Corporate presentation merrill conference (barcelona) - may 14-16, 2013
Bank of AmericaMerrill Lynch Global Metals,Mining & Steel ConferenceMay 14-16, 2013Barcelona, Spain
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 cause actualresults, 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; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile;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, in Canada obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges relatedto our EIS and in 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 legalsystems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and futurelegal challenges the company is or may become a party to; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results ofcurrent exploration or reclamation activities; uncertainties inherent to economic studies in respect of the PEA for the Blackwater project; changes in project parameters as plans continue to berefined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with thebusiness of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and goldbullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Golds disclosure documents filed on andavailable at www.sedar.com.Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-lookingstatements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.2
Cautionary statement (cont’d)CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCESInformation concerning the properties and operations discussed in this presentation has been prepared in accordance with Canadian standards under applicable Canadian securities laws, 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 descriptions ofmineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure 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 costs 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 include mine site operating costs suchas mining, processing, administration, royalties and production taxes, but are exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are reduced by any by-product revenue and is thendivided by ounces sold to arrive 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 flow from itsmining operations. This data is furnished to provide additional information and is a non-IFRS measure. Total cash costs presented do not have a standardized meaning prescribed by IFRS and may not be comparable tosimilar 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 of operatingcosts 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: total cash costs(1), corporate general and administrative expenses, exploration expense and sustaining capital. Thismetric 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 in this presentation 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 presentation 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 presentation, New Gold has, since the date of the PEA, completedseveral non-material updates of the mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of itspublication, and provides an important indicator 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 drillingconducted since their effective date, and the PEA does not reflect 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 have changed from those used for the new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may impact how New Goldintends to develop the deposit, including pit outlines, production rates and mine life.3
New Gold overview4ESTABLISHING THE LEADING INTERMEDIATE GOLD COMPANYFocus on Value Enhancement Established Track RecordExperienced/Invested Team Low Cost/High MarginGrowing Resources Doubling Gold Production OrganicallyStrong Balance Sheet Accretive ‘per share’ Growth
2012 to 2013 – The path forward5Notes: 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.6% gold production growthForecasting additional 12% goldproduction growthTotal cash costs(1) declined by $25per ounceTargeting a further ~$145 perounce reduction in total cashcosts(1)Average realized margin of $1,130per ounceMargin expected to grow to$1,325(2) per ounce2012 Achievements 2013 Objectives
2012 to 2013 – The path forward (cont’d)6New Afton achieved full productionahead of schedule (September2012)Evaluation of New Afton millthroughput increase/C-ZoneexplorationMeasured and Indicated resourcesincreased by 10% per share; NewAfton extended mine life by twoyearsIncrease resources organically atBlackwater, New Afton C-Zone andPeak MinesSuccessfully completed BlackwaterPreliminary Economic AssessmentFocus on Feasibility Study andPermitting2012 Achievements 2013 Objectives
Management and Board of Directors7Collectively over $100 millioninvested in New GoldEXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORSRandall Oliphant, Executive ChairmanRobert Gallagher, President & CEOBrian Penny, Executive VP & CFOJames Estey, Former Chairman UBS Securities CanadaRobert Gallagher, President & CEOVahan Kololian, Founder Terra Nova PartnersMartyn Konig, Former Executive Chairman European GoldfieldsPierre Lassonde, Chairman Franco-NevadaRandall Oliphant, Executive ChairmanRaymond Threlkeld, CEO Rainy River ResourcesDavid Emerson, Former Canadian Cabinet MinisterErnie Mast, VP Operations
-1020304050YE 2009 YE 2010 YE 2011 CurrentGrowing resource base in solid jurisdictions8Operating assetsDevelopment projectsNotes: 1. Excludes resources from Amapari which was sold in April 2010.2. Refer to Appendix 7 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.Peak MinesCerro SanPedroEl Morro(3)New AftonBlackwaterMesquiteM&I Resources(2): 23.1 MozMeasured & Indicated Gold Resources per 1,000 sharesTrack record of increasing M&I goldresources on a ‘per share’ basis(1)
Operational execution9$465$418$446$421302383 387412Notes: 1. Refer to Cautionary Statement and note on Total cash costs.2. 2009 costs shown based on Canadian GAAP and 2010 and beyond based on IFRS.Gold production(1) (thousand ounces)Total cash costs(1)(2) ($/ounce)2009Guidance2009Actual2010Guidance2010Actual2011Guidance2011Actual2012GuidanceFour year track record of delivering on guidance, production growth and lower cash costs2012Actual2009Guidance2009Actual2010Guidance2010Actual2011Guidance2011Actual2012Guidance2012Actual
2013 first quarter highlights10Notes: 1. Refer to Cautionary Statement and note on Total cash cost.Strong financial position with $672 million cash balanceResource increases at two key projectsOperations combine for solid first quarter 2013Gold production – 94,695 ouncesLow total cash costs(1) – $485 per ounce soldNet earnings – $36 million, or $0.08 per shareNet cash generated from operations – $59 millionProduction and cash flow expected to increase through 2013Blackwater Mineral Resource estimate finalized for Feasibility StudyNew Afton C-Zone Mineral Resource grows by over 300 percent
2013 consolidated guidance112012 ActualGold production(1)440 - 480KozTotal cash costs(2)$265 - $285/ozNotes: 1. Gold sales expected to be in same range as production.2. Refer to Cautionary Statement and note on Total cash costs.Gold production412KozTotal cash costs(2)$421/oz2013 Guidance+48Koz+ 12%($146/oz)(35%)
$465$418$446$421$265-$285$478$557$643$7382009 2010 2011 2012 2013ELower costs driving margin expansion13Notes: 1. Calculated based on YE’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 YE’2012.$600$400$200TotalCashCosts(US$/oz)(2)New Gold offers shareholders potential for over $450 per ounce(1) of incremental margin$800Incremental Margin to New GoldShareholders(3)
2013 estimated all-in sustaining cash costs14Total cash costs(1)General and administrativeExploration expenseSustaining capital(2)All-in sustaining cash costs(3)$275/oz~$60/oz~$70/oz~$470/oz~$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.
New Afton – Successfully commissioned15Highlights• Located 10 kilometres from Kamloops, BritishColumbia• Dedicated labour force• Commercial and full production achievedahead of schedule• Exploration extended mine life by two years to14 years• Further potential in C-Zone below reserveblock• Potential to double New Gold’s cash flow attoday’s pricesNotes: 1. Refer to Appendix 7 for detailed disclosure on Reserve and Resource calculations.1.1 MozGold Reserve(1)1.1 BlbsCopper Reserve(1)
New Afton – Multiple avenues to unlocking value16• May 2013 update increased resources by over300%• Included drilling through end of February2013• C-Zone remains open down plunge• Three drills currently activeMill Throughput IncreaseC-Zone Resource• Nameplate capacity of 11,000 tonnes per day(“tpd”)• 50 drawbells needed to support 11,000 tpd –target 65 by mid-year• Crusher capacity – 20,000 tpd• Commissioned January 2013• Conveyor capacity ~14,500 tpd• Record daily mill throughput – 13,840 tonnesGrowing C-Zone Resource base and evaluating increased mill throughputGoldMeasured and Indicated ResourcesCopper0.3Moz at 0.77g/t 211Mlbs at 0.77%GoldInferred ResourcesCopper0.4Moz at 0.62g/t 301Mlbs at 0.68%
El Morro (30%)18• Goldcorp – 70% partner and project operator• New Gold’s 30% share of capital fully-funded byGoldcorp• Current resource entirely within La Fortuna deposit• Neighbouring El Morro deposit underexplored• 2012 year end update added 0.4 million ounces ofgold and 229 million pounds of copper to reserves(1)• Addressing recent temporary suspension ofenvironmental permit• Resolution targeted prior to end of 2013• Chile evaluating various alternatives for a powersource to northern Chilean development projects2.1 BlbsCopper Reserve(1)2.9 MozGold Reserve(1)Notes: 1. New Gold’s attributable 30% share. Refer to appendix 7 for detailed disclosure on reserve and resource calculations.2. Refer to Cautionary Statements.3. Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs estimated at $550/oz gold and $1.45/lb copper at commodity price assumptions of $1,200/oz gold and $2.75/lbcopper.Location ChileMine type Open PitReserves1 – Gold/Copper (Moz/Mlbs) 2.9/2,097Resources1 – Gold/Copper (Moz/Mlbs) 2.9/2,097Estimate mine life 17 yearsLOM production/yr (Au koz/Cu Mlbs)2 90/85LOM cash cost/oz by-product3 ($700)
Blackwater – A robust project19Measured and IndicatedGold Resources(1) – Direct ProcessingMaterial8.6 Moz• Central British Columbia near infrastructure• Year-round accessibility for drilling/development• Total 2012 drilling over 270,000 metres projectwide• Ability to fund continued exploration/development internally• Tax synergies with New Afton• PEA completed September 2012• Targeting annual gold production of~500,000 ounces• Targeting completion of Feasibility Study bylate 2013• Targeting production in 2017• Consolidated significant land position –1,000km2Notes: 1. Refer to appendix 7 for detailed disclosure on Reserve and Resource calculations.2. Blackwater start date based on indicative timeline which is dependent on permit approvals and the determination that the deposit is economically viable.• Additional Measured and Indicated goldresources – stockpile material of 0.9million ounces
Blackwater – Resource update20Tonnes(000s)Au(g/t)Ag(g/t)Au(Moz)Ag(Moz)Tonnes(000s)Au(g/t)Ag(g/t)Au(Moz)Ag(Moz)Measured & Indicated ResourcesDirect processing materialMeasured 116,955 1.04 5.6 3.90 21.06 88,188 0.94 5.2 2.67 14.74Indicated 189,044 0.78 6.0 4.73 36.47 207,958 0.81 6.2 5.40 41.45M&I (direct processing) 305,999 0.88 5.8 8.62 57.52 296,146 0.85 5.9 8.07 56.20Stockpile materialMeasured 26,521 0.30 4.1 0.26 3.50 20,156 0.31 3.8 0.20 2.46Indicated 64,382 0.30 4.4 0.62 9.11 71,861 0.30 4.0 0.70 9.24M&I (stockpile) 90,904 0.30 4.3 0.87 12.60 92,017 0.30 4.0 0.90 11.70Total M&I 396,903 0.74 5.5 9.50 70.13 388,163 0.72 5.4 8.96 67.90Inferred ResourcesInferred (direct processing) 13,815 0.76 4.1 0.34 1.82 16,585 0.58 10.8 0.31 5.76Inferred (stockpile) 3,785 0.31 3.6 0.04 0.44 6,751 0.25 8.9 0.05 1.93Total Inferred 17,600 0.66 4.0 0.38 2.26 23,336 0.48 10.2 0.36 7.69Notes:4. Direct processing material defined as mineralization above a 0.4 g/t AuEq cut-off and likely to be mined and processed directly.5. Stockpile material is defined as mineralization between a 0.30 g/t AuEq and a 0.40 AuEq cut-off that is suitable for stockpiling and future processing based on average metallurgical recoveries as described in Note 1above.Blackwater Mineral Resource EstimateMarch 2013 Mineral Resource 2012 Year End Mineral Resource1. M ineral resources are reported within a conceptual open pit shell based on metal prices of $1,400/oz gold and $28.00/oz silver. The M arch 2013 mineral resource estimate utilizes average metallurgical recoveries of 88.0%gold and 64.0%silver foroxide mineralization, 85.0%gold and 58.0%silver for transitional oxide/sulfide mineralization and 85.0%gold and 44.0%silver for sulfide mineralization. The 2012 year-end mineral resource estimate utilizes average metallurgical recoveries of 86%goldand 44.9%silver for all material types.2. Total contained metal calculated on the basis of Tonnes * Grade / 31.10348 grams per troy ounce.3. Gold-equivalent cut-off grade estimates are based on $1,400/oz gold and $28.00/oz silver and average metal recoveries as described in Note 1above.
Blackwater – Indicative timeline21Notes: 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.Development activityFirst Nations & Public ConsultationPreliminary Economic AssessmentBase Line Environmental StudiesFeasibility StudyEngineering ProcurementProduction TargetDrillingProject Description/Terms of ReferenceEnvironmental Assessment ReportsProvincial ApprovalFederal ApprovalConstructionH1 H2 H1 H2 H1 H2H1 H2 H1 H2 H1 H22012 2013 2014 2015 2016 2017Reflects critical path in timeline
Blackwater – Area map22~160km toPrince George~112km toVanderhoofBlackwaterProject50km80kmCapooseResourceBlackwaterResource
Blackwater – 2013 exploration objectives23>1000 ppb Au500-1000 ppb Au250-500 ppb Au50-250 ppb AuBlackwaterAuroFawnieVan TineCapoose• Blackwater: Explore for satellite deposits and testpotential extensions to known resource• Capoose: Expand and upgrade resource with specialfocus on potential to extend gold-rich zones• Regional targets: Identify specific drill targets andcomplete first pass reconnaissance drillingPlan for four to six drills to be active during primary field season10 km
A future of growth24GoldProduction(thousandounces)Peer leading growth with targeted doubling of production by 2017387412~440 - 4802004006008001,0002011A 2012A 2013E 2017E
0%100%200%300%400%500%600%700%800%900%4-Mar-093-Aug-092-Jan-103-Jun-102-Nov-103-Apr-112-Sep-111-Feb-122-Jul-121-Dec-122-May-13NGD Gold PriceS&P/TSX Gold Index FTSE Gold Mines IndexHUI IndexAnnounced $1.2bnbusinesscombination withWestern Goldfields8-May-13Net asset value and relative performance25Source: 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.5. FTSE Gold Mines Index includes 26 gold producing companies.6. HUI Index includes 15 of the major global gold producers.3/4/09 TodayMesquite, Cerro San Pedro, Peak MinesNew AftonEl Morro(2)~ $875 $1,410~ $120 $1,664~ $40 $624Net Asset Value(1)Blackwater(3)$-- $1,342+394%(16%)(31%)+62%5%
Value opportunity26Market Capitalization(1)NAV Growth Assets – Blackwater/El Morro(2)Adjusted Market CapitalizationConsensus 2013E Cash Flow(3)Implied 2013E Cash Flow Multiple – ~4.3x$3.6 billion$2.0 billion$1.6 billion$380 millionNotes: 1. Market capitalization based on May 8, 2013 closing price of US$7.61.2. Based on sum of analyst consensus net asset value for Blackwater and El Morro.3. Consensus assumes: Gold - $1,551/oz; Silver - $28.36/oz; Copper - $3.50/lb.
2013 catalysts272013 guidance – increased resources, production growth and lower costsNew Afton C-Zone exploration updateBlackwater regional exploration updatesCompletion of Blackwater Feasibility StudyNew Afton mill to reach 12,000 tonnes per dayResults of New Afton throughput increase evaluationResolution of El Morro temporary permit suspensionBlackwater resource update
28EXPERIENCED BOARD AND MANAGEMENTFULLY FUNDED COMPANY WITH STRONG BALANCE SHEETDIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONSORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITYPRODUCTION GROWTH/MARGIN EXPANSIONINCREASING UNDERLYING ASSET VALUEMULTIPLE CATALYSTSCOMPELLING INVESTMENT PROPOSITIONThe New Gold investment thesis
Appendix29AppendicesPage1. Financial information 302. Consolidated operating performance 363. Mesquite, Cerro San Pedro, Peak Mines 424. New Afton 465. El Morro 536. Blackwater 597. Reserves and resource notes 638. Commodity price/foreign exchange assumptions 70
Appendix 1Capitalization and liquidity30Notes: 1. Cash and equivalents as at March 31, 2013.2. $50 million of total $150 million currently used for Letters of Credit.3. See Appendix 1 – Summary of debt for detailed breakdown of components of debt.• All corporate debt now due in 2020 orbeyond(3)• Two senior unsecured notes offeringsduring 2012 ($300 million/7.00%, $500million/6.25%)• Redemption of 10% senior securednotes• Early conversion of 5% convertibledebenture• Total common shares outstanding of 477millionLiquidityPosition$672mm$100mm$772mmCash andEquivalents(1)Undrawn CreditFacility(2)
Appendix 1Summary of debt31Undrawn CreditFacilitySenior Unsecured Notes(April 2012)Senior Unsecured Notes(November 2012)El MorroFunding LoanFace Value $150 million(1) $300 million $500 million $71 millionMaturity 1 year with annualextensions permittedApril 15, 2020 November 15, 2022 n/aInterest Rate See ‘Key features’ 7.00% 6.25% 4.58%Payable Revolving credit Semi-annually Semi-annually Upon start ofproductionConversion price n/a n/a n/a n/aCurrent tradingvaluen/a ~107 ~104 n/aKey features Normal financialcovenantsInterest Rate• 3.00-4.25% overLIBOR based onratios• Standby fee of0.75-1.06%• Senior unsecured• Redeemable after April15, 2016 at 103.5%down to 100% of faceafter 2018• Unlimited dividends ifleverage ratio below 2:1• Senior unsecured• Redeemable afterNovember 15, 2017 atpar plus half coupon,declining ratably to par• Unlimited dividends ifleverage ratio below 2:1New Gold torepay Goldcorpout of 80% of its30% share ofcash flow once ElMorro startsproductionNotes: 1. $50 million currently allocated for Letters of Credit.
Appendix 12012 and 2013 capital expenditures by site32• 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 futureproduction• Capital estimates by site are shown below:Total 2013 Capital Expenditure Estimate: $290 millionNew Afton$110mmPeak Mines$60mmCerro SanPedro$40mmMesquite$20mmBlackwater$60mmTotal 2012 Actual Capital Expenditures: $499 millionNew Afton$302mmPeak Mines$47mmCerro San Pedro$11mmMesquite$11mmBlackwater$128mm
Appendix 12013 capital expenditures by category33Direct investment for future production• The below breaks down capital expenditures at each site into two categories – annual sustaining capitaland direct investments for future production growth and mine life extensionNew Afton - $110 millionBlackwater - $60 millionPeak Mines - $60 millionAnnual sustaining capital82%18%100%50% 50%• $90 million – continued cave and drawbell development as well as relatedtechnical services• Total of ~90 drawbells expected to be completed by end of 2013• Annual drawbell development to decrease over mine life with commensuratedecrease in capital• $15 million – capitalized exploration• $45 million – Feasibility and related engineering studies, permitting, campfacilities/operation• $30 million – underground development and capitalized exploration• $30 million – equipment, mine and mill projects/maintenance
Appendix 12013 capital expenditures by category (cont’d)34Direct investment for future productionCerro San Pedro - $40 millionMesquite - $20 millionAnnual sustaining capital75%25%60%40%• $30 million – final leach pad expansion and capitalized stripping for phase 5development• $10 million – site maintenance/processing improvements• $12 million – two additional trucks and construction of new welding and tire shops• $8 million – equipment components/site maintenanceNew Gold’s 30% share of estimated El Morro capital cost of $23 million fully carried byGoldcorp Inc.
Appendix 12013 exploration program overview35• New Gold’s estimated exploration budget for 2013 is $50 million• Capitalized: $20 million• Expensed: $30 millionNew Afton40,000 metresPeak Mines33,000 metres Blackwater40,000 metresCapitalized: $15 millionExpensed: $15 millionExpensed: $10 millionCapitalized: $5 millionExpensed: $5 million
Appendix 2Operational and financial highlights362013 2012Q1 Q1Gold production(000s ounces)Total cash cost(1)($/oz)Earnings from mine operations($ millions)Net earnings($ millions)Net earnings per share($/share)Adjusted net earnings($ millions)Adjusted net earnings per share($/share)Net cash generated from operations($ millions)$0.07$5995$485$58$21$0.04$36$0.0899$543$78$44$34$0.10$37Note: 1. Refer to Cautionary Statement and note on Total cash cost.
Appendix 22013 first quarter operating results372013 First QuarterGold sales(000s ounces)Cash cost(1)($/oz)($770)16$49527$87926$48595New AftonMesquiteCerro San PedroNote: 1. Refer to Cautionary Statement and note on Total cash cost.Earning fromMine Operations($mm)$18$23$3$58$81927Peak Mines $14
$566$465$428 $446 $421$297$522$766$1,014$1,130$0$200$400$600$800$1,000$1,200$1,400$1,6002008A 2009A 2010A 2011A 2012AAppendix 2Trend of expanding margins continues38Note: 1. Refer to Cautionary Statement and note on Total cash cost.Realized gold price(US$/oz)$863Cash Cost(1)(US$/oz)Margin(US$/oz)$987$1,194$1,460US$/oz$1,551
Appendix 22013 guidance39• Gold production growth through full year ofproduction at New Afton and increasedthroughput and recoveries at Peak Mines• Copper production forecast to double to 78 to 88million pounds• Copper and silver by-products continue to act asnatural hedge to industry-wide cost pressures• By-product price assumptions (consistent with2012):• Copper $3.50 per pound• Silver $30.00 per ounceGold production(1)440 - 480KozTotal cash costs(2)$265 - $285/ozNotes: 1. Gold sales range forecast to be 440,000 to 480,000 ounces.2. Refer to Cautionary Statement and note on Total cash costs.• By-product sensitivities:• $0.25 per pound change in copper impactsconsolidated cash costs by ~$45 per ounce• $1.00 per ounce change in silver impactsconsolidated cash costs by ~$3 per ounce
Appendix 3Mesquite42$6902012A 2013E1422012A 2013EKey assumptions and sensitivities• Diesel comprises ~25% of Mesquite’s total costs• Rack diesel price most correlated to Brent oil price• Budgeted diesel price in 2013 8% higher than2012 average price paid• Every 10% change in diesel price has ~$20 perounce impact on costs2012A versus 2013E• Production expected to decline moderatelydue to the planned processing of ore from anarea within the mine plan that is belowreserve grade• Increase in costs attributable to higher costleach pad inventory working through salesand lower production baseNotes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides.2. Refer to Cautionary Statement and note on Total cash costs.Gold Production(1) (Koz) Total Cash Costs(2) ($/oz)140130$850$830
Appendix 3Cerro San Pedro43$2322012A 2013E1.92012A 2013E1382012A 2013EKey assumptions and sensitivities• Silver price - $30.00 per ounce (2012A - $30.78 perounce)• Mexican Peso: U.S. foreign exchange – 13:1• $1.00 per ounce change in silver equals ~$10 perounce change in Cerro San Pedro cash costs• $1.00 change in Mexican Peso equals ~$25 perounce change in Cerro San Pedro cash costs2012A versus 2013E• Targeting 5% increase in gold production• Decrease in tonnes processed offset byincrease in gold grade• Increase in costs primarily driven by lower silverby-product production as well as lower priceassumption• ~$95 per ounce of increase in costsattributable to lower silver by-product revenue• Silver grades decreasing by ~25%Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%; Silver – ~25%.2. Refer to Cautionary Statement and note on Total cash costs.Gold Production(1) (Koz) Total Cash Costs(2) ($/oz)Silver Production(1) (Moz)1501401.61.4$395$375
Appendix 3Peak Mines44$7642012A 2013E962012A 2013E142012A 2013EKey assumptions and sensitivities• Copper price - $3.50 per pound (2012A - $3.51perpound)• Australian dollar: U.S. foreign exchange – 1:1• $0.25 per pound change in copper equals ~$35 perounce change in Peak Mines cash costs• $0.01 change in Australian dollar equals ~$10 perounce change in Peak Mines cash costs2012A versus 2013E• Increased gold production driven by 50,000tonne increase in tonnes processed• Similar copper production a result of increasedtonnes processed and copper recoveries offsetby lower copper grades• Reduction in estimated cash costs a result ofincreased gold production and lower foreignexchange rate assumption versus average 2012exchange rateGold Production (Koz) Total Cash Costs(1) ($/oz)Copper Production (Mlbs)105951412$690$670Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
Appendix 4New Afton46282012A 2013E372012A 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 incopper grades and recoveries85757466Gold Production (Koz) Copper Production (Mlbs)
Appendix 4New Afton (cont’d)47$6562012A 2013E($1,043)2012A 2013E$1.402012A 2013EKey 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 ~$15 per ounce change in New Afton by-product cash costsTotal Cash Costs(1) ($/oz)(By-Product)Total Cash Costs(1) ($/oz)(Co-Product Copper)Total Cash Costs(1) ($/oz)(Co-Product Gold)($1,390)($1,410)$590$570$1.30$1.20Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
Appendix 4Ore access/drawbell development/mining rate48• Drawbell development has been progressing at afaster rate than planned• 50 active drawbells required to source 11,000tonnes per day of ore feed• Completed 50th drawbell on November 22,2012– At December 31, 2012 – 54 drawbells hadbeen completed• As a result of accelerated drawbell development,took the opportunity to develop the East Cave,the benefits of which include:• Additional ore access points• More consistent annual production profile• Added flexibilityIt is expected approximately 65 active drawbells would ultimately provide ~25-30% moreore, resulting in potential for similar increase in mining rate54~65~90020406080100December 31, 2012 June 30, 2013 December 31, 2013Drawbell DevelopmentTarget Target
Appendix 4New Afton drawbell development and ore columns4954 drawbellsin productionat end of 2012East Caveproduction to beginmid-yearCentral Caveto be activatedlater in mine lifeFinal 11 drawbellsin West CaveAccelerating East Cavedevelopment for addedflexibility/more ore sourcesHeight of DrawPlanned developmentin 2013Copper resource grades
Appendix 4Mining rate increase timeline50Q1’2013Q2’2013Q3’2013Q4’2013• Commission gyratory crusher• Increase underground mining rate to 11,000 tonnes per day• 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• Begin mining in East Cave• Total 65 completed drawbells• Continued drawbell development• Step up mining rate to 12,000 tonnes per day• Total 90 completed drawbells
Appendix 4Mill capacity51• Record daily throughput of 13,840 tonnes• 12,250 tonnes per day sustained in October 2012 withno significant optimization efforts• Key considerations for increased mill throughput include:• SAG Mill: Flexibility to optimize mill power and burdenlevel for finest possible product size distribution over awide range of ore conditions• Ball Mill: Optimize SAG screen deck and hydrocyclonecluster configurations for SAG/Ball Mill circuit balance;optimal Ball Mill feed size and classification efficiency• Flotation: Capacity is adequate for substantial increasein throughput• Concentrate Filtration: Existing capacity for incrementalproduction increase; ample space for installation of thirdfilter• Tailings Pumping Capacity: Three stage variable speedpumps currently running well below maximumcapacities
Appendix 4Mill throughput increase timeline52Q1’2013Q2’2013Q3’2013Q4’2013• Optimize crushing and conveying with gyratory crusher• Hold mill at 11,000 tonnes per day average, build-up live stockpile• Crushing and conveying output achieves steady-state – mill matching at11,500 tonnes per day average• Target completion of several efficiency improvements including: cyclones,Ball Mill trommel, pebble crusher, screen deck, expert system• Increase crushing and conveying output as experience is gained• Target of mill throughput increase to 12,000 tonnes per day
Appendix 5El Morro overview of updated Feasibility Study53• 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 poundNotes: 1. Refer to Cautionary Statement and note on Total cash costs.
Appendix 5La Fortuna deposit552012 open pit Proven andProbable reserves and Measuredand Indicated resourcesUnderground Inferredresource with blockcave potential500 metres
Appendix 5El Morro (30%) – Funding structure(1)56• 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.Total Capital100%~ $3.9 billion100%Average annualcash flow70%30%70%~ $2.7 billionFunded by$1.2 billioninterest at 4.58%30%80%20%Carried funding repayment
Au Grade(g/t)Cu Grade(%)$91/t$44/t$41/t$27/t$53/t$52/t$42/t$33/t$31/t$30/t--0.100.200.300.400.500.600.700.800.20% 0.40% 0.60% 0.80% 1.00% 1.20%Appendix 5Selected porphyry gold/copper deposits/mines(1)57Source: Company disclosure.Notes: 1. Circle sizes are representative of contained metal value of the reserves per tonne of reserve. Contained metal value calculated using Street research consensus long-term commodity pricing.2. Includes “Cadia East Underground” and “Ridgeway Underground” reserves as indicated in Newcrest’s February 8, 2013 press release; does not include “Other” Cadia province reserves.El MorroProducing DevelopmentChapadaCadia-RidgewayAlumbreraNew AftonNew ProsperityCobre PanamaMt. MilliganCerro CasaleEl MorroAgua Rica(2)New Afton
Appendix 5El Morro relative positioning(1)58AssetGold Reserves(Moz)Asset Gold Equivalent(2)(Moz)Penasquito 15.7 Penasquito 43.9Pueblo Viejo 10.0 El Morro 17.4Los Filos 7.4 Pueblo Viejo 11.7El Morro 6.7 Los Filos 8.4Cerro Negro 5.7 Cerro Negro 6.7Notes: 1. Based on Goldcorp’s December 31, 2012 year-end resource statements.2. Gold equivalent calculated based on the following commodity prices: Gold - $1,600/oz; Silver - $30.00/oz; Copper - $3.50/lb; Lead - $0.90/lb; Zinc - $0.90/lb.El Morro within Goldcorp portfolio
Appendix 6Blackwater – Project overview59• Start of production in 2017• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant• Life-of-mine strip ratio of ~2.4 to 1• Low grade stockpiling strategy• Simple, conventional flowsheet using whole ore leach process• Life-of-mine gold and silver recoveries of 87% and 53%, respectively• Conventional waste rock and Tailings Storage Facility• Power supply from the hydroelectric power grid, via 133 kilometre transmission line• Minimal off-site infrastructure required• Good existing access road; water supply within 15 kilometres• Low environmental risk and facility designed for closure
Appendix 6Blackwater PEA costs – Capital60Project Development Capital CostsDescription Cost ($ million)Direct CostsMining & Pre-production Development $208On Site Infrastructure $181Process $539Tailing and Water Reclaim $74Infrastructure (Power, Water, Road) $85Total Direct Costs $1,087Owners and Indirect CostsOwners Costs $54EPCM $112Other Indirects $215Total Owners and Indirect Costs $381Subtotal $1,468Contingency (24%) $346Total Project $1,814• Project is located 112 kilometres southwestfrom Vanderhoof and has access to low costhydroelectric power• Development capital estimate of $1.8 billion isinclusive of a 24% or $346 millioncontingency• Development capital estimated based on thecurrent cost environment• A parity foreign exchange rate was assumedand the capital estimate was held constant inthe economic analysis• Sustaining capital of $537 million, reclamationand closure costs of $95 million and $72 millionin equipment salvage valueTotal development and sustainingcapital estimated at $294 perrecoverable gold ounce
Appendix 6Blackwater PEA costs – Operating61Project Operating CostsArea Unit Cost (C$/t milled) $ per gold ounce producedMining $6.21 $259Processing $7.59 $317General and Administrative $0.95 $40Royalty (0.6%) $0.18 $8Refining $0.23 $9Silver by-product sales at $22.50 per ounce silver ($2.16) ($90)Total cash costs(1)net of by-product sales $13.01 $54344%24%17%8%6%1% ReagentsGrindingMedia/linersElectricityLabourMaint materialsWater Supply59%11%9%6%4%4% 4%2%HaulingAuxiliaryBlastingG&ADrillingLoadingGeneral Maint.General MineProcessing CostsMining CostsBlackwater’s location near infrastructure, low stripping ratio, access to low cost power and silverby-product revenue expected to result in the Project having well below industry average cash costsNote: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note.
Appendix 6Project planning, management and execution initiative62New Gold has engaged McKinsey & Company to collaborate with Blackwater team onestablishing a Project Implementation Plan• Key objective is to maximize effectiveness of project planning to ensure delivery andexecution 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
Appendix 7Reserves and resources summary63Note: 1. Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone updated on May 1, 2013.2. Year end 2011 Mineral Resources presented at Investor Day on February 2, 2012.GoldKozSilverKozCopperMlbsGoldKozSilverKozCopperMlbsProven and Probable Reserves 7,752 31,256 3,282 7,863 34,347 2,888Measured and Indicated Resources (inclusive of Reserves) 23,075 146,247 4,223 18,797 115,268 3,946Inferred Resources 4,542 81,376 1,187 6,323 76,856 2,202M&I Resources (inclusive of Reserves)Mesquite 5,684 - - 5,534 - -Cerro San Pedro 1,703 57,980 - 1,812 55,860 -Peak 880 1,350 146 948 1,570 167New Afton 2,224 7,292 1,980 1,742 5,470 1,586Blackwater 9,497 70,128 - 5,423 25,774 -Capoose 196 9,497 - 384 26,594 -El Morro 2,891 - 2,097 2,954 - 2,193Total M&I 23,075 146,247 4,223 18,797 115,268 3,946Current(1)Mineral Reserves and Resources SummaryYear End 2011(2)
Appendix 7Reserves and resources notes68Mineral 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(US$/oz)Silver(US$/oz)Copper(US$/lb)Lower Cut-offMesquite $1,300 - - 0.21 g/t Au – Oxide reserves0.41 g/t Au – Non-oxide reservesCerro San Pedro $1,300 $24.00 - US$4.33 /t NSRPeak Mines $1,300 $24.00 $3.00 A$120 – 253/t NSRNew Afton $1,300 - $3.00 US$24/t NSREl Morro $1,350 - $3.00 0.20% CuEq
Appendix 7Reserves and resources notes (cont’d)692) Mineral Resources for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria:Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI 43-101.Mineral Property Gold(US$/oz)Silver(US$/oz)Copper(US$/lb)Lower Cut-offMesquite $1,400 - - 0.12 g/t Au – Oxide resources0.24 g/t Au – Non-oxide resourcesCerro San Pedro $1,400 $28.00 - 0.1g/t AuEq – Open pit oxide resources0.4g/t AuEq – Open pit sulphide resourcesPeak Mines $1,400 $28.00 $3.25 A$97 - 137/t NSRNew Afton $1,400 $28.00 $3.25 0.40% CuEq – All resourcesEl Morro $1,500 - $3.50 0.15% Cu – Open pit resources0.20% Cu – Underground resourcesBlackwater $1,400 - - 0.40 g/t AuEqCapoose $1,400 - - 0.40 g/t AuEq3) 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) 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 silver. The March 2013 mineral resource estimate utilizesaverage metallurgical recoveries of 88.0% gold and 64.0% silver for oxide mineralization, 85.0% gold and 58.0% silver for transitional oxide/sulfide mineralization and 85.0% gold and 44.0%silver for sulfide mineralization. The 2012 year-end mineral resource estimate utilizes average metallurgical recoveries of 86% gold and 44.9% silver for all material types.2. Total contained metal is calculated based on Tonnes*Grade / 31.10348 grams per troy ounce.3. Gold-equivalent cut-off grade estimates are based on $1,400/oz gold and $28.00/oz silver and average metal recoveries as described in Note 1 above.4. Direct processing material is defined as mineralization above a 0.40 g/t AuEq cut-off and likely to be mined and processed directly.5. Stockpile material is defined as mineralization between a 0.30 g/t AuEq and a 0.40 AuEq cut-off that is suitable for stockpiling and future processing based on average metallurgicalrecoveries as described in Note 1 above.5) 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.