RBC Capital Markets London Gold Conference

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RBC Capital Markets London Gold Conference

RBC Capital Markets London Gold Conference

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  • 1. RBC Capital Markets London Gold Conference November 2013
  • 2. Cautionary statements All m onetary amounts in U.S. dollars unless otherwise stated Total cash costs shown net of by-product sales unless otherwise stated CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this presentation, including any information relating to New Gold’s future financial or operating performance as well as information respecting Rainy River and its assets may be deemed “forward looking”. All statements in 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 statements are statements that are not historical facts and are generally, but not alw ays, identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “antic ipates”, “projects”, “potential”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “w ill be taken”, “occur” or “be achieved” or the negativ e connotation. Forward-looking statements in this presentation include, among others, statements with respect to: guidance for production, cash costs and all-in sustaining costs (and its components); the potential difference between gold price and cash and all-in sustaining costs, including relative to other companies; potential modifications to operations (and the cost of any such modifications) and potential opportunities to increase throughput at New Afton exploration potential and the results of future exploration activities; expected future mining activities; the expected or potential annual production, expected cash costs and expected development cost of New Gold’s projects; the estimation of mineral reserves and resources and the realization of such estimates; the expected life of New Gold’s mines and projects; the timing of completion of feasibility studies or updates, reserve updates and other technical w ork or reports; the adequacy of capital resources; and expected capital expenditures and exploration expenditures. All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Material assumptions regarding our forward looking statements are discussed in this presentation, the annual MD&A, the AIF and our Technical Reports. Forw ard-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknow n ris ks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements; price volatility in the spot and forward markets for commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; discrepancies betw een actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Mexico and Chile or any other country in w hic h New Gold currently or may in the future carry on business; taxation; controls , regulations and political or economic developments in the countries in w hich New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying w ith the permitting requirements of each juris diction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for Blackwater and the Rainy River Gold Project; in Mexico, w here Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization (EIS); and in Chile, w here the courts had temporarily suspended the approval of the environmental permit for El Morro; the lack of certainty w ith respect to foreign legal systems, whic h may not be immune from the influence of political pressure, corruption or other factors that are inconsis tent with the rule of law; the uncertainties inherent to current and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; competition; loss of key employees; additional funding requirements; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the PEA for Blackwater and the Feasibility Study for the Rainy River Gold Project; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; uncertainties w ith respect to the successful integration of the business of Rainy River w ithin the business of New Gold; unexpected delays and costs inherent to consulting and accommodating rights of First Nations; and uncertainties w ith respect to obtaining all necessary surface rights for the Rainy River Project. In addition, there are risks and hazards associated w ith the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these ris ks) as well as “Risk Factors” included in New Gold’s (and, in respect to information related to the Rainy River Gold Project, in Rainy River’s) disclosure documents filed on and available at www.sedar.com. Forw ard-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherw ise, except in accordance with applicable securities law s. All endnotes can be found at the conclusion of the presentation and should be review ed. 2
  • 3. New Gold investment thesis Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with solid track record Peer-leading growth pipeline A history of value creation 3
  • 4. Portfolio of assets in top-rated jurisdictions Mining investment – country rankings (1) Blackwater Mine Life: 15+ years New Afton Mine Life: 14 years Rainy River #2 Mine Life: 15+ years Mesquite Mine Life: 10+ years Cerro San Pedro Mine Life: 4+ years El Morro Mine Life: 17 years Peak Mines Mine Life: 8 years CANADA #6 UNITED STATES #5 MEXICO #3 CHILE #1 AUSTRALIA OPERATING DEVELOPMENT (1) Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report – 2013 Ranking of Countries for Mining Investm ent: “Where Not to Invest”. 4
  • 5. Portfolio of assets in top-rated jurisdictions Growing gold resource base in Canada GOLD RESERVES (Moz)(4) GOLD M&I RESOURCES (Moz)(1)(4) 11.8 New Gold 0.9 Australia 1.7 Mexico 7.8 = +44% per share New Gold & Rainy River(3) 2.9 Chile 5.7 USA GOLD M&I RESOURCES (Moz)(1)(2)(4) 29.2 23.1 = +20% per share 18.0 Canada New Gold New Gold & Rainy River(3) • 18 million ounces of M&I resources in Canada • 84% increase in M&I resources per share since 2009 (1) Measured and Indicated Resources inclusive of Reserves. Canada = +62% 5
  • 6. Invested and experienced team Significantly invested team EXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORS Randall Oliphant Executive Chairman David Emerson Former Canadian Cabinet Minister Robert Gallagher President & CEO James Estey Former Chairman, UBS Securities Canada Brian Penny Executive VP & CFO Robert Gallagher President & CEO Vahan Kololian Founder, Terra Nova Partners Martyn Konig Former Executive Chairman, European Goldfields Pierre Lassonde Chairman, Franco-Nevada Randall Oliphant Executive Chairman Raymond Threlkeld Mining Consultant Ernie Mast VP Operations Collectively ~$80 million invested in New Gold 6
  • 7. Among lowest-cost producers with solid track record Lower costs driving margin expansion • $150 - $200 per ounce lower all-in sustaining costs(1) results in incremental margin(2) • ~$100 per ounce decrease in cash costs(3) from 2009 to 2013E 2013 GUIDANCE – ALL-IN SUSTAINING COSTS ($/OZ)(1) ~$1,100 ~$1,050 ~$900 • Copper and silver create effective hedge New Gold Mid-Tier Average(4) Senior Average(5) 7
  • 8. Among lowest-cost producers with solid track record 2013 outlook Gold production(1) Copper production Silver production 390-400 Koz 78-88 Mlbs ~1.3 Moz 2013 Total cash costs(2) ~$375/oz Assum ptions for the fourth quarter of 2013: Gold - $1,300 per ounce; Copper - $3.25 per pound; Silver - $20.00 per ounce; AUD/USD and CDN/USD parity. 2013 All-in sustaining costs(2)(3) ~$900/oz 8
  • 9. Among lowest-cost producers with solid track record New Afton hitting its stride • Evaluating potential for further throughput increases in 2014 and beyond COPPER GRADE (g/t) • Achieved targeted throughput increase to 12,000 tonnes per day three months ahead of schedule GOLD GRADE (%) 0.96% 0.78 0.67 Q1 2013 0.82 Q2 2013 Q3 2013 Q1 2013 0.98% Q2 2013 Q3 2013 0.79% RECOVERY (%) 87% RECOVERY (%) 88% 87% 88% Q2 2013 Q3 2013 83% 81% Q1 2013 Q2 2013 Q3 2013 Q1 2013 PRODUCTION (Koz) 22 PRODUCTION (Mlbs) 25 19 15 Q1 2013 21 12 Q2 2013 Q3 2013 Q1 2013 Q2 2013 Q3 2013 9
  • 10. Peer-leading growth pipeline Evaluating further throughput expansion potential to ~14,000 tonnes per day DRAWBELLS • 78 completed to date • 85 to be completed by year-end • 14 million tonnes, or approximately three years, of broken reserves accessible CRUSHER • 20,000 tonne per day design capacity • Daily maximum of 18,581 tonnes in August 2013 CONVEYOR • 14,500 tonne per day design capacity • During third quarter, 52 days over 14,000 tonnes per day conveyed 10
  • 11. Peer-leading growth pipeline Evaluating further throughput expansion potential to ~14,000 tonnes per day • During third quarter, ran operation at 14,000 to 15,500 tonnes per day over five day period • Mill was able to process higher throughput, however a commensurate decrease in recovery was seen • Currently evaluating low capital cost alternatives to process at higher rate and bring recoveries into the high 80’s/low 90’s • Potential to include: • Addition of a tower mill for tertiary grinding • Additional rougher flotation capacity at front end of the flotation circuit • Additional cleaner capacity 11
  • 12. Peer-leading growth pipeline New Afton C-Zone exploration program Looking Northwest • Actively exploring for both near and medium-term resource growth • East Cave Extension represents lateral extension of B-Zone currently being mined • Added two years to mine life through 2012 exploration efforts B Zone Reserve • C-Zone represents down plunge extension of ore body • All 2013 exploration to be incorporated into year-end mineral reserve and resource update East Cave Extension and Hanging Wall Lens C Zone C-ZONE RESOURCE SUMMARY(1) Measured and Indicated GOLD COPPER Inferred 0.3 Moz at 0.77 g/t 0.4 Moz at 0.62 g/t 211 Mlbs at 0.77% 301 Mlbs at 0.68% 12
  • 13. Peer-leading growth pipeline Three organic projects Industry leading organic growth profile +800 Koz (1) El Morro • Growth projects expected to increase gold production by ~1.75 times over current operations • Blackwater and Rainy River acquisitions increased shares outstanding by 25% for potential +150% increase in production Four current operations Blackwater(2) • Projecting below current industry average cash costs at each project Rainy River 2013 Gold Production Annual Production Potential of Growth Assets 13
  • 14. Peer-leading growth pipeline Three world-class projects Rainy River Blackwater El Morro (30% ) Significant Gold M&I Resource Base(1)(2) 6.2 Moz 8.6 Moz 2.9 Moz Exploration Potential Intrepid Zone/Multiple Regional Targets Capoose/Multiple Regional Targets El Morro Zone/ Block Cave Potential Jurisdiction Ontario, Canada British Columbia, Canada Chile Robust Production/ Low Cash Costs(3) ~225 Koz at below average cash costs ~500 Koz at below average cash costs ~90 Koz Au/85 Mlbs Cu at ~($700) cash costs(4) RAINY RIVER BLACKWATER EL MORRO 14
  • 15. Peer-leading growth pipeline Control of two underexplored districts • +169 km2 land package • Multiple targets including recently discovered Intrepid Zone RAINY RIVER Existing resource Exploration targets Off Lake Son of Intrepid Western Zone Rainy River Intrepid Intrepid Extension 15
  • 16. Peer-leading growth pipeline Control of two underexplored districts • +1,000 km2 land package • Initial resource at Capoose ~25 km from main Blackwater resource BLACKWATER Existing resource Exploration targets Capoose • Multiple regional targets Van Tine Fawnie Blackwater Auro 10km 16
  • 17. A history of value creation Increasing Net Asset Value drives share price growth Net Asset Value (1) March 2009 November 2013 PRICE PERFORMANCE SINCE BUSINESS COMBINATION WITH WESTERN GOLDFIELDS IN MARCH 2009 (5) 230% Mesquite, Cerro San Pedro, Peak Mines ~$875 $1,027 New Afton ~$120 $1,542 El Morro (2) ~$40 $400 45% Blackwater (3) $– $720 Rainy $– (14% ) (40% ) River(4) $485 (29% ) S&P/TSX Global FTSE Gold Gold Index (6) Mines Index (7) HUI Index (8) Gold Price New Gold 17
  • 18. A history of value creation Near-term catalysts 2013 guidance – increased resources, production growth and lower costs Blackwater resource update New Afton C-Zone exploration update Completion of Rainy River acquisition New Afton mill to reach 12,000 tonnes per day Resolution of El Morro temporary permit suspension Completion of Blackwater Feasibility Study Rainy River Feasibility Study Update Blackwater/Rainy River/New Afton exploration/resource updates New Afton throughput expansion update 18
  • 19. New Gold investment thesis Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with solid track record Peer-leading growth pipeline Establishing the leading intermediate gold company Track record of value creation
  • 20. Appendix Appendices Page 1. Financial information 21 2. Consolidated operating performance/Q3’13 summary 27 3. New Afton 32 4. Rainy River 38 5. Blackwater 39 6. El Morro 41 7. Reserves and resource notes 47 8. Commodity price/foreign exchange assumptions 54 20
  • 21. Appendix 1 Capitalization and liquidity • • Undrawn Credit Facility(2) Liquidity Position $429mm Two senior unsecured note offerings during 2012 ($300 million at 7.00%, $500 million at 6.25%) • Total common shares outstanding of 503 million • Cash and Equivalents (1) All corporate debt due in 2020 or beyond(3) Paid $66 million to eliminate legacy gold hedges on May 15, 2013 $100mm $529mm 1. Cash and equivalents as at Septem ber 30, 2013. 2. $50 m illion of total $150 m illion currently used for Letters of Credit. 3. See Appendix 1 – Sum ary of debt for detailed breakdown of com m ponents of debt. 21
  • 22. Appendix 1 Summary of debt Undrawn Credit Facility Senior Unsecured Notes (April 2012) Senior Unsecured Notes (November 2012) El Morro Funding Loan Face Value $150 million(1) $300 million $500 million $76 million Maturity 1 year with annual extensions permitted April 15, 2020 November 15, 2022 n/a 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 value n/a ~103 ~99 n/a Key features • • • • • • • • 1. $50 m illion currently allocated for Letters of Credit. Normal financial covenants Interest Rate 3.00-4.25% over LIBOR based on ratios Standby fee of 0.751.06% • Senior unsecured Redeemable after April 15, 2016 at 103.5% down to 100% of face after 2018 Unlimited dividends if leverage ratio below 2:1 • Senior unsecured Redeemable after November 15, 2017 at par plus half coupon, declining ratably to par Unlimited dividends if leverage ratio below 2:1 New Gold to repay Goldcorp out of 80% of its 30% share of cash flow once El Morro starts production 22
  • 23. Appendix 1 2012 and 2013 capital expenditures by site • New Gold’s 2013 estimated capital expenditures are $315 million • • • Capital includes costs related to ongoing annual sustaining capital as well as investments for future production Capital estimate includes recently acquired Rainy River project Capital estimates by site are shown below: TOTAL 2012 ACTUAL CAPITAL EXPENDITURES: $499 MILLION Cerro San Pedro $11mm TOTAL 2013 CAPITAL EXPENDITURE ESTIMATE: $315 MILLION Mesquite $11mm Mesquite $20mm Peak Mines $47mm Rainy River $25mm Cerro San Pedro $40mm Blackwater $128mm New Afton $302mm New Afton $110mm Peak Mines $60mm Blackwater $60mm 23
  • 24. Appendix 1 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 extension New Afton - $110 million • 18% • 82% $90 million – continued cave and drawbell development as well as related technical services Total of ~90 drawbells expected to be completed by end of 2013 • Annual drawbell development to decrease over mine life with commensurate decrease in capital Blackwater - $60 million • • $15 million – capitalized exploration $45 million – Feasibility and related engineering studies, permitting, camp facilities/operation • • 100% $30 million – underground development and capitalized exploration $30 million – equipment, mine and mill projects/maintenance Peak Mines - $60 million 50% 50% Direct investment for future production Annual sustaining capital 24
  • 25. Appendix 1 2013 capital expenditures by category Cerro San Pedro - $40 million • • $30 million – final leach pad expansion and capitalized stripping for phase 5 development $10 million – site maintenance/processing improvements • • $20 million – engineering, studies, environmental and other $5 million – ongoing exploration • $12 million – two additional trucks and construction of new welding and tire shops $8 million – equipment components/site maintenance 25% 75% Rainy River - $25 million 100% Mesquite - $20 million 40% • 60% Direct investment for future production Annual sustaining capital New Gold’s 30% share of estimated 2013 El Morro capital cost of $10 million fully carried by Goldcorp Inc. 25
  • 26. Appendix 1 2013 exploration program overview • New Gold’s estimated exploration budget for 2013 is $50 million • • • Capitalized: $20 million Expensed: $30 million Additional $5 million of exploration at Rainy River post acquisition 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 26
  • 27. Appendix 2 2013 third quarter highlights • Gold production – 94,038 ounces • Total cash costs(1) – $280 per ounce sold • All-in sustaining costs(2) – $779 per ounce • New Afton achieved targeted increase in throughput three months ahead of schedule • Adjusted earnings per share (3) – $0.04/share Lowest cost quarter in company’s history • Adjusted net cash generated from operations (4) – $54 million • Completed Rainy River acquisition(5) • Cash and cash equivalents of $429 million 1. 2. 3. 4. 5. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”. Refer to Endnote on adjusted net cash generated from operations under the heading “Non-GAAP Measures”. 97.5% of Rainy River was acquired in Q3, with the rem aining 2.5% acquired in Q4. 27
  • 28. Appendix 2 2013 mine-by-mine operating results 2013 THIRD QUARTER Gold sales (000s ounces) costs (1) Cash ($/oz) 2013 YEAR-TO-DATE All-in Sustaining costs (2) ($/oz) Gold sales (000s ounces) Cash costs (1) ($/oz) All-in Sustaining costs (2) ($/oz) New Afton 25 ($1,310) ($365) 62 ($1,104) ($191) Cerro San Pedro 24 $723 $771 81 $605 $674 Mesquite 21 $1,017 $1,098 72 $936 $1,162 Peak Mines 24 $856 $1,332 77 $874 $1,405 94 $280 $779 291 $399 $905 2013 THIRD QUARTER 2013 YEAR-TO-DATE New Afton co-product cash costs(1) Gold ($/oz) $454 $526 Copper ($/lb) $1.05 $1.24 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 28
  • 29. Appendix 2 Consolidated financial summary 2013 THIRD QUARTER 2012 THIRD QUARTER $196 $196 Earnings from mine operations ($ million) $51 $77 Net earnings ($ million) $12 $18 $0.02 $0.04 $20 $43 $0.04 $0.09 $54 $47 Revenue ($ million) Net earnings per share ($/share) Adjusted net earnings(1) ($ million) Adjusted net earnings per share(1) ($/share) Adjusted net cash generated from operations (2) ($ million) 1. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”. 2. Refer to Endnote on adjusted net cash generated from operations under the heading “Non-GAAP Measures”. 29
  • 30. Appendix 2 2013 estimated all-in sustaining costs Total cash costs (1) ~$375/oz General and administrative ~$70/oz Exploration expense ~$80/oz Sustaining capital(2) ~$375/oz ALL-IN SUSTAINING COSTS(3) 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 2. Sustaining capital based on New Gold’s total 2013 estim ated capital expenditures excluding expenditures related to growth-related initiatives. 3. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. ~$900/oz 30
  • 31. Appendix 2 Lower costs driving margin expansion New Gold offers shareholders potential for over $400 per ounce(1) of incremental margin $782(4) $800 $738 Total Cash Costs (US$/oz)(2) $643 $600 $557 $478 Incremental Margin to New Gold Shareholders $465 $446 $400 $421 $418 $375 $200 2009 1. 2. 3. 4. 2010 2011 Calculated based on H1’2013 GFMS industry average cash costs less New Gold 2013 cash cost guidance. Assum no change to industry average cash costs for rem es ainder of 2013. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Industry data per GFMS reports calculated net of by-product credits as at various year-ends Industry data per GFMS reports calculated net of by-product credits at H1’2013. 2012 2013E 31
  • 32. Appendix 3 Drawbell continuity schedule Copper resource grades Accelerated East Cave development completed June 2013 East Cave production began June 2013 65 drawbells in production In West Cave Planned Draw bells in 2013 Planned Future Drawbells 32
  • 33. Appendix 3 Mill schematic Final Concentrate To Tailings Surface Stockpile Potential New Facilities 33
  • 34. Appendix 3 East Cave Extension and Hanging Wall Lens overview Reserves Replacement • East Cave Extension delineation and infill drilling to extend Main Zone reserve laterally to east • Hanging Wall Lens drilling to test potential to develop additional resources in hanging wall to Main Zone East Cave Extension Hanging Wall Lens Holes Metres Holes Metres 2013 program 34 8,253 24 9,522 2012 program 8 3,177 - - Total to date 42 11,430 24 9,522 34
  • 35. Appendix 3 Drill program highlights HIGHLIGHTS FROM EAST CAVE DRILL PROGRAM Drill Hole From (m) To (m) Interval (m) Gold (g/t) Copper (%) AF13-198 19 58 39 0.17 0.38 AF13-207 41 110 69 0.50 0.69 AF13-210 44 180 136 0.25 0.66 AF13-212 46 190 144 0.18 0.75 AF13-215 236 406 170 0.67 1.47 AF13-227 216 322 106 0.21 0.59 HIGHLIGHTS FROM HANGING WALL LENS DRILL PROGRAM Drill Hole From (m) To (m) Interval (m) Gold (g/t) Copper (%) EA13-040 138 224 86 0.33 0.78 EA13-041 226 256 30 1.69 1.22 EA13-049 256 278 22 1.68 1.08 EA13-055 294 336 42 0.49 0.62 EA13-062 252 352 100 0.80 0.43 EA13-068 366 418 52 2.04 1.43 EA13-079B 294 462 168 1.21 0.70 3 70 67 0.54 0.15 EA13-084 1. Refer to news release dated October 21, 2013 “New Gold Achieves Targeted Throughput Increase at New Afton Ahead of Schedule” as filed on SEDAR for all assay results as well as other disclosure relating to these results. 35
  • 36. Appendix 3 C-Zone overview Resource Expansion • C-Zone delineation and infill drilling to expand and upgrade resource to support future engineering design studies Holes Metres 2013 program 41 26,800 2012 program 26 13,900 Total to date 67 40,700 • Exploring potential to expand C-Zone to west and down plunge C-ZONE RESOURCE SUMMARY(1) Measured and Indicated Inferred GOLD 0.3 Moz at 0.77 g/t 0.4 Moz at 0.62 g/t COPPER 211 Mlbs at 0.77% 301 Mlbs at 0.68% Note: Includes all 2012 drilling plus five holes completed in early 2013 1. Refer to appendix 7 for detailed breakdown of resources and other inform ation related to resource estim ates. 36
  • 37. Appendix 3 C-Zone highlights 2013 C-ZONE DRILLING HIGHLIGHTS From (m) To (m) Interval (m) Gold (g/t) Copper (%) EA13-031 644 708 64 0.86 1.33 EA13-032 478 622 144 0.92 1.10 EA13-034 744 810 66 0.90 0.93 EA13-036 592 678 86 1.51 1.66 EA13-037 566 652 86 0.66 1.38 EA13-045 526 588 62 0.85 1.13 EA13-046 722 792 70 1.13 1.06 EA13-054 504 628 124 1.08 1.52 EA13-056 740 820 80 0.70 0.48 EA13-076 372 416 44 0.54 0.96 EA13-088 514 596 82 1.95 2.57 Drill Hole • 2013 drilling program has tripled the amount of drill hole data defining the C-Zone resource • Drill program has both extended limits and improved classification confidence in C-Zone resource 1. Refer to news release dated October 21, 2013 “New Gold Achieves Targeted Throughput Increase at New Afton Ahead of Schedule” as filed on SEDAR for all assay results as well as other disclosure relating to these results. 37
  • 38. Appendix 4 Rainy River – Location • Mining friendly Northwestern Ontario • 65 km northwest of Fort Frances • 80 km south of Kenora • Within 25 km of rail and power • Local skilled labour force Kenora Rainy River Gold Project Fort Frances HWY 600 Thunder Bay Site Topography 38
  • 39. Appendix 5 Blackwater – A robust project Measured and Indicated Gold Resources (1) – Direct Processing Material 8.6 Moz • Additional Measured and Indicated gold resources – stockpile material of 0.9 million ounces • Central British Columbia near infrastructure • Year-round accessibility for drilling/ development • Total 2012 drilling over 270,000 metres project wide • Tax synergies with New Afton • PEA completed September 2012 • Targeting annual gold production of ~500,000 ounces • • 1. Refer to Appendix 7 for detailed disclosure on Resource calculations and other inform ation related to resource estim ates. 2. Blackwater’s potential is not supported by a feasibility study. See Endnote “Blackwater PEA – Additional Cautionary Note”. Targeting completion of Feasibility Study by late 2013 Consolidated significant land position – 1,000 km2 39
  • 40. Appendix 5 Blackwater – Project overview • Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant • Low grade stockpiling strategy • Simple, conventional flowsheet using whole ore leach process • 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 1. Source: Septem ber 2012 Prelim inary Econom Assessm ic ent. 40
  • 41. Appendix 6 El Morro (30%) 2.9 Moz Gold Reserve(1) 2.1 Blbs Copper Reserve(1) • Goldcorp – 70% partner and project operator • New Gold’s 30% share of capital fully funded by Goldcorp Location Chile Mine type Open Pit Reserves (1) – Gold/Copper (Moz/Mlbs) 2.9/2,097 Resources (1) – Gold/Copper (Moz/Mlbs) 2.9/2,097 Estimate mine life 17 years LOM production/yr (Au Koz/Cu Mlbs) 90/85 LOM cash costs/oz by-product(2) ($700) • 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) • Evaluating various alternatives for a power source to northern Chilean development projects 1. New Gold’s attributable 30% share. Refer to Appendix 7 for detailed disclosure on reserve and resource calculations. 2. Refer to Endnote on total cash cost under the heading “Non-GAAP Measures”. Life of m ine co-product costs estim ated at $550/oz gold and $1.45/lb copper at com odity price assum m ptions of $1,200/oz gold and $2.75/lb copper. 41
  • 42. Appendix 6 El Morro 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 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures” . 42
  • 43. Appendix 6 La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 m etres 43
  • 44. Appendix 6 El Morro (30%) – Funding structure(1) Total Capital 100% ~ $3.9 billion 30% 100% Average annual cash flow 70% Funded by $1.2 billion interest at 4.58% ~ $2.7 billion 30% 20% 70% 80% Carried funding repayment • New Gold’s 30% share of development capital 100% carried • Interest fixed at 4.58% 1. Capital estim ates based on Decem ber 2011 Feasibility Study. 44
  • 45. Appendix 6 Selected porphyry gold/copper deposits/mines (1) Au Grade (g/t) 0.80 New Afton 0.70 0.60 El Morro 0.50 0.40 0.30 0.20 0.10 -0.20% 0.40% 0.60% 0.80% Producing 1.20% (2) Cu Grade (%) Development Alumbrera Chapada Cadia-Ridgew ay 1.00% New Prosperity Mt. Milligan El Morro New Afton Cobre Panama Cerro Casale Agua Rica 1. Based on disclosure by respective com panies. 2. Includes “Cadia East Underground” and “Ridgeway Underground” reserves as indicated in Newcrest’s February 8, 2013 press release; does not inc lude “Other” Cadia province reserves. 45
  • 46. Appendix 6 El Morro relative positioning(1) EL MORRO WITHIN GOLDCORP PORTFOLIO Asset Gold Reserves (Moz) Asset Gold Equivalent(2) (Moz) Penasquito 15.7 Penasquito 43.9 Pueblo Viejo 10.0 El Morro 17.4 Los Filos 7.4 Pueblo Viejo 11.7 El Morro 6.7 Los Filos 8.4 Cerro Negro 5.7 Cerro Negro 6.7 1. All reserve inform ation taken from Goldcorp’s Decem ber 31, 2012 year-end resource statem ents. 2. Gold equivalent calculated based on the following com odity prices: Gold - $1,600/oz; Silver - $30.00/oz; Copper - $3.50/lb; Lead - $0.90/lb; Zinc - $0.90/lb. m 46
  • 47. Appendix 7 Reserves and resources summary Mineral Reserves and Resources Summary Year End 2012 Gold Koz Proven and Probable Reserves Measured and Indicated Resources (inclusive of Reserves) Inferred Resources M&I Resources (inclusive of Reserves) Mesquite Cerro San Pedro Peak Mines New Afton Blackwater Capoose Rainy River El Morro Total M&I 11,783 29,242 6,822 5,684 1,703 880 2,224 9,497 196 6,167 2,891 29,242 (1)(2) Silver Koz Year End 2011 Copper Mlbs Gold Koz 41,571 159,585 88,359 3,282 4,223 1,187 7,863 18,797 6,323 - 146 1,980 2,097 4,223 5,534 1,812 948 1,742 5,423 384 n/a 2,954 18,797 57,980 1,350 7,292 70,128 9,497 13,338 159,585 Silver Koz (3) Copper Mlbs 34,347 115,268 76,856 2,888 3,946 2,202 - 167 1,586 n/a 2,193 3,946 55,860 1,570 5,470 25,774 26,594 n/a 115,268 1. For additional inform ation regarding reserve and resource estim ates; refer to: New Gold’s “Annual Inform ation Form for the Financial Year Ended Decem ber 31, 2012” dated March 27, 2013; news release dated April 4, 2013 “New Gold Announces Increased Gold Resources at Blackwater Project”; news release dated May 1, 2013 “New Gold Announces 2013 First Quarter Results – Increases Gold and Copper Resources at New Afton C-Zone by Over 300 Percent”; and news release dated July 31, 2013 “New Gold Second Quarter Delivers Increased Production at Lower Costs - Second Half of 2013 Rem ains on Track to Provide Strong Finish to the Year”. 2. Year end 2012 Mineral Resources updated for Blackwater resource updates on April 4, 2013 and New Afton C -Zone update on May 1, 2013. 47 3. Year end 2011 Mineral Resources presented at Investor Day on February 2, 2012.
  • 48. Appendix 7 Reserves and resources summary (cont’d) Mineral Reserves statement as at December 31, 2012(1) Metal grade Tonnes 000s Mesquite Proven Probable Mesquite P&P Cerro San Pedro Proven Probable CSP P&P Peak Mines Proven Probable Peak P&P New Afton Proven Probable New Afton P&P Rainy River Proven Probable Rainy River P&P El Morro Proven Probable El Morro P&P Total Proven Total Probable Total P&P 13,140 Gold g/t Contained metal Silver g/t Copper % Gold Koz - - 2,055 127,549 0.68 0.56 0.57 21,100 26,400 47,500 0.52 0.48 0.50 17.1 17.4 17.3 2,109 2,118 4,227 5.89 3.82 4.85 52,500 52,500 Silver Koz 2,342 - - - 353 407 760 11,600 14,800 26,400 - 7.5 6.8 7.2 1.08 1.18 1.13 399 260 659 510 466 976 50 55 105 0.65 0.65 2.3 2.3 0.93 0.93 1,100 1,100 3,880 3,880 1,080 1,080 27,700 88,600 116,300 1.14 1.06 1.08 1.94 3.01 2.76 - 1,015 3,017 4,031 1,728 8,587 10,315 - 307,949 335,152 643,101 0.57 0.37 0.47 - 0.56 0.44 0.49 1,705 1,186 2,891 3,759 8,025 11,783 114,409 287 Copper Mlbs 100% Basis 1. Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C -Zone update on May 1, 2013. 30% Basis 13,838 27,733 41,571 1,135 962 2,097 1,185 2,097 3,282 48
  • 49. Appendix 7 Reserves and resources summary (cont’d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012(1) Metal grade Tonnes 000s Gold g/t Contained metal Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Measured - oxide Indicated - oxide Meqsuite M&I - oxide Measured - non oxide 19,100 274,100 293,200 4,900 0.51 0.38 0.39 0.88 - - 313 3,349 3,662 139 - - Indicated - non oxide 96,000 0.61 - - 1,883 - - Mesquite M&I - non oxide 100,900 0.62 - - 2,022 - - Total Mesquite M&I Cerro San Pedro Measured - oxide Indicated - oxide CSP M&I - oxide Measured - sulphide Indicated - sulphide CSP M&I - sulphide Total CSP M&I Peak Mines Measured Indicated Peak M&I New Afton A&B Zones Measured Indicated A&B Zone M&I C-Zone Measured Indicated C-Zone M&I Total New Afton M&I 394,100 0.45 - - 5,684 - - 27,100 49,000 76,100 15,200 60,400 75,600 151,700 0.34 0.24 0.28 0.47 0.41 0.42 0.35 15.0 13.0 13.7 11.9 9.6 10.1 11.9 - 303 380 683 229 791 1,020 1,703 13,100 20,480 33,580 5,800 18,600 24,400 57,980 - 2,700 3,200 5,900 5.74 3.75 4.66 7.5 6.8 7.1 1.05 1.19 1.13 494 386 880 647 703 1,350 62 84 146 33,500 45,900 79,400 0.86 0.67 0.75 2.9 2.4 2.6 1.18 0.89 1.01 929 984 1,913 3,160 3,530 6,690 873 896 1,769 1,282 11,205 12,486 91,886 0.75 0.78 0.77 0.75 1.4 1.5 1.5 2.6 0.79 0.77 0.77 1.00 31 280 311 2,224 56 548 602 7,292 22 189 211 1,980 1. Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1, 2013. 49
  • 50. Appendix 7 Reserves and resources summary (cont’d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012 Metal grade Tonnes 000s Blackwater Direct processing material Measured Indicated M&I (direct processing) Stockpile material Measured Indicated M&I (stockpile) Total Blackwater M&I Capoose Indicated Gold g/t (1) Contained metal Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs 116,955 189,044 305,999 1.04 0.78 0.88 5.6 6.0 5.8 - 3,896 4,729 8,624 21,057 36,467 57,524 - 26,521 64,382 90,903 396,902 0.30 0.30 0.30 0.74 4.1 4.4 4.3 5.5 - 256 617 873 9,497 3,496 9,108 12,604 70,128 - 14,200 0.43 20.8 - 196 9,497 - Measured 27,638 1.33 1.90 - 1,182 1,689 - Indicated 130,885 1.18 2.8 - 4,985 11,649 - Total Rainy River M&I 158,523 1.21 2.62 - 6,167 13,338 - Rainy River El Morro Measured Indicated El Morro M&I Total Measured Total Indicated Total M&I 100% Basis 307,949 335,152 643,101 0.57 0.37 0.47 1. Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C -Zone update on May 1, 2013. 30% Basis - 0.56 0.44 0.49 1,705 1,186 2,891 9,477 19,766 29,242 49,005 110,582 159,585 1,135 962 2,097 2,092 2,131 4,223 50
  • 51. Appendix 7 Reserves and resources summary (cont’d) Inferred Resource statement as at December 31, 2012(1) Metal grade Tonnes 000s Gold g/t Contained metal Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Oxide 35,200 0.33 - - 373 - - Non oxide 15,700 0.55 - - 278 - - Mesquite Inferred 50,900 0.40 - - 651 - - Oxides 53,400 0.17 9.0 - 300 15,400 - Sulphides 50,500 0.34 8.5 - 550 13,800 - 103,900 0.25 8.8 - 850 29,200 - 1,700 2.64 4.8 1.13 144 261 42 A&B-Zone 14,900 0.45 2.0 0.65 216 940 212 C-Zone 20,221 0.62 1.4 0.68 401 923 301 New Afton Inferred 35,121 0.56 1.5 0.68 617 1,863 513 13,815 0.76 4.1 - 337 1,821 - Cerro San Pedro CSP Inferred Peak Mines New Afton Blackwater Direct processing Stockpile 3,785 0.31 3.6 - 38 438 - Blackwater Inferred 17,600 0.66 4.0 - 375 2,263 - Capoose 64,070 0.29 23.2 - 595 47,789 - Rainy River 93,804 0.76 2.32 - 2,280 6,983 - 100% Basis El Morro 137,555 0.99 Total Inferred 1. Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C -Zone update on May 1, 2013. 30% Basis - 0.70 1,310 - 632 6,822 88,359 1,187 51
  • 52. Appendix 7 Reserves and resources notes Mineral reserves are contained w ithin Measured and Indicated mineral resources. Measured and Indicated mineral resources that are not mineral reserves do not have demonstrated economic viability as defined by a technical Feasibility Study. New Gold reports its Measured and Indicated mineral resources inclusiv e of its mineral reserves. Inferred mineral resources are not know n w ith 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 been estimated and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (‘CIM’) definition standards and guidelines and Canadian National Instrument 43-101 (‘NI 43-101’). 1) Mineral Reserves for the company’s mineral properties have been calculated based on the follow ing metal prices and low er cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Low er Cut-off 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 Rainy River $1,250 $25.00 - 0.30 g/t AuEq – Open Pit 3.5 g/t AuEq - Underground 52
  • 53. Appendix 7 Reserves and resources notes (cont’d) 2) Mineral Resources for the company’s mineral properties have been calculated based on the follow ing metal prices and low er cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Low er Cut-off 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 Blackw ater $1,400 $28.00 - 0.40 g/t AuEq Capoose $1,400 - - 0.40 g/t AuEq Rainy River $1,100 $22.50 - 0.35 g/t AuEq – Open Pit 2.5 g/t AuEq – Underground Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI 43-101. 3) Mineral resources are classif ied as Measured, Indicated and Inf erred resources and are reported based on technical and economic parameters consistent with the methods most suitable f or their potential commercial exploitation. Where dif f erent mining and/or processing methods might be applied to dif f erent portions of a mineral resource, the designators ‘open pit’ and ‘underground’ hav e been applied to indicate env isioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ hav e been applied to indicate the ty pe of mineralization as it relates to appropriate mineral processing method and expect ed pay able metal recov eries. Additional details regarding mineral resource estimation, classif ication and reporting parameters f or each of New Gold’s mineral properties are prov ided in the respectiv e NI 43-101 Technical Reports which are av ailable on SEDAR. 4) Blackwater April 4, 2013 update: 1. Mineral resources are reported within a conceptual open pit shell based on metal prices of $1,400/oz gold and $28.00/oz silv er. The March 2013 mineral resource estimate utilizes av erage metallurgical recov eries of 88.0% gold and 64.0% silv er f or oxide mineralization, 85.0% gold and 58.0% silv er f or transitional oxide/sulf ide mineralization and 85.0% gold and 44.0% silv er f or sulf ide mineralization. The 2012 y ear-end mineral resource estimate utilizes av erage metallurgical recov eries of 86% gold and 44.9% silv er f or all material ty pes. 2. Total contained metal is calculated based on Tonnes*Grade / 31.10348 grams per troy ounce. 3. Gold-equiv alent cut-of f grade estimates are based on $1,400/oz gold and $28.00/oz silv er and av erage metal recov eries as described in Note 1 abov e. 4. Direct processing material is def ined as mineralization abov e a 0.40 g/t AuEq cut-of f and likely to be mined and processed directly . 5. Stockpile material is def ined as mineralization between a 0.30 g/t AuEq and a 0.40 AuEq cut-of f that is suitable f or stockpiling and f uture processing based on av erage metallurgical recov eries as described in Note 1 abov e. 5) Qualif ied Person: The preparation of New Gold’s mineral reserv e and resource statements has been done by or under the superv ision of Qualif ied Persons as def ined under Canadian rev iewed and approv ed by Mark Petersen, a Qualif ied Person under NI 43-101 and an of f icer of New Gold. NI 43-101 and they were 6) For additional inf ormation regarding reserv e and resource estimates, ref er to: New Gold’s “Annual Inf ormation Form f or the Financial Y ear Ended December 31, 2012” dated March 27, 2013; news release dated April 4, 2013 “New Gold Announces Increased Gold Resources at Blackwater Project”; news release dated May 1, 2013 “New Gold Announces 2013 First Quarter Results – Increases Gold and Copper Resources at New Af ton C-Zone by Ov er 300 Percent”; and news release dated July 31, 2013 “New Gold Second Quarter Deliv ers Increased Production at Lower Costs - Second Half of 2013 Remains on Track to Prov ide Strong Finish to the Y ear”. 53
  • 54. Appendix 8 Commodity price/foreign exchange assumptions Guidance assumptions(1) 2013 Gold price ($/oz) ~1,300 Silver price ($/oz) ~20.00 Copper price ($/oz) ~3.25 USD/AUD 1.00 USD/CAD 1.00 USD/MXN 13.00 Spot: Spot Gold price ($/oz) 1,320 Silver price ($/oz) 21.60 Copper price ($/oz) 3.20 USD/AUD 0.95 USD/CAD 0.96 USD/MXN 13.15 1. Based on year-to-date average realized prices through Septem ber 30, 2013 and assum ptions for the fourth quarter of 2013: Gold - $1,300 per ounce; Copper - $3.25 per pound; Silver - $20.00 per ounce; AUD/USD and CDN/USD parity. 54
  • 55. Notes Page 4 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report – 2013 Ranking of Countries for Mining Investment: “Where Not to Invest”. Page 5 1. Measured and Indicated Resources inclusive of Reserves. 2. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Measured, Indicated and Inferred Resources ” and “Technical Information”. 3. New Gold completed the acquisition of 100% of Rainy River on October 15, 2013. 4. Refer to Appendix 7 for detailed breakdow n of reserves and resources and information related to reserve and resource estimate s. Page 7 1. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 2. Based on comparison w ith costs published by issuers listed in notes 4 and 5. The manner in w hich costs are determined may va from one issuer to another. ry 3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 4. Mid-tier average includes: Alamos, Eldorado, Agnico Eagle, Aurico and IAMGOLD. 5. Senior average includes: Barrick, Goldcorp, Kinross and New mont. Page 8 1. Gold sales expected to be in the same general range as production. 2. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Guidance for total cash costs and all-in sustaining costs incorporates realized prices and foreign exchange rates to September 30, 2013 and assumes commodity price assumptions of: Gold - $1,300/oz; Copper - $3.25/lb; Silver - $20.00/oz for the balance of 2013. 3. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Page 12 1. Refer to Appendix 7 for detailed disclosure on Reserve and Resource calculations and information related to reserve and resource estimates. Page 13 1. Based on ~225Koz from Rainy River, ~500Koz from Blackw ater and ~90Koz from El Morro. Refer to slide 14 for more information. 2. Blackw ater’s potential is not supported by a feasibility study. See Endnote “Blackw ater PEA – Additional Cautionary Note”. 55
  • 56. Notes continued Page 14 1. Refer to Appendix 7 for detailed disclosure on Reserve and Resource calculations. 2. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Measured, Indicated and InferredResources” and “Technical Information”. Measured and Indicated Resources are inclusive of Reserves. At Blackw ater, the 8.6 million ounces of Resources referred to ab ove excludes 0.9 million ounces of material to be stockpiled w hich has been classified as Measured and Indicated Resource. 3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Cash costs have been compared to industry data per GFMS reports w hich calculated an average, net of by-product credits, cash cost of $738 per ounce for the YE’2012. 4. Blackw ater production and cash costs based on September 2012 PEA; Rainy River production and cash costs based on April 2013 F easibility Study; and El Morro production and cash costs based on updated December 2011 Feasibility Study. Blackw ater’s potential is not supported by a feasibility study. See Endnote “Blackw ater PEA – Additional Cautionary Note”. Page 17 Source: Broker Reports, Company Estimates and Announcements, Bloomberg; all amounts in USD. 1. New Gold’s average analyst consensus NAV. 2. New Gold’s average analyst consensus NAV for El Morro; includes $50 million cash payment received from Goldcorp as part of transaction consideration. 3. New Gold acquired Richfield and Silver Quest on June 1, 2011 and December 23, 2011, respectively. 4. New Gold completed the acquisition of 100% of Rainy River on October 15, 2013. 5. New Gold share price appreciation calculated using a base price of US$1.79 from the March 3, 2009 close. 6. S&P/TSX Global Gold Index includes 54 gold companies in various stages of development/production. 7. FTSE Gold Mines Index includes 26 gold producing companies. 8. HUI Index includes 15 of the major global gold producers. 56
  • 57. Endnotes CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES Inf ormation concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar inf ormation f or United States companies. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inf erred Mineral Resource” used in this presentation are Canadian mining terms as def ined in accordance with National Instrument 43-101 (“NI 43-101”) under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserv es adopted by the CIM Council on Nov ember 27, 2010. While the terms “Mineral Resource” , “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inf erred Mineral Resource” are recognized and required by Canadian securities regulations, they are not def ined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classif ied as a “Reserv e” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the Reserv e calculation is made. As such, certain inf ormation contained in this presentation concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar inf ormation made public by United States companies subject to the reporting and disclosure requirements of the Uni ted States Securities and Exchange Commission. An “Inf erred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal f easibility . It cannot be as sumed that all or any part of an “Inf erred Mineral Resource” will ev er be upgraded to a higher category . Under Canadian rules, estimates of Inf erred Mineral Resources may not f orm the basis of f easibility or pre-f easibility studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ev er be conv erted into Mineral Reserv es. Readers are also cautioned not t o assume that all or any part of an “Inf erred Mineral Resource” exists, or is economically or legally mineable. In addition, the def initions of “Prov en Mineral Reserv es” and “Probable Mineral Reserv es” under CIM standards dif f er in certain respects f rom the standards of the United States Securities and Exchange Commission. TECHNICAL INFORMATION The scientif ic and technical inf ormation in this presentation has been rev iewed and approv ed by Mark Petersen, a Qualif ied Person under National Instrument 43-101 and of f icer of New Gold. Mineral Reserv es and Mineral Resources The estimates of Mineral Reserv es and Mineral Resources discussed in this presentation may be materially af f ected by env ironmental, permitting, legal, title, taxation, sociopolitical, marketing and other relev ant issues. In addition to our February 5, 2013, April 4, 2013 and July 31, 2013 presentations, f urther details regarding Mineral Reserv e and Resource estimates, including classif ications, key assumptions and parameters used in such estimates and other related inf ormation f or each of New Gold's mineral properties are prov ided in the respectiv e NI 43-101 Technical Reports, which are av ailable at www.sedar.com. Blackwater PEA – Additional Cautionary Note This note regarding the preliminary economic assessment (“PEA”) is in addition to cautionary language already included in this presentation as required under NI 43-101. The Blackwater PEA is preliminary in nature and includes Inf erred Mineral Resources that are considered too speculativ e geologically to hav e the economic considerations applied to them that would enable them t o be categorized as mineral reserv es, and there is no certainty that the PEA based on these mineral resources will be realized. Mi neral resources that are not mineral reserv es do not hav e demonstrated economic v iability . This presentation includes inf ormation on New Gold’s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report f iled on October 10, 2012. As disclosed in the presentation, New Gold has, since the date of the PEA, completed sev eral non-material updates of the mineral resource estimate f or the Blackwater Project. Although the PEA represents usef ul, accurate and reliable inf ormation based on the inf ormation av ailable at the time of its publication, and prov ides an important indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an ef f ective date of July 27, 2012, which do not ref lect drilling conducted since their ef f ective date, and the PEA does not ref lect the latest mineral resource estimate discussed in subsequent presentation. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may hav e changed f rom those used f or the new resource estimate, causing a v ariation of parameters. Moreov er, the updated mineral resource estimate may impact how New Gold intends to dev elop the deposit, including pit outlines, production rates and mine lif e. 57
  • 58. Endnotes continued NON-GAAP MEASURES TOTAL CASH COSTS “Total cash costs” per ounce f igures are non-GAAP measures which are calculated in accordance with a standard dev eloped by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the s tandard is widely accepted as the standard of reporting cash costs of production in North America. Adoption of the standard is v oluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. Total cash costs include mine site operating costs such as mining, processing, administration, r oy alties and production taxes, but are exclusiv e of amortization, reclamation, capital and exploration costs. Total cash costs are reduced by any by -product rev enue and is then div ided by ounces sold to arriv e at the total by -product cash cost 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 f low f rom its mining operations. This data is f urnished to prov ide additional inf ormation and is a non-IFRS measure. Total cash costs presented do not hav e a standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation as a substitute f or measures of perf ormance prepared in accordance with IFRS and is not necessarily indicativ e of operating costs presented under IFRS. Further details regarding this measure and a reconciliation to the nearest IFRS measure is prov ided in the MD&A accompany ing the quarterly f inancial statements. ALL-IN SUSTAINING COSTS Consistent with the guidance announced earlier in 2013 f rom the World Gold Council, an association of v arious gold mining com panies f rom around the world of which New Gold is a member, New Gold def ines “all-in sustaining costs” as the sum of total cash costs, sustaining capital expenditures, corporate general & administrativ e costs, capitalized and expensed exploration that is sustaining in nature and env ironmental reclamation costs. New Gold believ es this non-GAAP measure prov ides f urther transparency into costs associated with producing gold and will assist analy sts, inv estors and other stakeholders of the company in assessing its operating perf ormance, its ability to generate f ree cash f low f rom current operations and its ov erall v alue. All-in sustaining costs constitute a non-GAAP measure and are intended to prov ide additional inf ormation only and do not hav e any standardized meaning under IFRS. They should not be considered in isolation or as a substitute f or measures of perf ormance prepared in accordance with IFRS. Other companies may calculate these measures dif f erently . Further details regarding this measure and a reconciliation to the nearest IFRS measure is prov ided in the MD&A accompany ing the quarterly f inancial statements . ADJUSTED NET EARNINGS “Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP f inancial measures. Net earnings hav e been adjusted and tax af f ected for the group of costs in “Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted f or tax to the extent that the underly ing entries are impacted f or tax in the unadjusted net earnings f rom continuing operations. The company uses this measure f or its own internal purposes and believ es the presentation of adjusted net earning s enables inv estors and analy sts to better understand the underly ing operating perf ormance of our core mining business through the ey es of management. Management periodically ev aluates the components of adjusted net earnings based on an internal assessment of perf ormance measures that are usef ul f or ev aluating the operating perf ormance of our business and a rev iew of the non-GAAP measures used by mining industry analy sts and other mining companies. Adjusted net earnings and adjusted net earnings per share are intended to prov ide additional inf ormation only and do not hav e any standardized meaning under IFRS. They should not be considered in isolation or as a substitute f or measures of perf ormance prepared in accordance with IFRS. The measures are not necessarily indicativ e of operating prof it or cash f low f rom operations as determined under IFRS. Other companies may calculate these measures dif f erently. Further details regarding this measure and a reconcilia tion to the nearest IFRS measure is prov ided in the MD&A accompany ing the quarterly f inancial statements. ADJUSTED NET CASH GENERATED FROM OPERATIONS “Adjusted net cash generated f rom operations” is a non-GAAP f inancial measure. Net cash generated f rom operations has been adjus ted f or one-time expenses related to the company ’s acquisition of Rainy Riv er in the third quarter and a one-time charge incurred in the second quarter related to the settlement of the company ’s legacy gold hedge position. The company believ es the presentation of adjusted net cash generated f rom operations enables inv estors and analy sts to better understand the underly ing operating perf ormance of our core mining business. Adjusted net cash generated f rom operations is intended to prov ide additional inf ormation only and does not hav e any standardized meaning under IFRS. It should not be considered in isolation or as a substitute f or measures of perf ormance prepared in accordance with IFRS. Further details regarding this measure and a reconciliation to the nearest IFRS measure is prov ided in the MD&A accompany ing the quarterly f inancial statements. 58
  • 59. Contact information Investor Relations Hannes Portmann Vice President, Corporate Development 416-324-6014 hannes.portmann@newgold.com 59