Corporate presentation january 2017 v final

Corporate PresentationJanuary 2017

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 are “forward looking”. All statements in thispresentation, 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 statementsthat 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-lookingstatements in this presentation include, among others, statements with respect to: guidance for production; mineral reserve and resource estimates; planned design for the Rainy Riverproject; construction activities at the Rainy River project and their expected progress and timelines, including the timing for, and duration of, underground development and its impact andtiming for power energization; expected capital costs and contingency amounts and timing for incurring costs in the future; planned preparations for operations, including the mining rate,removal of overburden and waste and storage of water prior to commissioning and availability of ore; the expected production, costs, economics, grade, mining and milling rate, stripratio, milling and mill feed schedule, recovery rates and mine life and other operating parameters of the Rainy River project; planned staffing levels; future exploration activities andexploration potential; the capacity of the starter dam; targeted timing for permits; targeted timing for commissioning, start-up, production and ramp-up; statements with respect to thecompany’s future compliance with its leverage ratio covenants; statements regarding future free cash flow and after-tax cash flow; and statements with respect to the payment of theremaining $75 million from Royal Gold and the percentage of future revenue represented by the total payments from Royal Gold.

All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important riskfactors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in thispresentation, New Gold’s annual and quarterly management’s discussion and analysis (“MD&A”), its Annual Information Form and its Technical Reports filed at www.sedar.com. Inaddition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1)there being no significant disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates being consistent with New Gold’scurrent expectations; (3) the accuracy of New Gold’s current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadian dollar and U.S. dollar beingapproximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment,labour and materials costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with Indigenous groups in respect of the Rainy River project beingconsistent with New Gold’s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders withinthe expected timelines; (9) the results of the feasibility study for the Rainy River project being realized; (10) conditions to the payment of the remaining $75 million from Royal Gold beingsatisfied later in 2016; and (11) with respect to guidance for 2016 AISC, refer to “2016 Guidance” in New Gold’s news release dated February 17, 2016 for the key assumptions.

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 causeactual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, withoutlimitation: significant capital requirements and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets formetals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada and the United States; discrepancies betweenactual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgical recoveries; changes in nationaland local government legislation; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; thespeculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits andcomplying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for the Rainy Riverproject; the uncertainties inherent to current and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; competition;loss of key employees; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studiesincluding the feasibility study for the Rainy River project; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims orproperty or contests over claims to mineral properties; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups; risks, uncertainties andunanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements. In addition, there are risksand hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpectedformations, 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 andfuture events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionarystatements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise,except in accordance with applicable securities laws.

The footnotes, endnotes and appendix to this presentation contain important information. The endnotes and appendix are found at the end of the presentation.

Portfolio of assets

in top-ratedjurisdictions

Invested and experienced

team

Amonglowest-cost

producers with established track record

Peer-leading growth pipeline

A history of value creation

New Gold investment thesis

15.0 Moz gold

reserves(1), >85%

located in Canada

C$45 million

investment by

Board &

Management

Q3’2016 all-in

sustaining costs(2)

of $682/oz

Lowered 2016

cost guidance

by $75/oz in Q2

~800 Koz annual

production

potential from

growth projects(3)

Share price

outperformed

S&P/TSX Global

Gold Index by >200%

since beginning

of 2009

1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold production leading to strong cash flow”. Refer to

Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

3. Based on 325Koz annual production from Rainy River and ~485Koz annual production from Blackwater, as outlined in the feasibility studies for the projects.3

Portfolio of assets in top-rated jurisdictions

41. Source: 2015 Behre Dolbear Report – “2015 Ranking of Countries for Mining Investment”.

Blackwater

New Afton

Rainy River

Mesquite

Cerro San Pedro

Peak Mines

Mine Life: 17 years

Mine Life: 12+ years

Mine Life: 14 years

Mine Life: 7 years + residual leach

Mine Life: Final year + residual leach

Mine Life: 6+ years

#1CANADA

#3UNITED

STATES

#5MEXICO

#2AUSTRALIA

OPERATING

DEVELOPMENT

All Assets Ranked in Top 5 Global Mining Jurisdictions(1)Mineral Reserves(2)

5

Experienced and invested team

David Emerson Former Canadian Cabinet Minister

James Estey Chairman, PrairieSky Royalty

Robert Gallagher Former President & Chief Executive Officer, New Gold

Vahan Kololian Founder, TerraNova Partners

Martyn Konig Chief Investment Officer, T Wealth Management

Randall Oliphant Executive Chairman

Ian Pearce Partner, X2 Resources

Kay Priestly Former Chief Executive Officer, Turquoise Hill Resources

Raymond Threlkeld Chairman, Newmarket Gold

Randall Oliphant

Executive Chairman

Hannes Portmann

President

Brian Penny

Executive Vice President &

Chief Financial Officer

Raymond Threlkeld

Interim Chief Operating Officer

Executive Management Team Board of Directors

Significantly invested in company, directly aligned with shareholders

6

GOLD

PRODUCTION (Koz)

COPPER

PRODUCTION (Mlbs)

TOTAL CASH

COSTS(1) ($/oz)

ALL-IN SUSTAINING

COSTS(2) ($/oz)

SILVER

PRODUCTION (Moz)

2016 consolidated guidance – First nine months 2016

On track to meet full-year gold production guidance and

lowered cost guidance

286

360-400

YTD 2016

2016 GUIDANCE

77

81-93

YTD 2016

2016 GUIDANCE

1.0

1.6-1.8

YTD 2016

2016 GUIDANCE

$346

$360-$400

$718

$750-$790

YTD 2016

2016 GUIDANCE

YTD 2016

2016 GUIDANCE

1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”.


$105

$136

7

First nine months 2016 free cash flow generation

New Afton ($ million)

Peak Mines ($ million)

Mesquite ($ million)

Cerro San Pedro ($ million)

All operations generating free cash flow

$15

$49Operating margin(1)

Free cash flow(2) $34

$54


Free cash flow(2) Capex(3)

$15


Free cash flow(2) Capex(3)

$809$718

$340 $551

FY 2015 First NineMonths 2016

$1,149

$1,269

+62%

First Nine Months 2016 Free Cash Flow Generation Margin Expansion ($/oz)

All-in Sustaining Costs(4) Margin(5) Realized Gold Price

$8

$1

1. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”.

2. Free cash flow is equal to operating margin less capital expenditures.

3. Capex is inclusive of sustaining and growth capital expenditures.


5. Margin equal to gold price less all-in sustaining costs

Capex(3)

Operating margin(1)

Free cash flow(2) Capex(3)$31

8

Liquidity position

Remaining proceeds

Rainy River stream(3)

Remaining Rainy

River capital(4)

Liquidity Position

$502million

Cash and cash

equivalents(1)

$151 million

$276 million

Undrawn credit facility(2)

$415 million

1. Cash and cash equivalents as at September 30, 2016.

2. $124 million of $400 million facility used for Letters of Credit at September 30, 2016.

3. Second instalment of $75 million to be paid when 60% of development capital spent and other customary conditions are satisfied.

4. Estimated development capital remaining as at September 30, 2016.

$75 million

Ongoing Sustaining

Free Cash Flow

Generating free cash flow with

gold price certainty through option

contracts through June 2017

Payment received

November 2016

Approximately $50

million spent in October

Reinvesting free cash flow generation

91. Refer to Endnote on margin under the heading “Non-GAAP Measures”.


First Nine Months 2016

All-in Sustaining Cost Margin(1)

~$551 /oz

+75% of expected 2016 company production

at lower all-in sustaining costs(2)

Rainy River

Opportunity to extend mine life of New Gold’s

most significant cash flow generator

New Afton C-zone

+120% of expected 2016 company production

at lower all-in sustaining costs(2)

Blackwater

Investing in longer-lived, larger-scale, lower-cost assets

10

Rainy River project summary

1. Source: Based on 2015 Behre Dolbear Report – “2015 Ranking of Countries for Mining Investment”.


Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”. Mineral resources are exclusive of reserves.

• Supportive local government and community

• ~250 people currently on operations team

• >70% from local communities, including

>30% from Indigenous communities

• Close to regional infrastructure with power

line construction complete

Ontario, Canada

Gold

Reserves

3.1Moz at 1.0g/tOpen Pit

Underground

0.7Moz at 5.0g/t

3.8 Moz

#1

Gold M&I

Resources

2.0Moz at 0.8g/tOpen Pit

Underground

0.6Moz at 3.7g/t

2.6 Moz

Jurisdiction Resource Scale(2)

Secured low power rates through 2024

Rainy River overview

11

Start-up planned for mid-2017

Overall Construction

60% complete

Through October 2016

Capital Spent Project to Date

$680 millionThrough October 2016

Total Remaining Capital

$365 million

Process building

Mill building

SAG and ball mill

Open pit

From November 2016 through

targeted mid-2017 start-up

12

Rainy River project metrics

Pebble crusher

Primary crusher

CIP tanks

Process building

325 Koz

$550 /oz

$710 /oz

Gold Production

Total Cash Costs(1)

All-in Sustaining Costs(2)

~80% of costs denominated in Canadian dollars

1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. First nine years based on September 2016 updated operating cost assumptions.

2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. First nine years based on September 2016 updated operating cost assumptions.

13

Significant cash flow contributor

$770 $710

$480 $540

FY 2016E Rainy River

$1,250 $1,250


2. Margin equal to gold price less all-in sustaining costs.

3. Margin per ounce equal to $1,250 per ounce less all-in sustaining costs of $710 per ounce. Margin in millions (pre-tax) equal to margin per ounce multiplied by average annual gold production of 325Koz.

Rainy River doubles New Gold’s cash margin

~$180million ~$175millionCash

Margin(3)

RAINY RIVER

4 operating mines 1 operating mine

Increases

Margins

Significantly

Increases

Cash Flow

All-in Sustaining

Costs(1) ($/oz)

Margin(2) ($/oz)

Gold Price ($/oz)

14

Rainy River value creation through development

Development of Rainy River presents opportunity for ~$1.0 billion

of potential value creation

UPSIDE

$300millionAcquisition cost

50% /Cash

50%

Shares

$1.0billionDevelopment

capital estimate(1)

$1.3billionTotal investment

Average annual

after-tax

cash flow(2)

Potential cash

flow multiple

range

Implied value

potential

~$225million

~10x

~$2.3billion

Investment Value Potential

1. Based on $1.30 CDN/USD foreign exchange rate.

2. Based on first nine years at $1,250 per ounce gold, $18 per ounce silver and $1.30 CDN/USD foreign exchange rate. Royal Gold stream payments of approximately $20 million per year are treated as a financing activity.

$100 change in gold price

+/- ~$30million

+/- ~$300million

~10x

15

New Afton C-zone opportunity

Based on the feasibility study, average annual pre-tax cash flow

of ~$200 million

• Feasibility Study outlined plan to

mine/process 25 million tonnes (over

five years) of material from C-zone

• Added 583 thousand ounces of gold

and 430 million pounds of copper to

reserves

• C-zone gold reserve grade 31%

higher, copper grade 8% lower

• Development capital of $402 million(1)

• First three years ~$35 million per

year

• Additional drilling planned in 2016 to

further expand C-zone

• Resource remains open at depth and

to the west

Feasibility Study Highlights

1,180m

C-zone Block Cave

VolumeOpen to West

Open at depth

Main Zone Extraction

Level

C-zone

Measured Indicated Inferred

1. Includes $41 million provision for capital escalation and $88 million for contingency.

Blackwater highlights

16

1. Development capital assumes $1.30 CDN/USD exchange rate.

2. Mineral resources are exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold production leading to strong cash

flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”.

3. First nine years.

4. Gold revenue at $1,250 per ounce, silver revenue at $18 per ounce.

5. Refer to Endnote on margin under the heading “Non-GAAP Measures”. Margin per ounce equal to $1,250 per ounce less all-in sustaining costs of $590 per ounce. Margin in millions (pre-tax) equal to margin per ounce multiplied by average annual gold production of 485Koz.

Development Capital(1)

~$1.6billion

Reserves(2)

8.2Moz - Gold

60.8Moz - Silver

Annual Production(3)

Life-of-Mine Revenue ($B)(4) Sustaining Cost Margin(5) Regional Upside

2016 Plan: Complete

Environmental Assessment

process in first half 2017

485Koz - Gold

1.8Moz - Silver

$660 /oz

~$320million

~1,100km2

Land Package

$8.7 - Gold

$0.5 - Silver

Flagship asset already in portfolio

Strong Canadian presence

171. Source: 2015 Behre Dolbear Report – “2015 Ranking of Countries for Mining Investment”.


Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

OPERATING

DEVELOPMENT

1.2 Moz Gold Reserve(2)

1.1 Blb Copper Reserve(2)

2015 operating margin:

$187 million

New Afton (production)


9.4 Moz Silver Reserve(2)

>190km2 land package

Rainy River (construction)


60.8 Moz Silver Reserve(2)

>1,100km2 land package

Blackwater (permitting)

Top global mining

jurisdiction(1)

>85% gold reserves(2)

in Canada

Significant Canadian dollar

exposure

~70% of cash flow

generated from Canadian

operations

~25% gold production from

Canadian assets

• >55% with Rainy River

in full production

Our Footprint in Canada

New Gold has multiple organic growth options in its portfolio

18

New Gold looking forward

Organic Growth Projects(2)

Current Portfolio

15+ years ~$640 /oz

Average Annual Gold

Production Per Asset

All-in Sustaining

Costs(3) Weighted

Average

~7 years ~100 Koz ~$770 /oz

Average

Mine Life

Investing in longer-lived, larger-scale, lower-cost assets

~400 Koz

(1)

>2x 4x ($130)/oz

1. Based on 12 years at New Afton (including C-zone), seven years at Mesquite, six years at Peak Mines and one year at Cerro San Pedro.

2. Based on 325Koz annual production from Rainy River (first nine years) and ~485Koz annual production from Blackwater (first nine years) as outlined in the feasibility studies and all-in sustaining costs for the projects as outlined in the feasibility studies.


19


New Gold (NYSE MKT)

171%

Gold Price

35%

S&P/TSX Global Gold Index(2)

(39%)

1. New Gold/Western Goldfields business combination announced in March 2009.

2. S&P/TSX Global Gold Index includes 35 gold companies in various stages of development/production.

13.3% 3.9% (5.9%)

Compound

Annual

Growth

Rate

Performance since beginning of 2009(1)

New Gold investment thesis

20

Establishing the

leading intermediate

gold company

Invested and experienced team

Portfolio of assetsin top-ratedjurisdictions

Peer-leading growth pipeline


Amonglowest-cost producers with established track record

Appendices

21

Appendices

Page

1. Corporate 22

2. New Afton 35

3. Other Operations – Mesquite, Peak Mines, Cerro San Pedro 42

4. Rainy River 45

5. Blackwater 57

6. Exploration and Reserves and Resources 58

Summary of debt

22

Undrawn Credit FacilitySenior Unsecured Notes

(April 2012)

Senior Unsecured Notes

(November 2012)

Face Value $400 million(1) $300 million $500 million

Maturity 3 years with annual

extensions permitted

April 15, 2020 November 15, 2022

Interest Rate See ‘Key features’ 7.00% 6.25%

Payable Revolving credit Semi-annually Semi-annually

Conversion price n/a n/a n/a

Current trading value n/a ~103 ~101

Key features • Interest rate varies

between 2.00%-3.25%

based on leverage ratio

• Senior unsecured

• Redeemable after April 15,

2016 at 103.5% down to 100%

of face after 2018

• Unlimited dividends if leverage

ratio below 2:1

• Senior unsecured

• Redeemable after November

15, 2017 at par plus half

coupon, declining ratably to par

• Unlimited dividends if leverage

ratio below 2:1

1. $124 million of $400 million facility used for Letters of Credit at September 30, 2016.

Appendix 1

23

Credit facility overviewAppendix 1

• $124 million of the facility was used to issue letters of

credit for closure obligations at the company’s

producing mines and development projects

Revolving credit facility (expires August 14, 2019) $400

Letters of credit issued $124

Undrawn credit facility $276

Current Revolving Credit Facility ($mm)

Prior Terms Current Terms

Maximum

Net Debt/EBITDA

Q4’16-Q2’17 4.5x

Thereafter 3.5x

Q4’16-Q2’17 4.5x

Q3’17-Q4’17 4.0x

Thereafter 3.5x

Credit Facility Financial Covenants

Gold production (Koz) 398 436

Silver production (Koz) 1.6 1.9

Copper production (Mlbs) 85 100

Gold reserves(1) (Moz) 15.9 15.0

Copper reserves(1) (Blbs) 1.0 1.2

Operating expenses ($mm) $436 $420

Corporate administration ($mm) $27 $20

Exploration and business development ($mm) $34 $7

$497 $447

24

Producing more and spending less

20152013

+10%

1. For comparison purposes, 2013 reserves exclude El Morro which was sold by New Gold in 2015.

+19%

+18%

(6%)

+20%

(4%)

(26%)

(79%)

(10%)

• Comparing 2015 to 2013, New Afton’s first full year of production, demonstrates a marked

improvement in production of all metals at lower costs:

Appendix 1

25

2016 third quarter highlights



3. Refer to Endnote on margin under the heading “Non-GAAP Measures”. Margin per ounce is equal to realized gold price per ounce during the period less costs (being cash costs or all-in sustaining costs, as the case may be) per ounce.

95,546oz – Gold $350 per oz

Total cash costs(1)

$682 per oz

All-in sustaining costs(2)

Production Costs Margin

Financial Balance Sheet Rainy River

25.5mlbs – Copper

Overall construction currently

60% complete

$131 million in capital

expenditures during third quarter

• Approximately $50 million

in October

$151million

Cash balance at Sept. 30, 2016

Further enhanced financial

flexibility by increasing size of

credit facility to $400 million and

additional gold option contracts

for first six months of 2017

$90million

Cash generated from operations

$0.17Cash flow per share

$978 per oz

Total cash cost margin(3)

$646 per oz

All-in sustaining cost margin(3)

Appendix 1

24

19

15

26

Mine-by-mine operating results

Total cash costs(1) ($/oz) All-in sustaining costs(2) ($/oz)



3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. New Afton co-product cash costs: Third quarter: Gold - $552/oz, Copper - $0.91/lb.

4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. New Afton co-product all-in sustaining costs: Third quarter: Gold - $719/oz, Copper - $1.18/lb.

2016 Third Quarter

Gold production (Koz)

($633)

$633$522

$897

($211)

$1,202

$632

$912

GOLD

PRODUCTION (oz)

95,546

TOTAL CASH

COSTS(1) ($/oz)

$350

ALL-IN SUSTAINING

COSTS(2) ($/oz)

$682

38

Well positioned to meet full-year production guidance

Appendix 1

74 72

89

51

27

Mine-by-mine operating results

Total cash costs(1) ($/oz) All-in sustaining costs(2) ($/oz)



3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. New Afton co-product cash costs: First nine months 2016: Gold - $526/oz, Copper - $0.90/lb.

4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. New Afton co-product all-in sustaining costs: First nine months 2016: Gold - $685/oz, Copper - $1.17/lb.

First Nine Months 2016

Gold production (Koz)

($605)

$622 $575

$911

($202)

$1,085

$736

$936

GOLD

PRODUCTION (oz)

285,780

TOTAL CASH

COSTS(1) ($/oz)

$346

ALL-IN SUSTAINING

COSTS(2) ($/oz)

$718

Well positioned to meet full-year production guidance

Appendix 1

Consolidated financial summary

28

Three months ended

September 30

Nine months ended

September 30

(in millions of U.S. dollars, except per share amounts) 2016 2015 2016 2015

Revenues $179 $177 $514 $514

Operating margin(2) 94 72 262 211

Adjusted net earnings/(loss)(3) 13 (9) 27 (14)

Adjusted net earnings/(loss) per share(3) 0.03 (0.02) 0.05 (0.03)

Net earnings/(loss) 5 (158) 23 (192)

Net earnings/(loss) per share 0.01 (0.31) 0.04 (0.38)

Cash generated from operations before

changes in non-cash operating working

capital(4)

89 58 233 189

Cash generated from operations 90 51 231 178

1. Refer to Endnote on average realized prices under the heading “Non-GAAP Measures”.

2. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”.

3. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”.

4. Refer to Endnote on net cash generated from operations before changes in working capital under the heading “Non-GAAP Measures”.

Financial Summary

GOLD ($/oz):

19%

COPPER ($/lb):

(3%)

SILVER ($/oz):

37%

Average Realized Prices(1)

$1,117

$1,328

$2.23$2.17

$14.72

$20.15

Appendix 1

Detailed operating results and assumptions

29

Appendix 1

2015A 2015A 2015A

Tonnes processed (000 tonnes) 5,097 5,400 - 5,600 19,987 13,900 - 14,300 723 580 - 600

Total tonnes mined (000 tonnes) 5,255 6,900 - 7,100 58,778 56,500 - 60,500 693 600 - 620

Strip ratio -- -- - -- 1.9 3.1 - 3.2 -- -- - --

Gold grade (g/t) 0.78 0.66 - 0.70 0.34 0.43 - 0.47 4.19 4.80 - 5.00

Silver grade (g/t) -- -- - -- -- -- - -- -- -- - --

Copper grade (%) 0.90% 0.80% - 0.84% -- -- - -- 1.00% 0.60% - 0.70%

Gold recovery(1) (%) 82.5% 79.0% - 81.0% 61.7% 93.0% 91.0% - 93.0%

Silver recovery (%) -- -- - -- -- -- - -- -- -- - --

Copper recovery (%) 84.9% 81.0% - 83.0% -- -- - -- 88.3% 87.0% - 89.0%

Production

Gold production (Koz) 105.5 90.0 - 100.0 134.9 130.0 - 140.0 89.9 80.0 - 90.0

Silver production (Koz) -- -- - -- -- -- - -- -- -- - --

Copper production (Mlbs) 86.0 75.0 - 85.0 -- -- - -- 14.0 6.0 - 8.0

Reserve Grade at December 31, 2015

Gold grade (g/t)

Silver grade (g/t)

Copper grade (%) 1.29%

2.89

6.9

Mesquite

2016E 2016E

New Afton Peak Mines

2016E

~65%

0.82% --

0.62 0.55

2.1 --

1. Represents implied recoveries.

2016 all-in sustaining costs sensitivities

30

Appendix 1

Category Copper Price Silver Price CDN/USD AUD/USD MXN/USD

Base Assumption $2.00 $14.00 $1.40 $1.40 $18.00

Sensitivity +/-$0.25 +/-$1.00 +/-$0.05 +/-$0.05 +/-$1.00

COST PER OUNCE IMPACT

New Afton +/-$210 -- +/-$55 -- --

Mesquite -- -- -- -- --

Peak Mines +/-$20 -- -- +/-$35 --

Cerro San Pedro -- +/-$20 -- -- +/-$30

New Gold Total +/-$55 +/-$5 +/-$20 +/-$10 +/-$5

NEW GOLD 2016 ALL-IN SUSTAINING COSTS(1) - KEY SENSITIVITIES


• Note: 2016 all-in sustaining costs key sensitivities are based on the company’s

guidance presented in February 2016

31

2016 guidance



3. Sustaining capital based on New Gold’s 2016 estimated capital expenditures including capitalized exploration and excluding expenditures related to growth-related initiatives.

4. General and administrative and other includes stock-based compensation and asset retirement obligation.

All-in

Sustaining Costs(1)

$750-$790 /oz

Total cash

costs(2)

Sustaining

capital(3)

General and

administrative

and other(4)

Sustaining

exploration

expense

$360-$400

~$280

~$80

~$30

Gold Production (Koz)

400

360

Appendix 1

32

2016 capital expenditures by category

Sustaining Capital: ~$105 million Growth Capital: ~$510 million

Mesquite

$55 million

New Afton

$38 million

Peak Mines

$12 million

Rainy River

$500 million

Blackwater

$5 million

New Afton

$5 million

Total Capital Expenditures

~$615 million

Appendix 1

YTD’16A: $72 million YTD’16A: $330 million

1. Year-to-date as at September 30, 2016.

33

2016 capital expenditures by category (cont’d)

Rainy River Mesquite New Afton

• $405 million – mining,

infrastructure and

process facilities

• $95 million – owners’

costs, indirects and

other

• $35 million –

capitalized stripping

• $12 million – plant and

equipment

• $8 million – complete

leach pad expansion

• $38 million – mine

development, plant and

equipment

• $5 million – C-zone

studies, C-zone

capitalized exploration

Sustaining capital

Peak Mines Blackwater

• $12 million – plant and

equipment and

capitalized exploration

• $5 million – permitting,

environmental studies

and site support

$500 million $55 million $43 million $12 million $5 million

Appendix 1

Stream comparison

34

1. Does note include portion of stream attributable to silver. New Gold to deliver 60% of the project's silver production up to a total of 3.1 million ounces of silver, and 30% of the project's silver production thereafter. Royal Gold to pay 25% of the average

silver spot price.

2. M&I resources are exclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold

production leading to strong cash flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

Initial gold stream percentage 4% 6.5%

Average annual stream ounces (Koz) >16 ~16

Total gold reserves(2) (Moz) 8.9 3.8

Reserves subject to stream (Koz) 357 247

Transfer price pre-threshold ($ per ounce) $400 25% of spot gold price

Ounce threshold (Koz) 217 230

Gold stream percentage post-threshold 4% 3.25%

M&I gold resources subject to stream (exclusive) (Koz) 49 85

Inferred resources subject to stream (Koz) 258 24

Transfer price post-threshold ($ per ounce) $400 + 1% inflation factor 25% of spot gold price

El Morro

Stream Retained

Rainy River Stream Sold

(gold portion)(1)

Appendix 1

New Afton – 2016 guidance

35

($335)-($295) $95-$135

• Gold and copper production

decreases due to lower gold and

copper grades

• Higher costs due to lower by-product

revenues

• $0.25 per pound change in copper

price equals ~$210 per ounce change

in New Afton all-in sustaining costs(2)

• $0.05 change in Canadian dollar

exchange rate equals ~$55 per

ounce change in New Afton all-in

sustaining costs(2)

1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Co-product cash costs guidance: Gold - $505-$545 per ounce, Copper - $0.90-$1.05 per pound.

2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Co-product all-in sustaining costs guidance: Gold - $660-$700 per ounce, Copper - $1.20-$1.35 per pound.

Gold Production (Koz) Copper Production (Mlbs)

Total Cash Costs(1) ($/oz) All-in Sustaining Costs(2) ($/oz)

90-100 75-85

Overview

Key Sensitivities

Appendix 2

Full-year costs expected to be below guidance ranges

$219 $246

$305

$432

$596

$793

$90

$396

$441

$557

$466

$530

$336

$701

$873

$1,153

$1,259

Early 2010 Mid-2010 Early 2011 Mid-2011 Early 2012 Mid 2012 Sept 2016

New Afton value creation

36

VALUE CREATION ($mm)

Development Capital Spend ($mm)

$11million

Value Creation(2)

$904 millionCurrent NAV

Net Investment(1)

$641 million/

$263 million

$1.25 per sh.

Significant value creation realized 12-18 months prior to start-up

1. Net investment equal to total development capital of $793 million plus sustaining and growth capital of $342 million (mid-2012 to September 30, 2016) less total operating margin of $872 million (mid-2012 to September 30, 2016). Operating margin

calculated as revenue less operating expenses.

2. Value creation equal to current New Afton analyst consensus net asset value less net investment.

Achieved

commercial

production

Copper Price ($/lb)

Gold Price ($/oz)

Foreign Exchange (CDN/USD)

~$1,100

~$3.25

$1.05

$1,300

$2.20

$1.30

NAV ($mm)

$1,434

$530 million(1)

of free cash

flow since

mid-2012

start-up

$793

$904

Appendix 2

New Afton C-zone update

37

1,180m

C-zone Block Cave Volume

Open to West

Open at depth

Main Zone Extraction Level

C-zone

Measured

Indicated

Inferred

Appendix 2

381. M&I resources exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold production

leading to strong cash flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”.

New Afton C-zone reserves and resources

Resource remains open at depth and to the west

• Added 583 thousand ounces of

gold and 430 million pounds of

copper

• C-zone originally identified through

limited deep holes drilled from

surface prior to 2007

• Since July 2012 have completed

138 holes totaling 85,585 metres

and continually updated resource

• Additional drilling planned in 2016

to further expand C-zone

Tonnes

(000s)

Gold

(g/t)

Copper

(%)

Gold

(Koz)

Copper

(Mlbs)

Proven - - - - -

Probable 25,040 0.72 0.78 583 430

Total P&P 25,040 0.72 0.78 583 430

Measured 2,230 1.05 1.21 75 59

Indicated 15,462 0.79 0.96 392 326

Total M&I 17,693 0.82 0.99 467 385

Inferred 6,856 0.48 0.54 106 87

2015 Year-End C-zone Reserves and Resources(1)

Appendix 2

New Afton C-zone – Scoping study versus feasibility study

39

2015 Scoping

Study

2016 Feasibility

Study

Total tonnes mined/processed (Mt) 21.5 25.0

Average gold grade (g/t) 0.76 0.72

Average copper grade (%) 0.80 0.78

Contained metal – Gold (Koz) 522 583

Contained metal – Copper (Mlbs) 377 430

Mine life (years) 5 5.5

Average full-year gold production (Koz) 107 108

Average full-year copper production (Mlbs) 77 81

Development capital ($mm) 349 402

Sustaining capital ($mm) 110 107

Average operating cost ($/t) 19.24 19.35

• The below table compares the 2015 scoping study to the current feasibility study results

C-zone: Scoping Study versus Feasibility Study(1)

16% increase in ore tonnes

Increase primarily driven by the

inclusion of a $41 million provision

for capital escalation given six year

development timeline

1. CDN/USD exchange rate of $1.25.

12% increase in contained gold

14% increase in contained copper

Appendix 2

New Afton C-zone indicative timeline

40

Significant capital spending to begin well after Rainy River start-up

Rainy River

start-up+ 1 year + 2 years + 3 years + 4 years + 5 years + 6 years

Targeted

milestones

FIRST PRODUCTION

DEVELOP BLOCK CAVE

PRODUCTION LEVELS

COMPLETE MAIN ACCESS RAMP

Over 70% of $402 million

development capital expected to

be spent in the final 3.5 years

• Based on market conditions and the receipt of permits, development of the C-zone could begin

after the start-up of Rainy River

Appendix 2

New Afton C-zone – Feasibility study economics

41

2015 Scoping

Study

2016 Feasibility

Study

After-tax 5% NPV ($mm) 68 84

After-tax IRR (%) 9.7 10.3

After-tax Payback (years) 3.4 3.4

Gold price ($/oz) $1,200

Copper price ($/lb) $2.75

CDN/USD ($) $1.25

C-zone: Project Economics (Long-term consensus commodity prices and foreign exchange rates) C-zone: Key Sensitivities

Based on the feasibility study, during the years of full production,

average annual pre-tax cash flow of ~$200 million

$0.25 per pound change in copper

price ~$34 million in after-tax NPV

and 1.9% change in IRR

$100 per ounce change in gold

price ~$18 million in after-tax NPV


$0.05 change in exchange rate

~$24 million in after-tax NPV and

1.5% change in IRR

Appendix 2

Mesquite – 2016 guidance

42

$590-$630 $1,015-$1,055

• 2016 production expected to remain

in line with 2015

• Decrease in costs attributable to

continued operational efficiencies

and lower diesel prices



Gold Production (Koz)


130-140

Overview

Appendix 3

Peak Mines – 2016 guidance

43

$800-$840 $1,020-$1,060

• Gold production expected to remain

in line with 2015

• Copper production expected to

decrease as 2016 mine plan

intentionally focuses on mining more

gold-rich ore bodies

• $0.25 per pound change in copper

price equals ~$20 per ounce change

in Peak Mines all-in sustaining costs(2)

• $0.05 change in Australian dollar


ounce change in Peak Mines all-in

sustaining costs(2)



Gold Production (Koz) Copper Production (Mlbs)


80-90 6-8

Overview

Key Sensitivities

Appendix 3

Full-year costs expected to be below guidance ranges

Cerro San Pedro – 2016 guidance

44

$755-$795 $765-$805

• Decrease in production as mine

transitions to residual leaching

• Costs to decrease relative to 2015

• $1.00 per ounce change in silver price

equals ~$20 per ounce change in Cerro

San Pedro all-in sustaining costs(2)

• $1.00 change in Mexican peso


ounce change in Cerro San Pedro

all-in sustaining costs(2)



Gold Production (Koz) Silver Production (Moz)


60-70 1.3-1.5

Overview

Key Sensitivities

Appendix 3

Rainy River site layout

45

Appendix 4

Rainy River plant site construction photos

46

August 2015April 2015

Appendix 4

November 2015October 2015

Rainy River plant site construction photos (cont’d)

47

February 2016December 2015

Appendix 4

July 2016June 2016

48


Primary crusher Coarse ore reclaim

Pebble crusher Elevated section from coarse ore to transfer tower

September 2016

Appendix 4

49


SAG mill and ball mill Installation Leach tanks and thickener

CIP tank installation Pinewood pumpstation

September 2016

Appendix 4

50


Main substation Main substation and powerline

Temporary truck shop and truck wash Assay lab

September 2016

Appendix 4

51


Piping installation Gold room

Mechanical and piping installation Process plant

October 2016

Appendix 4

52

Rainy River update

• Overall construction progress approximately

60% complete

• Concrete placement, steelwork erection and

cladding all substantially complete

• Installation of mechanical, piping, electrical and

instrumentation in processing facilities over

30% complete

• Construction complete on two of five dams in

water management facility

• Over 16 million tonnes of overburden and

waste stripping completed to date

• Currently mining at a rate of

approximately 85,000 tonnes per day

• Three million hours lost time incident free

Rainy River (as at end of October 2016)

Process plant and leach thickener

Aerial view of plant site

Appendix 4

53

Remaining capital breakdown

DescriptionTotal Remaining

Capital ($mm)

% complete at end

of October 2016

Target % complete

at year-end 2016

Process Plant $90 60% 75%

• Majority of process plant equipment purchased

• Mechanical, piping, electrical and instrumentation

installation

• Remainder of steel and concrete contracts

• Primarily fixed price and fixed unit contracts

Mining $85 40% 75%• Overburden and waste stripping

• Providing material for earthworks structures and

purchase of additional mobile equipment

WMP/TMA $85 40% 55%• Construction cost of tailings and water management

structures

• $50 contingency mainly allocated to WMP/TMA

Other(1) $105 70% 80%• Powerline and power infrastructure, site buildings,

EPCM, camp costs, commissioning and owners costs

Total $365 60% 70%

Power infrastructure to be completed in November 2016

• Remaining 2016 capital spend estimate of ~$130 million

• First half 2017 capital spend estimate of $235 million

1. Includes $25 million of investment tax credits receivable resulting from project development.

Appendix 4

Key areas of focus

54

2016 2017

Q4 Q1 Q2

Targeted

milestones

First production on target for mid-2017

PRE-STRIP & PIT DEVELOPMENT

TAILINGS & WATER MANAGEMENT

FACILITIES CONSTRUCTION

PROCESS PLANT CONSTRUCTION

• Majority of process facility well advanced

• Mechanical, piping, electrical and instrumentation installation over 30% complete

Water management pond

• Dams 1 and 2 complete

• Completing WMP construction

(dams 3,4 and 5)

• Overburden and waste stripping – over 16 million tonnes mined to date

• Provide material for TMA construction

• Plan to have approximately 1.2 million tonnes of ore available by start-up

60%

% complete

40%

40%

Tailings management area

• Complete starter dam in second

quarter 2017

• Progress tailings dam and complete

by year-end 2017

Appendix 4

55

Water management facility

• Restarted construction of water

management facility after receiving

approval in August 2016

• Flattening of slopes and the

addition of rock toe buttresses

• Two of five dams complete to date

• Targeting approximately three

million cubic metres of water at

commissioning

Redesign in alignment with emerging industry best practices

Water management pond

Appendix 4

56

Tailings management facility

• Final tailings redesign approval received in

November 2016

• Initial geotechnical drilling did not detect

discrete shear zones/slickensides within

foundations

• Early in 2016, cracks developed in water dam

during construction

• Extensive geotechnical investigation program

carried out site-wide, including inspection of

large open excavations during construction

(open pit, crusher) which showed pre-shear

zones/ slickensides in some areas

• Final design changes incorporated:

• Design all dams to assume presence of

slickensides/pre-shear zones

• Design all dams for factor of safety of 1.5 (in line with new Canadian Dam Association

recommendation); original design factor of safety was 1.3

• Incorporate wick drains in undrained low areas to reduce pore pressure responses

• Slope designs increased from 5.5:1 to 11:1

• Incorporate starter dam so as not to be dependent on Schedule 2 timing

Starter Dam

Appendix 4

57

Blackwater – Project economics

• Assumes construction begins in 2018

• $0.05 change in exchange rate equals

~$100 million change in after-tax NAV


• $100 per ounce change in gold price

equals ~$240 million change in

after-tax NAV and 2.3% change in IRR

Gold Price ($/oz)

Silver Price ($/oz)

CDN/USD ($)

$1,250

$18.00

$1.30

After-tax

5% NPV ($mm) $940

IRR (%) 14.4

Payback (years) 4.8

Appendix 5

17-year base case mine life

2016 exploration program overview

58

Rainy River

$4 million

Expensed - $2 million

New Afton

Sustaining exploration Growth exploration

$12 millionCapitalized - $2 million

Peak Mines

Capitalized - $2 million


New Afton


Appendix 6

2016 exploration program overview

59

1,180m

C-zone Block Cave Volume

Open to West

Open at depth

Main Zone Extraction Level

C-zone

Measured

Indicated

Inferred

2016 Program

New Afton

• Test potential to extend

C-zone block cave

resource to west

• Underground and surface

reconnaissance drilling to

test newly identified

satellite targets

• 10,000 metre drill program

Appendix 6

2016 exploration program overview (cont’d)

60

2016 Program

Rainy River

• Continue to advance district reconnaissance and target identification

Peak Mines

• Chronos – underground diamond drilling to expand inferred status and upgrade central gold lens to M&I status

• Anjea – surface diamond drilling to delineate resource to inferred status

• Mine Corridor – surface and underground drilling to test newly identified mine corridor targets at Burrabungie,

Dapville, Gladstone, Mt. Pleasant, Young Australian

Appendix 6

Positive results from

initial reconnaissance

drilling

Proteus

2016: 10,000

metres of drilling

2016: 10,000

metres of drilling

611. 2014 information per Annual Information Form dated March 27, 2015.

Reserves and resources summaryAppendix 6

Gold

Koz

Silver

Moz

Copper

Mlbs

Gold

Koz

Silver

Moz

Copper

Mlbs

Proven and Probable reserves 14,985 76 1,193 17,646 82 2,821

New Afton 1,228 4 1,112 760 3 781

Mesquite 1,492 - - 1,679 - -

Peak Mines 267 1 82 375 1 89

Cerro San Pedro 13 0 - 215 8 -

Ra iny River 3,814 9 - 3,772 9 -

Blackwater 8,170 61 - 8,170 61 -

El Morro (30%) - Sold interest during 2015 - - - 2,675 - 1,951

Measured and Indicated resources (exclusive of reserves) 6,659 34 1,065 8,094 34 1,728

Inferred resources 1,844 24 194 3,488 21 1,746

MINERAL RESERVES AND RESOURCES SUMMARY TABLE

As at December 31, 2015 As at December 31, 2014

62

Reserves and resources summary (cont’d)Appendix 6

Mineral Reserves estimate as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B Zones

Proven - - - - - - -

Probable 36,510 0.55 2.4 0.85 646 2,765 681

C Zone

Proven - - - - - - -

Probable 25,040 0.72 1.8 0.78 583 1,447 430

Total New Afton P&P 61,550 0.62 2.1 0.82 1,228 4,212 1,112

MESQUITE

Proven 8,473 0.51 - - 139 - -

Probable 75,807 0.56 - - 1,353 - -

Total Mesquite P&P 84,280 0.55 - - 1,492 - -

PEAK MINES

Proven 1,520 3.31 7.2 1.30 162 349 44

Probable 1,360 2.42 6.7 1.29 105 291 38

Total Peak Mines P&P 2,870 2.89 6.9 1.29 267 640 82

CERRO SAN PEDRO

Proven 289 0.35 9.7 - 3 90 -

Probable 748 0.41 13.7 - 10 329 -

Total CSP P&P 1,038 0.40 12.6 - 13 419 -

Metal grade Contained metal

63


Mineral Reserves estimate as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Direct processing material

Open Pit

Proven 17,001 1.40 2.0 - 763 1,075 -

Probable 52,950 1.18 2.8 - 2,003 4,690 -

Open Pi t P&P (direct process ing) 69,952 1.23 2.6 - 2,766 5,765 -

Underground

Proven - - - - - - -

Probable 4,499 5.00 11.8 - 723 1,709 -

Underground P&P (direct process ing) 4,499 5.00 11.8 - 723 1,709 -

Stockpile material

Open Pit

Proven 5,496 0.37 1.5 - 65 259 -

Probable 23,302 0.35 2.3 - 261 1,701 -

Open Pi t P&P (s tockpi le) 28,798 0.35 2.1 - 325 1,959 -

Total P&P

Proven 22,498 1.14 1.8 - 828 1,333 -

Probable 80,752 1.15 3.1 - 2,987 8,100 -

Total Rainy River P&P 103,250 1.15 2.8 - 3,814 9,433 -

BLACKWATER


Proven 124,500 0.95 5.5 - 3,790 22,100 -

Probable 169,700 0.68 4.1 - 3,730 22,300 -

P&P (direct process ing) 294,200 0.79 4.7 - 7,520 44,400 -

Stockpile material

Proven 20,100 0.50 3.6 - 325 2,300 -

Probable 30,100 0.34 14.6 - 325 14,100 -

P&P (s tockpi le) 50,200 0.40 10.2 - 650 16,400 -

Total Blackwater P&P 344,400 0.74 5.5 - 8,170 60,800 -

Total P&P 14,985 75,504 1,193


64


Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B zones

Measured 16,940 0.69 2.1 0.87 377 1,134 325

Indicated 10,512 0.46 2.2 0.68 156 749 157

A&B Zone M&I 27,451 0.60 2.1 0.80 534 1,878 482

C-zone

Measured 2,230 1.05 2.2 1.21 75 161 59

Indicated 15,462 0.79 2.2 0.96 392 1,075 326

C-zone M&I 17,693 0.82 2.2 0.99 467 1,226 386

HW Lens

Measured - - - - - - -

Indicated 10,560 0.51 2.1 0.44 174 703 102

HW Lens M&I 10,560 0.51 2.1 0.44 174 703 102

Total New Afton M&I 55,704 0.66 2.1 0.79 1,175 3,809 971

MESQUITE

Measured 4,595 0.40 - - 60 - -

Indicated 50,524 0.47 - - 771 - -

Total Mesquite M&I 55,119 0.47 - - 831 - -

PEAK MINES

Measured 2,000 3.56 5.9 0.94 220 370 41

Indicated 2,100 3.20 8.9 1.14 220 610 53

Total Peak Mines M&I 4,100 3.37 7.5 1.04 440 980 94

CERRO SAN PEDRO

Measured - - - - - - -

Indicated - - - - - - -

Total CSP M&I - - - - - - -


65


Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER


Open Pit

Measured 3,294 1.19 1.8 - 127 185 -

Indicated 37,530 1.15 3.5 - 1,391 4,189 -

Open Pi t M&I (direct process ing) 40,824 1.15 3.3 - 1,518 4,374 -

Underground

Measured - - - - - - -

Indicated 4,834 3.74 12.6 - 581 1,952 -

Underground M&I (direct process ing) 4,834 3.74 12.6 - 581 1,952 -

Stockpile material

Open Pit

Measured 1,244 0.35 1.3 - 14 51 -

Indicated 36,360 0.43 2.5 - 500 2,942 -

Open Pi t M&I (s tockpi le) 37,604 0.43 2.5 - 514 2,993 -

Total M&I

Measured 4,538 0.97 1.6 - 141 236 -

Indicated 78,724 0.98 3.6 - 2,472 9,083 -

Total Rainy River M&I 83,262 0.98 3.5 - 2,613 9,319 -

BLACKWATER


Measured 289 1.39 6.6 - 13 61 -

Indicated 41,128 0.86 4.5 - 1,135 5,950 -

M&I (direct process ing) 41,417 0.86 4.5 - 1,147 6,012 -

Stockpile material

Measured - - - - - - -

Indicated 14,070 0.32 4.0 - 144 1,809 -

M&I (s tockpi le) 14,070 0.32 4.0 - 144 1,809 -

Total Blackwater M&I 55,487 0.72 4.4 - 1,292 7,821 -

CAPOOSE

Indicated 17,671 0.54 22.1 - 308 12,562 -

Total M&I 6,659 34,491 1,065


66


Inferred Resource estimate as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B-zones 6,875 0.35 1.3 0.36 77 296 55

C-zone 6,856 0.48 1.5 0.54 106 328 87

HW Lens 969 0.69 1.5 0.46 21 45 10

Total New Afton Inferred 14,702 0.43 1.4 0.45 205 672 145

MESQUITE 4,858 0.37 - - 59 - -

PEAK MINES 2,000 3.14 10.9 1.13 200 690 49

CERRO SAN PEDRO - - - - - - -

RAINY RIVER

Direct processing

Open Pit 10,699 0.84 1.8 - 289 621 -

Underground 2,591 4.21 7.8 - 351 646 -

Total Direct Process ing 13,290 1.50 3.0 - 640 1,267 -

Stockpile

Open Pit 9,876 0.36 1.1 - 113 339 -

Total Rainy River Inferred 23,166 1.01 2.2 - 753 1,606 -

BLACKWATER

Direct process ing 10,378 0.80 3.7 - 266 1,235 -

Stockpi le 2,493 0.33 3.1 - 27 248 -

Total Blackwater Inferred 12,871 0.71 3.6 - 293 1,483 -

CAPOOSE 23,591 0.44 26.3 - 334 19,948 -

Total Inferred 1,844 24,399 194


67


New Gold Interest (4%)

Tonnes

000s

Gold

g/t

Copper

%

Gold

Koz

Copper

Mlbs

Gold

Koz

Mineral Reserves

Proven 321,814 0.56 0.55 5,820 3,877 233

Probable 277,240 0.35 0.43 3,097 2,626 124

Total P&P 599,054 0.46 0.49 8,917 6,503 357

Mineral Resources

Measured 19,790 0.53 0.51 340 223 14

Indicated 72,563 0.38 0.39 880 630 35

Total M&I 92,353 0.41 0.42 1,220 853 49

Inferred 678,066 0.30 0.35 6,453 5,190 258


El Morro Property Mineral Reserves & Resources as at December 31, 2015

(Goldcorp 50% - Teck 50% Joint Venture)

The table below sets out the Mineral Reserve and Mineral Resource estimates, on a 100% basis, for the El Morro project, as well as New Gold’s 4%

stream interest. The El Morro project, together with the Relincho project in Chile, is now held by a 50/50 joint venture between Goldcorp and Teck

Resources Limited. The following information is based on information available to the Company as of February 17, 2016.

68

1. New Gold’s Mineral Reserves and the El Morro Mineral Reserves and Resources have been estimated in accordance with the Canadian Institute

of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, which are incorporated by reference

in National Instrument 43-101 (“NI 43-101”).

2. Year-end 2015 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign exchange rate

criteria:

Lower cut-offs for the company’s Mineral Reserves and Mineral Resources are outlined in the following table:

Reserves and resources notesAppendix 6

Gold ($/oz) Silver ($/oz) Copper ($/lb) CAD/USD AUD/USD MXN/USD

Mineral Reserves $1,200 $15.00 $2.75 $1.25 $1.35 $17.00

Mineral Resources $1,300 $17.00 $3.00 $1.25 $1.35 $17.00

Reserves Resources

Lower Cut-Off Lower Cut-Off

New Afton Main Zone – B1 Block: C$ 21.00/t

Main Zone – B2 Block: C$ 33.00/t

B3 Block & C-Zone: C$ 24.00/t

Mesquite Oxide & Trans itional : 0.21 g/t Au (0.006 oz/t Au) 0.12 g/t Au (0.0035 oz/t Au)

Sulphide: 0.41 g/t Au (0.012 oz/t Au) 0.24 g/t Au (0.007 oz/t Au)

Peak Mines Al l ore types: A$ 110/t to A$ 156/t A$ 113/t to A$ 150/t

Cerro San Pedro Al l ore types: US$ 6.00/t NA

Rainy River O/P direct process ing: 0.30 – 0.60 g/t AuEq 0.30 – 0.45 g/t AuEq

O/P stockpi le: 0.30 g/t AuEq 0.30 g/t AuEq

U/G direct process ing: 3.50 g/t AuEg 2.50 g/t AuEq

Blackwater O/P direct process ing: 0.26 – 0.38 g/t AuEq Al l Resources : 0.40% AuEq

Mineral Property

Al l Resources : 0.40% CuEq

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3. Year-End 2015 El Morro Mineral Reserves and Mineral Resources have been estimated using $1,200/oz gold, US$2.75/lb copper, and 550

Chilean Pesos to one United States dollar, and a lower cut-off of 0.20% CuEq.

4. 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, economic and legal feasibility, do not have demonstrated economic viability, and are likewise exclusive of Mineral Reserves.

Numbers may not add due to rounding.

5. 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 most suitable for their potential commercial exploitation. Where different mining and/or

processing methods might be applied to different portions of a Mineral Resource, the designators ‘open pit’ and ‘underground’ have been applied

to indicate envisioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ have been applied to indicate the type of

mineralization as it relates to the appropriate mineral processing method and expected payable metal recoveries, and the designators ‘direct

processing’ and stockpile’ have been applied to differentiate between material envisioned to be mined and processed directly and material to be

mined and stored in a stockpile 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.

6. Rainy River Project: In addition to the criteria described above, Mineral Reserves and Mineral Resources for the Rainy River project are

reported according to the following additional criteria: Underground mineral reserves are reported peripheral to and/or below the open pit mineral

reserve pit shell which has been designed and optimized based on an $800/oz gold price. Underground Mineral Resources are reported below a

larger mineral resource pit shell which has been defined based on a $1300/oz gold price. Approximately 44% of the gold metal content defined as

underground mineral reserves derives from material located between the mineral reserve pit shell and the mineral resource pit shell; the

remaining 56% of mineral reserves derives from material located below the mineral resource pit shell. Open pit mineral resources exclude

material reported as underground mineral reserves.

7. All Mineral Resource and Mineral Reserve estimates for New Gold’s properties and projects are effective December 31, 2015.

8. Qualified Person: The preparation of New Gold's Mineral Reserve and Mineral Resource estimates has been done by Qualified Persons as

defined under NI 43-101, under the oversight and review of Mr. Mark A. Petersen, a Qualified Person under NI 43-101.

Reserves and resources notes (cont’d)Appendix 6

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2016 guidance assumptions

Spot:

2016

Silver price ($/oz) 14.00

Copper price ($/lb) 2.00

AUD/USD 1.40

CDN/USD 1.40

MXN/USD 18.00

Spot

Gold price ($/oz) 1,180

Silver price ($/oz) 16.75

Copper price ($/lb) 2.59

AUD/USD 1.36

CDN/USD 1.32

MXN/USD 21.50

Commodity price/foreign exchange assumptionsAppendix 6

Endnotes

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CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES

Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be

comparable to similar information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource”

used in this presentation are Canadian mining terms as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral

Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in National Instrument 43-101. While the terms “Mineral Resource”, “Measured Mineral Resource”,

“Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States

Securities and Exchange Commission. As such, certain information contained in this presentation concerning descriptions of mineralization and mineral resources under Canadian standards

is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange

Commission.

An “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources

may not form the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category.

Readers are cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable.

Under United States standards, mineralization may not be classified as a “Reserve” unless the determination has been made that the mineralization could be economically and legally

produced or extracted at the time the reserve estimation is made. Readers are cautioned not to assume that all or any part of the measured or indicated mineral resources will ever be

converted into mineral reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of

the United States Securities and Exchange Commission.

TECHNICAL INFORMATION

The scientific and technical information in this presentation has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Petersen is an AIPG Certified

Professional Geologist and a “Qualified Person” as defined under National Instrument 43-101.

For additional technical information on New Gold’s material properties, including a detailed breakdown of Mineral Reserves and Mineral Resources by category, as well as key assumptions,

parameters and risks, refer to New Gold’s Annual Information Form for the year ended December 31, 2015.

Endnotes (cont’d)

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NON-GAAP MEASURES

(1) ALL-IN SUSTAINING COSTS

“All-in sustaining costs” per ounce 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 of which New Gold is a member, New Gold defines “all-in sustaining costs” per ounce as the sum of total cash costs, capital expenditures that are sustaining in nature,

corporate general and administrative costs, capitalized and expensed exploration that is sustaining in nature and environmental reclamation costs, all divided by the ounces of gold sold to

arrive at a per ounce figure. New Gold believes this non-GAAP financial measure provides further transparency into costs associated with producing gold and 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. Further details regarding historical all-in sustaining costs and a reconciliation to the nearest IFRS measures are provided below and in the MD&A accompanying

New Gold’s financial statements filed from time to time on www.sedar.com.

(2) TOTAL CASH COSTS

“Total cash costs” per ounce is a non-GAAP financial measure which is 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, and realized gains and losses on fuel contracts, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales.

Total cash costs are then divided by ounces of gold sold to arrive at a per ounce figure. Co-product cash costs remove the impact of other metal sales that are produced as a by-product of

gold production and apportion the cash costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total ounces of gold or silver or pounds of

copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless otherwise indicated, all total cash cost information in this presentation is net of by-product sales. This data

is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs and co-product cash costs presented do not have a standardized meaning under 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. Further details regarding historical total cash costs

and a reconciliation to the nearest IFRS measures are provided below and in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(3) AVERAGE REALIZED PRICE

“Average realized price per ounce or pound sold” is a non-GAAP financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price

realized in each reporting period for gold, silver, and copper sales. Average realized price is intended to provide additional information only and does not have any standardized definition

under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently

and this measure is unlikely to be comparable to similar measures presented by other companies.

Endnotes (cont’d)

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(4) ADJUSTED NET (LOSS)/EARNINGS

“Adjusted net (loss)/earnings” and “adjusted net (loss)/earnings per share” are non-GAAP financial measures. Net (loss)/earnings have been adjusted and tax affected for the group of costs in

“Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the

unadjusted net (loss)/earnings from continuing operations. The company uses this measure for its own internal purposes. Management’s internal budgets and forecasts and public guidance

do not reflect fair value changes on senior notes and non-hedged derivatives, foreign currency translation and fair value through profit or loss and financial asset gains/losses. Consequently,

the presentation of adjusted net earnings and adjusted net earnings per share enables investors and analysts to better understand the underlying operating performance of our core mining

business through the eyes of management. Management periodically evaluates the components of adjusted net earnings and adjusted net earnings per share based on an internal

assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and

other mining companies. Adjusted net (loss)/earnings and adjusted net (loss)/earnings per share are intended to provide additional information only and do not have any standardized meaning

under IFRS and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance

prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS.

(5) OPERATING MARGIN

“Operating margin” is a non-GAAP financial measure with no standard meaning under IFRS, which management uses to evaluate the Company’s aggregated and mine-by-mine contribution to

net earnings before non-cash depreciation and depletion charges.

(6) CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN NON-CASH OPERATING WORKING CAPITAL

“Cash generated from operations before changes in working capital” and “cash generated from operations before changes in working capital per share” are non-GAAP financial measures with

no standard meaning under IFRS, which exclude changes in non-cash operating working capital. Management uses this measure to evaluate the Company’s ability to generate cash from its

operations before temporary working capital changes.

Contact information

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Investor Relations

Julie Taylor

416-324-6015

[email protected]