New Gold Corporate Presentation

Scotiabank Mining ConferenceDecember 2020

Cautionary Statements

2

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSCertain information contained in this presentation, including any information relating to New Gold's future financial or operating performance is "forward looking". Allstatements in this presentation, other than statements of historical fact, which address events, results, outcomes 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", "targeted", "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, among others, statements with respect to: the receipt ofC$50 million cash payment from Artemis Gold Inc. (“Artemis”) in August 2021 for the divestment of the Blackwater Project; New Gold’s expectations relating to achievingthe revised annual production guidance at the Rainy River Mine and the New Afton Mine; New Gold’s expectations with respect to the operating expenses, cash costs,AISC and sustaining capital at the Rainy River Mine and the New Afton Mine for 2020; the timing and scope of the planned exploration drilling programs at the Rainy RiverMine and Cherry Creek; the timing of completion and parameters for capital and construction projects at the Rainy River Mine and the New Afton Mine; New Gold’sexpectation relating to the start of mining at the Rainy River Mine; New Gold’s expectations with respect to the key construction projects at the Rainy River Mine; NewGold’s expectations with respect to the key capital projects at the New Afton Mine, including the B3 mine development, C-Zone development and TAT construction; thetiming of receipt of permits at the New Afton Mine; the timing of delivery of the thickener at the New Afton Mine; the expected mill production, production costs, economics,and operating parameters of New Afton and Rainy River; planned activities, exploration potential, permitting timelines and plans for capital expenditures at New Afton andRainy River for 2020 and 2021; the anticipated effect of the COVID-19 pandemic on New Gold’s operations, supply chain continuity and financial status; New Gold beingable to maintain its level of operations and supply chain continuity during the COVID-19 pandemic and New Gold’s financial resources being sufficient to support operationsduring the COVID-19 pandemic; information and statements on slide 13 “Rainy River: Underground Mine Life Extension”; information and statements on slide 17“Exploration Potential Near Mine and District”, including the exploration potential of the sub-level cave (“SLC”), D-Zone and Cherry Creek at the New Afton Mine;information and statements on slide 18 “New Gold: A Profitable Path Forward”’; information and statements on slide 21 “New Afton Mine Milestones and Timeline”, includingthe expected amount of free cash flow (“FCF”) resulting from unlocking the potential of the C-Zone; information and statements on slide 23 “2020 Revised Guidance”; thegrades expected at New Afton for 2020 and 2021; the expected amount of FCF and after tax net present value (“NPV”) resulting from New Afton and Rainy River based onthe life of mine plans; Ontario Teachers’ (as defined below) exercising its Conversion Option; and all estimations of the Mineral Reserves and Mineral Resources at RainyRiver and New Afton, including the information on slides 26 to 29 “Mineral Reserves and Resources”.

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 toimportant risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Certain material assumptions regarding such forward-lookingstatements are discussed in this presentation, New Gold's latest annual management's discussion and analysis ("MD&A"), Annual Information Form and Technical Reportsfiled at www.sedar.com and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-lookingstatements in this presentation are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold's operations; (2) political and legaldevelopments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold's current expectations; (3) the accuracy of NewGold's current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadian dollar and U.S. dollar, and to a lesser extent, the MexicanPeso, being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent withcurrent levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold's current expectations; (7) arrangements with First Nations andother Aboriginal groups in respect of the Rainy River and New Afton being consistent with New Gold's current expectations, particularly in the context of the outbreak ofCOVID-19; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelinesand the absence of material negative comments during the applicable regulatory processes; (9) metals and other commodity prices and exchange rates, specifically for theupdated life of mine plans, gold and silver prices as indicated throughout the presentation and foreign exchange rates being as indicated throughout the presentation; (10)the Company’s ability to implement the new life of mine plans on the timing described herein or at all; (11) there being no new cases of COVID-19 in New Gold’s workforceat either the Rainy River or New Afton mine and the assumption that no additional members of the workforce are expected to be required to self-isolate due to cross-bordertravel to the United States or any other country; (12) there being no material disruption to New Gold’s supply chains and workforce that would interfere with New Goldrelated to COVID-19 , including the completion of key capital and construction projects and the commencement and completion of the planned exploration drilling programsat the Rainy River Mine and the New Afton Mine on the timing described herein or at all; (13) the responses of the relevant governments to the COVID-19 pandemic beingsufficient to contain the impact of the COVID-19 pandemic; (14) there not being a significant economic recession or downturn as a result of the COVID-19 pandemic; and(15) Artemis being able to complete the remaining C$50 million cash payment due on August 24, 2021 for the acquisition of the Blackwater Project.

http://www.sedar.com/http://www.sec.gov/

Cautionary Statements

3

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factorsthat 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 and the availability and management of capital resources; additional funding requirements; pricevolatility in the spot and forward markets for metals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currenciesof Canada, the United States and, to a lesser extent, Mexico; discrepancies between actual and estimated production, between actual and estimated mineral reserves andmineral resources and between actual and estimated metallurgical recoveries; risks related to early production at the Rainy River mine, including failure of equipment,machinery, the process circuit or other processes to perform as designed or intended; fluctuation in treatment and refining charges; changes in national and localgovernment legislation in Canada, the United States and, to a lesser extent, Mexico 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 mineralexploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with thepermitting requirements of each jurisdiction in which New Gold operates, the lack of certainty with respect to foreign legal systems, which may not be immune from theinfluence 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 Goldis or may become a party to; diminishing quantities or grades of mineral reserves and mineral resources; competition; loss of key employees; rising costs of labour, supplies,fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies; changes in project parameters as planscontinue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; unexpected delays and costsinherent to consulting and accommodating rights of Indigenous groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessarylicenses, permits and authorizations and complying with permitting requirements; there being cases of COVID-19 in New Gold’s workforce at either the Rainy River or NewAfton mine, or both; New Gold’s workforce at either the Rainy River mine or the New Afton mine, or both, being required to self-isolate due to cross-border travel to theUnited States or any other country; the responses of the relevant governments to the COVID-19 outbreak not being sufficient to contain the impact of the COVID-19pandemic; the COVID-19 pandemic disrupting New Gold’s supply chain continuity; New Gold’s liquidity not being sufficient to support operations during the COVID-19pandemic or afterwards; disruptions to New Gold’s supply chain and workforce due to the COVID-19 outbreak; an economic recession or downturn as a result of theCOVID-19 outbreak that materially adversely affects New Gold’s operations or liquidity position; there being further shutdowns at the Rainy River or New Afton Mines; NewGold not being able to complete its construction or mine development projects at the Rainy River Mine or the New Afton Mine on the timing described herein or at all; NewGold not being able to commence or complete the planned exploration drilling programs at the Rainy River Mine and Cherry Creek on the timing described herein or at all;Artemis being able to complete the remaining C$50 million cash payment due on August 24, 2021 for the acquisition of the Blackwater Project; and New Gold experiencinga material delay in completing all non-recurring capital projects at Rainy River and New Afton. In addition, there are risks and hazards associated with the business ofmineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins,flooding and gold bullion losses and risks associated with a mine with relatively limited history of commercial production, such as Rainy River, (and the risk of inadequateinsurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Gold's Annual Information Form, MD&A and other disclosuredocuments filed on and available at www.sedar.com and on EDGAR at www.sec.gov. Forward-looking statements are not guarantees of future performance, and actualresults and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualifiedby these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of newinformation, events or otherwise, except in accordance with applicable securities laws.

For further information on the Company’s response to COVID-19, please refer to: https://www.newgold.com/covid-19/

http://www.sedar.com/http://www.sec.gov/https://www.newgold.com/covid-19/

Committed to Responsible Mining

Environment

• 90% recycled water use across

operations

• Conduct climate risk assessments

on operations and corporate office

on an annual basis

• Tailings management is overseen

by an independent review board to

assess management practices,

systems and overall tailings systems

at all operations

• Increased water management

procedures at site

• Conduct GHG audit on full

operations on an annual basis to

understand where we can decrease

GHG emissions

• Operations focus on local

procurement when possible to

provide economic value to local

communities

• Actively support Indigenous

education programs for K-12 and

post secondary opportunities for

Indigenous communities

• Identify our Communities of Interest

on an annual basis to ensure

effective and meaningful engagement

• Frequent and transparent

communication with Indigenous

Leadership to share updates,

upcoming changes or need for

support

• Board Committee that oversees

Technical Operations and

Sustainability

• CEO accountable for Sustainability

• Director of Sustainability responsible

for strategy development and

working with sites

• Site GMs, Community & Enviro

Managers responsible for site-based

activities, regulators and priorities

• Community and Enviro teams

implement plans

Social Governance

4

Building a Canadian Focused Multi-Asset Company

5

Rainy River Mine: Ontario, Canada• Open pit and underground mine in northernOntario

• FCF beginning in 2021 and over LoM: ImprovedNPV

• Open pit mining HG/MG ore via a smaller, moreprofitable pitshell

• Underground evaluated on a per zone basis forprofitability with potential for mine lifeextension

• Life of Mine FCF1 of ~$1.1B

• Exploration drilling expected to be launched in Q4 to test potential on broader land package

New Afton Mine: B.C., Canada

• Low cost producer in B.C. that drives free cash flow

• Updated LoM technical and cost update of anintegrated

B3/C-Zone optimization; mine life extension to2030

• C-Zone developmentunderway; self-funded approach

• Life of Mine FCF1,2 of ~$1.2B

• Phase 1 Cherry Creek drilling program (up to 10,000 m) started

at the end of October that will focus on the 12 kilometre trend,

located within 3km of mill

Blackwater (Artemis Gold): 8% Gold Stream

• 8% stream on first 280,000 gold oz. declining to 4% on

remaining production and 6% equity position

• PFS released Aug/20: Total gold production of ~8moz with

~450koz delivered to New Gold via gold stream

Rainy River Gold Mine

Open pit & underground mine

Located near Ft. Frances, ON

New Afton Copper/Gold Mine

Underground block cave mine

Located near Kamloops, BC

Blackwater Gold Stream

8% Gold StreamOwner: Artemis Gold (100%)

Open pit project near Prince George, BC

Cerro San Pedro Gold/Silver Mine

Reclamation underway

Average Annual Production of ~402 koz gold and 63 Mlbs copper (2021-2025)

1. Assuming $1,550/oz gold, $3.00/lb copper and $17.50/oz silver USD/CAD exchange rate of C$1.30 to US$1.00.

2. Excludes Ontario Teachers’ Pension Plan’s New Afton free cash flow interest (refer to Feb. 25, 2020 press release)

Capital Structure and Strong Liquidity Position

6

1. Approximately $45 million of $350 million facility is currently used for Letters of Credit related to mine closure costs.

2. Cash balance and 2025 Senior Notes outstanding are pro forma the $200M partial redemption announced November 23rd, 2020. See the press release titled “New Gold Announces Partial Redemption of Outstanding 6.375%

Senior Notes” for additional details.

Disciplined approach to improving liquidity:

• C$150M equity financing (August 30,2019)

• $300M partnership with Ontario Teachers' Pension Plan

(March 31, 2020).

• $400M senior notes offering at 7.50% funded redemption of 2022 notes

(closed June 24, 2020 and July 10, 2020)

• C$190M cash proceeds from divestment of Blackwater Project

(closed August 21, 2020); C$140M Aug. 2020 / C$50M Aug. 2021

• ~$90M in Letters of Credit transferred to surety bonds (Q3 2020)1

• Credit facility extended to October 2023 with a capacity of $350M

(closed October 9, 2020)

• $200M (partial) redemption of the 2025 notes (to be closed on December

23, 2020)2

New Gold Debt Structure

Face Value ($M) Maturity Interest Rate

Revolving Credit Facility $3501 Oct. 2023 LIBOR + 2.75% - 4.25%

Senior Unsecured Notes $1002 May 2025 6.375%

Senior Unsecured Notes $400 July 2027 7.50%

~$510MShort Term

Liquidity

2020 Gold HedgingProgram

Term Quantity Floor Ceiling

November 2020 - Dec 2020 16 koz/ per month $1,300/oz $1,415/oz

Cash & Cash Eq.

~$205M2

Credit facility

available liquidity

of ~$305M1

5 Year Financial and Operating Outlook (2021-2025)

Operational Improvements:

• Diligent focus on operational and cost optimization drives

production growth and improved margins

• 26% increase in production (2020 – 2025) to ~550k gold eq.

oz. driven by the ramp-up of Rainy River and production from

the New Afton C-Zone

• Major capital programs at Rainy River complete, New Afton

C-Zone development based on a self-funded approach

• Consistent year-over-year reduction in consolidated AISC* to

~$800 per gold eq. oz. by 2025

Financial Outlook:

• Restructured balance sheet with key transactions completed

• ~$1.5B1,2 in free cash flow generated over the next 5 years

(2021 - 2025)

• Ample liquidity and free cash flow* generation to redeem the

2025 Senior Notes at maturity

7

1. Based on the March 2020 NI 43-101 technical report filed on SEDAR and assuming current consensus long-term

commodity pricing (US$1,800/oz Au, US$2.80/lb Cu, US$20/oz Ag and a USD/CAD rate of 1.33).

2. Free cash flow defined as operating cash flow, less capital expenditures, streaming and royalty costs, including the

Ontario Teachers’ Pension Plan free cash flow interest.

*Refer to the “Non-GAAP Performance Measures” section of this presentation.

Rainy River: Operational Highlights

• Mine and mill productivity operating at capacity with unit

costs trending towards 2021 target levels and all key capital

projects substantially complete

• Another consecutive quarter of strong performance shifts

focus to driving additional operational and cost efficiencies

• Production expected to achieve mid-range of guidance;

operating expense and cash costs at or below guidance

• Sustaining capital expected at low end of guidance; AISC

below guidance due to lower costs and capital spend

• Decline development towards the underground Intrepid

Zone resumed; Underground production remains on track

for 2022

• NE Trend exploration drilling will be launched in Q4 8

Q3 Highlights: Another Strong Quarter

1. Gold eq. ounces for Rainy River in Q3 2020 includes 102,814 ounces of silver converted to a gold eq. based

on a ratio of $1,500 per gold ounce and $17.75 per silver ounce.

2. Refer to the “Non-GAAP Performance Measures” section of this presentation.

Production Q3 2020 9M 20202020

REVISED GUIDANCE

Gold Production (oz) 63,004 162,185 222,000 - 232,000

Gold eq. Production (oz)1,2 64,221 164,960 225,000 - 235,000

Operating Costs Q3 2020 9M 20202020

REVISED GUIDANCE

Cash costs per gold eq. oz. 2 833 924 920 - 980

AISC per gold eq. oz.2 1,469 1,593 1,610 - 1,690

H1 results include a 14-day voluntary COVID-19 suspension

Capital & Exploration ($M) Q3 2020 9M 20202020

REVISED GUIDANCE

Sustaining Capital & sustaining

leases237.4 103.9 $145 - $160

Growth Capital2 0.1 0.3 $2 - $5

Exploration 0.2 0.5 ~$2

Rainy River Life of Mine Highlights

2020 NI 43-101 Technical Report

LoM1 Consensus2

Total gold eq. production (k oz) 2,384 2,383

Avg. annual gold eq. production (k oz) 289 289

Cash costs per gold eq. oz. ($/oz) $670 $672

AISC per gold eq. oz. ($/oz) $973 $968

Sustaining capital ($M) 3 $586 $573

Growth capital ($M) 3 $56 $55

Cumulative total cash flow ($M)4 $1,096 $1,636

After-tax NPV 5% $858 $1,305

1. Assuming $1,550 per gold oz, $17.50 per silver oz and a foreign exchange rate of 1.30 C$ to 1 US$

2. Assumes consensus long-term pricing (US$1,800/oz Au, US$20/oz Ag and a USD/CAD rate of 1.33)

3. Sustaining and Growth Capital spend excludes working capital movements

4. LOM value includes a negative cash flow of $68 million post 2028 primarily for closure activities

Totals may not compute exactly due to rounding.

An open pit and underground operation located in

northern Ontario

2018 2019 Q3 2020 2020

Target

Tonnes mined per day

(ore and waste)

2018 2019 Q3 2020 2020

Target

Tonnes milled per

calendar day

Q3 Operational Highlights

Rainy River Mine – KPI Dashboard (Sept. 30, 2020)

9

2018 2019 9M 2020 2021

Target

Unit Costs ($/t)1,2

Open Pit, Mill & G&A

• Rapid COVID-19 testing devices procured for

daily testing; mine site currently COVID-19 free

• Open pit mine ramping up towards 2021 target

capacity of ~150k tpd with ~146k tpd in Q3

(97% of 2021 target)

• Mill achieved a record ~27k tpd, the maximum

allowable under the current permit

• Mine and mill operating at capacity, focus now

shifts to optimize recovery and unit cost

performance

• Unit costs trending towards 2021 target

• Lower planned strip ratio of 2.99 in Q3

• Overall grade is expected to continue to improve

in Q4 as mining moves to higher grade zones

• YTD mill availability (90%) in-line with plan and

recoveries (90%) slightly ahead of plan, despite

lower grades processed

2018 2019 9M 2020 2021

Target

Open Pit Mining costs1

($/t mined)

1. 9M 2020 unit costs are inclusive of the Canada Emergency Wage Subsidy.

2. Open pit mine unit costs presented on a per tonne mined basis, mill and G&A unit costs presented on per tonne processed basis

Rainy River: Underground Mine Life Extension

• Significant potential for underground Resource to Reserve

conversion at higher gold price (current reserves at

$1,275/oz.) used for underground; Approx. 1.7M gold

ounces in underground M&I Resources category*

• Underground Reserve growth to be supported by milling

scenario to accommodate underground standalone scenario

Grey areas indicate

potential new mining areas

• Higher grade underground ore will be blended with low grade

stockpile for batch processing to optimize mill productivity up

to 2028; underground standalone scenario thereafter

• Underground access from Intrepid portal and 4 open pit

portals; reduces underground development capital

• Decline towards Intrepid zone resumed; 150 of 550 m

completed to date; refinement of long-hole mining

methodology planned for 2021; On target for 2022 production

Underground Mine Growth with Potential Reserve Conversion

10*See the 2019 Mineral Reserves and Mineral Resources at the end of this presentation.

• Leverage technology to

optimize performance

• Focus on continuous

improvement; increased

effective hours of equipment

• Enhance maintenance practices

Rainy River – Operating Excellence

11

• Maximize mill throughput to

maximum permit limit

• Improve recoveries through

continued optimization;

optimized grind, gravity

circuit and ore type

scenarios

• Optimize effective hours

• Implement cost driver

strategy; operational &

procurement approach

• Create a culture that

encourages innovation and

positive change

• Optimization of capital

management practices

Mine Performance Mill Performance Cost Control

Rainy River Exploration Program

NE Trend Target:

• Results of the exploration reconnaissance work completed

in 2019 within ~15 km regional structural corridor defined

• Two broader areas with coincident geochemical and

geophysical anomalism for first pass exploration drilling

• Phase 1 of an 8,000 m exploration drilling program will be

launched in Q4

12

New Afton Mine: Operational Highlights

13

1. Gold eq. oz. for Q3 2020 includes 18.2 lbs of copper and 69,011 silver oz. converted to a gold eq. based on

a ratio of $1,500/oz. gold, $2.85/lb copper and $17.75/oz. silver.

2. Refer to the “Non-GAAP Performance Measures” section of this presentation.

Production Q3 2020 9M 20202020

REVISED GUIDANCE

Gold Production (oz) 15,955 47,858 62,000 - 72,000

Copper Production (Mlb) 18.2 53.6 65 - 75

Gold eq. Production (oz)1 51,315 152,090 190,000 -220,000

Operating Costs Q3 2020 9M 20202020

REVISED GUIDANCE

Operating expense per gold eq. oz 708 640 630 - 710

Cash costs per gold eq. oz. 2 807 742 740 - 820

AISC per gold eq. oz.2 988 971 1,080 - 1,160

An underground block cave operation located in B.C.

Q3 2020 and Recent Highlights

• On track to achieve mid-range of guidance with AISC expected to be

at or below revised guidance due to lower sustaining capital spend;

Sustaining and growth capital tracking to below guidance

• B3 development refocused in Q3 to east cave recovery areas;

accelerated B3 development Q4/Q1 2021 shifts ~$10M sustaining

capital to 2021; B3 production remains on schedule for H2 2021

• C-Zone TAT project advanced; Thickener construction and other

COVID-19 delays shift ~$20M of growth capital to 2021. Thickener

delivery expected in Q1 2021 and C-Zone production remains on

schedule for H2 2023

• New access into east cave recovery area with ultimate target rate of

4,000 tpd (initial 1,400 tpd); Consistent grades expected for Q4 2020

• Key portion of water and Phase 1 TAT permits received; B3 permit on

schedule; C-zone permits submission in Q4.

• Cherry Creek exploration drilling program (10,000m) launched in Q4

Capital & Exploration ($M) Q3 2020 9M 20202020

REVISED GUIDANCE

Sustaining Capital & sustaining

leases 28.7 32.0 $62 - $72

Growth Capital 2 16.1 37.2 $70 - $85

Exploration 0.4 3.0 $4 - $8

New Afton Life of Mine Highlights

2020 NI 43-101 Technical Report

LoM1 Consensus2

Avg. annual gold eq. production (k oz)* 233 213

Cash costs per gold eq. oz. ($/oz)* $681 $746

AISC per gold eq. oz. ($/oz)* $761 $832

Sustaining capital ($M)3 $175 $171

Growth capital ($M)3 $460 $450

Cumulative total cash flow ($M)4,5 $1,216 $1,351

After-tax NPV5% $863 $978

1.Assuming $1,550/oz gold, $17.50/oz silver, $3.00/lb copper and a USD/CAD rate of 1.30 C$ to1 US$2.Assumes current consensus long-term commodity pricing of US$1,800/oz gold, US$3.00/lb copper,

US$20/oz silver and a USD/CAD rate of 1.333.Sustaining and Growth Capital spend excludes working capital movement

4.LOM value includes a negative cash flow of $9M primarily for closure activities offset by salvage values

5.Life of Mine free cash flow estimates are exclusive of Ontario Teachers’ Pension Plan free cash flow

interest (refer to Feb. 25, 2020 press release)

*Refer to the “Non-GAAP Performance Measures” section of this presentation.

New Afton Mine – KPI Dashboard (Sept 30, 2020)

• Mine productivity of ~17.3k tpd, above planned levels

• Mill processed ~15.5k tpd with gold and copper recoveries

of 80% and 82%, respectively, with mill availability at 98%,

in-line with plan.

• B3/C-Zone development advanced by 1,150 m, achieving

92% of planned levels YTD; B3 crew redeployed to the east

cave for a portion of Q3

• Overall B3/C-Zone execution remains on schedule

– C-Zone development at, slightly above 9M target

– Accelerated B3 development in Q4 and Q1 2021; B3

production remains on schedule for H2 2021

14

Q3 2020 Operational Highlights

• The 2020 and 2021 mine plans incorporate multiple

sources of ore from the east and west cave

• New access point into the east cave recovery zone was

completed in Q3, supporting an initial extraction rate of

1,400 tpd, with an ultimate target of 4,000 tpd

• 10,000 metre Phase 1 of the Cherry Creek Trend drilling

program launched late October to evaluate ~12 km trend

of prospective geochemical and geophysical anomalies

located ~3 km from New Afton mill

1,287

2,3482,436

2,849

B3 Zone C-Zone

YTD Mine Development

B3/C-Zone (m) vs. 2020 Target

32.037.2

67.0

77.5

Sustaining Capital Growth Capital

YTD Capital vs Target* ($M)(*mid-range of revised guidance)

2018 2019 9M 2020 2020 Target

UG Mine Unit Costs1

($/t mined)

2018 2019 9M 2020 2020 Target

Unit Cost1,2 Performance ($/t)

Underground, Mill & G&A

1. 9M 2020 unit costs are inclusive of the Canada Emergency Wage Subsidy.

2. Underground mine unit costs presented on a per tonne mined basis, mill and G&A unit costs

presented on per tonne processed basis

New Afton: Operating Excellence

15

Self-Funded C-Zone Mine & Mill Performance Cost Control

• Committed to de-risking C-

Zone development to support

a self-funded approach

• Focus on continuous

improvement; reduced

development cycle times

• Base case at $1,300 gold and

$3.00 copper; significant

upside at spot prices

• Optimize Lift 1 and B3-Zone

production (2020-2023)

• Leverage technology to

optimize mine and mill

performance; autonomous

scoops and mill process

controls; electrification of C-

Zone

• Focus on continuous

improvement

• Improved recoveries; ultra-

fine material

• Enhanced mine and mill

maintenance practices

• Leverage robust contract and

procurement strategies

• Foster a culture that

encourages innovation and

positive change

• Optimization of capital

projects and cost

management programs

• Integrated project and

operations teams

Exploration Potential Near Mine and District

SLC Mining Options Evaluated to Add Ore Reserve Inventory to the LOM• Underground drilling delineated and expand mineral resources within and

below the SLC Zone

• Delineated the SLC target area to M&I and added ~3.6M tonnes with average Cu and Au grades in line with the mine ore grade. Additional mineralization defined within the new discovered East Extension Zone, located immediately beneath SLC and parallel to the east of the C and D-Zone mineralization.

• D-Zone Exploration Targeting Scale or Greater Resource Growth

• D-Zone underground drilling testing for additional resources down plunge of the C-Zone reserve

• Testing pinch and swell geometry to verify potential for zone of productive mineralization to re-widen laterally and down plunge.

• Drill intercepts in the upper D-Zone appear to feature good widths and ore grade in line with C-Zone over an approximate 200-250m vertical extent

Preliminary Stages of Testing District Target Potential• Cherry Creek Corridor Target: exploration activities are progressing to drill

targets refinement

• 12 km trend of prospective geochemical and geophysical anomalies located ~3 km from New Afton mill

• 45 line-km geophysical IP survey completed at the end of August 2019

• Geochemical survey completed covering entire trend

• Significant near-surface epithermal gold and underlying porphyry copper-gold system discovery potential

• Phase 1 Cherry Creek drilling program (10,000 m) launched in late October

16

17

New Gold: A Profitable Path Forward

Rainy River

positioned for

profitable operations

with underground

upside

Optimizing C-Zone

development to support

a self-funded approach

Optimized balance

sheet repositions New

Gold for growth

Growing production and

expanded margins will

drive sustainable free cash

flow

Organic growth

potential through

strategic exploration

programs

Appendix

Operational Estimates Rainy River New Afton2020 Revised

Consolidated Guidance

Gold Produced (ounces) 222,000 - 232,000 62,000 - 72,000 284,000 - 304,000

Copper Produced (Mlbs) - 65 - 75 65 - 75

Gold Eq. Produced (ounces)1 225,000 - 235,000 190,000 - 220,000 415,000 - 455,000

Operating expense per gold eq. ounce1,4 $920 - $980 $630 - $710 $780 - $860

Cash Costs per gold eq. ounce1,4 $920 - $980 $740 - $820 $830 - $910

Corporate G&A per gold eq. ounce1 - - $35 - $45

Depreciation and depletion per gold eq. ounce1 $540 - $600 $240 - $300 $400 - $460

All-in Sustaining Costs per gold eq. ounce1,4 $1,610 - $1,690 $1,080 - $1,160 $1,410 - $1,490

Capital Investment & Exploration Expense Estimates

Sustaining Capital & Sustaining Leases ($M)4 $145 - $160 $62 - $72 $207 - $232

Growth Capital ($M)2,4 $2 - $5 $70 - $85 $82 - $102

Exploration ($M)3 ~$2 $4 - 8 $7 - 12

1. Gold equivalent ounces includes approximately 285,000 to 305,000 ounces of silver at Rainy River and approximately 295,000 to 315,000 ounces of silver at New Afton.

2. Consolidated growth capital includes $10-$12 million for Blackwater.

3. Exploration expense includes $1-$2 million for Corporate

4. The revised operational outlook does not include any potential future receivable under the Canadian Emergency Wage Subsidy, which has been extended until December 2020.

19

Rainy River Outlook

• Production estimates for the year have been lowered, primarily related to the impact of COVID-19 in the first half of the year, resulting in lower

tonnes and slightly lower grades milled for the full year.

• Cash costs and operating expense per gold eq. ounce for the year have been slightly increased primarily due to lower sales.

• Total capital for the year has increased by less than $10 million due to a portion of the Tailings Management Area construction that was originally

scheduled for completion in 2021, now planned for completion in 2020.

New Afton Outlook

• Gold and copper production estimates for the year have been lowered, primarily due to lower than planned gold and copper grades.

• Cash costs and operating expense per gold eq. ounce for the year are expected to increase, primarily due to lower sales.

• Total capital estimates remain consistent with original estimates, and it is expected that all planned capital projects will be completed in the

second half of the year.

In 2020, the Company reports production on a gold eq. basis as well as on a per-metal basis. Cash costs and AISC will be reported on a per gold eq. ounce basis.

Throughout the year the Company will report gold eq. ounces using a constant ratio of $1,500 per gold ounce, $17.75 per silver ounce and $2.85 per pound copper,

and a foreign exchange rate of 1.35 Canadian dollars to the US dollar.

2020 Revised Guidance

COVID-19 Business Plan

Employee and community health and safety • The health and safety of our employees and communities remains number one priority

• Full compliance with government and health agency recommendations

• Restricted access to sites; travel restrictions; enhanced sanitization practices; self-isolation; community-

based consultations; optimized plans for transport and employee accommodation; social distancing;

work from home options (see www.newgold.com/covid-19/ for further details)

Supply chain continuity• Supply chain secure for key items; no disruptions to supply anticipated

• Standard inventory items on hand; required quantities being maintained

• Long-lead items remain on schedule

Business continuity plans and Rapid Response Team fully mobilized• Scenario-based business continuity plans in place

• Ramp-down / ramp-up plans as required

• COVID-19 rapid testing devices procured for use at Rainy River. Training and calibration currently underway prior

to rolling out for permanent use.

• Rainy River operations restarted on April 3 utilizing the local workforce; gradual and safe reintroduction of non-

local workforce nearing completion and operations returned to full capacity in early Q3

Financial status• Sufficient liquidity to support operations during this crisis; Approx. $510M in available liquidity1

• 90-95% of costs are denominated in Canadian dollars (New Afton: 90% / Rainy River 95%)

Suspended site activities• Regional exploration programs to be launched in Q4

201. Available liquidity is pro forma the $200M partial redemption announced November 23rd, 2020. See the press release titled “New Gold Announces Partial Redemption of Outstanding 6.375%

Senior Notes” for additional details.

Ontario Teachers' Pension Plan Transaction

Terms

Completed $300M strategic partnership with Ontario Teachers’ Pension Plan (March 31, 2020)

• Improved balance sheet with significantly enhanced liquidity of ~$600million

• Financial flexibility and debt reductionopportunities

Transaction

• New Gold has entered into a strategic partnership with Ontario Teachers’ Pension Plan (“Ontario Teachers’”) with the following terms (the “Transaction”):

• First 4 years – 46% Free Cash Flow Interest (“FCF Interest”) in NewAfton

• After 4 years – Ontario Teachers’ has an option (“Conversion Option”) to convert into a 46% joint venture in New Afton (“JV Interest”); if Ontario Teachers’ does not convert into the JV Interest, the FCF Interest in New Afton will be reduced to 42.5% (“Reduced FCF Interest”)

Buyback Option• During the exercise period of the Conversion Option, New Gold holds an overriding buyback option to repurchase

100% of Ontario Teachers’ interest in New Afton at the greater of an agreed upon IRR or the fair market value at that time

Exploration Claims• New Gold will retain 100% of the exploration claims outside of the New Afton mining permit. Ontario Teachers’

has an option to acquire its proportionate share of these claims upon conversion into the JV Interest

Key Transfer Rights • New Gold and Ontario Teachers' will hold a mutual right of first offer for the life of theagreements

Governance

• As a strategic partner, Ontario Teachers’ will have certain governance rights

• Upon conversion into the JV Interest, Ontario Teachers’ will receive customary joint venture governancerights

21

Divestment of Blackwater

• Marks another milestone in the re-positioning of

New Gold to create a Canadian-focused,

diversified intermediate gold producer

• Further enhances balance sheet with upfront

cash payment, providing additional flexibility

• Retains exposure to Blackwater project via an

equity position and gold stream on production

• Blackwater becomes a core focus of a dedicated

management team with a proven track record

that can unlock its potential

• Surfacing value for Blackwater now positions

New Gold to transition to the next phase of the

company’s growth plan

22

Key Transaction Terms

Transaction⚫ Definitive agreement to sell New Gold’s 100% interest in

Blackwater to Artemis Gold Inc.

Consideration

⚫ C$190 million in cash, comprised of C$140 million in cash

upon closing of the Transaction and C$50 million in cash

payable twelve months following closing of the

Transaction

⚫ C$20 million in Artemis shares (not to exceed 9.9%);

terms and price consistent with Artemis’ Transaction

Financing

⚫ Gold stream on 8% gold produced from Blackwater,

reducing to 4% of gold production once approximately

280,000 ounces of gold have been delivered, with a

transfer price equal to 35% of the spot gold price

Transaction

Financing

⚫ Artemis intends to fund the initial cash payment through a

combination of cash on hand and an equity financing that

is fully backstopped by Artemis insiders

Approvals &

Conditions

⚫ Customary closing conditions, including Artemis

shareholder approval and required regulatory approvals

Closing ⚫ Closed August 24, 2020

Transaction Highlights

New Afton Mining Areas (H1 2020)

• In H1 2020, higher than expected dilution was experienced in portions of the east and west caves as well

as lower than planned rehabilitation and pillar recovery productivities, all of which contributed to lower

grades mined.

• Lower copper and gold grades are expected from the east and west caves over the balance of 2020 and

potentially into 2021.

• It is not expected that the lower grades currently being experienced in the east and west cave zones will

be encountered in the SLC, B3 and C-Zones.

23

C-Zone Development (2019 - H1 2023)

B3 Zone Development (2019-H1 2021) B3 Production (H2 2021)

TAT Construction – Q2 2020 / Commissioned Q2 2022

NATSF Stabilization

(Q2 2021-Q3 2022)HATSF Stabilization

(Q4 2023 - Q3 2024)

C-Zone Production (H2 2023-H1-2030)

2019H1

2020H2

2020H1

2021H2

2021H1

2022H2

2022H1

2023H2

2023H1

2024H2

20242025-2030

New Afton Mine Milestones and Timeline

24

TAT Phase 1&2

Permits

(H2 20)

C-Zone Permit

(H2 21)

B3 Permit

(H1 21)Key Permits

• B3/C-Zone development advancing and on track with

plan

• B3 production to come online in H1 2021 and transition

to C-Zone in H2 2023

• C-Zone drives cumulative FCF of ~$500M over ~7-year

mine life

• Thickened and amended tailings (TAT) for

stabilization of current tailings facility

• C-Zone tailings deposition into historical Afton open

pit (HATSF)

• Key permits and amendments remain on track

Mineral Reserves and ResourcesMineral Reserves Statement as at December 31, 2019

Proven & Probable Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Open Pit Mineral Reserves

Direct Processing

Proven 15,700 1.21 2.4 - 612 1,187 -

Probable 30,675 1.15 2.5 - 1,136 2,416 -

Open Pit P&P (direct proc.) 46,375 1.17 2.4 - 1,748 3,602 -

Low grade

Proven 5,702 0.35 1.9 - 65 341 -

Probable 15,470 0.35 2.2 - 172 1,076 -

Open Pit P&P (low grade) 21,172 0.35 2.1 - 237 1,417 -

Stockpile

Proven 5,928 0.53 1.1 - 102 211 -

Probable - - - - - - -

Open Pit P&P (stockpile) 5,928 0.53 1.1 - 102 211 -

Open Pit P&P Total Mineral Reserves 73,476 0.88 2.2 - 2,087 5,231 -

Underground

Proven - - - - - - -

Probable 4,096 4.17 7.8 - 549 1,034 -

Underground P&P (direct proc.) 4,096 4.17 7.8 - 549 1,034 -

Combined Direct proc. &Low grade

Proven 27,331 0.88 2.0 - 779 1,740 -

Probable 50,240 1.15 2.8 - 1,857 4,526 -

Total Rainy River MineralReserves 77,572 1.06 2.5 - 2,636 6,265 -

25

Mineral Reserves and Resources

Proven & Probable Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B Zones

Proven - - - - - - -

Probable 20,213 0.55 1.9 0.73 357 1,234 323

C Zone

Proven - - - - - - -

Probable 27,088 0.74 1.8 0.80 648 1,610 478

Total New Afton Total Mineral Reserves 47,302 0.66 1.9 0.77 1,005 2,844 802

TOTAL PROVEN & PROBABLE RESERVES 3,641 9,110 802

Notes to the Mineral Reserve and Mineral Resource estimates are provided below.

26

Mineral Reserves Statement as at December 31, 2019

Measured & Indicated (Exclusive of Reserves) Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

High and Medium grade MineralResources

Open Pit

Measured 695 1.46 2.9 - 33 64 -

Indicated 4,813 1.18 3.4 - 182 531 -

Open Pit M&I (High and med. grade) 5,508 1.21 3.4 - 214 596 -

Underground

Measured - - - - - - -

Indicated 14,866 3.49 9.1 - 1,669 4,331 -

Underground M&I 14,866 3.49 9.1 - 1,669 4,331 -

Low grade MineralResources

Open Pit

Measured 293 0.34 1.9 - 3 18 -

Indicated 2,460 0.34 2.2 - 27 175 -

Open Pit M&I (low grade) 2,753 0.34 2.2 - 30 193 -

Combined M&I

Measured 989 1.13 2.6 - 36 82 -

Indicated 22,139 2.64 7.1 - 1,878 5,037 -

Total Rainy RiverM&I 23,127 2.57 6.9 - 1,914 5,120 -

Mineral Reserves and Resources

27

Mineral Reserves Statement as at December 31, 2019

Mineral Reserves and Resources

Measured & Indicated (Exclusive of

Reserves)

Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B Zones

Measured 17,013 0.63 1.7 0.83 346 940 312

Indicated 9,759 0.44 2.6 0.71 138 825 154

A&B Zone M&I 26,773 0.56 2.1 0.79 484 1,765 466

C-Zone

Measured 6,116 0.78 2.0 0.94 154 401 126

Indicated 12,727 0.71 2.1 0.83 292 852 233

C-Zone M&I 18,843 0.74 2.1 0.86 446 1,254 359

HW Lens

Measured - - - - - - -

Indicated 11,362 0.51 2.0 0.44 187 738 109

HW Lens M&I 11,362 0.51 2.0 0.44 187 738 109

Combined M&I

Measured 23,154 0.67 1.8 0.86 500 1,345 438

Indicated 33,854 0.57 2.2 0.66 617 2,409 495

Total New Afton M&I 57,008 0.61 2.1 0.74 1,118 3,754 933

TOTAL M&I RESOURCES 3,032 8,873 933

Notes to the Mineral Reserve and Mineral Resource estimates are provided below.

28

Mineral Reserves Statement as at December 31, 2019

Mineral Reserves and Resources

Inferred Metal grade Contained metal

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

koz

Silver

koz

Copper

Mlbs

RAINY RIVER

High and Medium gradeResources

Open Pit 2,015 0.61 1.8 - 39 114 -

Underground 1,297 3.76 3.5 - 157 146 -

Total Direct Processing 3,312 1.84 2.4 - 196 260 -

Low grade Resources

Open Pit 167 0.35 1.4 - 2 8 -

Rainy River Inferred 3,479 1.77 2.4 - 198 268 -

NEW AFTON

A&B Zones 6,367 0.34 1.3 0.35 70 272 49

C-Zone 7,650 0.41 1.3 0.47 101 316 71

HW Lens 3 0.49 0.6 0.19 - - -

New Afton Inferred 14,022 0.38 1.3 0.42 172 589 121

TOTAL INFERRED 369 857 121

Notes to the Mineral Reserve andMineral Resource estimates are provided below.

29

Mineral Reserves Statement as at December 31, 2019

Notes to Mineral Reserve and Resource

EstimatesNotes to Mineral Reserve and Resource Estimates

1. New Gold’s Mineral Reserves and Mineral Resources have been estimated in accordance with the CIM standards (2014), which are incorporated by

reference in NI 43-101.

2. All Mineral Reserve and Mineral Resource estimates for New Gold’s properties and projects are effective December 31, 2019.

3. New Gold’s year-end 2019 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign exchange

(FX) rate criteria:

4. Cut-offs for the Company’s Mineral Reserves and Mineral Resources are outlined in the following table:

Gold

$/ounce

Silver

$/ounce

Copper

$/pound

FX

CAD:USD

Mineral Reserves $1,275 $17.00 $3.00 1.30

Mineral Resources $1,375 $19.00 $3.25 1.30

Mineral PropertyMineral Reserves

Lower Cut-off

Mineral Resources

Lower Cut-off

Rainy River

O/P direct processing:

O/P low grade material:

U/G direct processing:

0.46 – 0.49 g/t AuEq

0.30 g/t AuEq

2.20 g/t AuEq

0.44 – 0.45 g/t AuEq

0.30 g/t AuEq

2.00 g/t AuEq

New AftonMain Zone – B1 & B2 Blocks:

B3 Block & C-Zone

USD$ 21.00/t

USD$ 24.00/tAll Resources 0.40% CuEq

5. New Gold reports its Measured and Indicated Mineral Resources exclusive of 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 technical feasibility, do not have demonstrated economic viability, and are likewise exclusive of Mineral Reserves. Numbers may not add due to

rounding.

30

Notes to Mineral Reserve and Resource

Estimates (cont’d)

6. Mineral Resources are classified as measured, indicated and inferred based on relative levels of confidence in their estimation and on technical and

economic parameters consistent with the methods considered to be most suitable to their potential commercial extraction. The designators ‘open pit’ and

‘underground’ may be used to indicate the envisioned mining method for different portions of a resource. Similarly, the designators ‘direct processing’ and

‘lower grade material’ may be applied to differentiate material envisioned to be mined and processed directly from material to be mined and stored

separately for future processing. Mineral Reserves and Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation,

sociopolitical, marketing and other risks and relevant issues. Additional details regarding Mineral Reserve and Mineral Resource estimation, classification,

reporting parameters, key assumptions and associated risks for each of New Gold’s material properties are provided in the respective NI 43-101 Technical

Reports, which are available at www.sedar.com.

7. The preparation of New Gold's consolidated statement and estimation of Mineral Reserves has been completed under the oversight and review of Mr.

Andrew Croal, Director of Technical Services for the Company. Mr. Croal is a Professional Engineer and member of the Association of Professional

Engineers Ontario. Preparation of New Gold’s consolidated statement and estimation of Mineral Resources has been completed under the oversight and

review of Mr. Michele Della Libera, Director, Exploration for the Company. Mr. Della Libera is a Professional Geoscientist and member of the Association of

Professional Geoscientists of Ontario and of the Engineers and Geoscientists of British Columbia. Mr. Croal and Mr. Della Libera are "Qualified Persons" as

defined by NI 43-101.

31

http://www.sedar.com/

Endnotes

Information concerning the properties and operations of New Gold has been prepared with Canadian standards for reporting of mineral resource estimates, which differ in some respects

from United States standards. In particular, and without limiting the generality of the foregoing, the terms “inferred mineral resources,” “indicated mineral resources,” “measured mineral

resources” and “mineral resources” used or referenced in this presentation are Canadian mineral disclosure terms as defined in accordance with NI 43-101 under the guidelines set out in

the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines, May 2014 (the “CIM Standards”). Until

recently, the CIM Standards differed significantly from standards in the United States. The U.S. Securities and Exchange Commission (the “SEC”) has adopted amendments to its disclosure

rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934, as amended (the

“Exchange Act”). These amendments became effective February 25, 2019 (the “SEC Modernization Rules”) with compliance required for the first fiscal year beginning on or after January 1,

2021. The SEC Modernization Rules replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which will be rescinded from

and after the required compliance date of the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured

mineral resources”, “indicated mineral resources” and “inferred mineral resources”. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral

reserves” to be “substantially similar” to the corresponding definitions under the CIM Standards, as required under NI 43-101. Accordingly, during this period leading up to the compliance

date of the SEC Modernization Rules, information regarding mineral resources or mineral reserves contained or referenced in this presentation may not be comparable to similar information

made public by United States companies.

Readers are cautioned that “inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their 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, except in limited circumstances. The term “resource” does not equate to the term “reserves”. Readers should not to assume that all or any part

of measured or indicated mineral 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.

TECHNICAL INFORMATION

The scientific and technical information relating to Mineral Reserves contained herein has been reviewed, verified and approved by Mr. Andrew Croal, Director, Technical Services of New

Gold. The scientific and technical information relating to Mineral Resources and exploration activities and results contained herein has been reviewed and approved by Mr. Michele Della

Libera Director, Exploration of New Gold. All other scientific and technical information contained herein has been reviewed and approved by the persons named under the heading

“Technical Information and Qualified Persons” with respect to the technical and scientific information noted for each name. Mr. Croal is a Professional Engineer and member of the

Association of Professional Engineers Ontario. Mr. Della Libera is a Professional Geoscientist and a member of Engineers & Geoscientists British Columbia and Professional Geoscientists

Ontario. Mr. Croal, Mr. Della Libera and the persons named under the heading “Technical Information and Qualified Persons” are "Qualified Persons" for the purposes of NI 43-101. No

limitations were imposed on these Qualified Persons with respect to the verification of the data contained herein. Further detail about the mineral resource and reserve estimates, including

assumptions, parameters, risks and data verification measures, are available in the technical reports filed by the Company on www.sedar.com.

32

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL

RESERVES AND MINERAL RESOURCES

http://www.sedar.com/

Non-GAAP Measures

(1) ALL-IN SUSTAINING COSTS

“"All-in sustaining costs” is a non-GAAP financial measure. Consistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies from around

the world 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, lease payments that are sustaining in nature, and environmental reclamation costs, all divided by the ounces of gold eq. 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 assists 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 IFRS 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 IFRS and is not necessarily

indicative of cash flow from operations under IFRS or operating costs presented under IFRS.

(2) SUSTAINING CAPITAL AND SUSTAINING LEASE

"Sustaining capital" is a non-GAAP financial measure as well as “sustaining lease”. New Gold defines sustaining capital as net capital expenditures that are intended to maintain operation of its gold

producing assets. A sustaining lease is similarly a capital lease payment that is sustaining in nature. To determine sustaining capital expenditures, New Gold uses cash flow related to mining interests from

its statement of cash flows and deducts any expenditures that are non-sustaining or growth capital. Management uses sustaining capital and other sustaining costs, to understand the aggregate net

result of the drivers of all-in sustaining costs other than total cash costs. Sustaining capital and sustaining lease are intended to provide additional information only, does not have any standardized

meaning under IFRS, 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 IFRS.

(3) TOTAL CASH COSTS

"Total cash costs per ounce” is a non-GAAP financial 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 performance and ability to generate liquidity through

operating cash flow to fund future capital expenditures and working capital needs. 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, but are

exclusive of amortization, reclamation, capital and exploration costs. Total cash costs per gold ounce are net of by-product sales and are divided by gold ounces sold to arrive at a per ounce figure.

This data is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs presented do not have a standardized meaning under IFRS and may not be

comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and

is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under GAAP.

(4) FREE CASH FLOW

“Free cash flow” is defined as operating cash flow less sustaining capital expenditures.

(5) GROWTHCAPITAL

"Growth capital" is a non-GAAP financial measure. New Gold terms non-sustaining capital costs to be “growth capital”, which are capital expenditures to develop new operations or capital expenditures

related to major projects at existing operations where these projects will materially increase production. To determine growth capital expenditures, New Gold uses cash flow related to mining interests

from its statement of cash flows and deducts any expenditures that are sustaining capital. Growth capital is intended to provide additional information only, does not have any standardized meaning

under IFRS, 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 IFRS.

Further details regarding non-GAAP financial performance measures and a reconciliation to the nearest IFRS measures are provided in the MD&A accompanying New Gold’s financial statements

filed from time to time on www.sedar.com.

NON-GAAP FINANCIAL PERFORMANCE MEASURES

33

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