City of Prince George

Blackwater Project Presentation

February 18, 2013

2 City of Prince George | February 18, 2013 2

An intermediate mining company resulting from the mergers of four companies in 2008/2009

Owns and operates four producing mines:

– Mesquite Mine in USA (California)

– Cerro San Pedro in Mexico

– Peak Mine in Australia

– New Afton Mine in Canada (Kamloops)

Portfolio also includes two development projects:

– El-Morro joint-venture project in Chile

– Blackwater Project in British Columbia

About New Gold

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100% owned by New Gold – Underground Gold/Silver/Copper

Only 10 km from Kamloops, easily accessible by paved road

More than 400 employees – 75% local residents, 20% Aboriginal peoples

Contracts and spending for 2012:

Mechanical, electrical, piping, architectural

& civil contracts for local and Aboriginal

companies

Approx. $375 million spent on contracts

with local suppliers and businesses

The New Afton Mine Project

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The Blackwater Project

100% New Gold – open pit, gold/silver Acquired in 2011 purchase of Richfield

Ventures

160 km Southwest of Prince George (direct route)

110 km Southwest of Vanderhoof, access via the Kluskus Forest Road – 2.5 hours approx.

Currently in advanced exploration phase

Subject to Provincial and Federal Environmental Assessment

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Conventional truck and

shovel open pit mine Estimated Capital Cost of

$1.8 billion Construction targeted for

2015 – 1,000 to 1,500 jobs during construction

Start of production targeted

for 2017 – 500 jobs expected for operations

Currently estimated 17 year

mine life

The Blackwater Project

Based on September 2012 Preliminary Economic Assessment

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Blackwater Project Location to Communities

Burns lake ~

Francois J: ' ~ : er Lake

Ootsa Lake

Tweedsmu1t Parl<

Franco1s lak~ Uncha Mountains Park Red Hills Park :~.•'f..O ,,,.·

Proposed Transmission Line

Natalkuz Lake

Enliako Parl<

Blackwater Gold project

ltcha llgachuz Park

Lake

Tatuk Lake

Kluskoll Lake Parl<

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20 30 40

Kilometres

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Legend • Populated Place

-fill Highway - Proposed Transmission Line C Proposed Mine Site

Watercourse Water body Parks, Protected Areas and Ecological Reserves

Regional Routes - Route to Anahim Lake

Route to Burns Lake Route to Fraser Lake Route to Prince George Route to Quesnel Route to Vanderhoof Route to Williams Lake

Populated Pla,c:e !Road Distance .. (km) ,from ,Blackwater

Anahlm Lake 710 Burns Lake 250 Fraser Lake 180 Prince George 260 Quesnel 380 Vanderhoof 170 WIiiiams Lake 500

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2012

Project Description, Preliminary Economic Assessment, Exploration

2013

Feasibility Study, Environmental Studies, Exploration, Preparation of Environmental Assessment Application/Environment Impact Statement

2014

Environmental Assessment Application/Environmental Impact Statement – Provincial and Federal Reviews

2015 – 2016

Construction

2017

Opening, Operation

2033

Closure, Reclamation – based on current PEA

Discovery

Exploration

2011-2012

Resource Delineation

2011-2013

Feasibility

2013

Environmental Assessment

2013-2014

Construction

2015

Operation

2017

Closure & Reclamation

Blackwater Project – Timeline 1$1 ~/l~;;rts I _g. I

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We are a values based company

We believe successful project development is based on:

Protecting the Environment – Designing our projects to promote long term

sustainability

Commitment to our Local communities – Maximizing local procurement and

hiring and ensuring we leave a long lasting net benefit to the community.

Working with Aboriginal Peoples – Respecting and understanding

indigenous values and rights and working to achieve common goals

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The Blackwater Project:

Started reclamation of historic exploration sites in 2012

Completed over two years of baseline environmental and social studies

Avoids sensitive areas including Northern Caribou habitat

The tailings facility is not within a lake

No discharge of surface water during operations

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In 2012, we:

Opened a Project Office in Vanderhoof Initiated a Community Liaison

Committee Provided newsletter updates Held open houses in four communities Donated to community initiatives

Employed close to 400 people on the Blackwater Project

– Over 23% Aboriginal peoples – 66% from the local region – More than 30 local residents at

Project Office and Prep Lab in Vanderhoof

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Commitment to Strong Relationships

Respecting the Traditional Territories of British Columbia’s First Nations

Informal Relations

– Communicating often and early with all First Nations that have any interest in New Gold

– Providing Information on all aspects of New Gold operations

Formal Agreements

– Two Exploration Cooperation Agreements signed

– Negotiations for future agreements underway

Supporting Traditional Land Use and Knowledge Studies

Working with Aboriginal Peoples

“This job benefits me in a

lot of ways. I can help my

family out when they need

it.”

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New Gold is Committed to:

Protecting the environment and promoting sustainability at all our operations

Creating a growing enterprise with fair return on invested capital

Working collaboratively with Aboriginal peoples, government and stakeholders

Ensuring we leave a lasting net benefit to local communities at all our projects

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