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Print version corporate presentation - may 2014 v final

  1. 1. Corporate Presentation May 2014
  2. 2. Cautionary statements 2 All monetary 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 are “forward looking”. All statements in this presentation, other than statements of historical fact, which 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 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 of such terms. Forward-looking statements in this presentation include those on the slide entitled “2014 Consolidated Guidance” and also include, among others, statements with respect to: guidance for production, total cash costs, all-in sustaining costs and capital expenditures; mine life at various mines and projects; the expected throughput and recovery rates at New Afton; planned modifications to the New Afton mine and mill and related timing, costs, return and payback period; expected future mining activities; exploration potential; the estimation of Mineral Reserves and Resources and the realization of such estimates; the results of the Rainy River and Blackwater Feasibility Studies, including expected production and costs; the timing of permitting activities and environmental assessment processes; expected timing of project development and construction activities and; the potential annual production and cash costs, and the potential for a block cave, at the El Morro project. 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. Certain material assumptions regarding our forward-looking statements are discussed in this presentation, New Gold’s MD&As, its Annual Information Form and its Technical Reports filed at www.sedar.com. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward- looking statements in this presentation are also subject to the following assumptions: (1) there being no signification disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and resource estimates; (4) the exchange rate between the Canadian dollar, Australian dollar, Mexican Peso and U.S. dollar being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) labour and material costs increasing on a basis consistent with New Gold’s current expectations; (7) permitting and arrangements with First Nations and other Aboriginal groups in respect of Rainy River and Blackwater being consistent with New Gold’s current expectations; (8) all environmental approvals (including the environmental assessment process for the Blackwater and Rainy River projects), required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines; and (9) the results of the feasibility studies for the Rainy River and Blackwater projects being realized. 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 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 between 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 which New Gold currently or may in the future carry on business; taxation; controls, regulations and political 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 of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for the Blackwater and Rainy River projects; in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization (EIS); and in Chile, where the courts have temporarily suspended the approval of the environmental permit for El Morro; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges 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 feasibility studies for Rainy River and Blackwater; 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; unexpected delays and costs inherent to consulting and accommodating rights of First Nations and other Aboriginal groups; uncertainties with respect to obtaining all necessary surface and other land use rights or tenure for Rainy River; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the environmental assessment processes for Blackwater and Rainy River. In addition, there are risks and hazards associated with 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 risks) as well as “Risk Factors” included in New Gold’s disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward- looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. The footnotes and endnotes to this presentation contain important information. The endnotes are found at the end of the presentation.
  3. 3. Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with established track record Peer-leading growth pipeline A history of value creation New Gold investment thesis 3 18.5 Moz gold reserves(1) ~$75 million investment by Board & Management Q1’14 all-in sustaining costs(2) – $674/oz ~900 Koz annual production potential from growth projects(3) 185% increase in share price since March 2009 1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. 2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 3. Based on ~325Koz annual production from Rainy River, ~485Koz annual production from Blackwater and ~90Koz annual production from El Morro, as outlined in the feasibility studies for the projects.
  4. 4. Portfolio of assets in top-rated jurisdictions Blackwater New Afton Rainy River Mesquite Cerro San Pedro El Morro Peak Mines Mine Life: 17 years Mine Life: 10 years Mine Life: 14 years Mine Life: 8+ years Mine Life: 2+ years Mine Life: 17 years Mine Life: 6+ years #1 CANADA #3 UNITED STATES #5 MEXICO #4 CHILE #2 AUSTRALIA OPERATING DEVELOPMENT 4 All Assets Ranked in Top 5 Global Mining Jurisdictions(1) 1. Based on 2014 Behre Dolbear Report – “2014 Ranking of Countries for Mining Investment”. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. Gold 18.5 Moz Silver 90.1 Moz Copper 3.0 Blbs Mineral Reserves(2)
  5. 5. Collectively ~$75 million invested in New Gold 5 BOARD OF DIRECTORS David Emerson Former Canadian Cabinet Minister James Estey Former President, UBS Securities Canada Robert Gallagher President & Chief Executive Officer Vahan Kololian Founder, Terra Nova Partners Martyn Konig Former Executive Chairman, European Goldfields Pierre Lassonde Chairman, Franco-Nevada Randall Oliphant Executive Chairman Raymond Threlkeld Chairman, Newmarket Gold EXECUTIVE MANAGEMENT TEAM Randall Oliphant Executive Chairman Robert Gallagher President & Chief Executive Officer Brian Penny Executive Vice President & Chief Financial Officer
  6. 6. 2014 first quarter highlights 6 91,317oz $674per oz All-in sustaining costs(1) Successfully completed Rainy River Feasibility Study and advanced project +$ 24million Increase cash balance during quarter Gold Production Costs $254per oz Total cash costs(2) New Afton Financial Rainy River Cash and Equivalents New Afton achieved record quarterly gold and copper production $81million Net cash generated from operations $ 438million Cash balance at March 31, 2014 1. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 2. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 27,364oz - Gold 22mlbs - Copper +39%versus Q1’13
  7. 7. 71. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 2014 total cash costs assume: Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90, USD/AUD - $0.88. 2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 2014 all-in sustaining costs assume: Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90, USD/AUD - $0.88. 2014 consolidated guidance GOLD PRODUCTION (Koz) COPPER PRODUCTION (Mlbs)SILVER PRODUCTION (Moz) ALL-IN SUSTAINING COSTS(2) ($/oz)TOTAL CASH COSTS(1) ($/oz) 380 – 420 $320 – $340 $815 – $835 1.35 – 1.75 92 – 100
  8. 8. Low cost producer • Record low all-in sustaining costs(2) in first quarter 2014 • 2014E all-in sustaining costs(2) to decrease by over $70 per ounce versus 2013 • Costs benefiting from depreciating Canadian and Australian dollars • Expect to generate ~$200 per ounce incremental margin versus average of peer-companies 8 Lower costs driving higher margins(1) 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 2014 FIRST QUARTER ALL-IN SUSTAINING COSTS ($/oz)(2) 2014 FULL-YEAR ALL-IN SUSTAINING COSTS ($/oz)(2) $674 $786 $799 $820 $833 $840 $908 $1,001 $1,034 $1,038 $1,390 $825 $850 $950 $950 $975 $980 $990 $1,000 $1,125 $1,135 $1,150
  9. 9. C-Zone M&I Resource(2) New Afton – A special asset 9 87 102-112 Gold (Koz) 72 78-84 Copper (Mlbs) 2013 2014E 2013 2014E NEW AFTON Future UpsideNear-Term Upside Jurisdiction Current Production British Columbia, Canada #1Country Ranking(1) 1. Based on 2014 Behre Dolbear Report – “2014 Ranking of Countries for Mining Investment”. 2. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. 3. Return calculation assumes: Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90. 2015 to benefit further from mill expansion Mill Expansion - $45mm Throughput: Recoveries: Return(3): Payback: 12,500 14,000 85-86% 88-89% +50% <2 years GOLD 0.83 g/t 0.7Moz COPPER 0.91% 0.5Blbs 26 Million Tonnes
  10. 10. C-zone overview 10 C-zone B-zone Isometric view looking NE YEAR-END 2013 C-ZONE RESOURCES(1) Tonnes (000’s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Measured 618 0.75 0.91 15 12 Indicated 25,223 0.84 0.91 678 504 Total M&I 25,842 0.83 0.91 693 516 Inferred 11,288 0.63 0.64 227 159 1. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. Measured and Indicated Resources Inferred Resources
  11. 11. 92 86 95 87 107 108 2013 2014E 2015E 11 • Both gold and copper production already exceed 2009 technical report estimates • Mill expansion and C-zone potential to further increase New Afton annual cash flow and mine life Case study – New Afton value enhancement COPPER PRODUCTION (MILLION POUNDS)GOLD PRODUCTION (THOUSAND OUNCES) 70 65 7272 81 82 2013 2014E 2015E Actual/Guidance(2)2009 Technical Report(1) Actual/Guidance(2)2009 Technical Report(1) • Only 14 holes drilled into C-zone at time of New Afton production start • In two years, M&I resource up to 26 million tonnes(3) C-ZONE RESOURCE B-ZONE C-ZONE Tonnes (Mt) 68 26 Gold grade (g/t) 0.65 0.83 Copper grade (%) 0.91 0.91 MEASURED AND INDICATED RESOURCES(3) 1. New Afton Project technical report dated December 31, 2009. 2. 2015 New Afton production estimate assumes successful completion of New Afton mill expansion of 14,000 tonnes per day by mid-2015. 3. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.
  12. 12. Rainy River 12 Gold Resource/UpsideSituated for Mine Development #1 Ontario, Canada Jurisdiction Country Ranking(1) +169 km2 Land Package Multiple regional targets RAINY RIVER 1. Based on 2014 Behre Dolbear Report – “2014 Ranking of Countries for Mining Investment”. 2. Development capital assumes $0.90 USD/CDN exchange rate. 3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Total cash costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $0.95. 4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. All-in sustaining costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $0.95. 5. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. Flat terrain Close to infrastructure 17km tie-in to power +3.8 Moz Reserves(5) +6.2 Moz M&I Resources(5) 2014 Feasibility Study First nine years: $613/oz Total Cash Costs(3) 325 Koz (1.44 g/t) Annual Production ~$840 million Development Capital(2) $736/oz All-in Sustaining Costs(4) $0.05 change in exchange rate ~$141 million in pre-tax NAV
  13. 13. 13 Rainy River – Progress milestones 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Complete Feasibility Study Submit Environmental Assessment Report Order Long Lead Equipment Award EPCM Contract Detailed Engineering & Procurement Provincial Environmental Assessment Approval Federal Environmental Assessment Approval Construction/Other Permits Arrival of Mobile Equipment Begin Construction - Water Management Facility Pour First Concrete for Mill Building Commence Pre-Strip Arrival of Mill Equipment Complete Enclosure of Mill Building Targeted milestones 1. Near-term milestones based on company plans which are consistent with timelines presented in the Rainy River Technical Report, entitled “Feasibility Study of the Rainy River Project, Ontario, Canada” dated February 14, 2014 and available on SEDAR. Targeting commissioning in late 2016 with first year of full production in 2017
  14. 14. 14 • Purchase orders completed for: • Mobile equipment • Primary crusher • SAG mill • Ball mill • AMEC engaged as EPCM partner Rainy River – Progress update Project Development Capital Costs Description Cost ($ million) Direct Costs Process Equipment $127 Process Facilities – Construction $170 Site Development $111 Open Pit Mine Equipment $81 Overburden and Waste Stripping $80 Tailings and Water Management $48 Power Line and Roads $21 Total Direct Capital Costs $638 Owner's and Indirect Costs Owner's Costs $76 EPCM $48 Other Indirects $53 Total Owner's & Indirect Capital Costs $177 Subtotal $815 Contingency $70 Total Project (at US$/C$ - 0.95) $885 21% of pricing locked in 98% of pricing locked in EPCM engaged 1. Project development capital costs based on Rainy River Technical Report, entitled “Feasibility Study of the Rainy River Project, Ontario, Canada” dated February 14, 2014 and available on SEDAR.
  15. 15. Blackwater 15 UPSIDEGOLD RESOURCE British Columbia, Canada BLACKWATER Regional UpsideSignificant Gold Resource Jurisdiction #1Country Ranking(1) 8.2 Moz Reserves(5) 9.5 Moz M&I Resources(5) ~1,100 km2 Land Package Initial resource at Capoose Multiple newly identified targets 1. Based on 2014 Behre Dolbear Report – “2014 Ranking of Countries for Mining Investment”. 2. Development capital assumes $0.90 USD/CDN exchange rate. 3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Total cash costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $0.95. 4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. All-in sustaining costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $0.95. 5. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. 17-year Mine Life 2013 Feasibility Study First nine years: 485 Koz Annual Production ~$1,760 million Development Capital(2) $555/oz Total Cash Costs(3) $685/oz All-in Sustaining Costs(4) $0.05 change in exchange rate ~$270 million in pre-tax NAV
  16. 16. El Morro 16 Chile EL MORRO Unique Joint Venture Structure Gold/Copper Reserve & Resources (30%) Jurisdiction 2011 Feasibility Study (30%) #4Country Ranking(1) 85 Mlbs Annual Copper Production ($700/oz) Total Cash Costs(2) 90 Koz Annual Gold Production Goldcorp 70% partner Funds 100% of capital New Gold retains portion of cash flow from mine start-up 2.7 Moz @ 0.5 g/t Gold 2.0 Blbs @ 0.5% Copper Life of mine: 1. Based on 2014 Behre Dolbear Report – “2014 Ranking of Countries for Mining Investment”. 2. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Total cash costs assume: Gold - $1,200/oz, Copper - $2.75/lb, Chilean Peso/USD - $550. 3. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 2014. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. Reserves(3) – Open Pit Inferred Resources(3) – Potential Block Cave 1.1 Moz @ 1.0 g/t Gold 0.6 Blbs @ 0.8% Copper
  17. 17. 17 Organic pipeline • Mesquite return to run rate (2015+) • New Afton expansion (mid-2015) • Rainy River development (2015/2016) • CSP to residual leaching (2016) Existing low cost production base to be further enhanced by our lower cost development projects(1) • Sequence Blackwater development • El Morro advanced 2014(2) 2017(3) Future Potential(4) GOLDPRODUCTION 1. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Rainy River and Blackwater life-of-mine all-in sustaining costs are estimated to be $736/oz and $685/oz, respectively, based on their respective Feasibility Studies. 2. Based on mid-point of 2014 guidance. 3. Based on expected annual production from current operations according to their respective mine plans, including positive production impact of New Afton’s mill expansion targeted for mid-2015, Mesquite mine plan moving into grades more in line with reserve grade, which is partially offset by Cerro San Pedro ceasing active mining and moving into residual leaching, and includes the first year of full production from Rainy River. Assumes on-time completion of Rainy River. 4. Based on ~325Koz annual production from Rainy River, ~485Koz annual production from Blackwater and ~90Koz annual production from El Morro as outlined in the Feasibility Studies for these projects, and production contribution from New Afton, Mesquite and the Peak Mines according to their respective mine plans. Assumes the timely development of Blackwater and El Morro.
  18. 18. 18 Cash flow growth and value $79 $182 $230 $236 $249 $292 ~$400 ~$400 ~$600 $0 $100 $200 $300 $400 $500 $600 $700 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 1. For 2013, figure shown is Adjusted net cash generated from operations. Net cash generated from operations in the 2013 period included certain non-recurring cash flows. Net cash generated from operations in 2013 was $172 million. 2. 2014E based on Bloomberg consensus CFPS of $0.58 multiplied by 504 million basic shares outstanding. 3. 2015 to 2017 estimates based on the following price and exchange rate assumptions (which were also used for 2014 guidance): Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90, USD/AUD - $0.88. 2015 estimated cash flow assumes: successful mill expansion to 14,000 tonnes per day at New Afton in mid-2015, Mesquite moving into mining of higher grade areas of the open pit in 2015 in accordance with the current mine plan, Peak’s copper production increasing from 2014 levels in accordance with the current mine plan, and Cerro San Pedro mining higher grade material in its final year of active mining in accordance with the current mine plan. 2016 estimated cash flow assumes: New Afton processing for a full year at 14,000 tonnes per day, Mesquite remaining in higher grade areas in accordance with the current mine plan, Peak further increasing its copper production in accordance with the current mine plan, and Cerro San Pedro moving into its first year of residual leaching in accordance with the current mine plan. 2017 estimated cash flow assumes: Rainy River commercial production is achieved on schedule and Rainy River has its first full year of production in 2017 with a production level consistent with the project’s feasibility study, New Afton processing 14,000 tonnes per day, Mesquite remaining in higher grade areas in accordance with the current mine plan, Peak further increasing its copper production in accordance with the current mine plan, and Cerro San Pedro continuing its residual leaching in accordance with the current mine plan. Assumes no non-recurring cash flows in 2014, 2015, 2016 and 2017. 4. Based on the average of the estimates by research analysts for the net asset values of the Blackwater and El Morro assets. (2) NET CASH FROM OPERATIONS ($ MILLIONS) Enterprise Value $3.0 billion Consensus Blackwater and El Morro Value(4) $0.7 billion Enterprise Value (excluding Blackwater and El Morro) $2.3 billion Trading at ~3.8x 2017E cash flow at 2014 guidance prices (3)(3) (3)(1)
  19. 19. Catalysts 19 2014 costs declining versus 2013 New Afton production and cash flow continues to increase New Afton C-zone exploration Rainy River regional exploration Blackwater regional exploration Rainy River permitting Blackwater permitting New Afton mill expansion Cash flow growth
  20. 20. New Gold investment thesis 20 A history of value creation Peer-leading growth pipeline Among lowest-cost producers with established track record Invested and experienced team Portfolio of assets in top-rated jurisdictions Establishing the leading intermediate gold company
  21. 21. Appendices 21 Appendices Page 1. Financial information 22 2. Consolidated operating performance 27 3. New Afton 34 4. Mesquite, Peak Mines, Cerro San Pedro 42 5. Rainy River 45 6. Blackwater 46 7. El Morro 47 8. Exploration 50 9. Reserves and Resources notes 54 10. Commodity price/foreign exchange assumptions 63
  22. 22. $438 mm $107 mm Liquidity Position $545 mm Cash and Equivalents(1) Undrawn Credit Facility(2) Strong balance sheet 22 1. Cash and equivalents as at March 31, 2014. 2. $43 million of total $150 million at March 31, 2014 used for Letters of Credit. 3. See Appendix 1 – Summary of debt for detailed breakdown of components of debt. • Face value $881 million in long-term debt(3) • Face value $300 million, 7.00% notes due in 2020 • Face value $500 million, 6.25% notes due in 2022 • $81 million in carried El Morro loan, payable out of El Morro project cash flow Appendix 1
  23. 23. Summary of debt 23 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 $81 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 ~106 ~103 n/a Key features • Normal financial covenants Interest Rate • 3.00-4.25% over LIBOR based on ratios • Standby fee of 0.75- 1.06% • 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 1. $43 million of total $150 million at March 31, 2014 used for Letters of Credit. Appendix 1
  24. 24. 24 2014 capital expenditures by category New Afton ~$340 million Sustaining Capital: ~$145 million Growth Capital: ~$195 million Mesquite Peak Mines Cerro San Pedro Rainy River New Afton Cerro San Pedro Blackwater Total Capital Appendix 1 • Q1’14 - $28 million • Q1’14 - $29 million
  25. 25. 25 Growth capital • Set out below is a breakdown of expected 2014 capital expenditures at each site divided into two categories – sustaining capital and growth capital (future production growth and mine life extension) New Afton - $115 million Rainy River - $105 million Mesquite - $40 million Sustaining capital 48%52% 100% 100% • $60 million – ~2,500 metre development, two new trucks, dam raise and surface ventilation upgrade • $35 million – mill expansion • $20 million – C-zone scoping level engineering and capitalized exploration • $60 million – property, plant and equipment • $35 million – detailed engineering, studies, environmental monitoring and permitting • $10 million – capitalized exploration • $28 million – four new trucks and leach pad expansion • $12 million – major components/building and tank construction 2014 capital expenditures by category Appendix 1
  26. 26. 26 Peak Mines - $40 million Cerro San Pedro - $28 million 100% 71% • $20 million – two haul trucks and site maintenance • $20 million – capitalized development and capitalized exploration • $20 million – capitalized stripping • $8 million – leach pad expansion 2014 capital expenditures by category Growth capital Sustaining capital New Gold’s 30% share of estimated 2014 El Morro capital costs of $6 million fully carried by Goldcorp Inc. Blackwater - $15 million 100% • $10 million – permitting • $5 million – engineering studies 29% Appendix 1
  27. 27. 2013 full year mine-by-mine operating results 27 2013 FULL YEAR Gold production (Koz) Total cash costs(1) ($/oz) All-in sustaining costs(2) ($/oz) 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”. New Afton 87 ($1,196) ($133) Mesquite 107 $907 $1,108 Peak Mines 101 $850 $1,331 Cerro San Pedro 103 $676 $766 398 $377 $899 New Afton co-product cash costs(1) Gold ($/oz) $486 Copper ($/lb) $1.19 New Gold co-product cash costs(1) Gold ($/oz) $712 Copper ($/lb) $1.86 Silver ($/oz) $10.24 2013 FULL YEAR • New Afton throughput higher in each consecutive quarter during the year • 5% increase in gold production at Peak Mines versus previous year • Lowest total cash costs(1) in company’s history Appendix 2
  28. 28. 2014 first quarter mine-by-mine operating results 28 New Afton 27 ($1,283) ($664) Mesquite 28 $893 $1,069 Peak Mines 20 $757 $1,102 Cerro San Pedro 19 $947 $1,080 94 $254 $674 2014 FIRST QUARTER Gold sales (000s ounces) Cash costs(1) ($/oz) All-in Sustaining costs(2) ($/oz) New Afton co-product costs(1) Gold ($/oz) $413 $630 Copper ($/lb) $0.93 $1.41 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”. 3. 2014 first quarter consolidated co-product costs: Gold - $658 per ounce; Silver - $10.03 per ounce; Copper - $1.64 per pound. 4. 2014 first quarter consolidated co-product all-in sustaining costs: Gold - $908 per ounce; Silver - $13.93 per ounce; Copper - $2.21 per pound. Co-product cash costs(1) Co-product all-in sustaining costs(2) NEW AFTON 2014 FIRST QUARTER Appendix 2 (3) (4)
  29. 29. $465 $418 $446 $421 $377 $320 - $340 $478 $557 $643 $766 $767 29 Among lowest cost producers in industry Industry New Gold 2014E Incremental Benefit to NGD Shareholder 2009 (2) New Gold versus Industry Average Total Cash Costs,(1) Net of By-Product Credits 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. New Gold total cash costs based on 2014 guidance. 2. Industry data per GFMS reports calculated net of by-product credits for the year ended December 31, 2013. Appendix 2
  30. 30. 2014 first quarter financial summary 30 2013 FIRST QUARTER2014 FIRST QUARTER Revenues ($ million) $191 $202 Operating margin(1) ($ million) $92 $96 Adjusted net earnings(2) ($ million) $18 $21 Adjusted net earnings per share(2) ($/share) $0.04 $0.04 Net earnings ($ million) ($2) $36 Net earnings per share ($/share) ($0.00) $0.08 Net cash generated from operations ($ million) $81 $59 Average realized gold price ($ per ounce) $1,308 $1,494 Average realized silver price ($ per ounce) $20.40 $29.25 Average realized copper price ($ per pound) $2.98 $3.44 1. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”. 2. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”. Appendix 2
  31. 31. 31 Detailed operating results and assumptions Appendix 2 2013A 2013A 2013A 2013A Tonnes processed (000 tonnes) 14,297 13,000 - 13,300 13,463 13,400 - 13,800 814 830 - 850 4,087 4,500 - 4,700 Tonnes mined (000 tonnes) 48,206 56,000 - 58,000 31,018 33,000 - 35,000 1,100 1,300 - 1,320 4,226 4,600 - 4,800 Strip ratio 2.37 3.31 - 3.36 1.30 1.46 - 1.54 -- -- - -- -- -- - -- Gold grade (g/t) 0.37 0.40 - 0.44 0.47 0.35 - 0.40 4.14 3.9 - 4.1 0.78 0.81 - 0.85 Silver grade (g/t) -- -- - -- 20.91 15.0 - 17.0 -- -- - -- -- -- - -- Copper grade (%) -- -- - -- -- -- - -- 0.85% 0.86% - 0.90% 0.93% 0.93% - 0.95% Gold recovery (%) 63.0% 51.0% 92.9% 91.0% - 93.0% 85.1% 85.0% - 87.0% Silver recovery (%) -- -- - -- 15.0% -- -- - -- -- -- - -- Copper recovery (%) -- -- - -- -- -- - -- 88.0% 91.0% - 93.0% 85.9% 86.0% - 88.0% Production Gold production (Koz) 107.0 113.0 - 123.0 102.8 70.0 - 80.0 100.7 95.0 - 105.0 87.2 102.0 - 112.0 Silver production (Koz) -- -- - -- 1,300.6 1,100.0 - 1,300.0 -- -- - -- -- -- - -- Copper production (Mlbs) -- -- - -- -- -- - -- 13.4 14.0 - 16.0 72.0 78.0 - 84.0 Reserve grade Gold grade (g/t) Silver grade (g/t) Copper grade (%) 3.52 7.1 1.22% 0.56 2.2 0.84% 0.60 -- -- 0.46 18.1 -- Mesquite 2014E2014E New AftonCerro San Pedro 2014E Peak Mines 2014E ~50% ~15% ~65%
  32. 32. 32 2014 total cash cost sensitivities Appendix 2 Category Copper Price Silver Price AUD/USD CDN/USD MXN/USD Diesel Base Assumption $3.25 $20.00 $1.14 $1.11 $13.00 $3.25 Sensitivity +/- $0.25 +/- $1.00 +/- $0.05 +/- $0.05 +/- $1.00 +/- $0.25 Total Cash Costs(1) - Impact New Afton +/-$200 - - +/-$65 - - Mesquite - - - - - +/-$15 Peak Mines +/-$40 - +/-$50 - - - Cerro San Pedro - +/-$15 - - +/-$50 - New Gold Consolidated +/-$60 +/-$5 +/-$15 +/-$15 +/-$10 +/-$5 Total Cash Costs(1) - Sensitivities 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”.
  33. 33. 33 1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. 2. General and administrative includes stock-based compensation and asset retirement obligation. 3. Sustaining capital based on New Gold’s total 2014 estimated capital expenditures excluding expenditures related to growth-related initiatives. 4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. 2014 estimated all-in sustaining costs Total cash costs(1) ~$330/oz General and administrative(2) ~$90/oz Exploration expense ~$35/oz Sustaining capital(3) ~$370/oz ALL-IN SUSTAINING COSTS(4) ~$825/oz Appendix 2
  34. 34. 34 New Afton – 2014 guidance GOLD PRODUCTION (Koz) COPPER PRODUCTION (Mlbs) ALL-IN SUSTAINING COSTS(2) ($/oz)TOTAL CASH COSTS(1) ($/oz) 102 – 112 78 – 84 ($1,260) – ($1,240) ($620) – ($600) TOTAL CASH COSTS(1) $440 – $460 $1.10 – $1.20 Co-Product Gold ($/oz) Co-Product Copper ($/lb) • Copper price - $3.25 per pound (2013A - $3.23 per pound) • Canadian dollar: U.S. dollar exchange – $1.11 • $0.25 per pound change in copper equals ~$200 per ounce change in New Afton total cash costs • $0.01 change in Canadian dollar equals ~$15 per ounce change in New Afton total cash costs • Gold and copper production expected to increase due to: • Increase in average annual throughput rate • Increase in gold grades • Costs benefit from targeted increase in copper production, depreciating Canadian dollar and decrease in sustaining capital costs OVERVIEW KEY ASSUMPTIONS AND SENSITIVITIES 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”. Appendix 3
  35. 35. New Afton – Mill schematic 35 New Facilities To Tailings Surface Stockpile Appendix 3
  36. 36. New Afton – Expansion timeline 36 • EPCM contract award • Geotechnical and detailed engineering • Early works • Buried services relocation • Reagent tank relocation H1’15 • Excavation • Foundations • Building construction • Building services • Vertimill delivery • Piping/electrical • Instrumentation • Commissioning H2’14H1’14 Appendix 3
  37. 37. Mill expansion capital estimates 37 Engineering, Construction and Equipment $26 million Building and Site Works $12 million Owner’s Costs $2 million Contingency $5 million ESTIMATED EXPANSION CAPITAL $45 MILLION • Below is a summary of the key capital estimates for the expansion project Target: 14,000 tonnes per day at higher metal recoveries • $35 million of capital to be spent in 2014 with remainder in 2015 Appendix 3
  38. 38. Value creation through mill expansion 38 IRR of +50% and payback period of less than two years 2014 TARGETED AVERAGES RUN RATE TARGETED AVERAGES WITH MILL EXPANSION Throughput Gold recovery Copper recovery 12,500 14,000 ~85% ~87-88% ~86% ~88-89% +12% +2-3% +2-3% Appendix 3
  39. 39. New Afton – C-zone resource expansion 39 • C-zone originally identified through limited deep holes drilled from surface • Drilling from underground commenced in second half of 2012 • During 2013 completed 41 holes totaling 26,800 metres • Increased tonnes and grade of Measured and Indicated resource resulting in 10-fold increase in contained gold and copper • Incremental increase to Inferred resource Tonnes (000’s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Measured 618 0.75 0.91 15 12 Indicated 25,223 0.84 0.91 678 504 Total M&I 25,842 0.83 0.91 693 516 Inferred 11,288 0.63 0.64 227 159 YEAR-END 2012 C-ZONE(1) YEAR-END 2013 C-ZONE(2) Tonnes (000’s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Measured 400 0.60 0.73 8 6 Indicated 2,900 0.63 0.68 58 43 Total M&I 3,300 0.62 0.68 66 49 Inferred 13,600 0.70 0.76 307 228 1. 2012 information per Annual Information Form dated March 27, 2013. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to Appendix 2. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. Appendix 3
  40. 40. New Afton – 2014 C-zone program 40 • Convert Inferred resource to Measured and Indicated • Expand resource laterally to east and west as well as vertically • Underground delineation and infill – 30,000 to 35,000 metres Appendix 3
  41. 41. 41 New Gold has a track record of successful mine development Mine development – Creating options Once mines are in production – multiple options to further enhance value Cerro San Pedro (April 2007) – ~35,000 tonne per day open pit/heap leach Mesquite (January 2008) – ~40,000 tonne per day open pit/heap leach New Afton (June 2012) – 11,000 tonne per day block cave/process facility Mine life extension (Mesquite(1), Peak Mines(2), New Afton C-zone) Increased production rate (Cerro San Pedro(3), New Afton) 1. Mesquite’s mine life has been extended beyond the 9.5 years that were estimated when the mine re-started production in January 2008. 2. The Peak Mines originally began production in 1992 with an approximate eight year life and have operated continuously since then and continue to have six or more years of mine life. 3. During 2011 and 2012, Cerro San Pedro operated at a rate above its design capacity to increase its annual gold and silver production. Appendix 3
  42. 42. 42 • Diesel comprises ~25% of Mesquite’s total costs • Rack diesel price most correlated to Brent oil price • Diesel price - $3.25 per gallon • Every $0.25 per gallon change in diesel price has ~$15 per ounce impact on total cash costs • Production increase driven by planned mining of higher grades versus 2013 • Increase in costs attributable to increase in total tonnes mined • Peak year for sustaining capital at Mesquite Mesquite – 2014 guidance GOLD PRODUCTION (Koz) OVERVIEW KEY ASSUMPTIONS AND SENSITIVITIESALL-IN SUSTAINING COSTS(2) ($/oz)TOTAL CASH COSTS(1) ($/oz) 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”. 113 – 123 $930 – $950 $1,310 – $1,330 Appendix 4
  43. 43. 43 • Copper price - $3.25 per pound (2013A - $3.29 per pound) • Australian dollar: U.S. dollar exchange – $1.14 • $0.25 per pound change in copper equals ~$40 per ounce change in Peak Mines total cash costs • $0.01 change in Australian dollar equals ~$10 per ounce change in Peak Mines total cash costs • Gold production in line with 2013 • Increase in copper production a result of increased copper grade and recovery • Decrease in total cash costs a result of increased copper by-product revenue, depreciating Australian dollar and increased productivity through lower turnover Peak Mines – 2014 guidance GOLD PRODUCTION (Koz) COPPER PRODUCTION (Mlbs) OVERVIEW KEY ASSUMPTIONS AND SENSITIVITIESALL-IN SUSTAINING COSTS(2) ($/oz)TOTAL CASH COSTS(1) ($/oz) 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”. 95 – 105 14 – 16 $630 – $650 $1,065 – $1,085 Appendix 4
  44. 44. 44 • Silver price - $20.00 per ounce (2013A – $23.61 per ounce) • Mexican peso: U.S. dollar exchange – $13.00 • $1.00 per ounce change in silver equals ~$15 per ounce change in Cerro San Pedro total cash costs • $1.00 change in Mexican peso equals ~$50 per ounce change in Cerro San Pedro total cash costs • Decrease in production reflects the increased strip ratio for Phase 5 pushback and mining of lower grade ore • Increase in costs primarily driven by lower gold production, lower silver by- product revenue and increased volume of processing reagents Cerro San Pedro – 2014 guidance GOLD PRODUCTION (Koz) SILVER PRODUCTION (Moz) OVERVIEW KEY ASSUMPTIONS AND SENSITIVITIESALL-IN SUSTAINING COSTS(2) ($/oz)TOTAL CASH COSTS(1) ($/oz) 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”. 70 – 80 1.1 – 1.3 $1,030 – $1,050 $1,125 – $1,145 Appendix 4
  45. 45. 45 • 21,000 tonne per day process plan with conventional crushing, grinding, leaching and carbon-in-pulp technology • Targeted commissioning in 2016 with first year of full production in 2017 • 14-year mine life with direct processing of open pit and underground ore for first nine years and processing of a combination of stockpile and underground ore thereafter • Development capital of $885 million inclusive of $70 million contingency (at $1.05 CDN/USD) • ~$840 million at $1.11 CDN/USD • Life-of-mine gold and silver recoveries of 91% and 64% • Open pit mining schedule incorporates an elevated cut-off grade strategy during first nine years Rainy River – Project overview Appendix 5 Pre-tax Economics Gold Price ($/oz) 1,150 1,300 1,300 1,450 1,600 US$/C$ exchange 0.93 0.95 0.91 0.97 1.00 5% NPV ($mm) 138 438 551 738 1,009 IRR (%) 7.8 13.1 15.3 17.6 21.1 Payback (years) 6.8 5.4 4.8 4.3 3.6 After-tax Economics Gold Price ($/oz) 1,150 1,300 1,300 1,450 1,600 US$/C$ exchange 0.93 0.95 0.91 0.97 1.00 5% NPV ($mm) 100 314 396 520 706 IRR (%) 7.1 11.3 13.2 14.9 17.8 Payback (years) 6.8 5.5 5.0 4.4 3.8
  46. 46. 46 • Conventional truck and shovel open pit mine with 60,000 tonne per day processing plant • Simple, conventional flowsheet using whole ore leach process • Low grade stockpiling strategy • Development capital of $1,865 million inclusive of $190 million contingency (at $1.05 CDN/USD) • ~$1,760 million at $1.11 CDN/USD • Life-of-mine operational strip ratio of 1.88 to 1 • Life-of-mine gold and silver recoveries of 87% and 49% • Conventional waste rock and Tailings Storage Facility • Power supply from the hydroelectric power grid, via 140-kilometre transmission line • Minimal off-site infrastructure required • Good existing access road; water supply within 15 kilometres • Low environmental risk and facility designed for closure Blackwater – Project overview Appendix 6 Pre-tax Economics Gold Price ($/oz) 1,150 1,300 1,300 1,450 1,600 US$/C$ exchange 0.93 0.95 0.91 0.97 1.00 5% NPV ($mm) 402 991 1,209 1,582 2,120 IRR (%) 7.8 11.3 12.9 14.4 16.8 Payback (years) 7.5 6.2 5.6 5.1 4.5
  47. 47. 47 1. Capital estimates based on December 2011 Feasibility Study. El Morro (30%) – Funding structure Funded by $1.2 billion interest at 4.58% ~ $2.7 billion 70% 20% 80% • New Gold’s 30% share of development capital 100% carried • Interest fixed at 4.58% 30% 70% 30% Total Capital 100% ~ $3.9 billion(1) 100% Average annual cash flow Carried funding repayment Appendix 7
  48. 48. 48 2013 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 metres La Fortuna deposit Appendix 7 Reserve Grade Gold: 0.46 g/t Copper: 0.49% Inferred Grade Gold: 0.97 g/t Copper: 0.78%
  49. 49. 491. All reserve information taken from Goldcorp’s December 31, 2013 year-end resource statements. 2. Gold equivalent calculated based on the following commodity prices: Gold - $1,300/oz; Silver - $22.00/oz; Copper - $3.00/lb; Lead - $0.90/lb; Zinc - $0.90/lb. El Morro relative positioning(1) EL MORRO WITHIN GOLDCORP PORTFOLIO Asset Gold Reserves (Moz) Asset Gold Equivalent(2) (Moz) Penasquito 11.6 Penasquito 30.6 Los Filos 8.0 El Morro 18.0 El Morro 6.7 Los Filos 8.9 Pueblo Viejo 6.5 Pueblo Viejo 7.5 Cerro Negro 5.7 Cerro Negro 6.6 Appendix 7
  50. 50. 50 New Gold’s estimated exploration budget for 2014 is $50 million • Capitalized: $30 million (included in sustaining capital total shown previously) • Expensed: $20 million (approximately 70% related to current operations) New Afton 30,000-35,000 metres Peak Mines 45,000 metres Blackwater 10,000-15,000 metres 2014 exploration program overview Rainy River 35,000-40,000 metres 1. Circle proportions are representative of both capitalized and expensed exploration for each respective asset. Appendix 8
  51. 51. Rainy River exploration 51 • Intrepid resource drilled off and incorporated into Feasibility Study • Condemnation drilling program approximately 40% complete by year end • Improved ability to predict prospective ore horizons beneath surface cover 2013 ACHIEVEMENTS 2014 PROGRAM Targeting resource expansion in near-mine environment • Complete condemnation drilling program • Test potential to expand open pit resource to west • Explore prospective trends south of main mine area and extending from Intrepid Zone Intrepid Zone Appendix 8
  52. 52. Blackwater exploration 52 2013 Achievement • Expanded exploration targeting coverage to ~50% of claim block • 14 prospective target areas identified to date • Seven new targets drill tested with favorable geology intercepted on six and gold mineralization intercepted on three • Acquired Key property immediately south of Blackwater deposit area 2014 Program • Follow up favorable results at Van Tine, Fawn and earlier stage prospects • Initiate exploration at Key Appendix 8
  53. 53. Peak Mines exploration 53 • Near-mine exploration and resource conversion partially offset mine depletion • Advanced earlier stage targets along regional Rookery fault trend 2013 ACHIEVEMENTS 2014 PROGRAM Focus on reserves replacement in near-mine environment • Convert Measured and Indicated resources to reserves to extend mine life • Test newly emerging targets along mine corridor • Continue to advance earlier stage regional targets Appendix 8
  54. 54. 54 1. 2012 information per Annual Information Form dated March 27, 2013. Reserves and resources summary Appendix 9 Gold Koz Silver Koz Copper Mlbs Gold Koz Silver Koz Copper Mlbs Proven and Probable Reserves 18,538 90,080 2,953 7,752 31,256 3,282 Measured and Indicated Resources (inclusive of Reserves) 27,505 124,499 4,353 21,403 131,847 4,061 Inferred Resources 4,161 30,360 1,821 4,383 84,620 1,114 M&I Resources (inclusive of Reserves) New Afton 2,297 7,786 1,988 1,979 6,830 1,818 Mesquite 4,904 - - 5,684 - - Peak Mines 810 1,380 158 880 1,350 146 Cerro San Pedro 397 15,948 - 1,703 57,980 - Rainy River 6,236 14,635 - n/a n/a n/a Blackwater 9,500 70,130 - 8,070 56,190 - Capoose 320 14,620 - 196 9,497 - El Morro 3,041 - 2,207 2,891 - 2,097 Total M&I 27,505 124,499 4,353 21,403 131,847 4,061 Mineral Reserves and Resources Summary As at December 31, 2013 As at December 31, 2012(1)
  55. 55. 55 Reserves and resources summary (cont’d) Appendix 9 Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs New Afton Proven - - - - - - - - - - - - - - Probable 48,821 0.56 2.2 0.84 879 3,500 904 52,500 0.65 2.3 0.93 1,100 3,880 1,080 Total New Afton P&P 48,821 0.56 2.2 0.84 879 3,500 904 52,500 0.65 2.3 0.93 1,100 3,880 1,080 Mesquite Proven 3,809 0.70 - - 86 - - 13,140 0.68 - - 287 - - Probable 112,094 0.60 - - 2,152 - - 114,409 0.56 - - 2,055 - - Total Mesquite P&P 115,903 0.60 - - 2,237 - - 127,549 0.57 - - 2,342 - - Peak Mines Proven 1,820 4.35 6.7 1.16 255 390 47 2,109 5.89 7.5 1.08 399 510 50 Probable 1,820 2.69 7.4 1.27 157 430 51 2,118 3.82 6.8 1.18 260 466 55 Total Peak Mines P&P 3,640 3.52 7.1 1.22 412 820 98 4,227 4.85 7.2 1.13 659 976 105 Cerro San Pedro Proven 12,982 0.47 17.5 - 197 7,311 - 21,100 0.52 17.1 - 353 11,600 - Probable 13,714 0.44 18.7 - 195 8,239 - 26,400 0.48 17.4 - 407 14,800 - Total CSP P&P 26,696 0.46 18.1 - 392 15,550 - 47,500 0.50 17.3 - 760 26,400 - Mineral Reserves statement as at December 31, 2013 Contained metalMetal grade Metal grade Contained metal Mineral Reserves statement as at December 31, 2012 1. 2012 information per Annual Information Form dated March 27, 2013.
  56. 56. 56 Reserves and resources summary (cont’d) Appendix 9 Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Rainy River Direct processing material Open Pit Proven 15,839 1.47 2.0 - 746 1,038 - Probable 46,866 1.26 3.1 - 1,896 4,594 - Open Pit P&P (direct processing) 62,705 1.31 2.8 - 2,642 5,632 - Underground Proven - - - - - - - Probable 4,187 4.96 10.3 - 668 1,388 - Underground P&P (direct processing) 4,187 4.96 10.3 - 668 1,388 - Stockpile material Open Pit Proven 6,843 0.38 1.5 - 84 332 - Probable 30,541 0.39 2.1 - 378 2,058 - Open Pit P&P (stockpile) 37,384 0.38 2.0 - 462 2,390 - Total P&P Proven 22,681 1.14 1.9 - 830 1,370 - Probable 81,594 1.12 3.1 - 2,943 8,040 - Total Rainy River P&P 104,275 1.13 2.8 - 3,773 9,410 - Blackwater Direct processing material Proven 124,500 0.95 5.5 - 3,790 22,100 - Probable 169,700 0.68 4.1 - 3,730 22,300 - P&P (direct processing) 294,300 0.79 4.7 - 7,510 44,400 - Stockpile material Proven 20,100 0.50 3.6 - 330 2,300 - Probable 30,100 0.34 14.6 - 330 14,100 - P&P (stockpile) 50,200 0.40 10.2 - 650 16,400 - Total Blackwater P&P 344,400 0.74 5.5 - 8,170 60,800 - El Morro 30% Basis Proven 321,814 0.56 - 0.55 1,746 - 1,163 307,949 0.57 - 0.56 1,705 - 1,135 Probable 277,240 0.35 - 0.43 929 - 788 335,152 0.37 - 0.44 1,186 - 962 Total El Morro P&P 599,054 0.46 - 0.49 2,675 - 1,951 643,101 0.47 - 0.49 2,891 - 2,097 Total P&P 18,538 90,080 2,953 7,752 31,256 3,282 100% Basis 30% Basis 100% Basis Mineral Reserves statement as at December 31, 2013 Contained metalMetal grade Metal grade Contained metal Mineral Reserves statement as at December 31, 2012 1. 2012 information per Annual Information Form dated March 27, 2013.
  57. 57. 57 Reserves and resources summary (cont’d) Appendix 9 Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs New Afton A&B Zones Measured 41,059 0.79 2.7 1.09 1,041 3,624 984 33,500 0.86 2.9 1.18 929 3,160 873 Indicated 26,966 0.44 2.1 0.65 384 1,777 384 45,900 0.67 2.4 0.89 984 3,530 896 A&B Zone M&I 68,025 0.65 2.5 0.91 1,425 5,401 1,368 79,400 0.75 2.6 1.01 1,913 6,690 1,769 C-Zone Measured 618 0.75 1.5 0.91 15 30 12 400 0.60 1.3 0.73 8 20 6 Indicated 25,223 0.84 2.0 0.91 678 1,589 504 2,900 0.63 1.3 0.68 58 120 43 C-Zone M&I 25,842 0.83 2.0 0.91 693 1,620 516 3,300 0.62 1.3 0.68 66 140 49 HW Lens Measured - - - - - - - - - - - - - - Indicated 11,035 0.50 2.2 0.43 179 763 104 - - - - - - - HW Lens M&I 11,035 0.50 2.2 0.43 179 763 104 - - - - - - - Total New Afton M&I 104,901 0.68 2.3 0.86 2,297 7,786 1,988 82,700 0.74 2.6 1.00 1,979 6,830 1,818 Mesquite Measured 9,070 0.66 - - 191 - - 24,000 0.61 - - 452 - - Indicated 304,081 0.48 - - 4,713 - - 370,100 0.45 - - 5,232 - - Total Mesquite M&I 313,151 0.49 - - 4,904 - - 394,100 0.45 - - 5,684 - - Peak Mines Measured 3,000 4.69 6.7 1.06 450 650 70 2,700 5.74 7.5 1.05 494 647 62 Indicated 3,400 3.29 6.7 1.18 360 730 88 3,200 3.75 6.8 1.19 386 703 84 Peak Mines M&I 6,400 3.95 6.7 1.12 810 1,380 158 5,900 4.66 7.1 1.13 880 1,350 146 Cerro San Pedro Measured 13,387 0.46 17.3 - 199 7,459 - 42,300 0.40 14.4 - 532 18,900 - Indicated 14,311 0.43 18.4 - 198 8,489 - 109,400 0.34 11.5 - 1,171 39,080 - Total CSP M&I 27,698 0.45 17.9 - 397 15,948 - 151,700 0.35 11.9 - 1,703 57,980 - M easured and Indicated mineral R eso urce statement (inclusive o f R eserves) as at D ecember 31, 2012 Metal grade Contained metal M easured and Indicated mineral R eso urce statement (inclusive o f R eserves) as at D ecember 31, 2013 Contained metalMetal grade 1. 2012 information per Annual Information Form dated March 27, 2013.
  58. 58. 58 Reserves and resources summary (cont’d) Appendix 9 Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Rainy River Direct processing material Open Pit Measured 20,282 1.45 1.9 - 947 1,261 - Indicated 80,411 1.35 2.6 - 3,486 6,584 - Open Pit M&I (direct processing) 100,693 1.37 2.4 - 4,433 7,846 - Underground Measured 89 4.95 2.8 - 14 8 - Indicated 5,469 4.53 11.3 - 796 1,994 - Underground M&I (direct processing) 5,558 4.53 11.2 - 810 2,002 - Stockpile material Open Pit Measured 6,294 0.37 1.3 - 74 262 - Indicated 64,816 0.44 2.2 - 919 4,526 - Open Pit M&I (stockpile) 71,110 0.43 2.1 - 993 4,788 - Total M&I Measured 26,665 1.21 1.8 - 1,035 1,531 - Indicated 150,696 1.07 2.7 - 5,202 13,104 - Total Rainy River M&I 177,361 1.09 2.6 - 6,236 14,635 - Blackwater Direct processing material Measured 116,955 1.04 5.6 - 3,900 21,060 - Indicated 189,044 0.78 6.0 - 4,730 36,470 - M&I (direct processing) 305,999 0.88 5.8 - 8,620 57,520 - Stockpile material Measured 26,521 0.30 4.1 - 260 3,500 - Indicated 64,382 0.30 4.4 - 620 9,110 - M&I (stockpile) 90,904 0.30 4.3 - 870 12,600 - Total Blackwater M&I 396,903 0.74 5.5 - 9,500 70,130 - 296,146 0.85 5.9 - 8,070 56,190 - Capoose Indicated 20,280 0.50 22.4 - 320 14,620 - 14,200 0.43 20.8 - 196 9,497 - El Morro Measured 341,604 0.56 - 0.54 1,848 - 1,230 307,949 0.57 - 0.56 1,705 - 1,135 Indicated 349,803 0.35 - 0.42 1,193 - 977 335,152 0.37 - 0.44 1,186 - 962 Total El Morro M&I 691,407 0.46 - 0.48 3,041 - 2,207 643,101 0.47 - 0.49 2,891 - 2,097 Total M&I 27,505 124,499 4,353 21,403 131,847 4,061 M easured and Indicated mineral R eso urce statement (inclusive o f R eserves) as at D ecember 31, 2012 Metal grade Contained metal 100% Basis 30% Basis M easured and Indicated mineral R eso urce statement (inclusive o f R eserves) as at D ecember 31, 2013 Contained metal 100% Basis 30% Basis Metal grade 1. 2012 information per Annual Information Form dated March 27, 2013.
  59. 59. 59 Reserves and resources summary (cont’d) Appendix 9 Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs New Afton A&B-Zone 5,607 0.32 1.5 0.38 59 272 46 14,900 0.45 2.0 0.65 216 940 212 C-Zone 11,288 0.63 1.7 0.64 227 602 159 13,600 0.70 1.5 0.76 307 670 228 HW Lens 818 0.56 1.3 0.42 15 33 7 - - - - - - - New Afton Inferred 17,713 0.53 1.6 0.54 301 907 212 28,400 0.57 1.8 0.70 523 1,610 440 Mesquite 17,550 0.42 - - 238 - - 50,900 0.40 - - 651 - - Peak Mines 2,000 2.34 4.7 1.17 150 300 51 1,700 2.64 4.8 1.13 144 261 42 CSP 1,174 0.34 11.6 - 13 436 - 103,900 0.25 8.8 - 850 29,200 - Rainy River Direct processing Open Pit 9,388 0.97 2.3 - 292 687 - Underground 2,641 4.46 8.3 - 379 707 - Total Direct Processing 12,029 1.74 3.6 - 671 1,394 - Stockpile Open Pit 8,626 0.37 1.2 - 102 323 - Rainy River Inferred 20,655 1.16 2.6 - 773 1,717 - Blackwater Direct processing 13,815 0.76 4.1 - 340 1,820 - Stockpile 3,785 0.31 3.6 - 40 440 - Blackwater Inferred 17,600 0.66 4.0 - 380 2,260 - 16,585 0.58 10.8 - 310 5,760 - Capoose 29,263 0.39 26.3 - 370 24,740 - 64,070 0.29 23.2 - 595 47,789 - El Morro - Open Pit 564,217 0.16 - 0.26 871 - 970 137,555 0.99 - 0.70 1,310 - 632 El Morro - Underground 113,840 0.97 - 0.78 1,065 - 587 Total Inferred 4,161 30,360 1,821 4,383 84,620 1,114 100% Basis 30% Basis30% Basis100% Basis Inferred Resource statement as at December 31, 2013 Contained metalMetal grade Inferred Resource statement as at December 31, 2012 Metal grade Contained metal 1. 2012 information per Annual Information Form dated March 27, 2013.
  60. 60. 60 New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. Measured and Indicated mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources have a greater amount of uncertainty as to their existence and economic and legal feasibility, do not have demonstrated economic viability, and are exclusive of mineral reserves. Mineral reserves have been estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definition standards and National Instrument 43-101 (“NI 43-101”). 1) Mineral Reserves for the company’s mineral properties have been estimated based on the following metal prices and lower cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off New Afton $1,300 $22.00 $3.00 US$21.00/t NSR Mesquite $1,300 - - 0.21 g/t Au – Oxide and transition reserves 0.41 g/t Au – Non-oxide reserves Peak Mines $1,300 $22.00 $3.00 A$88 – 134/t NSR Cerro San Pedro $1,300 $22.00 - US$3.00/t Rainy River $800 $1,300 $25.00 $22.00 - Open Pit: 0.3 – 0.7 g/t Au Underground: 3.5 g/t Au Blackwater $1,300 $22.00 - Direct processing: 0.26 – 0.38 g/t AuEq Stockpile: 0.32 g/t AuEq El Morro $1,300 - $3.00 0.20% Cu Reserves and resources notes Appendix 9
  61. 61. 61 2) Mineral Resources for the company’s mineral properties have been estimated based on the following metal prices and lower cut-off criteria: 3) Mineral resources are classified as Measured, Indicated and Inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators ‘open pit’ and ‘underground’ have been applied to indicate envisioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ have been applied to indicate the type of mineralization as it relates to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification, reporting parameters, key assumptions and associated risks for each of New Gold’s mineral properties, other than Rainy River, are provided in the respective NI 43-101 Technical Reports which are available at www.sedar.com. Refer to the supplementary information below regarding the mineral reserve and mineral resource estimates for Rainy River. Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off New Afton $1,400 $24.00 $3.25 0.40% CuEq Mesquite $1,400 - - 0.11 g/t Au – Oxide and transition resources 0.22 g/t Au – Non-oxide resources Peak Mines $1,400 $24.00 $3.25 A$92 - 125/t NSR Cerro San Pedro $1,400 $24.00 - 0.10 g/t AuEq – Open pit oxide resources 0.30 g/t AuEq – Open pit sulphide resources Rainy River $1,400 $24.00 - Open Pit: 0.3 – 0.45 g/t Au Underground: 2.5 g/t Au Blackwater $1,400 $24.00 - Direct processing: 0.40 g/t AuEq Stockpile: 0.30 – 0.40 g/t AuEq Capoose $1,400 $24.00 - 0.40 g/t AuEq El Morro $1,300 - $3.00 0.20% Cu Reserves and resources notes (cont’d) Appendix 9
  62. 62. 62 Rainy River Mineral Reserves: 1. Open pit mineral reserves have been estimated using an optimized pit shell based on metal prices of $800 per ounce gold and $25 per ounce silver, a foreign exchange rate of C$1.05 to US$1.00, gold recovery of 89.9% (non-CAP Zone) and 74.3% (CAP Zone) and a silver recovery of 67.1% (non-CAP Zone) and 69.5% (CAP Zone). The cut-off grade is based on a gold price of $1,200. Underground reserves have been estimated from mining shapes generated using a cut-off grade of 3.5 g/t gold-equivalent. Development material from stope access drives above a cut-off grade of 1.5 g/t gold-equivalent is also assumed to be sent to the mill for processing. Underground breakeven cut-off grade is calculated at 2.75 g/t gold-equivalent based on metal prices of $1,300 per ounce gold and $22 per ounce silver, a foreign exchange rate of CAD $1.05 to USD $1.00, gold recovery of 95% and a silver recovery of 75%. 2. Open pit reserves have been estimated using a dilution of 4% at 0.21 g/t Au and 1.19 g/t Ag, and underground reserves have been estimated using an overall dilution of 8.3%, inclusive of both rock and backfill dilution. Open pit and underground reserves have been estimated using a mining recovery of 95% and 96.5%, respectively. 3. Open pit direct processing material is defined as mineralization likely to be mined and processed directly and above a variable cut-off grade ranging from 0.3-0.7 Au g/t. 4. Stockpile material includes all material within designed open pit between variable cut-offs described above in Note 3, as well as material within the CAP Zone (code 500) that is suitable for stockpiling and future processing. 5. Mineral Reserves for the open pit are derived from the resource model effective November 2, 2013. Models for the underground reserves were derived from the August 2013 and September 2013 models for the main ODM zone and Intrepid Zone, respectively. Models were prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo. (APGO #1416), of SRK, both independent “Qualified Persons" as that term is defined in National Instrument 43-101. Rainy River’s exploration program in Richardson Township is being supervised by Mark A. Petersen, (AIPG Certified Professional Geologist #10563), Vice President, Exploration for New Gold and a “Qualified Person” as defined in National Instrument 43-101. New Gold continues to implement a rigorous QA/QC program to ensure best practices in drill core sampling, analysis and data management. 6. Qualified persons - The open pit portion of the mineral reserve statement was prepared under the supervision of Patrice Live (OIQ #38991) of BBA, and the underground portion of the mineral reserve statement was prepared by Colm Keogh, P.Eng. (APEGBC #37433) of AMC Mining Consultants (Canada) Ltd., both independent “Qualified Persons" as that term is defined in National Instrument 43-101. 7. The mineral reserve estimate may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, and other relevant issues. Rainy River Mineral Resources: 1. Mineral resources are reported in relation to conceptual pit shells and are inclusive of the Intrepid zone. Vertical limit of -150m msl. 2. Open pit mineral resources are reported at a cut-off grade of 0.30 gpt gold, underground mineral resources are reported at a cut-off grade of 2.5 gpt gold based on a gold price of $1,400 per ounce, a silver price of $24.00 per ounce, a foreign exchange rate of C$1.10 to US$1.00, gold recovery of 88% for open pit resources and 90% for underground resources with silver recovery at 75%. 3. Direct processing material is defined as mineralization above a cut-off of 0.45 g/t gold and likely to be mined and processed directly. 4. Stockpile material includes all material within conceptual pit shells in the gold grade range 0.30 – 0.45 gpt as well as all material within the CAP zone that is suitable for stockpiling and future processing based on average metallurgical recoveries of 88% gold and 75% silver. 5. Qualified Persons – The mineral resource statement was prepared by Dorota El-Rassi, P. Eng. (APEO #100012348) and Glen Cole (APGO #1416) from SRK, both independent "Qualified Persons" as that term is defined in National Instrument 43-101. 6. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. 7. The mineral resource estimate may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other relevant issues. 4) Qualified Person: The preparation of New Gold's mineral reserve and mineral resource statements has been done by Qualified Persons as defined under National Instrument 43-101 under the supervision of Mark A. Petersen, a Qualified Person under National Instrument 43-101 and an officer of New Gold. Reserves and resources notes (cont’d) Appendix 9
  63. 63. 63 Guidance assumptions Spot: 2014 Gold price ($/oz) 1,300 Silver price ($/oz) 20.00 Copper price ($/oz) 3.25 AUD/USD 1.14 CDN/USD 1.11 MXN/USD 13.00 Spot Gold price ($/oz) 1,300 Silver price ($/oz) 19.65 Copper price ($/oz) 3.14 AUD/USD 1.08 CDN/USD 1.09 MXN/USD 12.92 Commodity price/foreign exchange assumptions Appendix 10
  64. 64. Endnotes 64 CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES Information 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 information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” used in this Report are Canadian mining terms as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on November 27, 2010 and incorporated by reference in National Instrument 43-101 (“NI 43-101”). While the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. As such, certain information contained in this Report concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. An “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category. Readers are cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable. Under United States standards, mineralization may not be classified as a “Reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the Reserve estimation is made. Readers are cautioned not to assume that all or any part of the Measured or Indicated Mineral Resources that are not Mineral Reserves will ever be converted into Mineral Reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission. TECHNICAL INFORMATION The scientific and technical information in this presentation has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Petersen is an AIPG Certified Professional Geologist and a “qualified person” under National Instrument 43-101. For additional information with respect to our Mineral Resource and Reserve estimates and the Feasibility Studies discussed herein, refer to our news release dated February 6, 2014, the Rainy River Technical Report, the Blackwater Technical Report and our other technical reports available at www.sedar.com.
  65. 65. Endnotes 65 NON-GAAP MEASURES (1) ALL-IN SUSTAINING COSTS Consistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies from around the world of which New Gold is a member, New Gold defines “all-in sustaining costs” per ounce as the sum of total cash costs, capital expenditures that are sustaining in nature, corporate general and administrative costs, capitalized and expensed exploration that is sustaining in nature and environmental reclamation costs, all divided by the ounces of gold sold to arrive at a per ounce figure. New Gold believes this non-GAAP financial measure provides further transparency into costs associated with producing gold and will assist analysts, investors and other stakeholders of the company in assessing the company’s operating performance, its ability to generate free cash flow from current operations and its overall value. This data is furnished to provide additional information and is a non-GAAP financial measure. All-in sustaining costs presented do not have a standardized meaning under GAAP and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of cash flow from operations under GAAP or operating costs presented under GAAP. Further details regarding all-in sustaining costs and a reconciliation to the nearest GAAP measures are provided in our MD&A accompanying our financial statements filed from time to time on www.sedar.com. (2) TOTAL CASH COSTS “Total cash costs” per ounce figures are non-GAAP measures which are calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold and gold products that ceased operations in 2002. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. The company believes that certain investors use this information to evaluate the company’s ability to generate liquidity through operating cash flow and that this measure, along with sales, is considered to be a key indicator of the company’s ability to generate operating earnings and cash flow from its mining operations. Total cash costs include mine site operating costs such as mining, processing and administration costs, royalties, production taxes, and realized gains and losses on fuel contracts, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales. Total cash costs are then divided by ounces of gold sold to arrive at a per ounce figure. Co-product cash costs remove the impact of other metal sales that are produced as a by-product of gold production and apportion the cash costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total ounces of gold or silver or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless otherwise indicated, all total cash cost information in this presentation is net of by-product sales. These measures, along with sales, are considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from its mining operations. This data is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs and co-product cash costs presented do not have a standardized meaning under GAAP and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of cash flow from operations under GAAP or operating costs presented under GAAP. Further details regarding total cash costs and a reconciliation to the nearest GAAP measures are provided in our MD&A accompanying our financial statements filed from time to time on www.sedar.com. (3) ADJUSTED NET EARNINGS “Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial measures. Net earnings have been adjusted and tax affected for the group of costs in “Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings from continuing operations. The company uses this measure for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect fair value changes on senior notes and non- hedged derivatives, foreign currency translation and fair value through profit or loss and financial asset gains/losses. Consequently, the presentation of adjusted net earnings and adjusted net earnings per share enables investors and analysts to better understand the underlying operating performance of our core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings and adjusted net earnings per share based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies. Adjusted net earnings and adjusted net earnings per share are intended to provide additional information only and do not have any standardized definition under IFRS and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. Further details regarding adjusted net earnings and a reconciliation for first quarter figures are provided in our MD&A accompanying our financial statements filed from time to time on www.sedar.com. (4) OPERATING MARGIN “Operating margin” is a non-GAAP financial measure with no standard meaning under GAAP, which management uses to further evaluate the company’s results of operations in each reporting period. Operating margin is calculated as revenue less operating expenses and therefore does not include depreciation and depletion. Operating margin is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. Further details regarding operating margin and a reconciliation for first quarter figures are provided in our MD&A accompanying our financial statements filed from time to time on www.sedar.com.
  66. 66. Contact information 66 Investor Relations Hannes Portmann Vice President, Corporate Development 416-324-6014 hannes.portmann@newgold.com

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