Blackwater pea slides v final

Blackwater Project Update
Investor/Analyst Breakfast
September 20, 2012

Cautionary statement

All monetary amounts in U.S. dollars 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 may be deemed "forward looking". All statements
in this presentation, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements. Forward-looking statements
are statements that are not historical facts and are generally, but not 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 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.
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; 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 estimated
production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in international, 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 that New Gold operates,
including, but not limited to Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the
approval of the environmental permit for the El Morro project; the lack of certainty with respect to foreign legal systems, which 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 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 of current exploration or reclamation activities; changes in project
parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and
hazards associated with the business of mineral exploration, development and mining, including environmental 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..

Blackwater PEA Investor/Analyst Breakfast | September 2012 2 2

Cautionary statement (cont’d)

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
Information 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 to similar 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 mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum
("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations, they are not defined terms under standards of the United States
Securities and Exchange Commission. 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 calculation is made. As such, certain information contained in this presentation 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. 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 are cautioned 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 Mineral Resource" 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 the United States Securities and Exchange Commission.

TECHNICAL INFORMATION
Certain of the scientific and technical information in this presentation is derived from the NI 43-101 compliant technical report entitled “Technical Report, Blackwater Gold Project, Omineca
Mining Division, British Columbia, Canada” dated March 23, 2012, which is filed on SEDAR. Another NI 43-101 compliant technical report supporting the PEA and updated mineral resource
estimate (“PEA Report”) will be filed on SEDAR within 45 days. The following qualified persons, as that term is defined in NI 43-101, have prepared or supervised the preparation of technical
information relating to the PEA Report:

• Mark Petersen, C.P.G. (New Gold Inc.)
• Ronald G. Simpson, P Geo (GeoSim Services Inc.)
• Herbert E. Welhener, MMSA – QPM (Independent Mining Consultants Inc.)
• Bruno Borntraeger, P. Eng (Knight Piesold Ltd.)
• Ignacy (Tony) Lipiec, P. Eng (AMEC)
• Ramon Mendoza Reyes, P. Eng (AMEC)

Mark Petersen, C.P.G., is also responsible for approving the technical information in this presentation that is not related to the PEA Report. Other than Mark Petersen, who is an employee of
New Gold, each of the qualified persons listed above are independent of New Gold.


Cautionary statement (cont’d)

(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 North American 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 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. Total cash costs includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is exclusive of amortization,
reclamation, capital and exploration costs. Total cash costs is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-product cash costs of sales. The
measure, along with sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from its mining operations. This data is furnished to provide
additional information and is a non-IFRS measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures
presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative
of operating costs presented under IFRS.

(2) PEA – ADDITIONAL CAUTIONARY NOTE
This note regarding the preliminary economic assessment (PEA) is in addition to cautionary language already included within the presentation as required under NI 43-101. The PEA is
preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.


Preliminary Economic Assessment Cautionary Language

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as
Mineral Reserves, and there is no certainty that the PEA based on these Mineral Resources will be realized.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.


Discussion topics

Introduction Randall Oliphant

PEA Review Paul Hosford

Next Steps Bob Gallagher

Continued Exploration Mark Petersen

Conclusion Randall Oliphant


Introduction


Blackwater overview

BLACKWATER ENHANCES NEW GOLD’S PORTFOLIO IN MULTIPLE WAYS

Asset of world-class scale

Robust project economics

Excellent jurisdiction

Excitement of new discoveries/continued exploration upside

Potential to increase value – from exploration through production


Experienced project team

Chief Executive Officer • Over 32 years in the mining industry in leadership roles with Placer Dome, Newmont Mining
and New Gold
Robert Gallagher

Chief Financial Officer • Over 23 years of experience in mine finance and accounting in leadership roles with
Kinross, Western Goldfields and Silver Bear Resources
Brian Penny

VP Operations • Over 25 years in the mining industry in leadership roles with Inmet, Xstrata, Noranda and
Falconbridge
Ernie Mast

VP Exploration • 28 years in minerals exploration in roles ranging from corporate management, project
Mark Petersen evaluations and acquisitions, generative exploration and project management

Project Director • Over 30 years in the mining industry primarily with Placer Dome and Terrane Metals
Peter Marshall • Civil engineer with experience in feasibility management and project development

• 30 years mining industry experience in operations and engineering, primarily with Barrick,
Feasibility Study Director
Hatch and Terrane Metals
Paul Hosford • Metallurgical engineer with experience in project management of feasibility studies and EPCM

• Led successful permitting and environmental construction aspects of Mt. Milligan Copper-
Environmental Director
Gold Mine in British Columbia
Tim Bekhuys • Experienced in community and First Nations engagement


Preliminary Economic Assessment (“PEA”) in review (1)
Base Case Spot Case

Gold Price (US$/oz) $1,275 $1,600 $1,775 $1,800

Silver Price (US$/oz) $22.50 $30.00 $34.50 $35.00

US$/CDN$ Foreign Exchange 0.94 0.97 1.00 1.00

5% NPV ($ billions) (2015)
Pre-tax NPV 1.7 3.3 4.2 4.3
After-tax NPV 1.1 2.2 2.8 2.9
IRR (%)
Pre-tax IRR 16.4 25.9 30.4 31.1
After-tax IRR 14.0 22.0 25.8 26.4
Payback period (years)
Pre-tax payback period 4.7 3.0 2.6 2.5
After-tax payback Period 4.8 3.1 2.7 2.6

Highlights
• Initial gold production targeted for 2017
• First five years – average annual gold production of 569,000 ounces at total cash costs (1) per ounce sold, net of by product
sales, of $467 per ounce
• Life-of-mine gold and silver production, inclusive of low grade stockpile, of 6.2 and 18.6 million ounces from the Indicated
category and 1.8 and 13.5 million ounces from the Inferred category, respectively
– $1.00 per ounce change in silver price assumption equates to ~$4 per ounce change in total cash costs (1)

Blackwater expected to generate solid economic returns in current capital cost environment, even when
using a long-term gold price assumption of US$1,275 per ounce
Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note.


Production and total cash costs(1)

Gold production Base Case cash costs
700 $1,000

$900
600

$800

500
$700
Production (thousand ounces)

Total cash costs ($/oz)
$600
400

$500

300
$400

$300
200

$200

100
$100

- $0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Average First 5 Years Average First 15 Years
569,000 ounces gold at 507,000 ounces gold at
$467 per ounce(1) $536 per ounce(1)



Perspectives on capital costs

• Blackwater development capital After-tax IRR (%)(1)(2)
cost of $1.8 billion inclusive of 24%,
or $346 million, contingency Gold price ($/oz)

– $227 per recoverable ounce $1,275 $1,600 $1,775 $1,800

• Costed in mid-2012 capital
environment assuming parity

Development capital ($ billions)
$1.5 18.1% 27.5% 31.8% 32.5%
foreign exchange rate

• Capital intensity may be abating $1.6 16.6% 25.4% 29.6% 30.2%

• Large diversified companies,
accounting for ~55% of global $1.7 15.2% 23.6% 27.6% 28.2%
capital, delaying certain projects

• Oil sands project expansions also $1.8 14.0% 22.0% 25.8% 26.4%
being delayed
• Each $100 million change in development capital equates
to a ~$100 million change in NPV

New Gold could benefit from announced delays in capital projects of major companies

2. IRR calculated to beginning of construction period in 2015.


Total acquisition cost (“TAC”)

• Acquisition costs of $602(1) million Total Acquisition Cost per Ounce
based on:
Total
– Richfield - $470 million ($mm)
$ Per Ounce (2)

– Silver Quest - $114 million
Total Acquisition costs to date $602 $75
– Geo Minerals - $18 million Development capital $1,814 $227
Life-of-mine sustaining capital $537 $67
• Total acquisition cost of $912 per
Life-of-mine average cash costs ($/oz) (3) $543
ounce below recent industry
Total acquisition cost ($/oz) $912
comparable transactions
– Further potential to decrease Spot gold price ($/oz) $1,775
break-even gold price with
continued resource expansion (Discount)/Premium to spot gold (49%)

Break-even gold price $912

Notes: 1. Per 2011 Annual financial statements.
2. Per ounce calculations based on 6.2 million ounces from the Indicated category and 1.8 million ounces from the Inferred category.
3. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note.


PEA Review


Blackwater Project – South Central British Columbia

British Columbia, Canada

Blackwater

New Afton



Power Line

Railway Power Line


Blackwater – South Central British Columbia

~112km to
Vanderhoof

Capoose
Resource
Blackwater ~160km to
Project Prince George

50km

Current
resource grid

80km



Summer 2012


Blackwater Project overview

• Start of production in 2017

• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant

• Life-of-mine strip ratio of 2.36 to 1

• Low grade stockpiling strategy

• Simple, conventional flowsheet using whole ore leach process

• Life-of-mine gold and silver recoveries of 87% and 53%, respectively

• Conventional waste rock and Tailings Storage Facility

• Power supply from the hydroelectric power grid, via 133 kilometre transmission line

• Minimal off-site infrastructure required

– Good existing access road; water supply within 15 kilometres

• Low environmental risk and facility designed for closure


Site overview


PEA resource summary
• The deposit contains an Indicated mineral resource of 267 Mt at 0.88 g/t Au and 4.3 g/t Ag and an Inferred
mineral resource of 121 Mt at 0.69 g/t Au and 7.3 g/t Ag at a base case lower cut-off of 0.30 gram per tonne
gold equivalent
• Mineral estimate is CIM 2010 compliant and prepared under Canadian National Instrument 43-101
– Based upon geologic block model that incorporated over 147,282 individual assays from 168,709
metres of diamond drill core in 449 drill holes
– Average drill hole spacing of approximately 50 metres is sufficient to support mineral resource
estimation up to the Indicated category
• Mineral resource includes drill data received through May 14, 2012
Blackwater Project PEA Mineral Resource Estimate
Indicated Mineral Resource Inferred Mineral Resource
AuEq AuEq
Cut-off Tonnes Au Ag Au Ag Cut-off Tonnes Au Ag Au Ag
(g/t) (Mt) (g/t) (g/t) (Moz) (Moz) (g/t) (Mt) (g/t) (g/t) (Moz) (Moz)

0.25 280.4 0.85 4.2 7.64 37.9 0.25 128.6 0.66 7.0 2.72 28.9

0.30 267.1 0.88 4.3 7.52 36.9 0.30 120.5 0.69 7.3 2.66 28.3
0.40 230.6 0.96 4.6 7.14 34.1 0.40 98.9 0.77 7.8 2.45 24.8
Notes:
1. Mineral Resource Estimate has an effective date of July 27, 2012 and was prepared by Ronald G. Simpson, P Geo.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral Resources are amenable to open pit mining methods as defined by a Lerchs-Grossmann optimized pit simulation.
4. The Lerchs-Grossmann optimized pit is based on assumptions that include US$/CDN$ parity foreign exchange rate, 83.6% Au recovery, 44.9% Ag recovery,
$1.52/tonne mining cost, $1.90/tonne waste mining cost, $10.52/tonne process and G&A cost. No allowances have been made for mining losses and dilution. The
average pit slope angle is assumed to be 40°.
5. The base case gold equivalent (AuEq) cut-off (bolded) is greater than the conceptual marginal cut-off of 0.23 g/t.
6. AuEq = $24/oz Ag x 44.9% / $1,300/oz x 83.6%.
7. Gold analyses are performed by fire assay/AA finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICP
analyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses.
8. Rounding as required by reporting guidelines has been used, and totals may not sum.


PEA base case assumptions

Gold price (US$/oz) $1,275
• PEA commodity prices represent a
Silver price (US$/oz) $22.50
significant discount to current spot prices:
Foreign exchange rate CAD$1.00 = US$0.94
– Gold: ~$500 per ounce (~28%)
Diesel price ($/L) $0.98
below current gold price
Average electricity rate (kWh) C$0.044
Capital contingency 24% or $346 million – Silver: ~$12 per ounce (~35%)
below current silver price
NPV calculation Calculated to 2015 (construction start)

• Mineral resources have been constrained using a Lerchs-Grossman optimized pit using ordinary kriging

– Pit slope – 40 degrees

• Mineral resource is grade shell contained estimate

– Resource samples were capped at 40 g/t gold and 150 g/t silver

• Mine production schedule incorporates an elevated cut-off grade strategy during the first five years to raise
the mill feed grade

• Block model was created in Gemcom-Surpac Vision software using a block size with dimensions of 10m x
10m x 10m


Blackwater PEA costs - Capital

Project Development Capital Costs • Project is located 112 kilometres southwest
Description Cost ($ million) from Vanderhoof and has access to low cost
hydroelectric power
Direct Costs

Mining & Pre-production Development $208 • Development capital estimate of $1.8 billion is
inclusive of a 24% or $346 million
On Site Infrastructure $181
contingency
Process $539
• Development capital estimated based on the
Tailing and Water Reclaim $74
current cost environment
Infrastructure (Power, Water, Road) $85

Total Direct Costs $1,087
– A parity foreign exchange rate was
assumed and the capital estimate was
Owner's and Indirect Costs
held constant in the economic analysis
Owner's Costs $54
• Sustaining capital of $537 million, reclamation
EPCM $112
and closure costs of $95 million and $72 million
Other Indirects $215 in equipment salvage value
Total Owner's and Indirect Costs $381

Subtotal $1,468 Total development and sustaining
Contingency (24%) $346 capital estimated at $294 per
Total Project $1,814 recoverable gold ounce


Blackwater PEA costs - Operating
Mining Costs
Project Operating Costs
4% 4%2% Hauling
Area Unit Cost (C$/t milled) $ per gold ounce produced
4% Auxiliary
Mining $6.21 $259 6% Blasting
G&A
Processing $7.59 $317 9% Drilling
59%
General and Administrative $0.95 $40 11% Loading
General Maint.
Royalty (0.6%) $0.18 $8 General Mine
Refining $0.23 $9

Silver by-product sales at $22.50 per ounce silver ($2.16) ($90) Processing Costs
1% Reagents
Total cash costs(1) net of by-product sales $13.01 $543
6%
8% Grinding
Total Cash Costs (1)
Schedule
Media/liners
Electricity
17% 44%
Production Years $ per gold ounce produced Labour
Years 1 through 5 $467 Maint materials
24%
Years 1 through 15 $536 Water Supply

Years 16 through 17 $678

Life-of-mine $543

Blackwater’s location near infrastructure, low stripping ratio, access to low cost power and silver
by-product revenue expected to result in the Project having well below industry average cash costs


Production and cash costs profile
Life-of-mine
Gold production – 489koz
Total cash costs - $543/oz

Years 1 through 5 Years 1 through 15 Years 16 through 17
Gold production – 569koz Gold production – 507koz Gold production – 296koz
Total cash costs - $467/oz Total cash costs - $536/oz Total cash costs - $678/oz
700 $1,000

Gold production Base Case cash costs

600

$750
500
Gold production (thousand ounces)

Total Cash Costs ($/oz) (1)
400

$500

300

200
$250

100

- -
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033



PEA highlights(1)

PEA Results Base Case Spot Case

Gold Price (US$/oz) $1,275 $1,775

Silver Price (US$/oz) $22.50 $34.50

US$/CDN$ Foreign Exchange 0.94 1.00
After-tax NPV(5%) ($ billions) $1.1 $2.8
After-tax IRR 14.0% 25.8%
After-tax payback period (years) 4.8 2.7

Operating cash flow ($ millions)

Base Case Spot Case
$900
• Average spot case
$750
cash flow during first
Operating cash flow

five years of ~$655
$600 million
$450
• Cumulative spot case
$300 cash flow during first
five years of ~$3.3
$150 billion
$0
2017 2018 2019 2020 2021


Areas of optimization

Potential for expansion of the resource to the north and to depth

Further geotechnical drilling to assess the possibility of steepening pit slopes

Potential to reduce mining costs through mine plan optimization

Optimizing process flowsheet


Next Steps


Environment and permitting

The site has no significant environmental constraints

Agreements are in place with key First Nations

Preparations have started for environmental
assessment and permitting approval process

Environmental assessment approval anticipated for
second half of 2014

Building on strong community and First Nations
relations as demonstrated at New Afton


Project timeline

• Remains unchanged from mid-2011

2012 2013 2014 2015 2016 2017
Development activity H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
First Nations & Public Consultation

Drilling

Preliminary Economic Assessment

Base Line Environmental Studies

Project Description/Terms of Reference

Environmental Assessment Reports

Provincial Approval

Federal Approval

Feasibility Study

Engineering Procurement

Construction

Production Target

Reflects critical path in timeline

Note: 1. Indicative timeline is dependent on continued exploration success, permit approvals and the determination that the deposit is economically viable. There is no assurance this timeline will be achieved nor that
the deposit will ever reach the production stage.


Continued exploration


July 2012 – Updated mineral resource

• Based on 449 core holes totaling 147,282 meters drilled
from 2009 through May 14, 2012
• ~30% step-out holes and ~70% infill holes
Indicated Resource
• Majority of holes drilled to 400 meter depth
– Mineralization open at depth in some areas
267Mt at 0.88 g/t for
– System also remains open to north 7.5 Moz
• Drilled an additional 100,363 metres in 377 holes since
mid-May cut-off
Blackwater Project PEA Mineral Resource Estimate
Indicated Mineral Resource Inferred Mineral Resource Inferred Resource
AuEq AuEq
Cut-off Tonnes Au Ag Au Ag Cut-off Tonnes Au Ag Au Ag
(g/t)

0.25
(Mt)

280.4
(g/t)

0.85
(g/t)

4.2
(Moz) (Moz)

7.64 37.9
(g/t)

0.25
(Mt)

128.6
(g/t)

0.66
(g/t)

7.0
(Moz) (Moz)

2.72 28.9
121Mt at 0.69 g/t for
0.30
0.40
267.1
230.6
0.88
0.96
4.3
4.6
7.52
7.14
36.9
34.1
0.30
0.40
120.5
98.9
0.69
0.77
7.3
7.8
2.66
2.45
28.3
24.8
2.7 Moz
Notes:
1. Mineral Resource Estimate has an effective date of July 27, 2012 and was prepared by Ronald G. Simpson, P Geo.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral Resources are amenable to open pit mining methods as defined by a Lerchs-Grossmann optimized pit simulation.
4. The Lerchs-Grossmann optimized pit is based on assumptions that include US$/CDN$ parity foreign exchange rate, 83.6% Au recovery, 44.9% Ag recovery,
$1.52/tonne mining cost, $1.90/tonne waste mining cost, $10.52/tonne process and G&A cost. No allowances have been made for mining losses and dilution. The
average pit slope angle is assumed to be 40°.
5. The base case gold equivalent (AuEq) cut-off (bolded) is greater than the conceptual marginal cut-off of 0.23 g/t.
6. AuEq = $24/oz Ag x 44.9% / $1,300/oz x 83.6%.
7. Gold analyses are performed by fire assay/AA finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICP
analyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses.
8. Rounding as required by reporting guidelines has been used, and totals may not sum.


Blackwater PEA mineral resource

NW Silver Zone
Sxn 5893,500N

SW
Breccia
Pipe

Sxn 375,000E


Blackwater exploration upside opportunities

Section 5893,500N Gold Section 375,000E

NW ‘Silver Zone’

SW Breccia Pipe


Blackwater exploration upside opportunities (cont’d)

Section 5893,500N Silver Section 375,000E

NW ‘Silver Zone’

SW Breccia Pipe


Blackwater feasibility study drilling program

NW Silver Zone

SW
Breccia
Pipe


Blackwater land position

Project Area – September 2012 2011
June to December

Capoose

Capoose
property Blackwater
property

Blackwater
Auro
Property


2012 exploration program

 Delineate Blackwater resource to M&I level
 BW area – Exploration / Condemnation drilling
 Capoose area – Test potential to expand resource
 Reconnaissance mapping and sampling – Planned on all
properties
Capoose

Capoose
property MYAB
Area

Blackwater
property Blackwater
Auro
Property


2012 exploration/condemnation program

2012 Progress
• 58 holes totaling 23,639
metres YTD
• Program ~50% complete
• Favorable volcanics, alteration
and mineralization being
intercepted northwest of
Blackwater
• Drilling northeast of
Blackwater pending

2013 Program
• Complete remaining ~15,000
meters by end Q1’13
• Follow up on areas of interest
• Freeze and/or modify project
siting and infrastructure
footprint by end Q3’13


Capoose exploration
 Explored potential to expand resource laterally and at depth
1,800m  Completed 22 holes totaling 10,894 metres
 Significant mineralization intercepted south and below known resource
 Known resource sits within larger footprint of favorable volcanic stratigraphy,
Assays pending alteration and mineralization extending 1.5-2 kilometre north and south
1,600m

0.15 g/t Au, 24.4 g/t Ag
74m

Assays pending
Capoose
1,400m Resource
0.77 g/t Au, 7.2 g/t Ag GradeShell
78m

1,800m

Sxn 5905,700N

1,600m Sxn 5905,650N

0.78 g/t Au, 4.4 g/t Ag
80m

1,400m
Assays pending
0.24 g/t Au, 21.5 g/t Ag
25 m


2012 property wide reconnaissance

 Gold-in-till sampling over ~750 km2 area
 Soil geochem sampling over ~237 line-km
>1000 ppb Au  Geologic reconnaissance mapping over 125 km2
500-1000 ppb Au
250-500 ppb Au
50-250 ppb Au

Capoose

Blackwater


Conclusion


What Blackwater means to New Gold

World class asset in South Central BC Robust Project

 8 million recoverable gold ounces today
 Well below industry average cash costs
 Solid economics even with conservative
gold price assumptions
Blackwater

New Afton Experienced Management Team

• New Gold teams who successfully delivered
• Very few new discoveries of Blackwater’s Cerro San Pedro, Mesquite and New Afton
scale in North America/Mexico in last five further supplemented by former Mount
years Milligan permitting team
• Blackwater a new discovery in an
underexplored district with excellent
Continued Exploration Upside
infrastructure
• Blackwater remains open, plus Capoose
and regional targets


Accretive resource growth

Acquisition Cost
7.5Moz
GOLD
$602
million
~11% of current
market capitalization &
36.9Moz
Silver
Blackwater accounts for 36% and 29% of New Gold’s consolidated gold and silver
Measured & Indicated resources, respectively


Building presence in British Columbia

British Columbia Measured & Indicated Resources

Gold Silver Copper
9.3Moz 42.4Moz 1.6Blbs
British Columbia Gold Production and Total Cash Costs(1)(2)
Blackwater and New Afton Combined cash costs
800 $250

700

Combined cash costs ($/oz)
$200
600
500 $150
400
300 $100

200
$50
100
- $0
2017 2018 2019 2020 2021
Note: 1. Blackwater production and cash costs based on PEA and New Afton production and cash costs based on latest Technical Report and New Gold assumptions.
2. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note.


Solid production profile

• El Morro and Blackwater expected to more than double New Gold’s gold production by 2017
at low cost
1,000

800

600

~450 - 500
405 - 445
400 387

200

2011A 2012E 2013E 2017E


Cash flow generation potential

Operating Cash Flow ($ millions)

$1,200

$900

$600

$300

-
2011A 2013E 2015E 2017E

Note: 1. 2013E, 2015E and 2017E at spot commodity prices of $1,775/oz gold, $34.50/oz silver, $3.75/lb copper.


2012 – A year of catalysts

Blackwater resource update

New Afton production start

El Morro litigation decision

Further Blackwater PEA resource update

New Afton commercial production

Blackwater PEA

New Afton mill achieving design capacity

El Morro engineering/development planning

Blackwater/New Afton exploration


The New Gold investment thesis

EXPERIENCED BOARD AND MANAGEMENT

FULLY FUNDED COMPANY WITH STRONG BALANCE SHEET

DIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS

ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY

PRODUCTION GROWTH/MARGIN EXPANSION

INCREASING UNDERLYING ASSET VALUE

MULTIPLE CATALYSTS

COMPELLING INVESTMENT PROPOSITION


Blackwater pea slides v final

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Blackwater pea slides v final