA12-19 460 626 166 1.23 1.28 end resource update EA12-21 488 597 109 1.06 0.95 EA12-24 574 730 156 1.01 1.02 72
  • 73. New Afton exploration objectives 2013 Objectives Target 5,000 metres of drilling for reserve replacement Target 30,000 metres of C-Zone drilling Determine potential to expand C-Zone resource two to three fold Target 5,000 metres of district reconnaissance exploration 73
  • 74. 2013 exploration objectives Blackwater: • Explore potential Blackwater extensions and complete condemnation program • Initiate Capoose geophysical and drilling programs • Define drill-specific targets on regional prospects First half New Afton: 2013 • Extend outer limits of C-Zone • Initiate district reconnaissance drilling Peak: • Drill test southern mine corridor targets • Complete Great Cobar exploration program Blackwater: • Complete Capoose drilling program • First pass reconnaissance testing of regional prospects • Expand target portfolio through continued property-wide reconnaissance Second half New Afton: 2013 • Define outer limits and test internal continuity of C-Zone • Complete district reconnaissance drilling Peak: • Drill test northern mine corridor targets • Reconnaissance drilling on regional targets 74
  • 75. New Afton ValueEnhancing Initiatives 75
  • 76. Overview New Gold is actively evaluating organic growth initiatives across its portfolio, with a current focus on New Afton Mill throughput C-Zone: Resource optimization/increase growth Mine life extension at higher annual production rates 76
  • 77. Overview of New Afton mill start-up• Successful mill start-up 2012 Mill Ramp-Up • June 28, 2012 – first ore through mill meeting targeted start date 14,000 • July 31, 2012 – achieved commercial production ahead 11,661 12,252 11,682 12,000 11,183 of schedule Nameplate Capacity 9,734 • September 21, 2012 – achieved full production (11,000 10,000 tonne per day design capacity) over one month ahead 8,000 7,428 of schedule 6,000 • November/December 2012 – scheduled throughput 3,799 decrease to manage stockpile/feed inventory in 4,000 advance of permanent crusher installation in January 2,000 2013 -• Throughput averages 11,706 tonnes per day in fourth Jun Jul Aug Sep Oct Nov Dec quarter 2012 Daily average throughput by month (tonnes per day)• Record daily throughput of 13,840 tonnes 77
  • 78. New Afton optimization opportunities• To assess the potential for the mill to operate at a throughput higher than nameplate 11,000 tonnes per day on sustainable basis, the following elements require consideration: • Ore access/drawbell development/mining rate • Underground crushing capacity/conveyor capacity • Mill capacity With a potential increase in mill throughput, the company is simultaneously evaluating the additional resource potential of the C-Zone Block to maintain or increase the current 14-year mine life at higher annual gold and copper production rates 78
  • 79. Ore access/drawbell development/mining rate• Drawbell development has been progressing at a faster rate than planned• 50 active drawbells required to source 11,000 tonnes per day of ore feed • Completed 50th drawbell on November 22, 2012 – At December 31, 2012 – 54 drawbells had been completed Drawbell Development• As a result of accelerated drawbell development, 100 ~90 took the opportunity to develop the East Cave, 80 ~65 the benefits of which include: 60 54 40 • Additional ore access points 20 • More consistent annual production profile 0 December 31, 2012 June 30, 2013 December 31, 2013 Target Target • Added flexibility It is expected approximately 65 active drawbells would ultimately provide ~25-30% more ore, resulting in potential for similar increase in mining rate 79
  • 80. New Afton drawbell development and ore columns Copper resource grades Height of Draw Accelerating East Cave development for added flexibility/more ore sources 54 drawbells in production at end of 2012 Central Cave to be activated Final 11 drawbells later in mine life East Cave in West Cave production to begin mid-year Planned development 80 in 2013
  • 81. Underground crushing capacity/conveyor capacity• Gyratory crusher provides excess production capability at nominal 20,000 tonnes per day capacity• Development crusher provides ~8,000 tonnes per day back-up crushing capacity• Conveyor designed to haul up to 14,500 tonnes per day Combined underground crushing and conveying capacity significantly exceeds mill nameplate 11,000 tonnes per day 81
  • 82. Mining rate increase timeline • Commission gyratory crusher • Increase underground mining rate to 11,000 tonnes per day Q1’2013 • Complete VR7 rehab and implement push/pull ventilation • Ventilation study to increase overall system capacity • Increase mining rate to 11,500 tonnes per day • Ore haulage studies to optimize scoops and trucks Q2’2013 • Begin mining in East Cave • Total 65 completed drawbells Q3’2013 • Continued drawbell development • Step up mining rate to 12,000 tonnes per day Q4’2013 • Total 90 completed drawbells 82
  • 83. Mill capacity• Record daily throughput of 13,840 tonnes • 12,250 tonnes per day sustained in October 2012 with no significant optimization efforts• Key considerations for increased mill throughput include: • SAG Mill: Flexibility to optimize mill power and burden level for finest possible product size distribution over a wide range of ore conditions • Ball Mill: Optimize SAG screen deck and hydrocyclone cluster configurations for SAG/Ball Mill circuit balance; optimal Ball Mill feed size and classification efficiency • Flotation: Capacity is adequate for substantial increase in throughput • Concentrate Filtration: Existing capacity for incremental production increase; ample space for installation of third filter • Tailings Pumping Capacity: Three stage variable speed pumps currently running well below maximum capacities 83
  • 84. Mill throughput increase timeline • Optimize crushing and conveying with gyratory crusher Q1’2013 • Hold mill at 11,000 tonnes per day average, build-up live stockpile • Crushing and conveying output achieves steady-state – mill matching at Q2’2013 11,500 tonnes per day average • Target completion of several efficiency improvements including: cyclones, Q3’2013 Ball Mill trommel, pebble crusher, screen deck, expert system • Increase crushing and conveying output as experience is gained Q4’2013 • Target of mill throughput increase to 12,000 tonnes per day 84
  • 85. Conclusion 85
  • 86. Review Established Solid Foundation Low Cost – High Margin• Delivered on operational guidance for fourth • One of only companies in industry with declining consecutive year cost profile• Organic, fully-funded growth profile to double • All-in sustaining cash costs only marginally above production at low costs current industry-average cash costs • No need for M&A • Natural economic hedge of copper/silver provides• Simplified balance sheet effective offset to cost pressures Executing on Shareholder-Oriented Strategy Growing Together• Realizing target of ‘per share’ growth • Board and senior management have significant • Increased NAV per share ownership stake in company • Have grown Measured and Indicated resources • Established strong, mutually-beneficial per share relationships with stakeholders across portfolio • Outperformed key gold equity indices • Employ 1,780 people globally 86
  • 87. New Afton’s contribution• New Afton provides solid gold production growth and even more significant step change in cash flow 2013 Estimated Cash Flow Contribution Mesquite 10% Peak Mines 15% New Afton 50% Cerro San Pedro 25%• Potential mill throughput increase could make New Afton an even more significant contributor in coming years 87
  • 88. Organic growth versus M&A• New Gold has successful track record of value creation through both organic growth (New Afton) and acquisitions (Blackwater)• Management sees no need to pursue M&A unless truly compelling • Current portfolio provides for fully funded doubling of production• No need for additional scale – focus on meaningful value enhancement• Perceive organic initiatives (New Afton throughput increase/C-Zone and Blackwater regional exploration) as highest return potential allocations of capital 88
  • 89. Net asset value and relative performance Net Asset Value(1) NGD Gold Price S&P/TSX Gold Index FTSE Gold Mines Index 500% HUI Index 6/1/09 Today Closing of 450% Richfield acquisition Mesquite, Cerro San Pedro, Peak Mines 400% ~ $875 $1,775 350% +239% Completed $1.2bn business New Afton 300% combination with Western Goldfields 250% ~ $120 $1,491 200% +71% El Morro(2) 150% 0% ~ $40 $697 100% (13%) (16%) Blackwater(3) 50% $-- $1,502 0% 1-Feb-13 22-Aug-10 1-Jun-09 9-Apr-12 26-Mar-10 18-Jan-11 16-Jun-11 12-Nov-11 28-Oct-09 5-Sep-12Source: Broker Reports, Company Estimates and Announcements, Bloomberg, all amounts in USD.Notes: 1. Street consensus NAV. 2. Current street consensus NAV for El Morro; Includes $50 million cash payment received from Goldcorp as part of transaction consideration. 3. New Gold purchased Richfield and Silver Quest with the deals closing on June 1, 2011 and December 23, 2011, respectively. 4. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production. 89 5. FTSE Gold Mines Index includes 26 gold producing companies. 6. HUI Index includes 15 of the major global gold producers.
  • 90. 2013 catalysts 2013 guidance – increased resources, production growth and lower costs Blackwater regional exploration update New Afton C-Zone exploration update Completion of Blackwater Feasibility Study New Afton mill to reach 12,000 tonnes per day Resolution of El Morro temporary permit suspension Results of New Afton throughput increase evaluation 90
  • 91. 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 91
  • 92. Appendix Appendices 1. Summary of debt 2. Fourth quarter and full year 2012 performance 3. Detailed operating results/assumptions 4. Reserve and resources notes 92
  • 93. Appendix 1 Summary of debt Undrawn Credit Senior Unsecured Notes Senior Unsecured Notes El Morro Facility (April 2012) (November 2012) Funding Loan Face Value $150 million(1) $300 million $500 million $65 million Maturity 1 year with annual April 15, 2020 November 15, 2022 n/a extensions permitted Interest Rate See ‘Key features’ 7.00% 6.25% 4.58% Payable Revolving credit Semi-annually Semi-annually Upon start of production Conversion price n/a n/a n/a n/a Current trading n/a ~107 ~105 n/a value Key features Normal financial • Senior unsecured • Senior unsecured New Gold to covenants • Redeemable after April • Redeemable after repay Goldcorp 15, 2016 at 103.5% November 15, 2017 at out of 80% of its Interest Rate down to 100% of face par plus half coupon, 30% share of • 3.00-4.25% over after 2018 declining ratably to par cash flow once El LIBOR based on • Unlimited dividends if • Unlimited dividends if Morro starts ratios leverage ratio below 2:1 leverage ratio below 2:1 production • Standby fee of 0.75-1.06%Notes: 1. $50 million currently allocated for Letters of Credit. 93
  • 94. Appendix 2 Fourth quarter and full year 2012 operating asset overview Mesquite Cerro San Pedro Peak Mines New Afton Total Q412 2012 Q412 2012 Q412 2012 Q412 2012 Q412 2012 Gold production (Koz) 29 142 32 138 29 96 23 37 113 412 Gold sales (Koz) 30 142 31 134 26 89 23 30 110 396 Silver production (Koz) -- -- 401 1,939 -- -- -- -- 401 1,939 Silver sales (Koz) -- -- 420 1,926 -- -- -- -- 420 1,926 Copper production (Mlbs) -- -- -- -- 3.6 14.4 17.3 28.5 20.9 42.8 Copper sales (Mlbs) -- -- -- -- 3.0 13.0 16.8 22.6 19.8 35.6 Total cash costs (1) ($/oz) $787 $690 $320 $232 $743 $764 ($1,067) ($1,043) $254 $421Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 94
  • 95. Appendix 3 Detailed operating results/assumptions Mesquite Cerro San Pedro Peak Mines New Afton 2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E Tonnes processed (000 tonnes) 14,503 14,250-14,750 16,531 12,250-12,750 778 815-835 1,970 4,000-4,200 Tonnes mined (000 tonnes) 45,666 46,000-48,000 30,905 36,000-38,000 786 1,310-1,330 903 4,300-4,500 Gold grade (g/t) 0.46 0.41-0.45 0.47 0.58-0.63 4.18 4.1-4.3 0.73 0.67-0.71 Silver grade (g/t) -- -- 21.43 13.0-17.0 -- -- -- -- Copper grade (g/t) -- -- -- -- 0.97% 0.80-0.84% 0.78% 0.86-0.90% Gold recovery (%) (1) (1) (2) (2) 91.3% 90.0-92.0% 78.8% 88.0-90.0% Silver recovery (%) -- -- (2) (2) -- -- -- -- Copper recovery (%) -- -- -- -- 86.0% 89.0-91.0% 84.5% 88.0-90.0% Capital expenditures ($mm) $11 $20 $15 $40 $47 $60 $297 $110Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides. 2. Cerro San Pedro life-of-mine recovery: Gold – ~60%; Silver – ~25%. 95
  • 96. Appendix 4Reserve and resources Mineral Reserves statement as at December 31, 2012 Metal grade Contained metal Tonnes Gold Silver Copper Gold Silver Copper 000s g/t g/t % Koz Koz Mlbs Mesquite Proven 13,140 0.68 - - 287 - - Probable 114,409 0.56 - - 2,055 - - Mesquite P&P 127,549 0.57 - - 2,342 - - Cerro San Pedro Proven 21,100 0.52 17.1 - 353 11,600 - Probable 26,400 0.48 17.4 - 407 14,800 - CSP P&P 47,500 0.50 17.3 - 760 26,400 - Peak Proven 2,030 6.07 7.6 1.07 396 496 48 Probable 2,020 3.90 7.0 1.20 253 455 53 Peak P&P 4,050 4.99 7.3 1.13 649 951 101 New Afton Proven - - - - - - - Probable 52,500 0.65 2.3 0.93 1,100 3,880 1,080 New Afton P&P 52,500 0.65 2.3 0.93 1,100 3,880 1,080 El Morro 100% Basis 30% Basis Proven 307,949 0.57 - 0.56 1,705 - 1,135 Probable 335,152 0.37 - 0.44 1,186 - 962 El Morro P&P 643,101 0.47 - 0.49 2,891 - 2,097 96
  • 97. Appendix 4Reserve and resources (cont’d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012 Metal grade Contained metal Tonnes Gold Silver Copper Gold Silver Copper 000s g/t g/t % Koz Koz Mlbs Mesquite Measured - oxide 19,100 0.51 - - 313 - - Indicated - oxide 274,100 0.38 - - 3,349 - - Meqsuite M&I - oxide 293,200 0.39 - - 3,662 - - Measured - non oxide 4,900 0.88 - - 139 - - Indicated - non oxide 96,000 0.61 - - 1,883 - - Mesquite M&I - non oxide 100,900 0.62 - - 2,022 - - Total Mesquite M&I 394,100 0.45 - - 5,684 - - Cerro San Pedro Measured - oxide 27,100 0.34 15.0 - 303 13,100 - Indicated - oxide 49,000 0.24 13.0 - 380 20,480 - CSP M&I - oxide 76,100 0.28 13.7 - 683 33,580 - Measured - sulphide 15,200 0.47 11.9 - 229 5,800 - Indicated - sulphide 60,400 0.41 9.6 - 791 18,600 - CSP M&I - sulphide 75,600 0.42 10.1 - 1,020 24,400 - Total CSP M&I 151,700 0.35 11.9 - 1,703 57,980 - Peak Measured 2,700 5.74 7.5 1.05 494 650 62 Indicated 3,200 3.75 6.8 1.19 386 700 84 Peak M&I 5,900 4.66 7.1 1.13 880 1,350 146 New Afton A&B Zones Measured 33,500 0.86 2.9 1.18 929 3,160 873 Indicated 45,900 0.67 2.4 0.89 984 3,530 896 A&B Zone M&I 79,400 0.75 2.6 1.01 1,913 6,690 1,769 C-Zone Measured 400 0.60 1.3 0.73 8 20 6 Indicated 2,900 0.63 1.3 0.68 58 120 43 C-Zone M&I 3,300 0.62 1.3 0.68 66 140 49 Total New Afton M&I 82,700 0.74 2.6 1.00 1,979 6,830 1,818 Blackwater Measured 88,188 0.94 5.2 - 2,670 14,740 - Indicated 207,958 0.81 6.2 - 5,400 41,450 - Blackwater M&I 296,146 0.85 5.9 - 8,070 56,190 - Capoose Indicated 14,200 0.43 20.8 - 196 9,497 - El Morro 100% Basis 30% Basis Measured 307,949 0.57 - 0.56 1,705 - 1,135 Indicated 335,152 0.37 - 0.44 1,186 - 962 El Morro M&I 643,101 0.47 - 0.49 2,891 - 2,097 97
  • 98. Appendix 4Reserve and resources (cont’d) Inferred Resource statement as at December 31, 2012 Metal grade Contained metal Tonnes Gold Silver Copper Gold Silver Copper 000s g/t g/t % Koz Koz Mlbs Mesquite Oxide 35,200 0.33 - - 373 - - Non oxide 15,700 0.55 - - 278 - - Mesquite Inferred 50,900 0.40 - - 651 - - Cerro San Pedro Oxides 53,400 0.17 9.0 - 300 15,400 - Sulphides 50,500 0.34 8.5 - 550 13,800 - CSP Inferred 103,900 0.25 8.8 - 850 29,200 - Peak 1,700 2.64 4.8 1.13 144 261 42 New Afton A&B-Zone 14,900 0.45 2.0 0.65 216 940 212 C-Zone 13,600 0.70 1.5 0.76 307 670 228 New Afton Inferred 28,400 0.57 1.8 0.70 523 1,610 440 Blackwater 16,585 0.58 10.8 - 310 5,760 - Capoose 64,070 0.29 23.2 - 595 47,789 - 100% Basis 30% Basis El Morro 137,555 0.99 - 0.70 1,310 - 632 98
  • 99. Appendix 4Reserve and resources notesMineral 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. New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. Inferred mineral resources are not knownwith the same degree of certainty as Measured and Indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves. Mineral reserves have beenestimated and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (‘CIM’) definition standards and guidelines and Canadian National Instrument 43-101 (‘NI43-101’).1) Mineral Reserves for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold Silver Copper Lower Cut-off (US$/oz) (US$/oz) (US$/lb) Mesquite $1,300 - - 0.21 g/t Au – Oxide reserves 0.41 g/t Au – Non-oxide reserves Cerro San Pedro $1,300 $24.00 - US$4.33 /t NSR Peak Mines $1,300 $24.00 $3.00 A$120 – 253/t NSR New Afton $1,300 - $3.00 US$24/t NSR El Morro $1,350 - $3.00 0.20% CuEq 99
  • 100. Appendix 4Reserve and resources notes (cont’d)2) Mineral Resources for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold Silver Copper Lower Cut-off (US$/oz) (US$/oz) (US$/lb) Mesquite $1,400 - - 0.12 g/t Au – Oxide resources 0.24 g/t Au – Non-oxide resources Cerro San Pedro $1,400 $28.00 - 0.1g/t AuEq – Open pit oxide resources 0.4g/t AuEq – Open pit sulphide resources Peak Mines $1,400 $28.00 $3.25 A$97 - 137/t NSR New Afton $1,400 $28.00 $3.25 0.40% CuEq – All resources El Morro $1,500 - $3.50 0.15% Cu – Open pit resources 0.20% Cu – Underground resources Blackwater $1,400 - - 0.40 g/t AuEq Capoose $1,400 - - 0.40 g/t AuEqMineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI 43-101.3) 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 commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators ‘open pit’ and‘underground’ have been applied to indicate envisioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ have been applied to indicate the type of mineralization asit relates to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification and reporting parameters foreach of New Gold’s mineral properties are provided in the respective NI 43-101 Technical Reports which are available on SEDAR.4) Qualified Person: The preparation of New Gold’s mineral reserve and resource statements has been done by Qualified Persons as defined under Canadian National Instrument 43-101under the oversight and review of Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold. 100
  • 101. Contact information Investor Relations Hannes Portmann Vice President, Corporate Development 416-324-6014 hannes.portmann@newgold.com 101