A Canadian Focused Gold Producer

CORPORATE PRESENTATION

CIBC WHISTLER INSTITUTIONAL INVESTOR CONFERENCE JANUARY 23, 2019

Cautionary Statements

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ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATEDCAUTIONARY 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 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 statements with respect to: guidance for production and costs, and the factors contributing to those expected results, including mill throughput, metal recoveries and ore grade, as well as expected capital and other expenditures; planned development activities and timing for 2018 and future years; and the expected completion of the Rainy River security perfection.

All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this presentation, New Gold’s latest annual management’s discussion and analysis (“MD&A”), Annual Information Form and Technical Reports filed 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-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, or may in the future operate, being consistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadian dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of the Rainy River mine and Blackwater project being consistent with New Gold’s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments during the applicable regulatory processes; and (9) in the case of production, cost and expenditure outlooks at the operating mines for 2018, commodity prices, exchange rates, grades, recovery rates, mill availability and mill throughput rates being consistent with those estimated for the purposes for 2018.Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements and the availability and management of capital resources; additional funding requirements; price volatility 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 currencies of Canada, the United States and, to a lesser extent, Mexico; discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral 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 local government 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 mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of 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 plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses and risks associated with the start of production of a mine, such as Rainy River, (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 Annual Information Form, MD&A and other disclosure documents 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 actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

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Rainy River Mine: Ontario, Canada

• Improving mine performance

• Improving mill availability, throughput and recoveries

• Optimizing key cost drivers

• Improving capital allocation strategies

• Remaining construction to be completed in 2019

• Reviewing underground mine strategy

• Evaluating exploration potential

New Afton Mine: B.C., Canada

• Low cost producer drives free cash flow

• $800M FCF(1) generated over last 6 years

• C-zone development provides mine life extension; internally funded

• Exploration potential at depth and land package

Positioning for Sustainable Growth

(1) Refer to Endnote on Free Cash Flow under the heading “Non-GAAP measures”

Rainy River Gold MineOpen pit & underground

Located near Ft. Frances, Ont.2018 production: 227koz

Blackwater Gold Project

+8 Million gold oz in Reserves

New Afton Gold/Copper MineUnderground block cave

Located near Kamloops, BC2018 production:

77koz gold and 85.1Mlb copper

Cerro San Pedro Gold/Silver MineResidual leach

Reclamation underway

~$400M Short-term Liquidity

Undrawn credit facility

Cash & Cash Eq. (1)$287M

Capital Structure and Liquidity Position

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New Gold Share Capital

Issued & Outstanding Shares 579M

Fully Diluted 589M

Market Capital $625M

1. Cash and cash equivalents as at September 30, 2018 plus proceeds of approx. $158 million from the sale of the Mesquite Mine on October 30, 2018.2. Until the Rainy River security is perfected, which is expected to occur by early 2019, the credit facility will be limited to a maximum draw of $225 million. Credit facility has been extended by one year to 2021.3. As at September 30, 2018. $111 million of $400 million facility used for Letters of Credit and $160 million drawn at September 30, 2018.4. Refer to Appendix for further details

New Gold Debt Structure

Face Value ($M) Maturity Interest Rate

Revolving Credit Facility2,3,4 $4002,3 Aug. 2021 LIBOR +2.25%-3.75%

Senior Unsecured Notes4 $500 Nov. 2022 6.25%

Senior Unsecured Notes4 $300 May 2025 6.375%

• Available liquidity of ~$400M secures short-term operational plan

• Credit facility term extended by 1 year; Rainy River security perfection imminent

• Potential debt optimization scenarios currently under review

• Potential to move ~$111M of Letters of Credit3 out of the credit facility

As of January 14, 2019

• 2019 underground development deferred to 2020

• Disciplined capital allocation and mine life optimization strategy

• Comprehensive review of alternative underground mining strategies to reduce capital and increase return on investment

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Mineral Reserves and Resources (June 30, 2018)4 Gold Grade (g/t) Gold (Koz)

Open Pit P&P (direct processing) 1.17 2,701

Underground P&P (direct processing) 3.55 1,021

Open Pit P&P (low grade) 0.36 398

Stockpile reserves 0.58 99

Total Proven & Probable 1.09 4,220

Measured & Indicated(4) 1.06 2,142

Inferred 1.10 313

Rainy River Mine: Ontario, Canada

1. Q4 production was pre-released on January 8, 20192. Revised guidance issued in July 2018, assumes a gold and silver price of $1,300 per ounce and $16.00 per ounce respectively and a Canadian dollar exchange rate of $1.30 to the U.S. dollar3. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”..4. For a detailed breakdown of Mineral Reserves & Resources refer to the Technical Report dated July 25, 2018. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral

Resources” and “Technical Information”. Additional information can also be found in Appendix 3. Resources are exclusive of Reserves.

Production Q4 2018 2018 2018 Guidance2

Gold Production (oz)1 77,202 227,284 210k-250k

Operating Costs Q4 2018 9 Months 2018 2018 Guidance2

Operating expense per oz. - 905 730-770

AISC per oz.3 - 1,700 1,600-1,700

Capital ($M) Q4 2018 9 Months 2018 2018 Guidance2

Sustaining Capital - 117 210

Growth Capital - 22 35

• Annual production of 227koz achieved revised guidance

• 44% of annual production from Sept. to Dec.

• Improved operational performance in Q4

• All remaining construction to be completed in 2019

65km from Fort Frances, OntarioMine life of 14 years

Tailings ManagementArea

OverburdenStockpile

WestMine RockStockpile Open

Pit

Mill

EastMine RockStockpile

Low GradeStockpile

Operational Metrics Q1 18 Q2 18 Q3 18 Q4 18 2018

Tonnes mined per day (ore and waste) 112,432 107,416 102,290 111,507 108,392

Ore tonnes mined per day 36,296 36,043 30,439 32,054 33,687

Strip Ratio (waste:ore) 2.1 1.98 2.36 2.48 2.22

Tonnes milled per day 17,534 16,549 16,962 20,668 17,934

Tonnes milled run rate1 22,771 22,364 22,318 25,835 23,291

Gold grade milled (g/t) 1.08 1.24 1.21 1.42 1.25

Gold recovery (%) 81% 87% 87% 89% 86%

Mill availability (%) 77% 74% 76% 80% 77%

Production 39,325 55,219 55,538 77,202 227,284

1. Run rate is defined by (total tonnes milled / mill availability) / calendar days.

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• Best-ever quarterly production of 77,202 ounces

• Mill run rate of 25,835 tpd vs. 24,000 tpd target

• Grade reconciliation inline with resource and dig-shape models

• Mill availability of 80%; 10 days of downtime for SAG mill starter and ball mill trunnion

• Mill recoveries expected to continue to improve in H1 2019 as upgrades and optimization of grinding circuit are completed

Rainy River: Q4 Operational Highlights

Reserve Pit

Underground Reserves and Infrastructure

Rainy River: H1 Key Objectives

Construction Completion

• Advance all remaining construction for completion in 2019

Open Pit

• Engaged external consultant to review performance-driven overall equipment efficiencies (OEE)

• Objective of optimizing open pit mining productivity

Mill Facility

• Complete outstanding mill upgrades; Objective to increase availability, throughput and recoveries

Organic Growth Opportunities

• Launch strategic exploration program

• Northeast extension

• Intrepid extension a top priority

• Evaluate options to further optimize the long-term mine plan with a focus on the underground mine plan

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22,771 22,364 22,31825,835 26,000

17,534 16,549 16,96220,668

24,000

77%74% 76%

80%

92%81% 87% 87% 89%

93%

Q1 2018 Q2 2018 Q3 2018 Q4 2018 H1 Target

Avg. TPD and Mill Availability

Tonnes milled run rate1 Tonnes milled per calendar day Mill availability (%) Gold recovery (%)

Focused on improving availability and throughput

• Stabilize mill availability; target of 92%

• Replace ball mill trunnion in Q1 and de-bottleneck tailings pumping system

• Reconfigured SAG mill liners

Increase recoveries to 93% target by minimizing gold loss in solids and solution

• Solids: Grinding medium optimization + commissioning pebble crusher = consistent grind size of 75 microns while maintaining high throughput

• Solution: Optimize carbon stripping and carbon regeneration

• Additional optimization: Commission gravity circuit

Rainy River: H1 Mill Objectives

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• Solid operational performance in Q4

• Exceeded annual gold production guidance

• Achieved high end of copper production guidance

• Internally funded development strategy re-launched for the C-zone; extend mine life to 2030 with robust economics

• Solid safety performance; Achieved 1 million person hours without lost-time injury

New Afton Mine: B.C., Canada

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Mineral Reserves and Resources (Dec., 2017) 4

Gold Grade (g/t) Gold (Koz) Copper

Grade (%)Copper Mlbs.

Proven & Probable 0.61 1,078 0.78 941

Measured & Indicated4 0.63 1,170 0.76 968

Inferred 0.39 192 0.41 131

1. Q4 production was pre-released on January 8, 20192. Guidance assumes a gold and copper price of $1,300 and $3.00, respectively, and a Canadian dollar exchange rate of $1.30 to the U.S. dollar3. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.4. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form dated March 29, 2018. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of

Mineral Reserves and Mineral Resources” and “Technical Information”. Additional information can also be found in Appendix 3. Mineral Resources are exclusive of Mineral Reserves.

Production Q4 2018 2018 2018 Guidance2

Gold Production (oz)1 18,778 77,329 55k-65k

Copper Production (Mlbs)1 20.8 85.1 75-85

Operating Costs Q4 2018 9 Months 2018

2018 Guidance2

Operating expense/Au oz.3 - 387 455-495

Operating expense/Cu lb.3 - 0.94 1.10-1.30

AISC per oz.3 - (1,097) (1,020)-(980)

Capital ($M) Q3 2018 9 Months 2018

2018 Guidance2

Sustaining Capital 9 28 40

Growth Capital 1 2 5

New Afton Operational Plan

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• C-zone development plan launched in 2019

• Continued evaluation and further de-risking of C-zone

mine plan; permit applications submission

• Ore segregation strategy to increase mill grade well

advanced; ore scanner commissioned

• Initial phase of a 2-phase mill upgrade to improve

supergene recovery completed on time and on budget

• Phase 2 mill upgrade underway; commissioning in Q3

• 2019 exploration program will target near-mine

opportunity below the C-zone

• Regional exploration focused on two near-surface

exploration targets located within 5km of mill facility

Blackwater Project: B.C., Canada

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• Open pit mine in B.C., 160km southwest of Prince George

• Currently re-evaluating project sizing and processing options

• Current reserve is defined at 8.2 Moz gold with a grade of 0.74 g/t gold

• Open pit conventional truck and shovel

• Site area is well serviced

• Environmental Assessment approval expected in 2019

• Low strip ratio

Mineral Reserves and Resources

(December 31, 2017) (1)Gold Grade (g/t) Gold (Koz)

Proven & Probable 0.74 8,170

Measured & Indicated(2) 0.71 1,402

Inferred 0.66 385

Mineral Reserves and Resources

(December 31, 2017) (1)Silver Grade (g/t) Silver (Koz)

Proven & Probable 5.5 60,800

Measured & Indicated(2) 4.5 8,915

Inferred 3.9 2,267

1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s Annual Information Form dated March 29, 2018 . Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”. Additional information can also be found in Appendix 3.

2. Resources are exclusive of Reserves.

Cerro San Pedro Mine: Mexico

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• Transitioned to residual leaching in 2016

• Produced 10,870 gold ounces on 2018

• Reclamation work in progress

• Working with local communities and government

agencies

• Reclamation security of approx. $15.6M in place

• Site reclamation to be completed within four

years of final processing, including residual

leaching in line with permit requirements

• Objective to leaving a positive legacy for the

local communities and the country of Mexico

New Gold: Key Dates & Milestones

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2019 Corporate Guidance (second-half January)

Q4 and Annual Financial Results (Feb. 14)

Completion of Rainy River mill upgrades (end of Q2)

Completion of New Afton mill upgrade (H2)

Optimization studies for Rainy River and New Afton (Q4)

Launch of exploration program at both operations (Q1)

Q1 production preview (mid-April)

Appendices

Corporate 15

Top Institutional Shareholders 19

Reserves and Resources 20

2018 Guidance

151. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.2. Guidance revised in July, 2018

Appendix 1

Gold Production Copper Production Operating Expense Operating Expense All-in Sustaining Costs1

(thousand ounces) (million pounds) ($ per gold ounce) ($ per copper pound) ($ per gold ounce)

Rainy River2 210 - 250 – $730 - $770 – $1,600 - $1,700

New Afton 55 - 65 75 - 85 $455 - $495 $1.10 - $1.30 ($1,020) - ($980)

Cerro San Pedro2 10 – 15 – $1,960 - $2,000 – $2,000 - $2,140

2018 Guidance

2018 guidance assumptions

2018

Gold price ($/oz) 1,300

Silver price ($/oz) 16.00

Copper price ($/lb) 3.00

CDN/USD 1.30

MXN/USD 18.00

Capital Structure: Summary of Debt

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REVOLVING CREDIT FACILITY SENIOR UNSECURED NOTES (November 2012)

SENIOR UNSECURED NOTES (May 2017)

Face Value $400 million(1)(2) $500 million $300 million

Maturity August 14, 2021 November 15, 2022 May 15, 2025

Interest Rate See ‘Key features’ below 6.25% 6.375%

Payable Revolving credit Semi-annually Semi-annually

Current trading value n/a 85.00(4) 78.50(4)

Key features • Interest rate spread varies between LIBOR +2.25%-3.75% based on leverage ratio

• Current interest rate spread of 3.25%

• Senior unsecured

• Currently redeemable at 102.08%,declining to 100% after 2020

• Senior unsecured

• Redeemable after May 15, 2020 at 104.8%, declining to 100% after 2023

1. In connection with the sale of Mesquite on Oct. 30, 2018, the Company added Rainy River as security to its credit facility and until the Rainy River security is perfected, which is expected to occur in early 2019. The credit facility will be limited to a maximum draw of $225 million. Figures shown reflect the full credit facility, which will be available after security perfection.

2. As at September 30, 2018. $116 million of $400 million facility used for Letters of Credit and $160 million drawn. 3. As at Sept. 30, 20184. As of November 27, 20185. See press release dated October 30, 2018

No long-term debt maturities for four years

• Cash and cash equivalents: $129 million(3)

• Proceeds from sale of Mesquite: $158 million(5)

• Short-term estimated liquidity: ~$400 million(1)

Appendix 1

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From Geology – Ore from Survey: 2017 Resource Block Model(1)

Tonnes Au g/t Ag g/t Au Ounces Ag Ounces

HGO 1,490,076 1.54 2.39 73,868 114,325

MGO 859,475 0.64 1.73 17,687 47,865

LGO 681,798 0.40 1.63 8,811 35,628

Total 3,031,349 1.03 2.03 100,396 197,949

From Geology – Ore from Survey: Grade Control Blocks

Block Model Tonnes Au g/t Ag g/t Au Ounces Ag Ounces

HGO 1,572,593 1.54 2.07 77,970 104,627

MGO 904,452 0.64 1.72 18,685 49,907

LGO 705,987 0.39 1.54 8,950 34,921

Total 3,183,032 1.03 1.85 105,659 189,777

From Geology – Ore from Surveyed Dig Shapes: Grade Control Blocks

Dig Blocks Tonnes Au g/t Ag g/t Au Ounces Ag Ounces

HGO 1,854,754 1.26 1.85 75,428 110,539

MGO 760,113 0.77 2.06 18,877 50,418

LGO 214,705 0.45 1.66 3,118 11,473

Total 2,829,571 1.07 1.90 97,423 172,429

From Mill – Ore Processed

Tonnes Au g/t Ag g/t Au Ounces Ag Ounces

Milled 1,620,498 1.21 1.80 62,949 94,029

Reconciliation between resource and blast hole model

• In Q3, the resource model has been in line with the blast hole block model

Dilution sources

• Blast hole block model to ore control shapes

• Blasting movement

• Mining narrow shapes with a large mining shovel (PC 8000)

• Sub optimal mining direction

• Total diluted grade compares favourably to the reserve model

RC Drilling

• RC Drilling program to validate and improve grade control practices and near-term mine plan

• 10,000 metres planned for 2018

Rainy River: Q3 Grade Reconciliation

HGO: High grade ore MGO: Medium grade ore LGO: Low grade ore

Appendix 1

Top Institutional Shareholders

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Institution Name Shares Held % Ownership Location

Van Eck Associates Corporation 79,531,692 13.74 New YorkKopernik Global Investors, LLC 38,810,125 6.71 TampaDimensional Fund Advisors, L.P. (U.S.) 21,307,533 3.68 AustinMorgan Stanley & Company , LLC 20,000,000 3.46 SingaporeEXOR Investments (U.K.), LLP 16,717,997 2.89 LondonT. Rowe Price Associates, Inc. 14,803,970 2.56 BaltimoreThe Vanguard Group, Inc. 14,085,477 2.43 MalvernIngalls & Snyder, LLC (Asset Management) 8,026,375 1.39 New YorkSaba Capital Management, L.P. 7,055,498 1.22 New YorkRenaissance Technologies, LLC 6,832,384 1.18 New YorkFirst Eagle Investment Management, LLC 5,987,931 1.03 New YorkMorgan Stanley & Company, LLC 5,845,314 1.01 New YorkSprott Asset Management, L.P. 5,515,588 0.95 TorontoDeutsche Bank Trust Company Americas 5,353,430 0.93 New YorkBlackRock Fund Advisors 5,340,013 0.92 San FranciscoNorges Bank Investment Management (Norway) 5,235,294 0.90 OsloFidelity Management & Research Company 5,178,619 0.89 BostonNewton Investment Management, LTD 4,861,561 0.84 LondonExane Derivatives SNC 4,586,349 0.79 ParisTD Asset Management, Inc. 4,244,851 0.73 TorontoBMO Asset Management, Inc. 4,049,916 0.70 TorontoCredit Suisse Securities (USA), LLC (Broker) 3,989,468 0.69 New YorkSchroder Investment Management, LTD 3,872,957 0.67 LondonHexavest, Inc. 3,827,980 0.66 MontrealBlueMountain Capital Management, LLC 3,824,559 0.66 New York

Source: Ipreo BD Corporate (as of January 14, 2019)

Appendix 2

Mineral Reserves and Resources Summary

191. Rainy River information as of June 30, 2018 per Technical Report 43-101 dated July 25, 2018

AS AT DECEMBER 31, 2017 AS AT DECEMBER 31, 2016

GOLD Koz

SILVER Moz

COPPER Mlbs

GOLD Koz

SILVER Moz

COPPER Mlbs

Proven and Probable reserves 13,468 77 941 13,274 75 1,033

Rainy River (1) 4,220 12 – 3,943 10 –

New Afton 1,078 4 941 1,161 4 1,033

Blackwater 8,170 61 – 8,170 61 –

Measured and Indicated resources(exclusive of reserves)(1) 4,715 21 968 4,325 19 950

Inferred resources(1) 890 4 131 1,392 4 137

Mineral Reserves and Resources Summary

Appendix 3

Mineral Reserves Statement as at December 31, 2017

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New Afton

A&B ZonesProven – – – – – – –

Probable 28,126 0.51 2.2 0.79 462 1,961 488

C-zoneProven – – – – – – –

Probable 26,741 0.72 1.8 0.77 616 1,571 453

Total New Afton P&P 54,867 0.61 2.0 0.78 1,078 3,533 941

Proven and Probable Appendix 3

METAL GRADE CONTAINED METAL

TONNES000s

GOLDg/t

SILVERg/t

COPPER%

GOLDKoz

SILVERKoz

COPPERMlbs

Rainy River(1)

Direct processingreserves

Open Pit

Proven 21,468 1.22 2.5 – 842 1,739 –

Probable 50,409 1.15 3.1 – 1,860 5,069 –

Open Pit P&P (direct processing) 71,878 1.17 2.9 – 2,701 6,807 –

Underground

Proven – – – – – – –

Probable 8,954 3.55 9.5 – 1,021 2,728 –

Underground P&P (direct processing) 8,954 3.55 9.5 – 1,021 2,728 –

Low grade reserves

Open Pit

Proven 7,407 0.38 2.0 – 90 478 –

Probable 26,900 0.36 2.4 – 308 2,086 –

Open Pit P&P (low grade) 34,307 0.36 2.3 – 398 2,564 –

StockpileProven 5,313 0.58 1.8 – 99 299 –

Stockpile reserves 5,313 0.58 1.8 – 99 299 –

Combined P&PProven 34,189 0.94 2.3 – 1,031 2,516 –

Probable 86,263 1.15 3.6 – 3,189 9,882 –

Total Rainy River P&P 120,451 1.09 3.2 – 4,220 12,398 –

1. Rainy River information as of June 30, 2018 per Technical Report 43-101 dated July 25, 2018

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METAL GRADE CONTAINED METAL

TONNES000s

GOLDg/t

SILVERg/t

COPPER%

GOLDKoz

SILVERKoz

COPPERMlbs

Blackwater

Direct processingmaterial

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

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

P&P (direct processing) 294,200 0.79 4.7 – 7,520 44,400 –

Low grade reserves

Proven 20,100 0.50 3.6 – 325 2,300 –

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

P&P (stockpile) 50,200 0.40 10.2 – 650 16,400 –

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

Mineral Reserves Statementas at December 31, 2017

Proven and Probable continuedAppendix 3

Mineral Reserves Statement as at December 31, 2017

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Appendix 3

METAL GRADE CONTAINED METAL

TONNES000s

GOLDg/t

SILVERg/t

COPPER%

GOLDKoz

SILVERKoz

COPPERMlbs

Rainy River(1)

Direct processingresources

Open Pit

Measured 2,996 1.14 5.7 – 109 550 –

Indicated 26,541 1.12 3.4 – 957 2,921 –

Open Pit M&I (direct processing) 29,537 1.12 3.7 – 1,066 3,471 –

Underground

Measured – – – – – – –

Indicated 7,934 3.06 8.6 – 780 2,206 –

Underground 7,934 3.06 8.6 – 780 2,206 –

Low grade resources

Open Pit

Measured 2,462 0.35 3.3 – 28 261 –

Indicated 23,175 0.36 2.3 – 268 1,713 –

Open Pit M&I (low grade) 25,637 0.36 2.4 – 296 1,974 –

Combined M&IMeasured 5,458 0.78 4.6 – 137 811 –

Indicated 57,650 1.08 3.7 – 2,005 6,840 –

Total Rainy River M&I 63,108 1.06 3.8 – 2,142 7,651 –

Measured and Indicated (Exclusive of Reserves)

New Afton

A&B Zones

Measured 17,155 0.63 2.0 0.83 348 1,090 313

Indicated 10,689 0.46 2.4 0.68 159 824 159

A&B Zone M&I 27,844 0.57 2.1 0.77 507 1,909 473

C-zoneMeasured 6,424 0.91 2.3 1.07 188 471 152

Indicated 11,918 0.74 2.1 0.88 284 816 231

C-zone M&I 18,342 0.80 2.2 0.95 472 1,284 383

HW Lens

Measured – – – – – – –

Indicated 11,841 0.50 2.0 0.43 191 750 111

HW Lens M&I 11,841 0.50 2.0 0.43 191 750 111

Total New Afton M&I 58,038 0.63 2.1 0.76 1,170 3,970 968

1. Rainy River information as of June 30, 2018 per Technical Report 43-101 dated July 25, 2018

Mineral Resources Statement as at December 31, 2017

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METAL GRADE CONTAINED METAL

TONNES000s

GOLDg/t

SILVERg/t

COPPER%

GOLDKoz

SILVERKoz

COPPERMlbs

Blackwater

Direct processingresources

Measured 288 1.39 6.6 – 13 61 –

Indicated 45,440 0.84 4.7 – 1,227 6,866 –

M&I (direct processing) 45,728 0.84 4.7 – 1,240 6,927 –

Low grade resources

Measured 11 0.29 7.4 – – 3 –

Indicated 15,831 0.32 3.9 – 162 1,985 –

M&I (low grade) 15,842 0.32 3.9 – 162 1,988 –

Total Blackwater M&I 61,570 0.71 4.5 – 1,402 8,915 –

Measured and Indicated (Exclusive of Reserves) continuedAppendix 3

Mineral Resources Statement as at December 31, 2017

24

METAL GRADE CONTAINED METAL

TONNES000s

GOLDg/t

SILVERg/t

COPPER%

GOLDKoz

SILVERKoz

COPPERMlbs

Rainy River(1)

Direct processing

Open Pit 3,697 1.06 3.2 – 126 385 –

Underground 1,215 3.59 2.7 – 140 107 –

Total Direct Processing 4,912 1.69 3.4 – 266 492 –

Low grade material Open Pit 3,959 0.37 1.4 – 47 180 –

Total Rainy River Inferred 8,871 1.10 2.4 – 313 672 –

Blackwater

Direct processing 13,933 0.76 4.0 – 341 1,792 –

Low grade resources 4,225 0.32 3.5 – 44 475 –

Total Blackwater Inferred 18,159 0.66 3.9 – 385 2,267 –

Inferred ResourcesAppendix 3

New Afton

A&B Zones 7,564 0.35 1.3 0.35 85 322 58

C-zone 7,688 0.43 1.3 0.48 106 325 72

HW Lens – – – – – – –

Total New Afton Inferred 15,253 0.39 1.3 0.41 192 647 131

1. Rainy River information as of June 30, 2018 per Technical Report 43-101 dated July 25, 2018

Reserves and Resources (notes)

25

MINERAL PROPERTY RESERVESLOWER CUT-OFF

RESOURCESLOWER CUT-OFF

GOLD $/oz

SILVER $/oz

COPPER$/lb

CAD/USD MXN/USD

Mineral Reserves $1,275 $17.00 $2.75 1.30 18.00

Mineral Resources $1,375 $19.00 $3.00 1.30 18.00

1. New Gold’s Mineral Reserves and Resources have been estimated in accordance with the CIM Standards, which are incorporated by reference in NI 43-101.

2. All Mineral Resource and Mineral Reserve estimates for New Gold’s properties and projects are effective December 31, 2017, except for Rainy River, which have been reported as of June 30, 2018 per the Technical Report dated July 25, 2018.

3. New Gold’s year-end 2017 Mineral Reserves and Mineral Resources, including the Mineral Reserves and Resources for Rainy River reported in the Technical Report dated July 25, 2018, have been estimated based on the following metal prices and foreign exchange rate criteria:

BlackwaterO/P direct processing:O/P low grade material:

0.26 – 0.38 g/t AuEq0.32 g/t AuEq

All Resources: 0.40% AuEq

Rainy River

O/P direct processing: 0.30 – 0.50 g/t AuEq 0.30 – 0.50 g/t AuEq

O/P low grade material: 0.30 g/t AuEq 0.30 g/t AuEq

U/G direct processing: 2.20 g/t AuEq 2.00 g/t AuEq

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

Appendix 3

New AftonMain Zone – B1 & B2 Block: C$ 17.00/t

All Resources: 0.40% CuEqB3 Block & C-Zone: C$ 24.00/t

1. Rainy River information as of June 30, 2018 per Technical Report 43-101 dated July 25, 2018

Reserves and Resources notes (cont’d)

26

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, economic and legal feasibility, do not have demonstrated economic viability, and are likewise exclusive of mineral reserves. Numbers may not add due to rounding.

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 most suitable to their potential commercial extraction. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators ‘open pit’ and ‘underground’ are used to indicate the envisioned mining method. Likewise in certain instances, the designators ‘direct processing’ and ‘lower grade reserves’ or ‘lower grade resources’ have been 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 information 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. Rainy River Mine: In addition to the criteria described above, mineral reserves and mineral resources for the Rainy River Mine are reported according to the following 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 a $1,275/oz gold price. Open pit and underground mineral resources are reported based on a $1,375/oz gold price. Open pit mineral resources are reported from within an open pit resource shell that extends to a depth of approximately 400 metres from surface. Underground mineral resources are reported below and peripheral to the mineral resource pit shell. Approximately forty percent (40%) of the gold metal content defined as underground mineral reserves is derived from material located between the mineral reserve pit shell and the mineral resource pit shell; the remaining sixty percent (60%) of the metal content defined as underground mineral reserves is derived from material located below the mineral resource pit shell. Open pit mineral resources exclude material reported as underground mineral reserves.

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.

Endnotes

27

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 news release 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 news release 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 relating to the operation of New Gold’s operating mines contained herein has been reviewed and approved by Mr. Nicholas Kwong, Director, Business Improvement of New Gold. All other scientific and technical information contained herein has been reviewed and approved by Mr. Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Kwong is a Professional Engineer and a member of the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Petersen is a SME Registered Member and AIPG Certified Professional Geologist. Mr. Kwong and Mr. Petersen are "Qualified Persons" for the purposes of Canadian NI 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, 2017 filed on www.sedar.com and the Rainy River Technical Report dated July 25, 2018.

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 (as presented in the cash flow statement), 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 in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

“Sustaining costs” is a non-GAAP financial measure. New Gold defines sustaining costs as the difference between all-in sustaining costs and total cash costs, being the sum of net 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. Management uses sustaining costs to understand the aggregate net result of the drivers of all-in sustaining costs other than total cash costs. The line items between cash costs and all in sustaining costs in the tables below break down the components of sustaining costs. Sustaining costs is intended to provide additional information only and 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.

Endnotes

28

(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 news release 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 in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(3) CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL“Cash generated from operations before changes in working capital” is a non-GAAP financial measure with no standard meaning under IFRS, excludes changes in non-cash operating working capital. Management uses this measure to evaluate the Company’s ability to generate cash from its operations before working capital changes. Further details regarding cash generated from operations before changes in working capital and a reconciliation to the nearest IFRS measure is provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(4) ADJUSTED NET EARNINGS/(LOSS)“Adjusted net earnings/(loss)” and “adjusted net earnings/(loss) per share” are non-GAAP financial measures. Net earnings/(loss) have been adjusted and tax affected for the group of costs in “Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings/(loss) 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) 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. Further details regarding average realized price and a reconciliation to the nearest IFRS measure is provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(6) 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.

(7) FREE CASH FLOW

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